Kadi Fadika-Coulibaly is the General Manager of the Ivorian broker SGI Hudson & Cie since 2012. The company is one of the market leaders in terms of volumes processed.
First, can you introduce yourself? Who is Kadi Fadika?
Kadi Fadika wife Coulibaly is today a mother of three children and leader of an integrated stock exchange company that radiates from Ivory Coast on the sub-region and the world. Yesterday I was a student in econometrics, statistics and finance, then a young executive in the banking sector and financial advisor. I lived nomadically between 1990 and 2008 between Ivory Coast, Senegal, Switzerland, France, the United States and Canada.
What is the path that led you to Hudson & Cie?
My university education focused on economics and statistics applied to finance allowed me to have the necessary knowledge to a financial market professional when the BRVM was set up in 1997. My last apprenticeship in the House of Commerce and Industry of Abidjan allowed me to identify the opportunity to integrate the financial market at the start of these activities. I joined Hudson in 1998 as a financial engineering student. I resigned from this position to obtain an MBA in the US and then joined Royal Bank in Canada where I worked as a private investment advisor through collective management products. When I wanted to return to Ivory Coast, several opportunities were offered to me in particular in the banking sector and the BCEAO. I chose to return to the financial market because it was the only opportunity that allowed me to have a share of the business and thus be associated with strategic decisions.
What is the weight of Hudson & Cie in the various compartments of the regional financial market today?
In 2017, in the secondary market Hudson ranked 1st broker in the sub-region with around 20% market share. In the primary market, we were also the most active SGI in terms of new IPO operations, having been the leader on 50% of the last transactions carried out on the BRVM. Finally, we ranked 1st SVT for the State of Côte d’Ivoire in 2017 on the amounts raised on the primary monetary market.
What changes do you think are desirable in the operation and organization of stockbroking firms in the WAEMU zone?
In operational terms on the activity, brokerage firms should seek the quality of service to investors in order to increase the savings invested in the regional financial market. This involves training employees so that they can easily answer investor questions and be proactive. Business diversification with a focus on creating new products and innovation enabling a more active primary market. With respect to the organization, the brokerage firms must become stronger entities in terms of resources and equity that support their activities, as well as regarding their operating procedures. The forthcoming introduction by the regulator of a more elaborate prudential system should help in this direction and will of course reassure investors.
What are your predictions for the evolution of the BRVM in the second half of 2018?
The market has been falling for 3 years now, due to several factors. I can mention the profit taking following the sharp rise recorded since 2012. Then several events on value, splits and distributions of free shares, poorly understood by the market that sanctioned the values concerned. Now we are seeing mixed results and risks in certain business sectors coupled with regulatory changes and periods of economic sluggishness surrounding the elections in the EU. All these elements contribute to maintain a downward trend in the market, which should only be partially absorbed at the end of the year because of the end-of-year booms that all markets are experiencing around the world. In a longer perspective, today’s prices (PE 12x) correspond to those of 2010 before the period of strong increase while the value of transactions and market capitalization more than doubled and the growth prospects of the Union announced are very good. An opportunity is created here for investors to enter the market on this trend and seize the anticipated growth. We must not look at a situation to stop investing. On the contrary, knowing how to identify the right moment to seize the best opportunities on growth stocks such as banks, telecoms, and industries that produce consumer goods.
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