Download - FEAS

More documents

Recommendations

Info

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 BANJA LUKA STOCK EXCHANGE ECONOMIC AND POLITICAL DEVELOPMENTS Political Outlook The political temperature in Bosnia & Herzegovina (B&H) has been extremely hot due to the general elections at the beginning of October. For the three-member Presidency of B&H, the highest number of votes for the Croatian member got the candidate of the Social Democratic Party, Zeljko Komsiæ, followed by the Serbian member candidate of the Alliance of the Independent Social Democrats, Nebojsa Radmanoviæ, while for the next four years Bosniaks will be represented by Bakir Izetbegoviæ, the candidate of the Party of the Democratic Action. Regarding the composition of the state Parliamentary seats, the majority number of the seats from the Republic of Srpska will again be represented by the Alliance of the Independent Social Democrats, while the majority of the seats from the Federation of B&H will be split between the Social Democratic Party, the Party of the Democratic Action and the Croatian Democratic Union of B&H. In September 2010, the Parliamentary Assembly of B&H extended the mandate to the Director of the State Agency for Prevention of Corruption, needed for completion of the final condition for the visa regime liberalization by the Schengen group of countries which should be applied for B&H citizens starting from January 2011, at the latest. However, a new government would need to speed up the process related to Constitutional reform or progress in privatization and the labour market reform agenda, required as a prerequisite for the application of the candidate status for EU membership, which was planned already for 2010. As a result of the deadlock on the political scene and in terms of reform progress, Western powers extended the deadline for the replacement of the Office of the High Representative with the EU Special Representative Office until the end of 2011, which would have much less sweeping powers in B&H politics. Economic Outlook Even though a deadlock in the pace of reforms set by the EU accession agenda was seen in the last period, B&H authorities showed quite satisfying competence in meeting the necessary conditions set by the IMF within the Stand-by Arrangement (SBA) signed in July 2009. On September 21, the IMF gave its positive assessment after its second review under the SBA,after all conditions were fulfilled preceding the fourth tranche disbursement: cuts of the wage bill and adoption of the new Law on salaries in public institutions, amendment of the entity budgets, revision of the war veterans disability recipients and adoption of the strategy for the pension reform. Hence, in October 2010, with the additional fourth tranche of EUR 38 mn, B&H will have received EUR 383.9 mn as direct support to the troubled budgets and public finances, with the expected general budget deficit estimated to be 4% of GDP in 2010. The strengthening of the authorities’ policies and the financial support under the SBA has helped in stabilization of the B&H economy, where after a quite depressing macroeconomic picture mirrored in an overall GDP drop by -2.9% yoy in 2009, signs of macroeconomic stabilization could be seen in the first three quarters of 2010. A positive impulse to the economy came through an improving external sector environment and a recovery of the main trading partners’ demand, which resulted in vigorous growth of B&H exports (29.9% on average) driven by the expansion of industrial metals exports (aluminium and steel). Meanwhile, overall industrial production dynamics also started to recover and registered 7% yoy growth in August 2010. However, the combination of rising unemployment and wage cuts, along with restrained credit growth in the banking sector, will hamper a more prominent revival of the domestic consumption which is a major driver of the economic growth in B&H (80% of GDP). Thus, we expect subdued overall real GDP growth by 0.5% yoy in 2010. Equity Market Outlook After slipping to their all-time lows at the end of July 2010, both blue chip indices of the Sarajevo and Banja Luka Stock Exchanges recovered some of their ytd losses and reported a moderately positive quarter-onquarter performance. Moreover, the blue chip index of the Sarajevo SE (SASX-10) dove in red territory by –15.1% ytd by end of September, with some fundamental upside potential for some of the blue chips in the midterm. On the other hand, the blue chip index of Banja Luka SE (BIRS) lost -14.1% ytd in the same period, but saw a rebound and fairly good 4Q performance of +11.4%. The bearish market performance was accompanied by poor liquidity and participation of foreign investors in the market. Hence, total turnover of both markets until the end of 2010 amounted to EUR 145.6 mn and foreign investors’ participation of 15% on average in total trading. Information obtained from the Exchange. Key Information Contacts Ministers Council of Bosnia and Herzegovina www.vijeceministara.gov.ba Ministry of Foreign Affairs of Bosnia and Herzegovina www.mvp.gov.ba Republic of Srpska Government www.vladars.net Central Bank of Bosnia and Herzegovina www.cbbh.ba Republic of Srpska Securities Commission www.sec.rs.ba Central Registry of Securities of Republic of Srpska www.crhovrs.org Foreign Investment Promotion Agency of Bosnia and Herzegovina www.fipa.gov.ba Directorate of European Integration www.dei.gov.ba PAGE 42
FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 BELARUSIAN CURRENCY AND STOCK EXCHANGE Pavel Tsekhanovich Chairman of the Board Established in 1993, the Belarusian Currency and Stock Exchange (BCSE) is a unique trading platform in the country that serves the financial market of Belarus. Today, the BCSE is a stable working organization with constantly growing trade turnovers. The mission of the BCSE is to become the main power on the way of reforming the Belarusian organized financial market and to make it the basic source of investments for Belarusian enterprises. The mission of the BCSE is to become the main power on the way of reforming the Belarusian organized financial market and to make it the basic source of investments for Belarusian enterprises. Functions of the BCSE • Organization of exchange trading in foreign currencies, futures and securities • Clearing Center in Belarusian settlement clearing system • Depository functions for corporate securities • Registration of OTC transactions with corporate securities HISTORY AND DEVELOPMENT The Interbank Currency Exchange was established 4 March 1993 by 18 leading business banks as a closed-type joint-stock company. Its main task was organizing trading in foreign currencies. On 24 March 1993, first trades in the Russian ruble were held in the electronic trading system. In 1995, the National Bank of Belarus granted the Interbank Currency Exchange the right to organize the purchase and sale of futures on foreign currency and other financial assets. On 24 September 1996, the Interbank Currency Exchange was made a subdivision of the National Bank, in which capacity it organized trading in foreign currencies for 2 years. In 1997, the Interbank Currency Exchange was granted the right to organize the secondary market of government securities (except for registered privatization vouchers) and the securities of the National Bank. The BCSE was established on the basis of the state-run Interbank Currency Exchange in December 29, 1998 as a non-profit, public company with administrative and financial autonomy. Having obtained the license to pursue exchange activities and the depository license, the exchange began to organize trading in the main segments of the financial market of Belarus (the currency market, the government securities market, the market of the National Bank's bonds, the corporate securities market, the market of bonds of local loans and the market of bills of exchange). First electronic government securities trades were carried out at the Interbank Currency Exchange on 16 January 1998. Since 1999, BSCE has been carrying out depositary functions in the non-government market and clearing upon all concluded transactions. In 2007, the futures market sector was launched. Futures on USD and EUR rate were the first instruments in this market. The BCSE aims to: • minimize risks and transaction charges from capital formation in the organized market; • provide transparency of transactions; • protect investors’ legal rights and their interests; • implement programs on financial resources formation necessary for their development; • develop state monetary and credit policy market mechanisms; • create necessary conditions for effective controlling functioning of the State FUTURE OUTLOOK • Expansion of technological capacity - upgrading the corporate network infrastructure • Expansion of SED functionality; • Works on information resources and databases integration based on Oracle WebLogic software; • Development and upgrade of the Internetbased exchange systems; • Introduction of new sectors and instruments in different segments of the exchange market; PAGE 43
Page 1: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 4 and 5: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 95 and 96:
FEDERATION OF EURO-ASIAN STOCK EXCH
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
show all

Download - FEAS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?