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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
BELGRADE STOCK EXCHANGE
Gordana Dostanic
Managing Director
The biggest change compared to previous
year has been recorded in the foreign
investors participation in trading at the
Belgrade SE.
Although just a couple of days before the end of
year 2010, it wasn’t sure whether the indices will
record a positive or a negative change, BELEX15
ended the year at the level of 651,78 points, that
is by 1,8% lower compared to previous year, while
index BELEXline recorded a 2,2% decrease, and
ended the year at the level of 1.282,66 points.
During first four months of year 2010 both
Belgrade SE indices recorded a strong increase,
and its maximum year values in mid April – index
BELEX15 at the level of 765,58 on April 15th, and
index BELEXline at the level of 1.432,68 points on
April 16th. Till the end of July this increase has
been annulled, when index BELEXline recorded
it's year minimum, at the level of 1.189,82 points.
During third quarter of 2010 Belgrade SE indices
showed stable trends, with the exception of end
of September, when index BELEX15 recorded a
slight negative trend and reached it's year
minimum on October 8th, at the level of 599,86
points. Since half October till the end of
December both indices recorded a slight increase
in values, and ended the year at the same levels
as they were at the end of 2009.
The turnover value in 2010 was 23,0 billions RSD
(222,5 millions EUR), that represents about 55%
of the turnover traded during year 2009. There has
been a decrease both in shares and Republic of
Serbia bonds trading. During august 2010 a
trading in corporate bonds has been recorded, at
the level of 51,7 millions RSD (490,9 thousands
EUR). The Belgrade Stock Exchange has been in
the middle of public attention at the end of August
and beginning of September, when shares of NIS
(Serbian oil company) have been listed on the
Exchange. This company is the first among
several public companies whose shares have
been distributed to Serbian citizens for free.
Although, according to publicly available data,
trading at the Belgrade SE might bring a bigger
earnings to citizens than bank savings, we still do
not see intensive investing of Serbian citizens into
listed securities.
The biggest change compared to previous year
has been recorded in the foreign investors
participation in trading at the Belgrade SE. They
increased their participation in buying of shares
from 25% in year 2009 to 49% in year 2010, and
decreased the participation in selling shares from
68,60% in previous year to 27,5%. Foreign
investors have realized about 1/3 of total annual
turnover at the Belgrade SE.
Apart from trading results, 2010 also brought
increased activities in promotion and developing
of the local capital market, through education of
new share holders, improved reporting and
information distribution, promotion of investor
relations and good corporate governance of
Serbian shareholding companies, etc. At the end
of year, on the traditional International Conference
of the Belgrade SE a first award for best investor
relations has been given to a Tigar Corporation.
HISTORY AND DEVELOPMENT
The Belgrade SE was originally founded in 1894,
on November 21, but the first transactions were
made in January 1895. The last trading session
was held on April 4, 1941. The Stock Exchange
was closed in 1953, and again refounded in 1989,
as a “Yugoslav Capital Market”. In 1992, Belgrade
SE officially got its name back. The key events in
the history are:
• In April 2006 MoU signed with the IFC;
• In November 2006 the Fifth International
Conference was held;
• In March 2007, SRX index (Serbian Traded
Index) launched by the Vienna SE;
• In April 2007, the Belgrade SE launched its new
general equity index BELEXline, successor of the
BELEXfm;
• In April 2007, first company listed on the
premium Listing A – Tigar Corporation from Pirot;
• In June 2007, BELEX 15 Open End - Index
Certificate issued and listed at the Frankfurt SE
and Stuttgart SE;
• In November 2007, Serbian stocks included in
first Balkan Blue-Chip index - DJ STOXX Balkan
50;
• In November 2007, VI International Conference
was held;
• In December 2007, ’Discobolos’ was rewarded
to the Belgrade SE for applying new technologies;
• In December 2007 the Memorandum of
Partnership was signed with exchanges from the
region;
• In January 2008, ABN AMRO bought a licence
for BELEX15
• In April 2008, the new trading system BELEXFIX
was launched;
• in September 2008, first closed-end fund shares
admitted to trading;
• In November 2008, VII Annual Conference was
held;
• In December 2008, first market maker in TIGR
shares;
• In May 2009, Third International Roadshow was
held in Belgrade;
• In September 2009, Luxembourg Foreign
Minister Jean Asselborn visited the Belgrade SE;
• In November 2009, SEE Regional Capital
Markets Conference was held in Vienna;
• In November 2009, VIII Annual Conference was
held;
• In November 2010, SEE Regional Capital
Markets Conference was held in Vienna;
• In November 2010, Letter of Cooperation on the
data exchange was signed between the Stock
Exchanges in Sofia, Skopje and Belgrade
• In November 2010, IX Annual Conference was
held;
FUTURE OUTLOOK
In 2011 the BSE will focus on following activities:
• Perform necessary reorganisation, in order to
align with announced changes of the law
• Upgrading of all operations, rules and
procedures to provide state-of-art service
• Implementation of BELEXFIX trading system at
the Montenegro Stock Exchange
• Engaging in the regional educational center
through existing and new training programs
• Introducing of several technical innovations in
trading – market segmentation, development of
sector classification, concept of the fluctuation
zone, special orders
• Continuous motivation of the best Serbian
companies to apply for Official Listing
• Boosting of the market-making function;
• Organization roadshow for domestic and
international investors;
• Further development of the existing indexes and
indicators;
• Exploring the possibilities of introducing new
instruments into the market;
• Promotion of news on listed companies through
direct cooperation with media and news agencies;
• A reduction in the transaction costs and taxes in
cooperation with other capital market institutions
and state bodies;
• Broadening the network of international data
vendors;
• Work on promotion of importance of corporate
governance and investor relations among issuers;
• Improvement of media coverage of stock
exchange activities;
• Editing and publishing of new editions and
publications;
• Work on developing human resources;
• Organization of the 10th International
Conference in November
• Improving and widening the base of companies
and institutions that will be involved in granting the
award for the best IR practice in Serbia
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