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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
ZAGREB STOCK EXCHANGE
The Zagreb Stock Exchange is one of the
leading exchanges in South-Eastern Europe.
Roberto Motusic
General Manager
Our goal is to strengthen our current role in
the region and develop a more substantial
and intensive cooperation with other
exchanges. The Zagreb Stock Exchange is
one of the leading exchanges in South-
Eastern Europe. According to this years
Bloomberg research, the Zagreb Stock
Exchange, according to market
capitalization, is the sixth in the region of
Central and Eastern Europe. In the region of
ex-Yugoslavia countries, the Zagreb Stock
Exchange holds a leading position with
37.4% of the total regional turnover and over
41% of the total regional market
capiptalization.
HISTORY AND DEVELOPMENT
The ZSE was incorporated in 1991 as a
joint-stock company with 25 commercial
banks and insurance companies. Today, the
ZSE has 47 shareholders and 42 members.
Prerequisites for ZSE membership include:
compliance with the Securities Law,
licensing with CROSEC and acceptance of
the ZSE rules. A seat on the ZSE currently
costs approximately US$ 13,000. Members
are required to comply with the rules and
regulations of the ZSE and must register at
least one licensed broker.
The Zagreb Stock Exchange and the
Croatian capital market have just finished a
year of great growth and development.
Impressive yearly statistics speak volumes
about the growth. Regular equity
transactions have more than doubled
(+137.7%) compared to 2005, exceeding
US$ 1.8 billion. But the true growth is visible
from the following: this years equity
transactions have almost reached Zagreb
Stock Exchanges cumulative transactions
for the past five years (2001-2005).
Two big events have played a large role in
raising interest for stock trading: the process
of public takeover of PLIVA and the public
offer and listing of the largest Croatian oil
company INA into the official stock market
(the third Croatian stock listed on London
and Zagreb simultaneously).
With the increase in transactions came the
growth of the prices. The CROBEX index (a
price movement indicator for the most liquid
Croatian shares) has grown by 60.7% this
year. The Stock market cap has been
doubled, compared to the previous year
(+123.3%), exceeding US$ 28.9 billion.
An interesting indicator for the future
development of the market is a large
increase of 42.9% in the number of
securities listed in the highest and most
transparent market segment, the Official
Market. In 2005, this market segment had 28
shares, which reached 40 shares at the end
of last year (8 shares, 3 commercial papers
and 29 bonds).
Also visible is the growth trend in the
number of listed corporate bonds (this year
6 new bonds have been listed into the
Official Market).
FUTURE OUTLOOK
Further development plans of the Zagreb
Stock Exchange are moving in the direction
of Croatian market consolidation, through
the acquisition of the Varazdin Stock
Exchange and implementation of a new,
modern OMX trading platform.
Takeover of the Varazdin stock Exchange
has been approved by General Assembly of
Shareholders at the end of January 2007.
Legally process is expected to be finished in
March 2007.
The implementation of the new trading
platform is underway and it is expected to
be fully functional till the end of July.
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