THE STOCK MARKET IN MAURITIUS Performance and Attributes Presented by Sunil Benimadhu Chief Executive (ASEA Meeting Cairo, September 2005)

PRESENTATION OUTLINE Salient features of the Mauritian Economy Performance indicators of the Mauritius Stock Market Comparative valuation ratios Performance indicators of Top Ten most liquid stocks Why invest on the Mauritius stock market Operational and regulatory features of the Stock Exchange of Mauritius Looking ahead

Salient Features of the Mauritian Economy Mauritius has undergone a radical change of its economic structure during the last two decades. Reliance on a diversified economic base and an export-oriented economy has generated an annual average growth rate of 6% for 15 years. Mauritius enjoys one of the highest GDP/capita of US$ 5100 in Africa. Mauritius is developing as a service-oriented economy, which will try to derive its growth from BPO activities. Mauritius enjoys political stability which british- based parliamentary democracy.

Performance indicators of the Mauritius Stock Market

Comparative valuation ratios

Performance indicators of Top Ten Most liquid stocks

Why invest on the Mauritius Stock Market A forward-looking economy which aims at growing at a rate of 7% per year. Listed companies earnings are expected to grow at double-digit percentage levels. Average market valuation level is healthy and is below 10. Market offers potentially attractive returns. Market operates in line with international standards (technical, operational and regulatory). Good corporate governance and proper disclosure (i.e at the forefront of listed companies’ priorities).

Operational and regulatory features of the Stock Exchange of Mauritius Fully automated stock exchange. Modern CDS – strict delivery versus payment on T+3. Modern automated trading system which incorporates interest trading facilities. Stock Exchange of Mauritius operates as a Self- Regulatory organisation under the supervision of a regulator, the Financial Services Commission. SEM’s activities governed by a newly enacted Securities Act.

Looking Ahead Stock Exchange of Mauritius is going through a major structural change. An Alternative Development Market will soon be created. Trading of medium-term and long-term government bonds will soon be introduced. SEM looking to develop into an international exchange for the listing of offshore funds.