Download - FEAS

More documents

Recommendations

Info

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 BULGARIAN STOCK EXCHANGE ECONOMIC AND POLITICAL DEVELOPMENTS As the IMF point out, the current recession was preceded by an investment boom in construction, real estate and the associated financial sectors. Now that the boom (which was always unsustainable, Bulgaria's current account deficit in 2007 hit almost 27% of GDP) is well and truly over in these sectors, the strong associated decline in investment could have large negative effects on output. Moreover, it will take considerable time before the excess labor and resources that are no longer needed in these sectors can be absorbed by other sectors, which suggests that the rate of unemployment may rise yet further and remain higher for some considerable time. Following several years of strong increases (around 6% a year) Bulgarian growth declined sharply in 2009 when the economy was hit hard by credit squeeze which formed part of the global economic and financial crisis. Capital inflows, which had been keeping the current account deficit afloat, dropped from a peak of 44 percent of GDP in 2007 to less than 10 percent of GDP in 2009. As a result, investment, which had risen by over 20 percent annually during the previous two years, fell by nearly 30%. And as the investment flows dried up, the Current Account deficit closed rapidly, as imports (and domestic consumption) dropped back sharply. Employment also started to fall, while the unemployment rate rose rapidly, hitting a seasonally adjusted 9% in March and April this year, according to Eurostat seasonally adjusted data. Recent changes in pension system parameters and contribution rates have also put significant pressure on Bulgaria's pension finances. During the years 2003 to 2007 total revenue surged by about 51 percent and Bulgaria experienced the strongest rise in its revenue-to-GDP ratio among the new EU member states (about 4.5 percent of GDP). This sudden increase in income encouraged the Bulgarian authorities to offset part of the additional revenue by lowering social security contributions. Rates were cut by 6 percentage points from 2002 to 2007 (for the pension and unemployment funds) and there was a further 2.4 percentage points reduction in 2009. As a result budget financing of the pension system has risen sharply during the recession. Before 2008 budget transfers to close the financing gap of the pension fund had averaged about 3 percent of GDP. This increased to about 5 percent of GDP in 2009 and for 2010 the budget anticipates a transfer of more than 6 percent of GDP. And if there is not a sharp rebound in domestic consumption (which in all probability there won't be) these shortfalls become structural, not cyclical, and solutions will need to be found. Bulgaria does not publish seasonally adjusted quarter-on-quarter growth numbers, but given that the economy only shrank by 1.5% yearon-year (according to the flash estimate published by the statistics office on August 13), which was the lowest figure recorded since the country entered a recession in the first quarter of 2009 (and down from an annual drop of 5.9% in Q4 2009), the economy does at least seem to have stabilised. As for the details agriculture contributed to the improvement, with an increase of 1.6 per cent year-on-year, while the services and industrial sectors only declined by 1.7 per cent and 0.3 per cent, respectively. Private consumption, which was one of the main drivers of economic growth in earlier years, was down an annual 7.6 per cent for the quarter, while investment was 1.4 per cent lower. So there has been no real improvement in private consumption, nor should we expect to see any in the near term Despite an increase in exports (up 11.4% on the year) and continued decline of imports (down 1.2%), the trade gap for the second quarter was expected to be 4.2 per cent of GDP. As a result, the EU 2009–12 Convergence Programme is forecasting a steady decline in potential growth to an annual 0.3 percent in 2050, and this meagre growth is only obtained by assuming a - totally unrealistic (in what will then be such an old population) - labour participation rate of 70 percent. Personally, I think these numbers are way, way to optimistic, and all of this is badly in need of a current calibration based on what is already happening in ageing societies like Germany and Japan. Bulgaria's sustainable growth rate doesn't start to get affected in 2050, it is already on its way down now. Information obtained from the Exchange. BULGARIA EXTERNAL SECTOR INDICATORS 2002 2003 2004 2005 2006 2007 2008 2009 2010 Gross external debt, Euro million 10,768,9 10,640,6 12,561,9 15,506,9 20,690,9 29,016,8 37,112,4 37,808,1 36,918,3 Gross External Debt (% GDP) 63.5 58.1 61.7 66.7 82.0 94.3 104.7 108.2 102.5 Current Account (% of GDP) -2.4 -5.3 -6.4 -11.6 -17.6 -25.2 -23.0 -8.9 -1.0 FDI (% of GDP) 5.8 10.1 13.4 13.6 23.5 29.4 19.0 6.9 4.5 BULGARIA MACROECONOMIC INDICATORS 2006 2007 2008 2009 2010 Gross domestic product (million BGN) 51,783 60,185 69,295 68,322 70,474 Gross domestic product (annual real growth rate, %) 6.5 6.4 6.2 -5.5 0.2 Consumer price index (average annual change, %) 7.3 8.4 12.3 2.8 2.4 Industrial production index (annual change, %) 6.0 9.6 0.7 -18.3 2.0 Key Information Contacts Financial Supervision Commission www.fsc.bg Central Depository www.csd-bg.bg Bulgarian National Bank www.bnb.bg Invest Bulgaria Agency www.investbg.government.bg National Statistical Institute www.nsi.bg PAGE 56
FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011 DAMASCUS SECURITIES EXCHANGE Rateb Shallah Chairman The market capitalization of the listed companies in the DWX at the end of 2010 was US$ 3.21 billion with an increase of 142% from 2009. At the end of 2010 the Damascus Securities Exchange (DSE) had 19 listed companies, whereas, the number of listed companies at the end of 2009 was 12. The index increased by 71.9% in 2010 since 2009 reaching 1,719.04 points. The traded value increased from US$36 million (S.P 1,663 million) in 2009 compared to US$ 197 million (S.P 9,064 million) in 2010, an increase of 445%. Moreover, the daily average value of trading in 2010 increased to US$ 1.15 million (S.P 53 million) compared to US$ 0.39 million (S.P 17.88 million) in 2009. In 2010 there were 171 trading days compared to 93 days in the previous year. The number of traded shares in 2010 increased to 6.89 million shares compared to 1.70 million shares traded over the previous year 2009, an increase of 304%. Moreover, the daily average of traded shares also increased to 40.26 thousand shares compared with18.32 thousand shares in 2009. The number of executed trades icreased to 36,682 trades compared to 6,798 trades in 2009, an increase of 440%. The market capitalization of the listed companies in the DWX at the end of 2010 was US$ 3.21 billion (S.P 147.87 billion) with an increase of 142% from 2009. HISTORY AND DEVELOPMENT Damascus Securities Exchange (DSE) was established based upon Decree number /55/ for the year 2006, issued by the Syrian President Dr. Bashar Al Assad, the Exchange activities are based upon the provisions of this law and based upon the law of the Syrian Commission on Financial Market and Securities number /22/ for the year 2005. DSE is managed by a Board of Directors consisting of 9 members and a Chief Executive Officer who manages the daily activities of the Exchange and raises his reports to the Board. DSE was launched on the 10th of March 2009 with 6 listed companies they were divided into 4 companies in the main market and 2 in the growth market, with 4 brokerage firms that are licensed to trade in the Exchange. DSE aims to provide a suitable environment to facilitate investment, and to provide sufficient capital expand the economic activity through creating, fair, clear and stable trade of securities. • The launching of the Exchange consisted on setting rules, regulations, and instructions regarding the work process of the Exchange. • Finding a suitable building and preparing it with the suitable equipments, considering the Exchange environment. • Verifying "BTS" as a trading system, verifying "CSD" as a Clearing and Depository System. These systems were bought according to a contract with Market Evolution Company. • Setting the Exchange website and the information data center of the Exchange. • Enhancing Investors Awareness through flyers that were made by the Exchange. The Exchange also participated in conferences, giving introducing lectures indoors and outdoors In addition the Exchange took part in awareness activities through televisions, radios and training students from different universities and institutions. • In the field of foreign relationships and foreign cooperation, the exchange Signed a number of " Memorandum of Understanding" with the Egyptian Stock Exchange, Tehran Stock Exchange, Istanbul Stock Exchange, Syprus Stock Exchange and Abu Dhabi Stock Exchange, Being a member at the Federation of Arab Stock Exchanges, Association of National Numbering Agency (ANNA), and Federation Of Euro Asian Stock Exchanges (<strong>FEAS</strong>). FUTURE OUTLOOK • The Exchange is improving its strategies in the awareness through diversifying and publishing information and by taking part in conferences, lectures, exhibitions that aims to give an introduction regarding the Exchange. • modifying in the rules and regulations issued by the Exchange according to the local and regional economic changes, suggesting the necessary rules and regulations where suitable and give opinions to the concerned legislative bodies to improve the work process in the exchange, to reach integrated legislative system indoors and outdoors of the exchange and to ensure high efficiency in the work process of the exchange. • The exchange continuously improves the necessary electronic system which is required for the work process at the Exchange, which there by provides qualitative services regarding the publication of all the information and simplify the work process in the Exchange for all the investors, brokerage firms, and listed companies in the Exchange. The Exchange is working on setting up an alternative information database so that it would preserve its information and a link would be established between the current temporary building and the permanent building. • Increasing the number of sessions to 5 sessions per week, 5 days a week. • Co-operating with reginal and national Exchanges and Organizations that relate to securities Exchanges. PAGE 57
Page 1:
FEDERATION OF EURO-ASIAN STOCK EXCH
Page 4 and 5:
Page 6 and 7:
Page 8 and 9: FEDERATION OF EURO-ASIAN STOCK EXCH
Page 16: FEDERATION OF EURO-ASIAN STOCK EXCH
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

Create successful ePaper yourself

Delete template?

Save as template?