JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
ZAGREB STOCK EXCHANGE
Zagreb Stock Exchange will continue its
work on encouraging issuers to raise capital
through the stock exchange, developing new
products and services such as short selling
and certificates, maintaining market integrity
and investors’ confidence as well as providing
a reliable mechanism for funding the growth
of Croatian economy and raising awareness
about the importance of capital markets as
one of the most significant factors in economic
development.
Positive moments undoubtedly persist but
certain risks remain, challenging sustainable
market recovery and Zagreb Stock Exchange
will carefully observe global as well as regional
economy and equity market trends and remain
in line with market expectations in order to
become the market of choice in the region.
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
After the downgrade of Croatia to subinvestment
grade (S&P, Moody’s), pressure on
policy makers is even stronger to implement
the consolidation on the expenditure side of the
budget, to halt the unsustainable public debt
growth dynamics and to address the problem
of structural rigidities in order to increase
competitiveness of Croatian economy.
The Croatian market is one of the smaller
markets by international standards.
Nevertheless, we expect that the importance
of the ZSE will increase in light of Croatia’s
impending accession of the European Union
and consequently there should be a rise in
trading volumes, the historically low level of
which is currently putting off non-residents from
larger portfolio investments. The upcoming
privatisations will also have a benign impact on
liquidity, as there is still plenty of potential in this
field.
Although significantly changed circumstances
in the European market (e.g. recession,
debt crisis) surely limit the positive effects of
membership, we think that Croatia will enjoy
multiple benefits by joining the single European
market. These include higher inflow of capital,
a stronger institutional framework, continued
reforms and fiscal adjustment.*
* Raiffeisenbank Austria d.d. Zagreb
Economic Research Department
Key Information Contacts
Croatian Agency for Supervision of Financial Services www.hanfa.hr
Ministry of Finance www.mfin.hr
Croatian Government www.vlada.hr
Croatian National Bank www.hnb.hr
CONTACT INFORMATION
Contact Name Sanda Kuhtic Nalis E-mail sanda.kuhtic@zse.hr Website www.zse.hr
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