Macedonian Stock Exchange 2009 ACCOMPLISHMENTS and 2010 Future Outlook Wednesday, 27 January 2010
The repercussions of the world economic crisis continued to affect the Macedonian economy and subsequently the Macedonian capital market in 2009.
The conditions of the Macedonian capital market in 2009 were very complex. The total turnover in 2009 was reduced for 45% comparing with 2008. Even the main MSE index MBI10 registered annual growth of 31% the stock prices were at the level of June 2006. The average daily turnover in the BEST system in December 2009 was around 273,000 euros and was at the same level as on June 2005 and the market capitalization of the listed companies has fallen more than 72% compared to record levels in 2007. The participation of foreigners in the purchase side of the turnover in 2009 was about 15%.
Considering these numbers, we can stress several main characteristics of the events of the Macedonian Stock Exchange in 2009 such as reduced liquidity in the market, withdrawal or passivity of foreign portfolio investors, change of the market structure in terms of types of investors, making the stock market with a pronounced domination of the local retail investors.
In 2009 the MSE continued to upgrade its operations and rules and procedures to provide improved service to market participants, exchange members and investors. MSE implemented changes in the Listing Rules by which new higher standards for disclosure for the companies on the Exchange Listings were introduced (appointment and publishing an investor’s relations person; more précised obligations for announcing the buying/selling of shares by the members of the Management and Supervisory board; the issuers are obliged to publish the Semi Annual Balance, the Annual report and the financial plan for the ongoing period). MSE established a new version of the trading system based on the new technologies. The new version will support FIX Protocol.
Within the framework of the Memorandum of Partnership signed between the exchanges in Southeast Europe during the 2009 two road shows took place (in Belgrade and in Vienna) where the top issuers and the capital markets from the region were promoted in order to increase the visibility of the regional capital markets and to attract international investors.
In the forthcoming period, the MSE focus will be on the further development of the Macedonian Secondary Market to the extent that it will be comparable to the modern and well organized markets worldwide, as well as on increasing of its attractiveness, by creating mechanisms, procedures and projects that will enhance the quality and the competitiveness of MSE services.
The MSE plans for 2010:
- Modernizing the Trading System – introduction of FIX Protocol;
- Attraction of new listings on the Official Market;
- To increase visibility of the Macedonian Stock Exchange by providing more data-feeds to more data vendors;
- Either alone or through various forms of cooperation with other regional exchanges MSE will be involved in the processes of promotion of its market and issuers and products in order to attract international as well as regional investors.
- Development and promotion of a new Internet Services for investors, financial analysts and financial intermediaries, called BESTNET ANALITICS which contains three modules: Technical Analysis, Fundamental Analysis and My Portfolio;
- MSE will continue to increase the knowledge of capital market participants, institutional as well as retail investors, issuers and media for exchange traded products, trading, transparency, investor protection and corporate governance – creating a special training center.