Transcript The Recent Developments of the Libyan Stock Market

Country Overview and The Recent
Developments of the Libyan Stock Market
Presented by:
Mr. Ahmed Nagi
Central Depository Manager
AMEDA 12TH MEETING
SEBRATHA, LIBYA
28th NOV 2010
TO
01st DEC 2010
LIBYA
Information on Libya
• Location
Libya has a geo-strategic location,
which lies on the southern coast of
the Mediterranean Sea with a length
of 1900 Km, from the west
its neighbors Tunisia and Algeria,
and Egypt from the east. To the
south there is Chad, Niger and
Sudan.
Libya is situated between latitudes
33-18 N 45-12 to the south and
between longitude 25.9 east .
Libya is the fourth African country in
terms of area of 1.775,000 square
kilometers. .
• About LIBYA:
• Total population: 6,420,000
• Free democratic system
• Modern Infrastructure is in progress.
LIBYA
• Economy - overview:
The Libyan economy depends primarily
upon revenues from the oil sector, which constitute
practically all export earnings and about one-quarter
of gross domestic product (GDP).
Today, high oil revenues and a small population give Libya
one of the highest GDPs per person in Africa and have
allowed Libya to provide an extensive level of social
security.
• Major Economic Indicators (2009):
• Total GDP (at current prices) $.96.138 Billion
• Income per capita $. 14.884
• Inflation %. 2.4
LSM
• Libyan Stock Market (LSM):
• The Libyan Stock Market (LSM) has been established since the year of 2006
• By the decree of the General People’s Committee No. (134
• LSM is under the supervision of Secretary for the People’s Committee for
Economics, Trade and Investment (Ministry of Economy)
• LSM is organized as a corporation and acting as an exchange, a depository
center and a capital market aythority.
• The General People's Committee issued decision No. (436) and for the year
2008 on the issuance of the new statute for the Libyan stock market, and to
raise its capital to LD 50,000,000 subscribed fully by the Economic and Social
Development Fund
• By the end of 2008, the ESDF AND LSM Board of directors decided to issue
IPOs to the general public and to list in the stock market.
• LSM headquarter is placed in Tripoli and the main branch is in Benghazi
and both locations are linked together.
• Now under the umbrella of the Capital Market Law No. 11 for the year 2010.
Networking
TRIPOLE
BENGHAZI
Recent Developments
• The increased number of investors that
reached around 250,000.
• Number of Registered Companies 41.
• The increase of the average daily trading value
from 157,298 L.D in 2008 to 304,005 L.D in
2010.
• Launching new Investor services in the LSM.
(Call Center, SMS, Fax, Portal)
The Capital Market Law
• The issuance of the Capital Market Law with
the help of GPC is one of the most important
achievements of the LSM
• The Law regulates the Market in matters
relating to listing, trading, membership ,
registration, and depository
• This achievement will open the door to a
more secure and flexible trading in the
Market.
LSM
• Market capitalization (2010):
3,478,170,831.60 LD
• Daily average trading (2010): 304,005.260 LD
in about 7,465 transactions
• Number of Brokerage companies (2010): 12
• Number of listed companies on the main Table
(2010): 12

Sources: LSM
CSD within LSM
Organizing trading
Registry
Listing securities
Stock Transfer
• Corporate Actions
• Bonus shares
• Stock Split
• Raising capital
•Dividends Payments
Trading Settlement
Brokerage licensing
Market Control
Disclosure monitoring
Brokers Monitoring
Investor Numbers
Custodian Services
CSD Services
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Custodian of All Financial Securities
Settlement & Clearing
Corporate Actions
Issuer Services
Investor Services
Brokerage Firms Services
Dividend Distribution.
IPO Management.
LSM
Fully Automated Trading system
Recorded phones
Settlement type is T + 3
Trading priorities : Best price & best time
Prompt transfer of ownerships
LSM is accessible to all international investors
Absence of Capital gain tax
LSM Trading Session
Order Entry
9:00 am
10:00
To
12:00
Pre-Open Session
Continuous
Trading
CSD
• DEPOSITRY & REGESTRY CENTER (CSD) Role:
• Provide reliable clearing, settlement, central depository and
shares registration.
• ROLLING SETTLEMENT CYCLE : T+3
• SETTLEMENT BANK : WHDA BANK
• SETTLEMENT TAKES PLACE AT 3:00 P.M
CSD
• Paying dividends to shareholders of the listed
companies.
• Inheritance.
• Pledging of securities.
• IPO’s management.
CSD Investor Services
1. Generating and updating the unified Investor Number (IN).
2. Reserving securities of investors unwilling to trade.
3. Transferring securities ownership between investors in execution
of families & inheritance deals, court orders, trades made prior
to the listing in the market.
4. Issuing two types of “Securities Balance Statements” at request.
CSD Investor Services … cont
5. Providing E-Services to Investors, enabling them to register
through “Electronic Reports” , to view their stock account
balances online.
6. Marking pledge on securities
The LSM Web-Site
International Organizations
The LSM deals with various International Organizations which
relate to the Securities Exchange.
• UASE, www.UASE.org
• ASEA, www.asea.org
• IOSCO, www.iosco.org
• ANNA, www.anna-nna.com
• WFE (Correspondent), www.world-exchanges.org
• AMEDA, www.ameda.org.eg
• IFIE
, www.ifie.org
Union of Arab Stock Exchange
• The Libyan Stock Market now leads the
management of the Union of Arab Stock
Exchanges after hosting the meeting in Tripoli,
Libya on the 17th April, 2010
Thank you for listening
Any Questions????