2019 - cosse · 2019. 5. 27. · 1.48% 0.52% banco de fomento angola standard bank angola banco...

0 BODIVA MARKET REPORT I QUARTER 2019

I QUARTER

2019 QUARTERLY MARKET REPORT


ÍNDICE EXECUTIVE SUMMARY ................................................................................................................................. 2

TRADING ....................................................................................................................................................... 3

TRADING EVOLUTION ............................................................................................................................... 3

PRICE ANALYSIS ......................................................................................................................................... 7

BROKERS PERFORMANCE ......................................................................................................................... 8

COMPARATIVE ANALYSIS: PRIMARY VS SECONDARY MARKET ................................................................ 9

FINAL COMMITTEES ANALYSIS ..................................................................................................................... 10

MAIN PLAYERS ......................................................................................................................................... 10

CLEARING & SETTLEMENT .......................................................................................................................... 13

ACCOUNTS............................................................................................................................................... 13

SECURITIES UNDER CUSTODY .................................................................................................................. 13

SETTLEMENT ........................................................................................................................................... 15

RELEVANT FACTS ........................................................................................................................................ 17


EXECUTIVE SUMMARY ➢ Compared to the same period, the traded amount decreased by 0.02%, from $ 668 to $

669 million;

➢ 1,145 trades were carried out, an increase of 190% over the same period in which there were only 394 trades;

➢ Of the total trades, only 100 were interbank, with March having 46 deals, and January and February with 30 and 14, respectively;

➢ Of the traded amount, about 85.37% refers to securities that have a residual maturity of less than 3 years;

➢ Treasury bonds indexed to the US dollar (OTX) represented approximately 76.47% of the amount traded, a decrease of about 9.7% over the previous quarter;

➢ The non-adjusting treasury bonds (OTNR) represented around 11.81%, and treasury bills (BT's) accounted for 11.72%. Colective Investment Schemes represented only 0.001%;

➢ BFA, SBA and BAI account for approximately 70.70% of the amount traded, of which 25.82%, 24.75% and 20.13% respectively;

➢ Securities traded on the secondary market represented, on average, about 0.81% of the public debt stock entitled;

➢ The main players in the secondary market are brokers, with 53.9% of the amount traded, followed by the 40.1 company and private customers, with only 6.0% of the total traded;

➢ In the period under review, 62 individualized accounts were opened, totaling 7,559

accounts opened in 2018;

➢ The amount under custody at CEVAMA was $ 2.2 billion;

➢ 1145 trades were settled, corresponding to $ 203 million.


TRADING

TRADING EVOLUTION During the first quarter of 2019, 1,145 trades were carried out on the regulated markets under

management of BODIVA, totaling $ 669,030,846, an increase of 0.02% over the same period of the

previous year.

Graph 1 – Traded Amount

The average monthly traded amount was $ 223,01 million, with February being the month with the

highest trading, with $ 290,9. Bellow the, the monthlly evolution:

Graph 2 – Monthly Traded Amount

$668,898,143.30 $669,030,846.75

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

I Quarter 2018 I Quarter 2019

MIll

ion

s

$141.18

$227.38

$300.34

$165.73

$290.98

$212.33

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

January February March

Mill

ion

s

2018

2019


The number of executed trades in relation to the same period increased by 190.6%, with 1,145 trades.

The monthly average was 382.

2018 2019 Var(%) Monthly Average 2019

394 1,145 190.61% 382

Graph 3 – Monthly Trades

In relation to the trades carried

out, by year of maturity, and in

comparison with previous

periods, there is a tendency to

increase trades in securities with

residual maturities up to 3 years.

Securities with maturity up to

2021 represent 71% of the

amount traded.

77

118

199

411

335

399

0

50

100

150

200

250

300

350

400

450

January February March

Trad

es

Exe

cute

d

2018

2019

Graph 4 – Traded Amount by maturity year

$- $100 $200 $300 $400

2019

2020

2021

2022

2023

2024

2025

Millions


The number of trades is also

concentrated in the shorter

maturities, with special emphasis

for the year 2020.

As a result, the trades carried out in

2019 and 2020 maturities

accounted for 36.85%, 46.538%,

totaling approximately 83.38% of

the executed trades.

Graph 5 – Number of Trades per maturity year

Regarding to the amount traded by

type of security, the predominance of

treasury bonds (88.28%) is confirmed,

to the detriment of treasury bills

(11.72%).

On the other hand, colective investment

schemes trading represents only

(0.001%) of the total traded as

evidenced by the chart below.

Graph 6 – Traded Amount per Instrument Category

$7,011.39

$590,636,555.61

$78,387,279.74

Colective Investment SchemeGovernment BondsTreasury Bills


Treasury Bonds represent

approximately 68.12% of the executed

trades. Although Treasury bills represent

only 11.72% of the amount traded, they

accounted for 31.18% of the trades

executed. Colective Investment

Schemes, with only eigth (8) trades

accounted for only 0.7%, as evidenced by

Graph 7.

Graph 7 – Trades per Instrument Category

Regarding the characteristics of the

most traded securities, Treasury Bonds

indexed to the US dollar accounted for

76.46% of the amount traded.

Thus, despite the greater predictability

of the exchange rate, investors continue

to favor trading of instruments that

hedge against the devaluation of the

national currency (kwanza).

Graph 8 – Traded per Instrument Category

357

780

8

Treasury Bills

Government Bonds

Colective Investment Schemes

11.72%

11.81%

76.47%

0.00%

Treasury BillsNon Indexed Goverment BondsUSD Indexed Government BondsColective Investment Schemes


PRICE ANALYSIS In terms of the pricing practiced for each year of maturity, the negative relationship between maturity

and discount rates was maintained, with the spread between short-term and OT-NR long-term

securities being approximately 32.9%. This may indicate that the market perceives long-term securities

as being more risky, with liquidity risk being the most obvious. Below the average price of the business

according to the maturity year.

Graph 9 – Average Price per Maturity Year

Instrument Category 2019 2020 2021 2022 2023 2024 2025

USD Indexed Government Bonds 99.20 99.98 98.30 96.75 96.79

Non Indexed Government Bonds 95.23 88.65 81.79 68.67 66.95 62.24 56.77

0

10

20

30

40

50

60

70

80

90

100

110

2019 2020 2021 2022 2023 2024 2025

% o

f N

om

inal

Val

ue

Non Indexed Government Bonds USD Indexed Government Bonds


BROKERS PERFORMANCE As far as trading members performance is concerned, of the 18 BODIVA members, only 10 contributed

to the traded amount. Particular emphasis is placed on Banco Fomento Angola (BFA), Standard Bank

Angola (SBA) and Banco Angolano de Investimentos (BAI), which occupy the top three places and whose

transactions accounted for about 82.5% of thae market.

Graph 10 – Traded amount by brokers

BFA continues to lead the market, with a traded amount of $345,4 million, however its market share

decreased from 52.87% to 25.82%. SBA saw its market share rose from 16.20% to 24.75%, having traded

$ 331,1 million. Having increased exponentially the amount traded, BAI saw its market share increase

from 6.48% to 20.13%.

Traded Amount Market Share Traded Amount Market Share

1 Banco de Fomento Angola 707,332,278.47$ 52.87% 345,472,218.18$ 25.82%

2 Standard Bank Angola 216,671,251.52$ 16.20% 331,125,941.39$ 24.75%

3 Banco Angolano de Investimentos 86,651,123.51$ 6.48% 269,413,820.83$ 20.13%

4 Banco BIC S.A 140,014,125.22$ 10.47% 84,554,422.54$ 6.32%

5 Banco Millennium Atlântico 84,045,656.56$ 6.28% 141,970,643.76$ 10.61%

6 Banco de Negocios Internacional 37,708,377.29$ 2.82% 28,285,958.93$ 2.11%

7 Banco Caixa Geral Angola 30,084,528.63$ 2.25% 4,868,830.81$ 0.36%

8 Banco Económico 23,103,015.02$ 1.73% 89,916,450.27$ 6.72%

9 Banco SOL -$ NA 19,861,208.16$ 1.48%

10 Banco Regional do Keve 11,705,728.04$ 0.88% 15,572,954.72$ 1.16%

11 Banco YETU S.A -$ 0.00% 7,019,243.92$ 0.52%

12 Madz Global SCVM 480,202.34$ 0.04% -$

1,337,796,286.60$ 100% 1,338,061,693.49$ 100%Totals

2019Ranking Broker

2018

1. Traded amount double counted .

25.82%

24.75%

20.13%

6.32%

10.61%

2.11%

0.36% 6.72%

1.48% 0.52%0.00%Banco de Fomento Angola

Standard Bank Angola

Banco Angolano de Investimentos

Banco BIC S.A

Banco Millennium Atlântico

Banco de Negocios Internacional

Banco Caixa Geral Angola

Banco Económico

Banco SOL

Banco Regional do Keve

Banco YETU S.A

Madz Global SCVM


COMPARATIVE ANALYSIS: PRIMARY VS SECONDARY MARKET

In the period under review, issues in the public debt primary market reached $ 608,37 million, while in

the secondary market a total of $ 669,03 million was traded.

Graph 11 – Traded amount in Secondary Market vs. Issued Amount in Public Debt Primary Market

The traded amount on the secondary market accounted for 109.97% of the total issuance in the primary

market.

When comparing the traded amount in the scondary market with the public debt stock, which averaged

$ 27,28 billion, we can observe that, on average, the secondary market represented about 0.81% of the

public debt stock. Below, the monthly evolution

Graph 12 – Weight of the amount traded in secondary market on internal public debt

January February March Year to Date

Secondary Market $165,725,830.99 $290,977,080.38 $212,327,935.37 $669,030,846.75

Primary Market $- $371,879,814.42 $236,494,997.75 $608,374,812.17

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

MIl

lion

s

Secondary Market Primary Market

0.63%

1.06%

0.76% 0.81%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

January February March Quarter Average


FINAL COMMITTEES ANALYSIS

MAIN PLAYERS Regarding to the final benificiaries of the executed trades during the first quarter of 2019, there is a

prevalence of brokers and corporate clients, which account respectively for 43.9% and 40.1% of the

traded amount. Retail clients represented only 6%.

Final Committee Traded Amount % Corporate Clients $ 537,217,024.17 40.1% Brokers $ 720,833,016.60 53.9% Retail Clients $ 80,011,652.73 6.0%

Total $ 1,338,061,693.49 100%

Below, the Graph analysis:

Graph 13 – Weigth of final committees

40%

54%

6%

Corporate Clients

Brokers

Retail Clients


When analyzing purchase transactions, it is verified that the brokers represent 51.8% of the total

amount, and corporate and retail clients represent only 38.7% and 9.4%, respectively.


Total $ 669,030,846.75 100%

Regarding to sales transactions, brokers accounted for 55.9% of the total amount, followed by

corporate clientes and retail clients representing 41.6% and 2.5%, respectively:


Total $ 669,030,846.75 100%

Regarding to the number of trades and the buying

or selling position of the final benificiaries, the trend

in terms of the traded amount is confirmed, that is,

the brokers favor the selling position to the

detriment of the buying position.

On the other hand, the corporate and retail clients

present opposite behavior, privileging the buying

position.

Final Committee Buy Sell

Corporate Clients 183 166

Brokers 268 863

Retail Clients 688 110

Total 1139 1139


When analyzing the data from a sectoral perspective, we find that Oil&Gas companies were the ones that traded the most in the purchasing position with a total of $ 109,72 million. In terms of sales, the Wholesale and Retail clients trade held the lead with $ 101,02 million, followed

by the Services sector with $ 51,55 million and the Manufacturing Industry sector with $ 47,04 million.

Graph 14 - Weigth of companies by sector of activity

12%

0%

13%

0% 2%

15%

5%

42%

4%

0%2%

0% 0%

36%

11%

0%

17%

5%

11%

19%

0% 0%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

C V


CLEARING & SETTLEMENT

ACCOUNTS

During the first quarter of 2019, 625 segregated accounts were opened. In that period, March had the

largest number of new registrations. As result, the first quarter closed with a total of 7559 active accounts,

which includes the members' own portfolio accounts, issuer accounts, settlement accounts and individual

registration accounts.

Graphic X – Evolution of open accounts

SECURITIES UNDER CUSTODY

Public Debt

In the first quarter of 2019, 94,081,077 treasury securities were deposited, of which 93,395,661 are

Treasury Bills and 685.416 Government Bonds, which represent a total amount of AOA 93,395,661,000

(USD 299.864.062,80) and 129.220.826.424,6 AOA (USD 414.887.389,79) respectively.

Graphic 14 – Custody

206 174 245625

7559

0

1000

2000

3000

4000

5000

6000

7000

8000

Jan Feb Mar Total firstquarter

GrandTotal

Jan Feb MarTotal on29th Mar

Série1 7,931,257 59,744,763 26,405,057 173,966,540

0

50

100

150

200

Mill

ion

s


In terms of Public Debt, BODIVA has 94,081,077 securities under custody, of which 99% correspond to a

Treasury Bills and 1% to Government Bonds. Compared to the same period in 2018, there was an increase

of 2,240%.

Graphic X – Typology and quantity

The securities under custody accounted for USD 7,091,245,036.81, from which 92% is represented by

Government Bonds as suggested by the graphic.

Graphic 16 – Amount and typology

0

10

20

30

40

50

60

70

80

90

100

T.Bills Bonds Bondsfloating

Mill

ion

s

T.Bills BondsBonds

floating

Série1 299,864,063 154,426,893 260,460,497

0

50

100

150

200

250

300

350

Mill

ion

s


Corporate Issues

With Standard Bank Angola's Corporate Bonds, which were integrated in November, Central Securities

Depository (CEVAMA) registered an increase of USD 15,090,220.25 in the custody amount, representing

21% of the total.

The shares of the Collective Investment Scheme promoted by Banco de Fomento Angola (BFA)

amounted to USD 57,792,332.88, representing 79% of USD 72,882,533.14 held in custody.

Graphic 17 – Market and typology of custody

SETTLEMENT

Primary Market – Investor’s Portal (Portal do Investidor1)

During the last quarter of the year, 229 deals were settled, totaling USD 7,004,803.31.

Graphic 18 – Number of deals and amount

1 The Angolan Treasury places treasury bonds directly to the public through the “Investor’s Portal”, which allow retail investors to acquire

treasury bonds online through a website.

Pravite BondsCollective

InvestimentPublic Debt

Quantity 47,000 18,000,000 173,966,540

AOA 4,700,000,000 18,000,000,000 2,208,639,179,164.49

USD 15,090,220.25 57,792,332.88 7,091,245,036.81

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

0

500

1,000

1,500

2,000

2,500

Bill

ion

Bill

ion

Feb Mar Total

USD Amount 2,922,591.91 4,082,211.40 7,004,803.31

Nº Negócios 111 118 229

0

2000000

4000000

6000000

8000000


Regarding the type of Security, Treasury Bills had better adherence of investors, resulting in investment

of USD 5,147,519.28, corresponding to 73% of the amount settled in the quarter.

Graphic 19 – Primary market negotiation per Type of security

Secondary market.

Throughout the first quarter, 1145 deals were settled, which corresponds to over AOA 211 billion.

Graphic 20 – Secondary market

T.Bills Bonds

Quantity 1,808,740.00 7,003.00

USD Amount 5,147,519.28 1,857,284.03

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Mill

ion

s

Mill

ion

s

Jan Feb Mar

Deals 411 335 399

AOA 52,313,196,356.66 92,096,585,676.12 67,122,177,021.86

USD 167,961,203.23 295,693,140.94 215,508,177.69

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0

10

20

30

40

50

60

70

80

90

100B

illio

n

Bill

ion


RELEVANT FACTS

A. Market Laws and Regulation:

I. The following Instructions of the Capital Markets Commission were published;

a. Regulamento N.º1/19 – Regulated Markets Management Companies;

b. Regulamento N.º2/19 – Collective Investment Schemes in Venture

Capital;

c. Regulamento N.º3/19 – Collective Investment Schemes for Asset

Securitization;

d. Regulamento N.º4/19 – Asset Management Companies.

2019 - cosse · 2019. 5. 27. · 1.48% 0.52% banco de fomento angola standard bank angola banco...

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