Country Overview and The Recent Developments of the Libyan Stock Market

Presented by:

Mr. Ahmed Nagi

Central Depository Manager

AMEDA 12TH MEETINGSEBRATHA, LIBYA

28th NOV 2010TO

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.

• 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.

LIBYA

• 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

BENGHAZI

TRIPOLE

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.

• Market capitalization (2010): 3,478,170,831.60 LD

• Daily average trading (2010): 304,005.260 LDin about 7,465 transactions

• Number of Brokerage companies (2010): 12• Number of listed companies on the main Table

(2010): 12

LSM

Sources: LSM

CSD within LSM

TradingClearing, Settlement& Depository (CSD)

Registry

Stock Transfer• Corporate Actions• Bonus shares• Stock Split• Raising capital• Dividends Payments

Trading Settlement

Investor Numbers

Custodian Services

Organizing trading

Listing securities

Brokerage licensing

Market Control

Brokers Monitoring

Disclosure monitoring

CSD Services• 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

ContinuousTrading

Order Entry

9:00 amPre-Open Session

10:00To

12:00

• 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

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????