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FEDERATION OF EURO-ASIAN STOCK EXCHANGES 

SEMI ANNUAL REPORT 

MAY 2005

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005 

TABLE OF CONTENTS 

Federation of Euro-Asian Stock Exchanges 3 

Takasbank 10 

Computershare Markets Technology 12 

Dow Jones Indexes and STOXX Ltd. 14 

TurkDEX 18 

DenizBank Financial Services Group 20 

Tata Consulting Services 24 

World Federation of Exchanges 26 

Tayburn Kurumsal 28 

Is Investment 30 

Stock Exchange Profiles 

Abu Dhabi Securities Market 32 

Amman Stock Exchange 36 

Armenian Stock Exchange 40 

Baku Interbank Currency Exchange 44 

Baku Stock Exchange 48 

Banja Luka Stock Exchange 50 

Belgrade Stock Exchange 54 

Bucharest Stock Exchange 58 

Bulgarian Stock Exchange 62 

Cairo and Alexandria Stock Exchanges 66 

Georgian Stock Exchange 70 

Istanbul Stock Exchange 74 

Takasbank 78 

Karachi Stock Exchange 79 

Central Depository Company of Pakistan Limited 83 

Kazakhstan Stock Exchange 84 

Kyrgyz Stock Exchange 88 

Lahore Stock Exchange 92 

Macedonian Stock Exchange 94 

Moldovan Stock Exchange 98 

Mongolian Stock Exchange 102 

Muscat Securities Market 106 

Palestine Securities Exchange 110 

Sarajevo Stock Exchange 114 

State Commodity & Raw Materials Exchange of Turkmenistan 116 

Tehran Stock Exchange 120 

Tirana Stock Exchange 124 

“Toshkent” Republican Stock Exchange 128 

Ukrainian Stock Exchange 132 

Zagreb Stock Exchange 136 

Member List 141 

FEDERATION OF EURO-ASIAN STOCK EXCHANGES (FEAS) 

I.M.K.B Building, Emirgan 34467 Istanbul, Turkey 

Tel: (90 212) 298 2160 

Fax: (90 212) 298 2209 

E-mail: secretariat@feas.org 

Web address: www.feas.org 

Contacts: Mr. Aril Seren, Secretary General 

Mrs. Susan Gogus, Assistant Secretary General 

Ms. Sibel Yilmaz, Assistant Secretary General 

The Federation of Euro-Asian Stock Exchanges Semi Annual Report 

May 2005 is published by the Federation of Euro-Asian Stock 

Exchanges. 

All editorial material was collated and edited by the Federation of Euro- 

Asian Stock Exchanges. The design, production and distribution was 

coordinated by the Federation of Euro-Asian Stock Exchanges. 

Designed by: Tayburn Kurumsal 

Although every care has been taken to ensure the accuracy of the 

information contained within the publication, the Secretariat cannot be 

held liable for any inaccuracies, errors or omissions, nor held liable for 

any actions taken on the basis of the information provided herein. 

© The Federation of Euro-Asian Stock Exchanges 

PAGE 1



Osman Birsen 

President of FEAS & Chairman and 

CEO of the Istanbul Stock Exchange 

We are very proud and excited to announce 

that this year FEAS will produce two Semi 

Annual Reports in May and October, 

respectively. The aim of transitioning from an 

annual to semi annual publication is two-fold. 

First, through providing two publications 

rather than just one, the market 

performances of FEAS members will be 

reflected in a more recent and detailed 

fashion. Second, the environments (both 

political and economic) within which those 

markets operate are brought to the attention 

of the readers more timely and concisely. 

The FEAS region entered 2004 with a 

growing hope for continued growth in world 

economies. No one anticipated the 

continued strength of our markets, becoming 

more experienced and more transparent 

every year. The outstanding performance in 

2004 is evidenced in the consolidated 

regional statistics on the adjoining pages, as 

well as the individual statistics of each of our 

members, in the member profile section. 

The Federation, as a globally recognized 

regional institution, is growing and maturing 

together with its members towards its goals. 

Founded 10 years ago by 12 regional 

exchanges, FEAS has welcomed four new 

members, bringing the total number of 

members to 28: 

• Abu Dhabi Securities Market, 

• Banja Luka Stock Exchange, 

• Belgrade Stock Exchange and 

• Sarajevo Stock Exchange. 

FEAS also looks forward to the possibility of 

accepting the application of the Bahrain 

Stock Exchange and Montenegro Stock 

Exchange as the 29th and 30th members 

in 2005. 

Further, during the 12th Executive Committee 

Meeting, held in Istanbul, Turkey on 14-15 

December, it was decided that the proposals 

by 6 members for their affiliate Central 

Depositories to become FEAS Affiliate 

Members would be voted by circular 

resolution. Based on the circular resolution, 

6 new affiliate members were admitted to 

FEAS: 

As our markets continue to step up to the 

challenges of the global arena, the greater 

importance will be to turn our focus toward 

our vision for the future and to participate 

in the regional development over the next 

5-10 years. 

• Central Securities Depository AD Skopje, 

Macedonia 

• Central Depository Company of Pakistan 

Limited 

• Central Depository of Armenia SRO 

• ISE Settlement and Custody Bank Inc., 

Takasbank, Turkey 

• Securities Depository Center of Jordan 

• Tehran Stock Exchange Services 

Company, Iran 

As we approach our eleventh year of 

operation, most of you are well aware of our 

accomplishments to date; of those that were 

particularly noteworthy are the 

implementation of the FEAS Data Center 

(FDC) to standardize and promote cross 

market statistics, the movement toward 

cross border trading utilizing the common 

trading platform model from the SECI 

project, and the further harmonization of 

rules and regulations in the FEAS Rule Book 

through adoption of the 28 OECD/FEAS 

developed guidelines, ‘best practices’ 

manual for stock exchanges in transition 

economies. Other specific achievements 

promoted the growth of stock exchange 

operators through extensive training 

programs, such as the joint OECD SME 

development project and international 

associations with organizations such as the 

World Bank. 

However, as our markets continue to step up 

to the challenges of the global arena, the 

greater importance will be to turn our focus 

toward our vision for the future and to 

participate in the regional development over 

the next 5-10 years. Our continued 

commitment to our 5-year strategic plan is 

designed to achieve the objectives specified 

within the mission of the Federation and to 

attain a greater role in the competitive global 

market environment. Our focus over the next 

5 years will concentrate in the area of 

promoting corporate governance, facilitating 

timely disclosure, achieving effective 

dissemination of information, attaining 

regional convergence in listing requirements, 

settlement, trading rules and software, 

creating greater awareness and visibility for 

the region’s stocks and investment 

opportunities, promoting the listing of 

‘investment grade’ companies in the region’s 

markets and creating linkages among the 

region’s intermediaries, data providers, 

settlement and custody institutions and stock 

exchanges while encouraging cooperation 

among securities commissions. Please see 

the Philosophy section of our Semi Annual 

Report to obtain the complete set of 

objectives for the Federation. 

The individual future outlook of our markets, 

as contained in the member profile pages, 

shows that there continues to be work 

toward the challenges of member markets in 

providing competitive and viable financing 

options to both the government and private 

sectors, while enhancing operations through 

technology and expanding services to 

market participants. The main effort 

continues to focus on the areas of increased 

transparency through expense in 

infrastructure and developing regulations to 

promote stronger corporate governance. 

It is with great pleasure that we welcome our 

newest members and we look forward to 

their contributions to our organization. 

I would like to take a moment to extend 

my heartfelt thanks to our Contributors: 

Takasbank, Computershare, Tata Consulting 

Services, Dow Jones Indexes and 

STOXX Ltd., Garanti Securities, TurkDEX, 

Is Investment, DenizBank FSG, the World 

Federation of Exchanges, and Tayburn 

Kurumsal (also the publisher of this report). 

We hope that you will take a moment to visit 

our contributor section in the FEAS website 

at www.feas.org and read their articles in the 

following pages. 

In closing, I want to recognize the efforts of 

all our members in achieving our regional 

objectives through their commitment and to 

the Secretariat for its success in maintaining 

our cohesive organization. As we approach 

our 11th year anniversary, our formula for 

achievement will be applied toward our 

development for the future. 

PAGE 3



HISTORY 

The Federation of Euro-Asian Stock 

Exchanges (FEAS) was established on 16 

May 1995 with 12 founding members and has 

grown to 28 members and 6 affiliate members 

in 25 countries. Membership in the Federation 

is open to emerging stock exchanges in 

Europe and Asia and Affiliate Membership is 

open to the Clearing and Settlement 

Depositories of Member Stock Exchanges. 

Until May, 2007 the position of President and 

Vice President will be held by the Istanbul and 

Zagreb Stock Exchanges, respectively. The 

Governing Body of FEAS is the General 

Assembly, comprised of all 28 members plus 

6 affiliate members, which meets once 

annually in a member country. The Executive 

Committee, made up of 12 members, is 

responsible for the development of Federation 

policies, making major administrative 

decisions, as mandated by the General 

Assembly, approving the content and scope 

of tasks assigned to the Working Committee, 

and making recommendations to the General 

Assembly. 

PHILOSOPHY 

MISSION STATEMENT 

The mission of FEAS is to create fair, efficient 

and transparent market environments, with 

little or no barriers to trade, between the FEAS 

members and their operating regions. 

Harmonization of rules and regulations and 

adoption of new technology, for trading and 

settlement, by member securities markets, will 

facilitate the objectives of FEAS by promoting 

the development of the member markets and 

providing cross border trading opportunities 

for securities issued within FEAS member 

countries. 

5-YEAR STRATEGIC PLAN 

In accordance with the Mission Statement, the 

5-year strategic objectives systematically 

CONTACT INFORMATION 

approach compliance within the long-term 

mission of the Federation and will be the key 

focus over the next 5 years. 

Objective I: 

Promote ‘corporate governance’ in listed 

companies as indicated in the joint 

FEAS/OECD “Best Practices for the 

Development of Stock Exchanges in 

Transition Economies” guide. Facilitate timely 

disclosure of material events and achieve 

effective dissemination of information. 

Objective II: 

Achieve convergence among FEAS members 

in: 

• listing requirements, 

• the settlement cycle, and 

• trading rules and software. 

Objective III: 

Promote mechanisms for reliable, transparent 

and continuous trading and settlement. 

Objective IV: 

Create greater awareness and visibility for the 

region’s stocks and investment opportunities. 

Objective V: 

Help promote the listing in home markets of 

‘investment grade’ companies in the region’s 

markets. 

Objective VI: 

Help create linkages among the region’s: 

• intermediaries, 

• data providers, 

• settlement and custody institutions, 

• stock exchanges; while 

• encouraging cooperation among securities 

commissions. 

Objective VII: 

Promote and encourage research and training 

for FEAS members and their personnel. 

Contact Name Mr. Aril Seren, Secretary General E-mail secretariat@feas.org Website www.feas.org 

PAGE 4 

FEAS region 

REGIONAL DEVELOPMENT 

Regional development highlights the 2004 

achievements and provides a summary of 

continuing programs into 2005, as well as the 

strategic objectives over the next 5 years. 

BILATERAL INITIATIVES PROGRAM 

The Federation initiated in 2002 and fully 

funded a Bilateral Initiatives Program to 

facilitate, on a bilateral basis, the exchange of 

personnel of one FEAS member with another 

for the purpose of trading information and 

experience on a specific topic(s) of interest to 

both exchanges. Almost all Federation 

members have now participated in this 

project, which will continue during 2005. 

WORKING COMMITTEE 

During the President’s meeting held in 

Muscat, Oman in May of 2004, the 

participants of the President’s Meeting 

unanimously declared that FEAS would be 

operating more efficiently with its new 

structure; the General Assembly and the 

Executive Board as the decision making 

bodies, the single Working Committee and the 

Secretary General as the Executive bodies 

and the Task Forces as bodies of preparatory 

work towards attaining the objectives of the 

Federation. The proposals were all were 

adopted for recommendation to the General 

Assembly. The General Assembly in turn, 

ratified the new structure during the General 

Assembly Meeting held in September 2004 in 

Zagreb, Croatia. 

In the joint Executive Committee held in 

Istanbul, Turkey in December of 2004, 

Amman Stock Exchange was elected as the 

Chair of the Working Committee. At the same 

meeting, members recognized the importance 

of appointing a leader for each task force that 

would continue lead and facilitate the Task 

Force to achieve the objectives set out for it 

by the Executive Committee.



Task Forces 

As a result of combining the Working 

Committees, 12 Task Forces were formed to 

carry out the mandates of the Executive 

Committee with the approval of the General 

Assembly. Due to the fact that some Task 

Forces completed the tasks assigned to 

them, only the remaining active Task Forces 

are listed below. 

Task Force 0401 – Semi Annual Report 

(2005 Completion) 

The Yearbook has been changed from an 

annual report to a semi annual report that will 

include two pages per country in order to 

highlight the economic and political 

developments in each member’s respective 

country. In addition the members’ pages have 

been redesigned to include only the most 

recent and up to date information. It was 

agreed upon that the first publication would 

be printed in the April/May time frame and the 

second publication would be available in 

electronic format in the September/October 

time frame. 

Task Force 0402 – Post General Assembly 

& Post Working Committee IT Training (Led 

by FEAS Secretariat) 

After the General Assembly Meeting in 

Zagreb, Croatia, presentations were made by 

two of the FEAS Sponsors Computershare 

and Hewlett Packard. For the IT Conference 

that will be hosted by the Bulgarian Stock 

Exchange; presentations by FEAS Members, 

Consultancies and IT Vendors will be made. 

Some of the vendors that will be presenting 

include: Computershare, OMX Technology, 

Options Industry Council, Symex Economics, 

and Tata Consultancy Services. 

Task Force 0404 – Media (Led by Muscat 

Securities Market) 

It has been recommended for approval by the 

General Assembly that a group of FEAS 

instructors or program materials could be sent 

to the stock exchanges to increase the 

proliferation of Media related information and 

training materials. Media conferences will be 

held in Istanbul, Turkey and Muscat, Oman 

during 2005. 

Task Force 0406 – Regional Indices (Led 

by Tehran Stock Exchange) 

FEAS members have decided to create an 

index of FEAS members, a regional index. It is 

planned that this index will at first be noninvestable, 

but may at a later date be 

transitioned to an investable index. Additional 

funding and resources have been allocated to 

this task force based on the importance given 

to it by members. 

Task Force 0411 – Market Principle (Led by 

Istanbul Stock Exchange) 

In conjunction with the World Federation of 

Exchange’s effort to update their market 

principles, FEAS members are working to 

contribute ideas and information to this end. 

Task Force 0412 – Corporate Governance 

(Led by Karachi Stock Exchange) 

All members in the FEAS region place a 

strong emphasis on Corporate Governance. 

For this reason a task force was created to 

provide a vehicle for informing all member 

stock exchanges of international regulations 

and practices regarding corporate 

governance. Further, Karachi Stock Exchange 

has volunteered to fund their country’s 

corporate governance expert to travel 

anywhere necessary to disseminate all 

relevant information about corporate 

governance that it has. The Bucharest Stock 

Exchange will also host a conference on 

Corporate Governance in June of 2005. 

2004 Mandates: 

• Publication and Distribution of the Semi 

Annual Report in April/May and 

September/October; 

• Hold an IT Conference hosted by the 

Bulgarian Stock Exchange; 

• Hold a Media Conference hosted by the 

Muscat Securities Market; 

• Create a Regional Index for FEAS; 

• Hold a Corporate Governance Conference 

to be hosted by the Bucharest Stock 

Exchange; 

• Work with the WFE to update Market 

Principles; 

• Completion of the ongoing revenue analysis 

from 1999 through 2004; and 

• Distribution, tabulation and reporting on the 

results of the World Federation Trading Survey 

with comparative results. 

FDC & SPECIAL PROJECTS 

FEAS DATA CENTER (FDC) 

A full system test was completed as of 1 

September 2003 and the FDC began 

implementation with the Macedonian SE in 

September 2003. The system went live on 

September 15th. Implementation of all 

members will take a phased approach 

beginning with 25% of FEAS members 

implemented by the 1st quarter 2004: 

Amman, Bulgarian, Istanbul, Lahore, 

Macedonian and Zagreb Stock Exchanges. 

In 4th quarter of 2004, Belgrade Stock 

Exchange implemented the FDC and in 2005 

Amman Stock Exchange plans to implement 

the FDC. 

The FDC includes market statistics, company 

data, ratios, stock price information, exchange 

rates and sector data contained in 14 

predefined reports. To access the FEAS Data 

Center (FDC) go to: 

http://128.121.21.20/feasdatacenter.org/ 

reports/countrylist.asp or go to www.feas.org 

and click on the FEAS Members drop-down 

menu. 

OECD/ISE PRIVATE SECTOR 

DEVELOPMENT (PSD) 

The Federation, in conjunction with both the 

ISE and the OECD, has jointly designed and 

implemented a program entitled “Private 

Sector Development” - a comprehensive 

three-year program dealing with the 

development of Small to Medium Enterprises 

(SMEs), while enhancing the attractiveness of 

the FEAS region through the development of 

‘best practices’ for stock exchanges in 

transition economies. 

SME Development: Regional work as the 

follow-up of the meeting entitled “Business 

Incubation, Finance and Growth in Emerging 

Markets” of 2002 was conducted. Emphasis 

was given to the development of financing 

models and methods for SME’s in Turkey, 

which can be successfully applied to the 

FEAS region. The project was finalized in a 

meeting held in the spring of 2004. 

Best Practices: This project deals with 

strategies to promote the role of stock 

exchanges in the ongoing financing needs of 

member markets. A set of best practices for 

the development of stock exchanges was 

prepared and distributed in 2001. A total of 28 

best practices were set forth as a basic set of 

legal and market guidelines, which cover key 

regulatory and institutional issues. A selfassessment 

workshop on FEAS member 

implementation of the best practices on 

clearing, settlement custody, and registration 

was held on 5-6 February 2003 in Almaty, 

Kazakhstan. The working group made a 

thorough evaluation of the assessment 

methodologies developed by international 

assessment organizations in order to come 

up with a self-assessment method that targets 

priorities applicable to the FEAS region. It was 

decided that a draft questionnaire for selfevaluation 

would be sent out to FEAS 

members for their views. In 2004 the OECD 

was asked to prepare a follow-up document 

which can be used by FEAS members for self 

evaluation of Best Practices Compliance. The 

results of this survey will be published in the 

self-evaluation report in 2005. 

SECI MODEL 

SECI is a UN project, the Southeast European 

Cooperative Initiative, which targets 

cooperation among securities markets of 

Southern Europe, most of which are FEAS 

members. The project is taken up by two 

groups of securities markets, that is, the stock 

exchanges and the regulators. 

The SECI project is expected to be the 

foundation of the FEAS common trading 

platform. The initial stage of the SECI project 

is the groundwork prepared by the Athens 

and Istanbul Stock Exchanges. A MoU was 

signed between regulatory bodies of the 

Turkish and Greek capital markets in 2001, 

and working groups from both exchanges 

examined issues regarding technical links, 

regulatory environment, and trading and 

settlement procedures. Once all stages of 

cooperation and linkages are implemented 

between Athens and Istanbul, the other 

exchanges of the region will be invited to join 

the existing set up. 

As a side product of SECI, another initiative 

for creating a common stock index of Greek, 

Turkish and Israeli blue chips exists. The three 

most important exchanges of South East 

Europe-South East Mediterranean held a 

trilateral meeting for the first time with the 

objective of discussing ways to promote 

cooperation. 

The Federation continues to work toward a 

common trading platform within the region 

and the SECI organization, which will pave the 

way for organizational and structural efforts in 

this area. As noted above FEAS members 

have agreed on creating a regional index, 

cross border trading is also being explored by 

several member exchanges as a test for 

further implementation across all FEAS 

members. 

PAGE 5



THE ORGANIZATION 

WORKING COMMITTEE MEETINGS – 

10-11 MAY 2004 – MUSCAT, OMAN 

The first working committee meetings of 2004 

were held in Muscat, Oman on 10-11 May, 

2004 at the invitation of the Muscat Securities 

Market. All three Working Committees focused 

on issues mandated by the General Assembly 

in 2003 and the Secretariat prepared a report to 

participants. 

JOINT WORKING COMMITTEE AND 

EXECUTIVE COMMITTEE MEETINGS 

14-15 DECEMBER 2004 – ISTANBUL, 

TURKEY 

The second combined working committee 

meeting of 2004 was held in Istanbul, Turkey on 

14-15 December, 2004 at the invitation of the 

Istanbul Stock Exchange. The combined 

Working Committees focused on issues 

mandated by the General Assembly in 2003 

and the Secretariat prepared a report to 

participants. During this meeting, Amman Stock 

Exchange was elected as the new head of the 

Working Committee. In addition, the President 

of FEAS, Mr. Osman Birsen, initiated a circular 

resolution in order to allow members to vote on 

the applications of 6 affiliate members. Based 

on the circular resolution, 6 new affiliate 

members were admitted to FEAS: 

• Central Securities Depository AD Skopje, 

Macedonia 

• Central Depository Company of Pakistan 

Limited 

• Central Depository of Armenia SRO 

• ISE Settlement and Custody Bank Inc., 

Takasbank, Turkey 

• Securities Depository Center of Jordan 

• Tehran Stock exchange Services Company, 

Iran 

10TH ANNUAL GENERAL 

ASSEMBLY/EXECUTIVE COMMITTEE 

MEETINGS 

16-18TH SEPTEMBER 2004 – ZAGREB, 

CROATIA 

The 10th Annual General Assembly of FEAS was 

held in Zagreb, Croatia on September 17th at the 

invitation of the Zagreb Stock Exchange. In 

addition the 10th Executive Committee meeting 

and a Joint Working Committee meeting were 

held prior to the General Assembly on 

September 17th. The meeting was opened by 

the Croatian Assistant Minister of Finance, 

Mr. Ante Zigman who spoke of Croatia’s positive 

feedback on its application for membership into 

the European Union (EU) and how Croatia’s 

program of economic growth and stability, 

reforms and institutional strengths could be an 

example to other countries applying to the EU in 

difficult economic times. 

Main decisions and topics of discussion included: 

• acceptance of the following new members 

- Abu Dhabi Securities Market 

- Banja Luka Stock Exchange 

- Belgrade Stock Exchange 

- Sarajevo Stock Exchange applications; 

PAGE 6 

• amendment of the FEAS Charter to allow for 

affiliate members; 

• adoption of the proposed 2005 mandates for 

the Working Committee; 

• extension of the FEAS bilateral exchange 

program between members; 

• adoption of the 2005 budget, audited 

statements and 2004 year-end forecast; 

• review of the 2004 accomplishments including 

the status of special projects with the OECD, the 

SECI and the Trading Survey and Revenue and 

Expense Analysis; and 

• adoption of the dues restructuring for 2005, 

among other topics. 

Elections: President and Vice President of 

FEAS 

The General Assembly elected the President and 

Vice President of FEAS for a two-year term ending 

May 2007 as follows: The President will remain the 

Istanbul Stock Exchange, The Vice President is 

the Zagreb Stock Exchange. 

PUBLICATIONS & INFORMATION 

FEAS Library: The Library can be accessed 

through the Publications drop down menu on the 

main page at www.feas.org or through this link 

http://www.feas.org/Library.cfm. The FEAS Library 

is open to experts and organizations with financial 

market related material. If you would like to make 

a submission to the FEAS Library, please send 

your electronic files and links to the FEAS 

secretariat at secretariat@feas.org. 

FEAS Semi Annual Report: This publication of 

semi-annual activities of the Federation and its 

members began in 1997 and is now available 

electronically on the website: 

http://www.feas.org/Publications.cfm?Get=Yearbo 

ok&Top=Pubs 

FEAS Website: The new FEAS website was 

launched on 31 July 2002 and can be found at 

www.feas.org. The new site now contains a more 

concentrated emphasis on FEAS member data 

with profile pages (including statistics, holidays, 

market policies and practices and direct links to 

their sites), Excel downloads for all statistical data 

and cross member comparisons on policies, 

practices and statistical data, and a News Center 

with headlines from member markets. 

Newsletter: A monthly publication which includes 

general secretariat news, statistical stock, bond 

and other volume comparisons on monthly, yearto-date 

and prior period bases, in addition to 

market cap, currency, number of companies 

traded and index statistics. Quarterly 

supplemental publications include quarterly 

statistical analysis, press releases of FEAS 

members and headlines of FEAS activities. 

Archived copies of the newsletter can be found on 

our website: 

http://www.feas.org/Publications.cfm?Get=Newsle 

tter&Top=Pubs. 

SUBSCRIBE 

To subscribe for the electronic version of FEAS 

publications, please go to www.feas.org and click 

on subscribe. Subscriptions include monthly 

notifications of statistics and newsletter updates, 

as well as advance notice of FEAS events and 

activities. 

CONTRIBUTORS 

Please visit our Contributors’ sites. Contributors 

can be seen on the FEAS website at: 

http://www.feas.org/Contributors.cfm. 

2004 Contributors to FEAS are: 

Computershare Markets Technology: 

www.computershare.com 

Tata Consulting Services: 

www.tcs.com 

Dow Jones Indexes and STOXX Ltd. 

www.stoxx.com 

Garanti Securities 

www.garantisecurities.com 

Takasbank: 

www.takasbank.com.tr 

Is Investment: 

www.isinvestment.com 

DenizBank FSG: 

www.denizbank.com 

TurkDEX: 

www.turkdex.org.tr 

Tayburn Kurumsal: 

www.tayburnkurumsal.com 

FEAS REGION OUTLOOK 

Gokce Kabatepe, Managing Director 

Corporate Finance 

Raymond James Securities - Turkey 

With the inclusion of the first-wave of European 

Union (EU) accession countries from the Eastern 

European region to the EU, expectations are 

continually increasing for the amount of FDI to be 

attracted by the region. Coming privatizations in 

many of the countries of the region should be the 

main drivers behind the increasing levels of 

Foreign Direct Investment (FDI) into the region. 

The involvement of international investors is highly 

encouraged in the still-ongoing privatization 

programs of these countries and the participation 

of the private sector in large infrastructure projects 

is still substantially important. 

Among the countries in the region, Turkey 

especially is showing extraordinary recovery in the 

aftermath of its own 2001 crisis. This recovery 

reached peak levels in 2004 and the economic 

stability reached such levels that the IMF has 

named Turkey “a country on a way to become a 

tiger economy”. Furthermore, the fact that the EU 

accession talks will begin in October 2005 has 

been a major booster for the Turkish economy. 

The Middle East region, on the other hand, is still 

driving up export earnings continually with the 

help of firm oil prices. The rise in oil prices is also 

helping to offset the rise in import demand in the 

region.



Aril Seren 

Secretary General of FEAS and 

Senior Vice Chairman of the Istanbul Stock Exchange 

2004 REGIONAL PERFORMANCE: 

With the increase in membership with 4 new 

members, the FEAS region continues to grow in 

both depth and breadth. The FEAS Region is 

represented by 28 members in 25 countries. Since 

2000 FEAS member markets have continued to 

reorganize their traded companies which in turn, 

decreased the total number of companies traded 

by 18.8% to a regional total of 7,892, yet market 

capitalization has reached its highest level of 

US$ 307 billion with a remarkable increase from 

US$ 138 billion in 2000 or by 121%.* The 5-year 

statistical comparison shows that markets are 

providing better listings with greater transparency, 

and that market forces continue to push toward 

share quality versus post-privatization quantity. It 

is nice to see that the negative impact of global 

events which took place in 2001 is gradually 

diminishing with an extensive boost since 2001 for 

stock, bond and other volumes at 160.1%, 689.1% 

and 75.5%, respectively. This shows that the 

traded company consolidations have in fact 

improved liquidity and generated investor interest, 

while providing indicators that growth is being 

sustained in the region. In 2004, allocation of 

traded instruments remains almost same as 

compared to 2003, except that bonds turnover 

increased by 3% and ranked second whereas 

stocks turnover decreased by 3% and ranked third 

which was exactly the opposite in the previous 

year (2003). The largest growth in turnover volume 

is again bonds for the third straight year, 

representing a gain of over US$ 143 billion as 

FEAS REGION 

2004-MARKET CAP. VS MONTHLY STOCK VOLUME 

(US$ Millions) 

350,000 

300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

J F M A M J J A S O N D 

Market Cap. 

Monthly Stock Volume 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

With the increase in membership with 4 

new members, the FEAS region continues 

to grow in both depth and breadth. The 

FEAS Region is now represented by 28 

members in 25 countries. 

compared to 2003; however, as the 5-year 

statistical comparison shows, other trading 

volume continues to have the greatest US$ value 

at over US$ 1,100 billion; an increase of 54.6% as 

compared to 2003. Other volume is represented 

by such instruments as derivatives, t-bills, 

currency, repo/reverse repo, etc. 

In addition, the improvement in the value of FEAS 

markets can be seen through the positive results 

in the adjusted annualized return on member 

indices. Within the year-end closing value of 18 

FEAS member indices, adjusted on an annual 

basis for currency fluctuations, only two posted 

net losses, while one member exceeded 170% for 

the year. 

*For individual member statistics, please go to the 

Member Profile sections in the following pages. 


2004-MONTHLY VOLUME 


120,000 

100,000 

80,000 

60,000 

40,000 

20,000 

0 

J F M A M J J A S O N D 

Stocks Bonds Other 

2005 CALENDAR 

• 16-18 FEBRUARY 

FEAS/BULGARIAN SE IT CONFERENCE 

SOFIA, BULGARIA 

• 17-18 MAY 

WORKING COMMITTEE AND 

13TH EXECUTIVE COMMITTEE MEETINGS 

TBILISI, GEORGIA 

• 24 JUNE 

FEAS/BUCHAREST SE CORPORATE 

GOVERNANCE SEMINAR 

BUCHAREST, ROMANIA 

• SEPTEMBER 

14TH EXECUTIVE COMMITTEE MEETING 

AND 11TH ANNUAL GENERAL ASSEMBLY 

TEHRAN, IRAN 

• OCTOBER 

FEAS/BAKU SE FURTHERING OF REGIONAL 

COOPERATION 

BAKU, AZERBAIJAN 

• 11-15 DECEMBER 

FEAS/MUSCAT SM MEDIA CONFERENCE 

MUSCAT, OMAN 


5-YEAR VOLUME COMPARISON 


1,200,000 

1,000,000 

800,000 

600,000 

400,000 

200,000 

0 

2000 2001 2002 2003 2004 

Stocks Bonds Other 

PAGE 7



OFFICIAL 2004 STATISTICS 

Jan-04 

Feb-04 

Mar-04 

Apr-04 

May-04 

Jun-04 

July-04 

Aug-04 

Sep-04 

Oct-04 

Nov-04 

Dec-04 

TOTAL 

PAGE 8 

STOCKS 

Average 

Total Daily Total 

Volume Volume Volume 

(US$ Millions) (US$ Millions) (# Millions) 

Average 

Daily 

Volume 

(# Millions) 

BONDS 

Average 




Average 

Daily 

Volume 

(# Millions) 

OTHER 

Average 




Average 

Daily 

Volume 

(# Millions) 

Market 

Capitalization 


27,089.50 1,309.90 6,023,447.58 301,123.02 22,979.84 1,105.69 6,752.91 337.71 74,676.88 3,558.75 47.23 2.44 211,931.35 

19,215.04 1,144.53 4,480,712.68 263,583.04 21,058.54 1,211.38 6,591.06 329.59 72,632.62 4,266.54 111.00 5.59 220,315.08 

28,084.44 1,284.96 8,276,692.91 359,943.48 26,165.83 1,154.71 6,198.09 294.07 99,088.79 4,310.86 86.16 3.98 233,285.68 

30,495.40 1,427.00 5,645,861.51 268,823.27 29,342.84 1,391.28 7,122.26 325.20 90,492.11 4,309.29 100.22 5.77 225,774.64 

19,645.01 972.17 4,718,368.49 235,911.87 25,489.04 1,285.01 7,361.64 386.25 91,609.17 4,582.02 77.80 4.13 220,874.52 

16,053.74 731.21 3,734,681.47 169,763.80 22,973.14 1,128.24 8,023.45 366.25 90,633.67 4,119.98 123.93 5.82 226,238.13 

17,733.82 813.04 5,108,320.61 232,204.03 25,750.68 1,170.95 10,815.76 491.68 89,288.57 4,058.70 54.55 2.49 238,476.54 

15,391.92 719.63 4,986,513.44 237,440.66 24,160.99 1,152.29 9,910.89 471.96 94,330.75 4,490.82 36.67 1.67 240,199.04 

23,073.32 1,053.89 8,574,267.36 389,752.52 26,497.32 1,205.45 9,189.42 417.77 99,374.00 4,519.33 53.86 2.82 255,038.25 

20,728.72 1,017.80 6,115,176.83 305,735.64 26,292.98 1,315.79 9,889.15 494.50 83,046.07 4,154.08 120.97 6.28 265,722.13 

19,938.27 1,041.86 5,310,440.88 265,559.85 27,304.56 1,344.41 8,112.11 369.76 104,616.48 5,246.95 367.43 18.04 280,797.12 

31,233.85 1,461.01 6,769,577.47 322,371.04 36,554.68 1,617.09 11,124.98 528.25 113,042.80 4,925.57 169.80 8.48 307,071.27 

268,683.05 1,083.13 69,744,061.2 280,102.61 314,570.43 1,258.33 101,091.73 401.27 1,102,831.91 4,376.83 1,349.61 5.50 

STATISTICAL COMPARISON 2000-2004 

STATISTICS 2004 % CHANGE OVER 

2000 2001 2002 2003 2004 2003 2002 2001 2000 

# companies traded 9,718 7,006 7,298 8,375 7,892 -5.8 8.1 12.6 -18.8 

Market capitalization (US$ millions) 138,844.1 109,547.5 117,784.7 200,894.7 307,071.3 52.9 160.7 180.3 121.2 

Total volume (US$ millions-stocks) 239,793.5 103,304.2 117,447.6 208,631.9 268,683.0 28.8 128.8 160.1 12.0 

Total volume (# shares millions-stocks) 11,141,659.3 23,975,171.4 34,011,853.8 59,229,271.5 69,744,061.2 17.8 105.1 190.9 526.0 

Average daily volume (US$ millions-stocks) 975.2 420.0 469.0 847.5 1,083.1 27.8 130.9 157.9 11.1 

Average daily volume (# shares millions-stocks) 45,293.1 96,691.9 134,973.5 240,772.1 280,102.6 16.3 107.5 189.7 518.4 

Total volume (US$ millions-bonds) 263,054.8 39,865.6 90,289.9 171,195.5 314,570.4 83.7 248.4 689.1 19.6 

Total volume (# millions-bonds) 61.2 155.7 9,814.7 45,506.4 101,091.7 122.1 930.0 64,832.8 165,069.1 

Average daily volume (US$ millions-bonds) 1,048.0 163.4 358.4 686.2 1,258.3 83.4 251.1 670.0 20.1 

Average daily volume (# millions-bonds) 0.25 0.73 38.7 181.4 401.3 121.2 936.0 54,621.1 161,833.9 

Total volume (US$ millions-other) 887,488.1 628,324.9 487,938.5 713,317.6 1,102,831.9 54.6 126.0 75.5 24.3 

Total volume (# millions-other) 0.40 16.3 1,000.7 1,895.4 1,349.6 -28.8 34.9 8,200.7 335,624.4 

Average daily volume (US$ millions-other) 3,535.8 2,503.4 1,928.7 2,853.4 4,376.8 53.4 126.9 74.8 23.8 

Average daily volume (# millions-other) 0.002 0.07 4.5 8.4 5.5 -34.3 22.8 8,357.2 343,488.3 

2000 bond and other volume history not provided by all FEAS members. 

FEAS REGION VOLUME BY TYPE 

2004 

Stocks Bonds 

16% 

65% 

Other 

19% 

NUMBER OF COMPANIES TRADED VS MARKET CAP. 


350,000 

300,000 

250,000 

200,000 

150,000 

100,000 

Market Cap Companies Traded 

50,000 

0 

2000 2001 2002 2003 2004 

10,000 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

2003 

Stocks Bonds 

19% 

65% 

Other 

16% 

2004-ADJUSTED ANNUALIZED RETURN ON INDEX 

BIFX/Sarajevo 

BET/Romania 

CASE 30/Egypt 

ADSM/Abu Dhabi 

Kazakhstan 

ASE/Amman 

Al Quds/Palestine 

BSE/Bulgaria 

CROBEX/Zagreb 

ISE 100/Istanbul 

KSE 100/Karachi 

B.I./Macedonia 

GP/Muscat 

LSE 25/Lahore 

TEPIX/Tehran 

KSE Index/Kyrgyz 

TRSE/Uzbekistan 

Top-20/Mongolia 

-8.1 

-36.3 

173.8 

130.8 

130.8 

74.8 

66.2 

62.4 

54.5 

50.06 

43.4 

38.1 

34.2 

24.2 

23.8 

20.3 

17.4 

6.5 

* Belgrade SE launched new index Belexfm in May 2004. Historical data is not avaliable.


TAKASBANK 

Emin Catana 

President and CEO 

INTRODUCTION 

Takasbank (ISE Settlement and Custody 

Bank Inc) is incorporated as a non-deposit 

taking banking institution and is authorized 

by the Capital Markets Board of Turkey to 

function as: the Central Securities Depository 

of Turkey, the Clearing and Settlement 

Institution for ISE markets, the Clearing 

House for the Turkish Derivatives Exchange, 

the National Numbering Agency of Turkey, 

the Custodian for the Mutual Funds and 

Pension Funds incorporated in Turkey. 

Takasbank is owned by the Istanbul Stock 

Exchange (ISE) (26%) and by the members 

of the ISE (20 banks and 70 brokerage 

houses with 40% and 34% stake in the share 

capital, respectively). 

Participants of Takasbank are the members 

of the Istanbul Stock Exchange, the 

institutional investors and the issuers. Equity 

investors’ holdings are recorded in the subaccounts 

of the participants. Services 

provided by Takasbank includes the 

execution of corporate actions, safekeeping 

of physical securities, custody and transfers 

of securities in book-entry form, web based 

monitoring service for investor sub-accounts, 

central clearing and settlement for the 

organized market (based on multilateral 

netting), real time gross DvP “member to 

member” settlement, settlement and custody 

for foreign securities, cash settlement and 

transfer facilities (domestic and crossborder), 

Takasbank Money Market, securities 

lending and borrowing, cash credits, 

allocation of ISIN for securities issued in 

Turkey. Takasbank is an active member of 

international organizations such as 

Association of National Numbering Agencies 

(ANNA), International Securities Services 

Association (ISSA) and is also member and 

user of the Society for Worldwide Interbank 

Telecommunications (SWIFT). 

On February 4th, 2005, the Turkish 

Derivatives Exchange (TurkDEX) 

commenced its operations with a variety of 

contracts including commodities and 

PAGE 10 

We believe the Turkish Capital Market will 

be supported by new markets and financial 

products and market dynamics will 

produce better conditions for investors. 

financial futures. Takasbank is appointed 

and authorized as the Clearing House for 

TurkDEX. Thus, Takasbank has become the 

clearing and settlement center for all 

transactions in spot/derivatives markets of 

the organized markets in Turkey. 

CLEARING HOUSE FUNCTIONS 

Takasbank acts as a buyer to every seller 

and a seller to every buyer in each trade 

executed at TurkDEX. In accordance with the 

regulations, Takasbank guarantees the 

derivatives market liquidity and safety with 

the deposited margins and the Guarantee 

Fund resources. The important issue here is 

the limited guarantee (not full). Thus, 

Takasbank is the guarantor for TurkDEX 

trades with a limited liability. This liability is 

underlined in the 78-79th article of TurkDEX 

regulations. 

Takasbank main functions regarding with the 

derivatives market and the Clearing House 

Operations are as follows: 

• Approval of clearing members. 

• Central counterparty for TurkDEX trades. 

• Limited guarantee with margins and 

Guarantee Fund. 

• Determination of collateral types and 

operational procedures. 

• Keeping position and collateral data on 

either member or account basis. 

• Marks to market daily. 

• Monitoring collaterals and composition 

check. 

• Settlement of daily profit/loss. 

• Announcement and monitoring of margin 

calls (if any) 

• Application of default process (if any) 

• Liquidation of collaterals in case of default. 

• Position/collateral transfers between 

accounts. 

• Corporate actions of collaterals deposited 

as margin. 

• Management of Guarantee Fund. 

• Interest payment for cash margins and 

Guarantee Fund cash part. 

• Training of clearing members. 

CLEARING CONDITIONS FOR 

DERIVATIVES 

Open positions marked to market daily 

following the announcement of settlement 

price by the exchange. Session hours for 

TurkDEX are 10-12 am, 1-3 pm (there is a 

1 hour lunch break for traders). Settlement 

price for each contract is calculated and 

announced as of 3:15 pm. Takasbank starts 

the settlement by deducting losses from 

each account. If there is any deficiency in the 

cash margins (if total collateral value in hand 

is below maintenance margin level or minus 

cash value existed) it should be paid in cash 

as a margin call. Profits are added directly to 

each account’s cash margins. Deadline for 

derivatives daily settlement is 4:30 pm on the 

same trading day (T+0). 

In order to open a new position in the market 

there should be enough collateral deposited 

into that account. Daily settlement is finalized 

by cash payment only. All transactions are 

executed and settled on account basis. 

CLEARING MEMBERSHIP 

REQUIREMENTS 

There are two types of membership; the first 

one is the general clearing membership, the 

second one is the direct clearing 

membership. At the beginning, all trading 

members are authorized to clear their own 

trades, which means that all exchange 

members become direct clearing members. 

After receiving the brokerage certificates for 

derivatives from the Capital Market Board, an 

applicant member should become a trading 

member. Then, the member delivers those 

certificates to the Clearing House and 

applies to become a clearing member. There 

are some additional requirements to become 

a clearing member such as capital/financial 

requirements, personnel, operational and 

hardware requirements. The clearing 

member and the Clearing House sign in a 

written contract that underlines the both 

sides’ liabilities. Clearing members should


participate in the Guarantee Fund of 

derivatives, when their application is 

approved by the Clearing House. 

Termination of the clearing membership is 

bound by ending the trading membership or 

by the decision of the TurkDEX/Clearing 

House or at the member’s own discretion. 

ACCOUNT STRUCTURE & 

SURVEILLANCE 

Account segregation is the main principle in 

the derivatives market. Both trading and 

clearing transactions related with the 

TurkDEX products are based on client 

account numbers. There are four different 

account types. The first one is a portfolio 

account used for the member’s own 

transactions. The customer account is used 

for client positions. The market maker 

account and global account are the 

remaining accounts and they are not in use 

at the moment. We can define the global 

account as an omnibus account, while the 

market maker account is used only by the 

authorized market makers of a single or 

multiple futures contracts. 

Account opening is done by the clearing 

member by using Takasbank Derivatives 

System (TDS). Members should match their 

own account number with the owner’s 

Takasbank registry number during the 

opening process or in seven days. By this 

way the Clearing House can monitor the 

client’s overall open position risk even if the 

client uses more than one broker. Detailed ID 

references such as identity card or passport 

copies must be delivered to the Clearing 

House immediately, if there is no Takasbank 

registry number. 

ELIGIBLE COLLATERALS & 

VALUATION 

Takasbank mainly accepts two different 

types of collateral but they are similar to 

each other. The first one is accepted as an 

initial margin against an open position. Initial 

margins should include minimum 30% cash 

in order to buy/sell in the derivatives market. 

Non-cash collaterals may be in the form of 


bonds and bills, US$ or EUR, equities 

(ISE-30 index shares), mutual funds and 

ETF’s. They are also subject to haircut by 

their liquidities. Because of the minimum 

cash requirement of 30%, non-cash 

composition may be at maximum 70%, and 

equities in collaterals cannot exceed 50% of 

total non-cash. This means that a maximum 

of 35% of the total collateral requirement 

might be in equities. Furthermore, the 

Clearing House manages the concentration 

risk by applying 5 different equities 

conditions. Thus, a maximum of 7% of the 

total collateral requirement might be from 

one single equity. The Guarantee Fund is the 

second type of collateral and accepts all of 

the non-cash types except equities. 

Members may also deliver Banks 

acceptance as a non-cash collateral for 

Guarantee Fund. 

Collaterals are subject to valuation at the end 

of day process of TDS. Bonds and bills are 

valued with ISE calculated prices, equities 

are valued with 2nd sessions weighted 

average prices, FX collaterals valued with the 

daily announced parity of Central Bank of 

Turkey and mutual funds valued with the unit 

price announced by their founders at the end 

of each business day. 

GUARANTEE FUND 

CONTRIBUTIONS 

The Guarantee Fund is aimed for the default 

probability of members and designed to 

share the members’ risk with the surety of 

each other. Members Guarantee Fund 

liabilities are determined by the TurkDEX, 

while the management is realized by the 

Clearing House. At the beginning, each 

clearing member should participate with 

200,000 (New Turkish Lira) TRY to the fund. 

Contribution is mandatory in order to be 

approved as a clearing member. This 

amount is valid until the pre-announced 

tranches. Tranches are defined as a market 

value of the total open position of a clearing 

member. If the total position value exceeds 

the pre-defined tranches, that member 

should redeposit collaterals to the fund. 

Margin call (if any) and tranches calculations 

are calculated daily by the Clearing House. 

Contact Name Mr. Osman Gunsel Topbas E-mail gtopbas@takasbank.com.tr Website www.takasbank.com.tr 

FUTURE PROJECTS 

Currently derivatives settlement at the 

maturity of a contract is based on cash 

settlement. There are 4 main products: stock 

index futures, currency futures, interest rate 

futures and commodity futures. Especially 

commodity futures require some physical 

settlement in many countries. In the future, 

Takasbank may settle some of the futures 

contracts physically. More and more options 

contracts are the complementary products of 

derivative markets and in future it is expected 

that options on equities are very possible 

contracts. 

If we consider only the first month’s 

performance of 2005, the total open position 

reached to 9,314 (approximately US$ 15 

million) as of April 13, 2005. Daily volume is 

around US$ 2 million and there are 46 

trading/clearing members with 1,030 

accounts in total. 

We believe the Turkish Capital Market will be 

supported by new markets and financial 

products and market dynamics will produce 

better conditions for investors. 

PAGE 11


COMPUTERSHARE MARKETS TECHNOLOGY 

Peter Brew 

Director, Business Development 

DERIVING THE FUTURE 

Although the FEAS five year strategic plan is 

wisely focused upon harmonization of rules, 

cooperation, and promotion of the region’s 

exchanges, in this article I invite you to think 

about another aspect, namely the 

development of derivatives markets for your 

exchange. Perhaps this is something you are 

already considering, perhaps not. 

Regardless, I suggest that derivatives will 

play a role in your markets sometime in the 

future and I hope this article will encourage 

you to think through the issues. FEAS 

members have the great advantage of being 

able to study the development of derivative 

markets in other countries and learn from 

that experience and benefit from the 

maturing of technology. 

Firstly I want to show you that there are real 

benefits in introducing a futures market: your 

economy should function more smoothly, 

efficiently and effectively. Then I will discuss 

some of the issues that you need to consider 

in preparing for a derivatives market, such as 

the how you develop the contracts, what 

trading technology to use, clearing and 

settlement issues and market surveillance. 

Much of what I write comes from 

Computershare’s long experience with the 

FEAS countries. Our role in helping to 

develop derivatives markets in the region 

goes back more than ten years. We first 

installed a futures trading system for 

currencies for the Moscow Interbank 

Currency Exchange (MICEX) in 1994, and in 

1996 they took delivery of the SMARTS 

surveillance system. We have subsequently 

installed futures and options trading systems 

in Kazakhstan in 1996, Istanbul in 1999 and 

Budapest in 2000. The same software will 

operate the new derivatives market in Turkey, 

TurkDEX which began operation just this 

year. Elsewhere in Europe we have 

implemented systems for interest rate swaps 

for Icap plc, the world’s largest inter-dealer 

broker, and a warrant trading system the 

SWX Swiss Exchanges in 2005. 

Computershare continues to provide advice 

and the most advanced software systems to 

the region and I would be happy to hear 

from you if this article interests you. 

History of derivatives trading 

Although futures trading can be traced back 

a long way, financial futures have a 

surprisingly recent history. 

The many anecdotes about the development 

of derivatives range from agricultural markets 

in China 6000 years ago, to 17th century 

Japanese rice markets, and even King Philip 

II of Spain who arguably used futures on 

gold and silver arriving from Latin America to 

finance his European wars. 

PAGE 12 

FEAS members have the great advantage of 

being able to study the development of 

derivative markets in other countries and 

learn from that experience and benefit from 

the maturing of technology. 

But for our purposes the history of derivative 

trading can be neatly divided between the 

years before and after the demise of the 

gold-standard for currencies in 1971. Before 

1971 derivatives were nearly entirely about 

agricultural products. In 1972 the first 

currency futures were introduced. The growth 

of these financial futures has been 

exponential ever since. 

Another milestone occurred in the USA only 

in1982 when options on agricultural products 

and the idea of cash settlement instead of 

physical delivery were authorised for the first 

time. This innovation enabled the 

development of a range of new types of 

contracts for which physical settlement 

would have been impossible (such as index 

futures). In this decade we have even seen 

the development of weather derivatives and 

most recently futures on economic 

announcements such as indexes of inflation. 

In order to understand why there has been 

such growth, we need to understand the role 

that derivatives play in an economy. 

The role of derivatives 

First let’s consider some common derivatives 

that are used by businesses. Then we’ll look 

at the benefit to the economy as a whole. 

Fundamentally businesses use derivatives to 

hedge (or reduce) the risk of prices 

changing. Here are some typical examples: 

• A farmer wants to guarantee the price he 

will receive for his produce before he buys 

the seeds or food for his animals. If he waits 

until he has grown the produce before selling 

it (as has traditionally been done), there is a 

risk that the price might be so low that he 

ends up selling his produce for much less 

than it cost him to produce. So instead he 

enters into a futures contract on the 

commodity he is producing to fix the price 

before buying this seed or animal food. 

• A small manufacturing company receives a 

large order for their products from another 

country and the client wants to pay in his 

currency. The company will then need to 

convert it to their own currency in order to 

pay their staff but they won’t receive money 

for twelve months and they are worried that 

the currency may be devalued before then. 

So they enter into a currency futures contract 

to agree the conversion rate. In other words, 

they set the price now of the other currency 

in the company’s own currency. 

• A construction company is being asked to 

price the development of a new apartment 

block in the city and needs to give the 

developer a fixed price. They know that in six 

months time they’ll need to buy a certain 

amount of steel for the building. If they give a 

price to the developer now and then when 

they buy the steel six months later they find 

the price has gone up, the construction 

company may find that it cannot complete 

the building since their costs exceed the 

income they will receive from the developer, 

which would be catastrophic for everyone. 

So instead they buy a steel futures contract 

to fix the price of the steel they will want to 

buy, now. 

• A company considering investing in a new 

product line knows that it will need to borrow 

some money from the bank in the future in 

order to develop the product. It estimates the 

market for the new product and the costs for 

producing it including the cost of the interest 

on the loan to the bank. However if interest 

rates rise then it may not be cost effective to 

develop the new product. So they enter into 

several futures contracts to sell the 

governments treasury bills at six month 

intervals to fix the price of their interest 

payments now. If interest rates go up then 

they have pre-sold their treasury bills for 

above market rates and use the profit to pay 

their extra interest on their own loan. 

• A pension fund has made some good 

returns on the local stock market but does 

not yet want to take the profits into cash 

because it will forgo dividends. But the fund 

is worried that the stocks may fall in value. 

So they enter into a futures contract to sell 

the index in six months time to fix the value 

of their profit now. 

Through these examples we see that futures 

contracts encourage investment by 

businesses, by providing a level of certainty 

about future prices. In the case of the farmer 

or the construction company the future price 

of the commodity is determined and fixed for 

them. For the manufacturing company the 

future price of the client’s currency is fixed, 

for the company considering developing a 

new product the future price of money 

(interest rates) is fixed, and for the pension 

fund the future price of stocks is fixed. If you 

read the article by Takasbank in this FEAS 

year book you will see that it is precisely 

these four futures products that operate in 

Turkey. 

If we now generalize from the examples, we 

can understand the three fundamental 

purposes of derivative markets. The first is to 

allow businesses to reduce risk and give it to 

people who want to take on risk – the 

speculators. The second is to facilitate 

operating capital – short term loans for 

immediate purchases. For example the 

farmer will find it easier to get a loan from a 

bank to buy his seed based on the 

guaranteed price he has agreed in the future 

contract. Thirdly derivatives provide 

information to decision makers about future 

events by discovering the future price based 

on an examination of all possible information 

available today. 

It seems clear then that an economy with a 

derivatives market will be more efficient 

because capital can be applied with less risk 

of loss. The economy will also function more 

smoothly because prices are less prone to 

wild fluctuations.


We might add that from an exchanges 

perspective, a derivatives market provides 

additional revenue from new products and if 

as a result, stock prices are smoothed, this 

should encourage increased investment in 

the stock market too. 

It’s probably also true that some over-thecounter 

(OTC) trading of derivatives is 

already happening in your country or at least 

by businesses in your country on another 

country’s market. Standardizing these 

contracts and bringing them on to the 

exchange can save costs for the businesses 

in your economy, and bring liquidity to the 

futures market, which will reduce risk for all 

participants, since liquidity enables someone 

to enter and exit a market at a fair price. 

Implementation issues 

A “Getting Started” guide for an exchange 

starting your own futures market is of course 

overly simplistic. However here are some of 

the more important things to consider which 

I will discuss in turn: 

• Contract development; 

• Trading System; 

• Clearing and Settlement; 

• Margins, performance bonds and 

guarantee funds; 

• Surveillance. 

The first step of course is to identify the 

needs of your market and develop futures 

contracts for these needs. The four basic 

futures contracts described in the article by 

Takasbank in this semi annual report is a 

good place to start but there is a wealth of 

information freely available on the internet 

concerning contracts used around the world. 

Reproducing a contract used in another 

country or developing a contract to be used 

throughout FEAS should be considered. 

The fungibility (interchangeability) of such 

contracts will increase liquidity, lower costs 

and ease understanding by foreign investors. 

The software technology used for trading is 

of course an important consideration. Ideally 

derivatives and cash instruments should be 

traded in the same system. The advantages 

of doing this include: 

• avoiding the duplication of maintenance 

costs, hardware and operations staff to have 

two separate systems; 

• the ability to simultaneously manage the 

derivative and underlying cash market (e.g. 

adding users, executing corporate actions, 

suspending trading, surveillance); 

• Traders have a single screen for trading all 

markets and a single API to which to connect 

their systems, reducing their costs; and 

• Investors have the ability to trade a 

derivative and underlying simultaneously 

without legging risk. 

Computershare’s X-stream trading system 

can do precisely these things. X-stream can 

trade equities, futures, swaps, options, 

warrants, ETFs, foreign exchange, and multileg 

strategy orders all on a single system. In 

addition X-streams flexibility enables you to 

change contract specifications or introduce 

new products as soon as your analysis 


indicates that they are necessary. As a 

proven system in use all over the world, 

X-stream contains the latest functions and 

up-to-date know how on derivative markets 

giving you confidence for the future. 

Perhaps the most important issue is 

establishing the clearing and settlement 

system (CSD) which gives the financial 

security that supports the market. Some 

aspects of clearing and settlement are more 

complex than cash markets. For example the 

fact that settlement risk exists every day until 

contract expiry. As a consequence funds 

must be transferred between counterparties 

every day until expiry. These transfers are 

variously known as margin calls or 

performance bonds and the clearing house 

must decide what levels of bonds are 

required when the contracts are marked to 

market (valued), and what forms of collateral 

can be used to fulfill the obligations (cash, 

bonds etc). 

One advantage of using the same clearing 

house for cash and derivatives markets is 

enabling what is called “cross margining”. 

This is where a broker’s obligations in cash 

and derivative markets can be offset against 

each other. This reduces the amount of 

collateral that a broker requires to have 

locked up in guarantee funds and so makes 

transactions cheaper for the market. 

Computershare’s Equator system is the ideal 

choice for a CSD. The internationally 

recognized SWIFT standard messaging for 

connectivity to banking payment systems 

and a direct connection to the trading 

system (such as X-stream) are critically 

important when you make a decision about a 

choice of CSD system. Registry functions 

and full Delivery versus Payment (DvP are 

fundamental to a fully functioning CSD like 

Equator). 

Market surveillance is the last area I want to 

consider. Surveillance here means 

monitoring market abuse by traders to 

ensure a fair and efficient futures market 

(I am not referring to the monitoring of risk 

positions within the CSD). A fair market is 

one where all participants face a transparent 

set of trading rules which are effectively 

enforced. The SMARTS Surveillance System 

that Computershare supplies, enables an 

exchange to promote this goal by providing 

the ability to monitor and investigate all 

trading in real-time. Using superior data 

management facilities, SMARTS builds an 

understanding of the normal market behavior 

so that alert algorithms can be created to 

identify abnormal behavior. These help 

detect market behavior which may have an 

adverse effect on market integrity and thus, a 

rapid response from surveillance 

departments is easily achieved. 

A particularly new area of research is to 

monitor trading behavior across cash 

markets and derivative markets. For example 

monitoring the spot market and the futures 

market for a commodity, or trading in stocks 

in the benchmark index and the futures 

product on the index. SMARTS is the only 

product in the world capable of doing this. 

Summary 

I hope that this article contains some food 

for thought. Derivative markets and in 

particular futures markets have a great deal 

to offer an exchange and the businesses and 

the economy you serve. Their primary 

purpose is to allow businesses to reduce risk 

and give them the confidence to invest but 

the net result is an economy that is more 

efficient and that functions more smoothly. 

Once you have decided that you want to 

begin a futures market and considered 

issues like the contracts you want to deliver 

and the regulations and mechanisms for 

your market, Computershare has the 

knowledge and the technology for clearing, 

settlement, surveillance and trading that will 

solve your technical needs. Technology and 

know-how that will ensure your success - 

today and tomorrow. 

ABOUT COMPUTERSHARE 

MARKETS TECHNOLOGY 

Computershare Markets Technology 

provides the most advanced and innovative 

solutions for exchanges, clearing & 

settlement houses and surveillance 

organizations who want to ensure they are 

the leaders of tomorrow. 

Our advanced financial markets systems are 

flexible, scalable and use the latest, proven 

and open technology to ensure reliability, 

performance and accessibility. Our vision is 

to enable markets and exchanges to swiftly 

realize the efficiencies, enhanced accuracy 

and added functionality achievable through 

process automation and technological 

efficiency. 

Computershare’s products power more than 

40 of the world’s national financial markets 

and central market surveillance and 

regulation organizations in more than 30 

countries, more than any other software 

provider. Major exchanges operating the 

systems include the SWX Swiss Exchange, 

Istanbul Stock Exchange, Moscow Interbank 

Currency Exchange, New Zealand Exchange, 

and the world’s largest inter-dealer broker, 

ICAP plc. 

Established in 1992 and headquartered in 

Sydney, Australia, Computershare Markets 

Technology has offices in Sydney, London, 

New York, Chicago, Calgary, Zurich and 

Dubai. 

For more information, visit: 

http://marketstechnology.computershare.com 

Contact Name Mr. Peter Brew E-mail marketstechnology@computershare.com Website http://marketstechnology.computershare.com 

PAGE 13


DOW JONES INDEXES AND STOXX LTD. 

Lars Hamich 

Managing Director 

WHAT LIES BENEATH – THE 

ESSENTIALS OF INDEX 

PRODUCTION 

INTRODUCTION TO DOW JONES 

INDEXES AND STOXX LTD. 

Dow Jones Indexes and STOXX Ltd. operate 

as a globally integrated index provider. 

Together, they develop, maintain, distribute 

and market a comprehensive global family of 

rules-driven and free-float weighted indexes. 

The Dow Jones Indexes and Dow Jones 

STOXX index family include a full range of 

blue-chip and benchmark indexes, including 

the Dow Jones Industrial Average, the Dow 

Jones EURO STOXX 50, the Dow Jones 

Global Titans 50 Index and the Dow Jones 

STOXX Global 1800. 

The Dow Jones and Dow Jones STOXX 

blue-chip indexes are unique as they are 

maintained at the global, regional, country 

and sector levels; no other index provider 

offers so many slices of the blue-chip 

universe. At the benchmark level, Dow Jones 

Indexes and STOXX Ltd. provide global, 

regional and country indexes as well as size, 

sector and style subindexes. The broadest of 

these are the Total Market Indexes, which 

represent 95% of the free-float market 

capitalization of the covered markets, 

including all developed markets and the 

most relevant emerging markets. 

In addition to that Dow Jones Indexes 

calculate a range of specialty indexes such 

as the Dow Jones AIG Commodity index and 

the Dow Jones Islamic Market Indexes. 

The latter were created for people who wish 

to invest according to Islamic investment 

guidelines. The indexes track Shariàh 

compliant stocks from around the world, 

providing Islamic investors with 

comprehensive tools based on a truly global 

investing perspective. Certain businesses are 

incompatible with Shariàh Law. Thus, 

stocks of companies in these businesses are 

not considered suitable for Islamic investing. 

Incompatible lines of business include 

PAGE 14 

Over the past several years the information 

flow has improved substantially in both 

quantity and quality. 

alcohol, pork-related products, conventional 

financial services (banking, insurance, etc.) 

and entertainment (hotels, casinos/gambling, 

cinema, pornography, music, etc.) 

Shariàh scholars also do not advise 

investments in tobacco manufacturers or 

defense and weapons companies. Special 

care is taken to ensure that all securities 

selected for the Dow Jones Islamic Market 

Indexes are acceptable under Shariàh Law. 

To this end, a Shariàh Board of Islamic 

scholars has been created to counsel Dow 

Jones Indexes on matters relating to the 

Shariàh compliance of the indexes' eligible 

components. 

The Dow Jones and Dow Jones STOXX 

indexes are licensed to companies around 

the world as underlying for investment 

products. The market has chosen Dow 

Jones STOXX indexes as the standard for 

European equity index derivatives. The Dow 

Jones EURO STOXX 50 underlies the largest 

equity index derivative in Europe and the 

second largest globally. Recently, Dow 

Jones Indexes has licensed the Dow Jones 

Turkey Titans 20 index to the Turkey based 

asset management company Finansportfoy 

to create the first exchange- traded fund in 

the Turkish financial market place. 

STOXX Ltd. is a joint venture of Deutsche 

Borse AG, Dow Jones & Company and SWX 

Swiss Exchange. Launched in 1998, in 

advance of the European Monetary Union, 

the introduction of the Euro and the creation 

of the Eurozone, the Dow Jones STOXX 

Indexes became Europe’s leading equity 

indexes in a fast and impressive success 

story. 

Dow Jones Indexes is part of Dow Jones & 

Company, which publishes the world’s most 

vital business and financial news and 

information. In addition to Dow Jones 

Indexes, Dow Jones & Company (NYSE: DJ; 

dowjones.com) publishes The Wall Street 

Journal and its international and online 

editions, Barron's and the Far Eastern 

Economic Review, Dow Jones Newswires 

and the Ottaway group of community 

newspapers. Dow Jones is co-owner with 

Reuters Group of Factiva, with Hearst of 

SmartMoney and with NBC Universal of the 

CNBC television operations in Asia and 

Europe. Dow Jones also provides news 

content to CNBC and radio stations in the 

United States. 

THE PRODUCTION PROCESS 

Basically, an index is regarded as a number 

that tells something about the current state 

of a market for stocks, bonds or some other 

instrument, be it foreign or domestic. For 

those that have invested in an index fund, 

the change in that number from day to day 

closely represents the movements of their 

portfolio. 

Not many think much about what it takes to 

produce that number, and the few that do 

usually regard the process as a bit murky no 

matter how clearly stated the index 

methodology may be. Like an iceberg, the 

visible part of an index misleads even 

informed viewers about the immensity – and 

the importance – of work that lies beneath 

the surface. 

The index provider faces a forever of daily 

monitoring, research and auditing to keep all 

its indexes before investors’ eyes. If an index 

provider does not do this job well, its index 

numbers sooner or later will be wrong, which 

probably will cost investors some money 

beyond what the market itself may inflict, and 

in turn, investors will stop using indexes from 

that provider. This is not a business model 

the index provider wants to follow. To 

illustrate the process, we focus on two 

groups known as Index Support and 

Production. Every index provider, though, 

faces similar issues and challenges, which 

demand enormous investments of resources 

to handle. 

The support group is responsible for 

researching and recording all changes to the 

components of a stock universe from which 

hundreds, if not thousands, of indexes have


been derived. The group also notifies 

licensees of these changes in great detail. 

There are two main types of changes: 

ongoing and periodic. Ongoing changes are 

typically corporate actions. Throughout the 

quarter, researchers scan news articles for 

mention of index components. This 

“corporate actions team” monitors 50,000 

companies around the world and devotes a 

significant portion of every morning to 

ferreting out events affecting component 

companies. There aren’t any data vendors 

offering all the needed information, so this 

group shoulders the responsibility. 

The corporate actions team is looking for 

mergers, acquisitions, spin-offs, 

bankruptcies, delistings, stock dividends, 

stock splits and cash dividends. 

Stock splits are among the best known of 

corporate actions. They tend to be fairly 

straightforward and are virtually guaranteed 

to take place on their pre-announced date. 

Mergers and acquisitions are another story 

entirely. From the time a merger or takeover 

is announced, researchers collect every 

document released on the topic and 

regularly call the companies involved to 

check on the status of the deal and as many 

details as they can dig out. Regulatory 

approval must be received before the deal 

can go through, and some industries, such 

as utilities, have their own regulatory 

agencies that must approve the mergers. 

Differing rules in foreign countries regarding 

mergers can also complicate the monitoring. 

Getting this information isn’t always easy. 

Hostile takeovers in particular seem to bring 

out some people’s stonewalling instincts. 


And many times, poor communication can 

be the source of difficulties. In emerging 

markets, information can be hard to find, and 

language barriers can throw up additional 

hurdles. 

At other times, the timing of a deal’s 

completion can be elusive. A merger might 

be delayed for months while approval is 

sought from various quarters. Once that 

approval is received, the merger can go 

through in as little as 20 minutes. 

In addition to hard-to-find information and 

complicated corporate actions, bad data 

from outside sources is an occasional fact of 

life. Information is gathered from a variety of 

sources and verifying each piece of data with 

at least two sources is the rule. 

Nonetheless, over the past several years the 

information flow has improved substantially 

in both quantity and quality. This change 

could be chalked up to the spread of English 

in the business world and the rise of the 

Internet. Several years ago, for instance, the 

Kuala Lumpur exchange was still using a 

chalkboard to record the prices of its stocks. 

Today it has a first-rate website that provides 

more information than similar sites 

maintained by some stock exchanges in 

developed markets. 

At Dow Jones Indexes and STOXX Limited, 

customers are alerted to ongoing changes 

via daily reports that are sent out by the 

index support team, which is also in charge, 

not surprisingly, of customer service. The 

reports list upcoming changes to index 

components for the next two weeks, 

including ratings of how likely each corporate 

action is to take place. 

Contact Name Mr. Lars Hamich E-mail pr-indexes@dowjones.com Website www.djindexes.com 

marketing@stoxx.com www.stoxx.com 

Each corporate action or merger/acquisition 

is given a 30-, 50-, 75- or 100-percent 

probability rating. 

Periodic changes also are made to indexes. 

Most indexes are reviewed quarterly or 

annually, meaning new components are 

selected and shares outstanding are 

updated. Dow Jones adjusts a company’s 

shares immediately if it amounts to 10% or 

more of the market capitalization; smaller 

adjustments are accounted for during the 

next review. The reviews are implemented at 

the end of each calendar quarter, but the 

review process kicks off in the second month 

of the quarter. 

A review basically begins by taking a 

“snapshot” of the index components as they 

exist on a specified date and comparing it to 

the previous quarter’s snapshot to spot what 

has changed. Deletions, name changes and 

initial public offerings must be identified. 

The changes that index support people have 

researched, tracked and documented then 

must be incorporated into the indexes being 

calculated in real-time or at the end of each 

day. The job of implementing changes falls 

to the production group. Production also 

implements routine changes such as stock 

symbols, identification numbers such as 

ISINs and switches in primary exchange 

listings. 

Production is as close as it gets to the index 

fairy because it’s the main distribution hub 

for all indexes created and marketed by Dow 

Jones Indexes. The Dow Jones STOXX 

indexes are calculated in Zurich and 

distributed through the Deutsche Borse in 

Frankfurt. 

PAGE 15


TurkDEX (TURKISH DERIVATIVES EXCHANGE) 

Hamdi Bagci 

CEO 

THE NEW ERA IN TURKISH 

FINANCIAL MARKETS... 

A MODERN MARKET ECONOMY 

Turkey has been changing rapidly. Over the 

last three years Turkey has grown by 25% 

and decades of high inflation have ended. 

The European Union (EU) accession process 

has accelerated economic and legal reforms. 

With its sound financial system and legal 

infrastructure compatible with the best of 

international standards, Turkey is a modern 

market economy. 

Turkey has vibrant a financial market. The 

average daily trading volume of stocks and 

bonds listed on the Istanbul Stock Exchange 

was TRY 6,909 million in 2004. During that 

period average daily volume of spot currency 

trading was US$ 2,206 million. The free 

movement of capital and favorable legal 

environment encourages domestic and 

international participation in Turkish financial 

markets. Well over half of the stock market's 

capitalization is held by international 

investors. 

A NEW DERIVATIVES EXCHANGE 

Derivatives are the instruments that have 

been employed for many years to facilitate 

transfer of risk, price discovery, and enhance 

liquidity by offering detailed public 

information. Since the mid-1980s the number 

of derivatives exchanges operating in both 

industrial and emerging-market economies 

has increased substantially. The derivatives 

market recently experienced tremendous 

economic growth and the will of integration 

into international markets motivated the 

establishment of a derivatives exchange in 

Turkey. As a result, Turkish Derivatives 

Exchange (TurkDEX) started operations by 

listing derivatives contracts on February 4, 

2005. TurkDEX is a self-governing, Capital 

Markets Board of Turkey regulated, joint 

stock corporation. It is headquartered in 

Izmir, by the Aegean Sea, which is the third 

biggest city in Turkey. 

PAGE 18 

The primary objective of TurkDEX is to 

become a global risk management center 

by providing derivatives tailored to meet 

the needs of traders, hedgers and 

investors. 

The primary objective of TurkDEX is to 

become a global risk management center by 

providing derivatives tailored to meet the 

needs of traders, hedgers and investors. 

Elements of the microstructure of TurkDEX 

such as the trading mechanism, the clearing 

arrangements, the regulatory structure, and 

the derivatives products to be traded, were 

designed to offer a fully integrated financial 

service both in national and international 

markets. 

TurkDEX uses an electronic-based trading 

system which is more attractive to 

businesses and investors thanks to its 

improved access, reduced cost, and greater 

transparency. By using an e-trading system, 

TurkDEX will be able to draw business from 

traders around the world. The trading system 

guarantees maximum accessibility and 

provides instant order entry and matching, in 

addition to equal access for all participants 

to satisfy their needs and expectations. 

TurkDEX's system operates on Wide Area 

Network (WAN) topology consisting of 

permanent data lines between TurkDEX and 

its members, providing them with the 

capability to trade remotely. 

TurkDEX offers investors the ability to 

leverage the capital they invest by buying 

securities on margin. In other words, 

investors have the opportunity to buy / sell a 

contract with a proportional deposit, socalled 

margin which is relatively lower than 

the contract value. In addition, spread 

margining, which lowers the margin rates in 

case of having long and short positions at 

the same contract with different maturity 

simultaneously, is available. 

PRODUCTS 

To a large extent, the success of a 

derivatives exchange depends on the choice 

of products to be traded. The main 

categories of products preferred as 

underlying asset of derivatives are 

commodities, interest rates, currencies, 

individual stocks, and stock indexes. 

TurkDEX carefully designed its products 

according to market needs. To date, seven 

futures contracts are traded at TurkDEX. 

These contracts are: 

• Index Futures 

- ISE 30 Stock Index Futures 

• Interest Rate Futures 

- 91 Day T-Bill Futures 

- 365 Day T-Bill Futures 

• Currency Futures 

- TRY / US$ Futures 

- RY / EURO Futures 

• Commodity Futures 

- Cotton Futures 

- Wheat Futures 

The derivative instruments traded on 

TurkDEX will increase the utilization capacity 

of the financial service sector by enabling 

brokerage houses and banks to offer new 

investment and hedging instruments. The 

systemic risk in the financial system will be 

lessened by allowing corporations to shift the 

burdens of price risk to other parties. As an 

innovator and customer oriented exchange, 

TurkDEX will design and launch new futures 

and options contracts as well, in order to 

become the “financial product superstore” 

of Turkey. 

CLEARINGHOUSE 

The clearinghouse of TurkDEX is Takasbank, 

recognized by the UK SFA as an "Approved 

Depository" & an "Approved Bank" and 

complies with the "Eligible Foreign 

Custodian" definition of the SEC as well. 

Takasbank is the central clearinghouse of 

Turkey since it executes the settlement and 

clearing of the transactions in Istanbul Stock 

Exchange (ISE). 

Takasbank marks-to-market all open 

positions daily to determine the necessary 

margins. TurkDEX also has a guarantee fund 

to safeguard against any non-fulfillment of 

obligations of members to the clearinghouse 

arising from exchange contract transactions.


MEMBERS 

One of the greatest assets of TurkDEX is 

its members. TurkDEX currently has 48 

members, consisting of the largest 

securities dealers and banks of Turkey 

(see the table). 

All trading members of TurkDEX are 

clearing members as well, since they 

meet the required financial adequacy 

standards and other qualifications 

specified by the exchange. They can 

trade both for their own account and for 

their clients' accounts. 

TURKDEX: FACTS AND FIGURES 

Within its first months of operation, 

TurkDEX has witnessed remarkable 

growth in open positions as there has 

been strong investor demand in Turkey. 

TurkDEX has recorded a trading volume 

exceeding TRY 100 million (US$ 73 

million) with more than 10,000 open 

positions in a three month period. The 

trading volume is growing steadily as 

more investors are introduced with 

TurkDEX products. 

In order to educate market participants 

TurkDEX continuously organizes training 

programs in co-operation with the 

Association of Securities Dealers and 

Banks of Turkey. Many Turkish 

universities are also providing courses 

on derivatives. As a result, a sufficient 

number of market professionals were 

trained in a short period of time. 

TurkDEX's aim to accelerate the growth 

of the Turkish financial industry as a 

whole marks the start of a new era by 

constructing the missing part of it. 


THE LIST OF THE MEMBERS 

Acar Investment & Securities Inc. www.acar.com.tr 

Ak Investment & Securities Inc. www.akyatirim.com.tr 

Akbank Inc. www.akbank.com 

Alternatif Investment & Securities Inc. www.ayatirim.com.tr 

Ata Investment & Securities Inc. www.atayatirim.com.tr 

Ata Online Investment & Securities Inc. www.ataonline.com.tr 

Bender Investment & Securities Inc. www.bendersecurities.com 

Delta Investment & Securities Inc. www.deltamenkul.com.tr 

Deniz Bank Inc. www.denizbank.com 

Deniz Investment & Securities Inc. www.denizyatirim.com 

Deutsche Bank Inc. www.db.com 

Dis Investment & Securities Inc. www.disyatirim.com.tr 

Eczacibasi Investment & Securities Inc. www.emdas.com.tr 

Egemen Investment & Securities Inc. www.egemen.com 

Ekinciler Investment & Securities Inc. www.ekininvest.com 

Ekspres Investment & Securities Inc. www.ekspresinvest.com 

Evgin Investment & Securities Inc. www.evgin.com.tr 

Finans Investment & Securities Inc. www.finansinvest.com 

Finansbank Inc. www.finansbank.com.tr 

Form Investment & Securities Inc. - 

Garanti Bank Inc. www.garanti.com.tr 

Gedik Investment & Securities Inc. www.gedik.com 

GFC General Finance Securities Inc. www.gfc.com.tr 

Hak Investment & Securities Inc. www.hakmenkul.com.tr 

HC Istanbul Investment & Securities Inc. www.hcistanbul.com 

Hedef Investment & Securities Inc. www.hedefmenkul.com 

HSBC Bank Inc. www.hsbc.com.tr 

Info Investment & Securities Inc. www.infomenkul.com.tr 

Is Investment & Securities Inc. www.isyatirim.com.tr 

Kocbank Inc. www.kocbank.com.tr 

Nurol Investment & Securities Inc. www.nurolonline.com 

Oyak Investment & Securities Inc. www.oyakyatirim.com.tr 

Oyakbank Inc. www.oyakbank.com.tr 

Oncu Investment & Securities Inc. www.oncumenkul.com.tr 

Prim Investment & Securities Inc. www.prim.com.tr 

Raymond James Investment & Securities Inc. www.prjs.com.tr 

Sanko Investment & Securities Inc. www.sankomenkul.com 

Standard Investment & Securities Inc. www.sekeryatirim.com.tr 

Seker Investment & Securities Inc. www.sekeryatirim.com.tr 

Tacirler Investment & Securities Inc. www.tacirler.com.tr 

Taksim Investment & Securities Inc. www.taksimmenkul.com.tr 

Taris Investment & Securities Inc. www.tarismenkul.com.tr 

TEB Investment & Securities Inc. www.tebyatirim.com.tr 

Turkish Foreign Trade Bank Inc. www.disbank.com.tr 

Turkish Industrial Development Bank Inc. www.tskb.com.tr 

Vakif Investment & Securities Inc. www.vakifyatirim.com.tr 

Yapi Kredi Investment & Securities Inc. www.yapikrediyatirim.com 

Yatirim Finansman Investment & Securities Inc. www.yatirimfinansman.com.tr 

For an updated list please visit www.turkdex.org.tr 

Contact Name Mr. Hamdi Bagci E-mail turkdex@turkdex.org.tr Website www.turkdex.org.tr 

PAGE 19


DENIZBANK FINANCIAL SERVICES GROUP 

Hakan Ates 


THE RHYTHM OF OUR BUSINESS 

DENIZBANK FINANCIAL SERVICES 

GROUP 

Following many years of success, DenizBank 

became one of the foremost names in the 

Turkish banking industry, earning a welldeserved 

reputation for excellent service. 

The DenizBank Financial Services Group 

consists; 

Banking 

• DenizBank 

• DenizBank AG 

• DenizBank Moscow 

• EuroDeniz Off-Shore Bank 

Investment Banking and Brokerage 

• DenizYatirim Securities 

• EkspresInvest 

• TarisSecurities 

• Deniz Investment Trust 

• Deniz Portfolio Management 

Leasing and Factoring 

• DenizLeasing 

• DenizFactoring 

IT Services 

• Intertech 

FROM DENIZBANK TO THE DFS GROUP 

DenizBank became one of the foremost 

names in the Turkish banking industry, 

earning a well-deserved reputation for 

excellent service. After DenizBank was 

acquired by Zorlu Holding in September 

1997, a revitalization program was initiated 

that encompassed the hiring of new 

personnel and opening branches under the 

new corporate identity. This was achieved 

under the guidelines of a five-year strategic 

plan where all targets were successfully met. 

Expansion was supported by the acquisition 

of a number of branch offices from SDIFcontrolled 

banks, as well as several financial 

companies including Tarisbank, which 

merged into DenizBank by the end of 2002. 

Additionally, DenizBank established and/or 

acquired financial companies that included 

banks in Austria, Russia and the Turkish 

Republic of Northern Cyprus in addition to 

factoring, leasing, investment and brokerage 

companies to complement its existing 

banking products and services. 

PAGE 20 

DenizBank became one of the foremost 

names in the Turkish banking industry, 

earning a well-deserved reputation for 

excellent service. 

In addition to DenizBank, the DFS Group has 

ten domestic and three international financial 

subsidiaries, a financial services branch in 

Dortmund, Germany, as well as an overseas 

banking unit in Bahrain and in the Turkish 

Republic of Northern Cyprus. They are: 

DenizYatirim Securities, EkspresInvest, Deniz 

Investment Trust, Deniz Portfolio 

Management, TarisSecurities, DenizLeasing, 

DenizFactoring and Intertech on the 

domestic side and DenizBank AG, 

DenizBank Moscow and EuroDeniz Off- 

Shore Bank Ltd. on the international side. 

With major operations, financial control and 

accounting functions centralized, the DFS 

Group has successfully transformed 

DenizBank's branch offices into marketing 

centers thereby optimizing the number of 

employees and improving operational 

efficiency. 

The DFS Group possesses a service network 

that reaches all segments of the society 

throughout Turkey. It also has a solid 

standing in the Internet environment which 

provides customers, both individual and 

corporate, with the facility to conduct 

financial transactions remotely from 

anywhere in the world. 

With adherence to the highest ethical 

business practices and corporate 

governance principles, the DFS Group has 

created sustainable, multi-faceted 

relationships with corporate and retail clients 

focusing on small and medium-size 

establishments, exporters, private companies 

and individuals. The DFS Group also has 

some niche markets such as ship finance, 

tourism, agricultural lending, foreign 

construction projects and medicare. 

DenizBank and its financial institutions have 

adopted the best practices in corporate 

governance and international business. 

Consequently, the DFS Group is ready to 

comply with EU norms and already has 

operations in a number of EU countries, 

through DenizBank AG, its subsidiary based 

in Vienna, Austria. The Group also has a 

subsidiary in Russia, another important 

trading partner for Turkey, rendering all 

complementary services to DenizBank, 

Istanbul. 

DenizBank's IPO was a landmark event in 

Turkey's capital markets, which had been 

lackluster for some time. 

ZORLU HOLDING 

The history of Zorlu Holding goes back to the 

early 1950s when it was established as a 

home-based producer of textiles. It later 

grew into a dynamic group of industrial 

companies, globally recognized for high 

quality. Zorlu Holding is now one of the 

largest and most extensive industrial 

conglomerates in Turkey. With a total of 65 

companies, Zorlu Holding has 15 large-scale 

industrial concerns operating in the 

international arena and three energy plants 

providing employment for 27,000 people. 

Currently, Zorlu Holding concentrates on four 

major business areas: 

• Home textiles and polyester yarn 

• Electronics, consumer durables and 

information technology 

• Financial services 

• Energy production 

Having steadily grown in the area of home 

textiles during the 1980s, the TAC brand of 

the Zorlu Holding Textiles Group has 

become the leading brand in the Turkish 

home textiles industry. In 1994, the Holding 

acquired Vestel Electronics and in 1996 

began operations in the energy sector 

through Zorlu Energy. The Holding further 

increased the number of companies under 

its management as it ventured into the 

financial services sector in 1997 with the 

acquisition of DenizBank. 

DENIZBANK AT A GLANCE 

Following another year of favorable results, 

the total consolidated assets of DenizBank 

reached US$ 6,031 million at the end of 

2004, an increase of 26% over the 2003 

figure which was US$ 4,802 million. By the 

end of the year, the Bank's net worth stood 

at US$ 667 million, recording an increase of 

42% over US$ 471 million posted in 2003. 

The capital adequacy ratio of DenizBank was 

as high as 17.8%, with its free capital ratio, 

one of the best in the Turkish banking 

system at 7%. DenizBank currently has 199 

branches nationwide in addition to an 

Internet Branch and a Call Center.


CORPORATE BUSINESS 

DenizBank continued corporate marketing 

activities and initiated a new marketing 

approach specifically designed to focus on 

the needs of customers in different 

segments. 

In 2004, following restructuring, the Bank's 

corporate business was divided into three 

segments to allow for specialization and 

diversification of products and services 

catering to their specific needs. These 

segments include: Corporate Banking 

serving companies with annual turnover of 

more than US$ 25 million; Commercial 

Banking serving companies with annual 

turnover of between US$ 2 million and US$ 

25 million and; Small Business Banking 

serving companies with less than US$ 2 

million annual turnover. 

Corporate Banking: Following segmentation 

and redefining target customers in the 

corporate banking segment, approximately 

1,350 large-scale companies were retained 

in the portfolio; the smaller ones that 

remained were transferred to the commercial 

banking portfolio. Specialized corporate 

banking services were initiated at six 

branches and three new corporate branches 

were opened. 

Commercial Banking: The Commercial 

Banking Group serves their customers out of 

eight regional directorates and 126 branch 

offices across the country. With a staff of 260 

sales and marketing specialists, the Bank 

allocates considerable funds for commercial 

segment customers. 

SME Banking: Thanks to efficient workflow 

and the scorecard, a typical SME credit 

application is approved within 48 hours. The 

SME Credit Group started operations 

evaluating only 50-60 credit applications a 

day but this number increased to 600 daily in 

the following three months. As a pioneer in 

the SME segment in Turkey, DenizBank aims 

at further diversifying its loan book into small 

and medium-size companies as it develops 

additional products and services able to 

cater to the business needs of this segment. 

RETAIL BANKING 

Retail Marketing: To achieve maximum 

customer satisfaction and optimize on 

operational costs, a number of new 

consumer products were launched during 

2004, some of them for the first time in 

Turkey. 


These products include: 

• Alo-Kredi; a type of a consumer loan 

granted on the phone without requiring the 

borrower to visit a DenizBank branch and 

without a third-party's guarantee 

• Express limit, an additional installment loan 

facility on credit cards, that can be utilized 

for durable good purchases at member 

merchants via POS terminals 

• A 4-month grace period for consumer 

loans 

• Special credit terms for the employees of 

certain institutions like the Central Bank, 

Turkish Industrialists and Businessmen 

Association member companies and The 

Scientific and Technical Research Council of 

Turkey (Tübitak) 

• A number of cross-selling campaigns were 

organized for existing DenizBank customers: 

mutual fund investors, direct deposit 

customers, employees of companies 

receiving their salaries through DenizBank 

and credit cardholders without overdue 

problems 

• A number of campaigns, like additional 

installments, cash rebates, customized 

reward and postponed payment were 

organized in order to increase the turnover of 

DenizBank credit cards 

• DenizBank started issuing the Bonus Visa 

Card in addition to the Bonus Master Card 

• Repo, T-bills trading and mutual fund 

transactions were added to ATMs' functions 

Credit Cards: DenizBank credit card 

applications are processed through the 

online real-time workflow system, which 

serves to increase the pace of operations 

and approvals. All applications are 

processed through a scorecard-based 

approval system which facilitates limit 

allocations and performance monitoring. 

Always aiming at delivering the best available 

service to cardholders, DenizBank is 

continuously improving its technological 

infrastructure and enhancing its card 

processing systems. 

The market share (by volume) is 3.22% by 

year-end 2004. 

Bonus Card: Bonus Card is the first multibranded 

chip based credit card in Turkey, 

offering both installments and rebate 

rewards. There are 35,000 partner merchants 

taking place in the Bonus program which 

offer installments and cash rebates to Bonus 

cardholders. 

DenizBank Contact Center +90 212 444 0800 E-mail info@denizbank.com Website www.denizbank.com 

Direct Sales: Direct Sales consists of; 

• Consumer Loans 

• Overdraft Facility 

• Bill Payment Orders 

• Mutual Funds 

• Insurance Services 

• Life and non-life insurance products 

Alternative Distribution Channels: Through 

DenizBank's alternative distribution channels 

customers may access a large number of 

services without the need to visit a branch 

office. In addition to routine banking 

transactions, these services also include 

investment products which DenizBank 

customers can utilize through the Internet 

Branch, ATMs, Kiosks and the Contact 

Center. Through these channels they can 

buy and sell mutual funds, government 

bonds and Treasury bills. Customers can 

also change foreign currency and buy 

prepaid GSM cards through alternative 

distribution channels. Additionally, debit card 

applications can be made through all four of 

these channels. 

In 2004, DenizBank pioneered an other first 

in Turkish banking. In addition to applications 

through branches and the website, 

customers can now apply and register online 

for Internet banking services by simply 

calling the Contact Center. 

In an effort to promote the use of alternative 

distribution channels, customers are given 

DenizYildizi (SeaStar) via @cikDeniz, Contact 

Center and Kiosks, in proportion to their 

usage of the channel. SeaStar entitles the 

customer to certain privileges or benefits in 

their relationship with the Bank. 

@cikDeniz Internet Branch: In operation 

since 1999, DenizBank's Internet Branch 

@cikDeniz has capabilities for modular 

transactions and information search facilities. 

Through this innovative medium, the Bank's 

customers can conduct all banking and 

investment transactions online. These 

transactions include making utility payments 

and money transfers, placing direct debit 

orders via credit cards, merging of accounts, 

enabling the upgrading, canceling and 

resizing of stock orders, as well as 

communicating with Contact Center 

personnel. 

PAGE 21


TATA CONSULTING SERVICES 

S. Ramadorai 

CEO and Managing Director 

ABOUT TCS 

TATA Consultancy Services Limited (TCS), a 

part of the TATA group, is one of the world's 

leading global information technology (IT) 

consulting, services and business process 

outsourcing organizations. The largest 

software and services company in Asia, TCS 

was also the first Indian IT services 

organization to cross the billion dollar mark 

in annual revenues. The company employs 

over 40,000 associates at about 150 

branches across 33 countries. It services 

more than 1,000 global clients, including 

eight of the top ten US companies, in diverse 

industries such as banking and financial 

services, insurance, manufacturing, 

telecommunications, retail and 

transportation. The pioneer of the flexible 

global delivery model for IT services, TCS 

offers a comprehensive range of technologydriven 

business solutions to its clients. The 

company’s unmatched ability to deliver high 

quality services and solutions has made it 

the world’s first organization to achieve an 

Enterprise wide Maturity Level 5 on both 

CMMI® and P-CMM®. 

EXPERIENCE IN FINANCIAL 

SERVICES 

Over the years, global financial markets have 

created liquidity and opportunities, and, at 

the same time, have become increasingly 

complex, competitive and volatile. Driven by 

the quantum leaps in technology, these 

markets are rapidly moving towards borderless 

business. The emergence of a truly 

global economy, and deregulation have 

created the need for a new generation of 

capital market solutions that operate in real 

time with absolute reliability, and support 

trading, clearing, and settlement through all 

time zones on correct value dates. With the 

growing volume in trade, various strategies 

are being implemented to reduce the related 

risks. Many markets are shortening the 

settlement cycles. 

TCS recognises the fact that the dynamic 

financial environment will require innovative 

services conceived and delivered, quickly 

and cost efficiently. To cope with the 

challenges posed by the rapidly changing 

business and technology environments, TCS 

is continuously developing new result 

oriented strategies and creative solutions for 

the banking and financial services industries. 

Besides providing specialized software 

solutions to customers around the globe, 

TCS has also designed solutions for these 

industries based on rich experience acquired 

both in matured and emerging markets. 

TCS has developed solutions for different 

business areas within the financial services 

and securities industry, spanning 

PAGE 24 

TCS provides highly scaleable, flexible and 

reliable technology solutions for the 

financial markets. 

international banks, stock exchanges, 

clearing, matching and settlement 

organisations, depositories, custodial 

services, brokerage firms, mutual funds, 

rating agencies, financial institutions and 

asset management companies. This has 

given TCS formidable domain expertise in 

the Security Industry Value Chain. 

Based on this global experience, TCS has 

developed the following products to cater to 

the dynamic market needs: 

• Trading solution – ‘TradeX’ 

• Clearing and Settlement solution – 

‘eClearSettle’ 

• Brokerage solution – ‘eIBS’ 

TradeX 

The changing landscape of the securities 

industry has increasingly entailed an 

integration of trading systems with new age 

technology. There is a definitive need to 

introduce a genre of new solutions that 

operate in real time with flawless reliability. 

To achieve improvements in business 

performance and sustained operational 

efficiencies for the digital market places of 

tomorrow, TCS has developed a futuristic 

stock exchange trading solution – TradeX. 

TradeX offers an integrated, configurable 

and highly scalable trading system 

framework for multiple instruments like 

equities, debt, derivatives, commodities, 

forex, mutual fund, and ETFs. It is a 

component based product, and can be 

tailored to meet client specific requirements. 

TradeX provides an open system 

architecture facilitating product 

implementation on the latest software and 

hardware. It provides a framework for 

implementation of the core components and 

the add-ons through a layered architecture. 

This provides for technical configurability, 

and a high level of scalability. 

The TradeX Edge 

TradeX is an integrated rule-based 

application engineered for flexibility, 

convenience and ease of maintenance. 

• Substantial reduction in time to launch new 

trading segments and markets through 

parameterization 

• Faster ‘anytime-anywhere-anyhow’ access 

to real time information for all the users 

through multiple access channels 

• Integrated risk management system with 

multi-level security validations 

• Integrated margining and optimizing of 

investor capital 

• State of the art technology product, 

complying with international standards like 

FIX, ISO, GICS, ANSI 9.19 and X 509, and 

facilitating interoperability 

• User friendly product with interactive GUIs, 

alerts, and reports 

The TradeX Advantage 

The digital marketplaces of tomorrow will 

redefine the business paradigm. TradeX has 

been developed keeping in mind the 

changes in the securities landscape, to give 

an exchange the winning edge in this new 

age of technology. 

• Integrated Trading Platform: A common 

infrastructure and front end to support 

trading and exposures display across 

multiple segments along with an integrated 

RMS 

• Configurability for quick launch of new 

trading segments and markets using rule 

based configuration 

• Parameterized approach for easy 

maintenance of existing markets and 

segments 

• Cross border trading simplifies trading on 

various partner exchanges 

• 24x7 availability architecture enables round 

the clock querying and trading on partner 

exchanges 

• Multi-currency trading supports trading in 

foreign stocks in their local and foreign 

currencies 

• Trade negotiation chat facilities for 

structured negotiation with multiple counterparties 

• Multiple access channels increases reach 

to all the end users 

• Open system API based approach enables 

external entities to communicate with TradeX 

• Scalability and flexibility for up-gradation to 

a higher configuration 

• High reliability and recovery from the point 

of failure without any data loss 

• Caters to the stringent security 

requirements of the business 

eClearSettleTM 

TCS’s eClearSettleTM is a comprehensive 

product for clearing and settlement for the 

equities, fixed income and derivatives 

segments. eClearSettleTM offers end-to-end 

solutions for Central Security Depositories, 

Clearing Organizations, Registrars and 

Central Banks worldwide. It is based on 

TCS’s expertise in international clearing and 

settlement markets across Europe, North 

America, Middle East and South Africa. 

eClearSettleTM comprises of various 

components namely: 

• Common Library 

• Depository Services 

• Clearing and Settlement for Equities and 

Fixed Income Instruments 

• Clearing and Settlement for Derivatives 

• Risk Management 

• Registrar Services 

These components can be implemented 

independently or as an integrated system for 

an organisation based on the services it 

provides. eClearSettleTM supports a range 

of global securities across different market


segments - equity, fixed income and 

derivatives. The various categories of 

participants include Stock Exchanges, 

Investors, Clearing Members, Brokers, 

Registrars, Custodians and Banks. 

eClearSettleTM supports links to multiple 

exchanges and the needs of the over the 

counter market and also enables real time 

links to payment systems as well as other 

systems such as Information Vendors and 

Overseas Clearing Corporations. 

The eClearSettleTM Edge 

• Product suite encompassing Clearing, 

Settlement, and Depository functions 

• Compliance with international standards 

and practices such as G30, IOSCO 

recommendations relating to Security 

Numbering, Messaging Standards, 

Settlement Models, Security Lending and 

Borrowing, and participation of indirect 

participants 

• Adopting international best practices in 

standards implementation such as ISO 

15022 and XML 

• Multi Region / Market capability 

• State-of-the-art technology protecting from 

obsolescence and costs of technology upgradation 

• Cost effective solution providing short time 

to market and quick customization 

• Proven delivery track record backed by 

domain expertise and competencies and 

experience working with major clearing and 

settlement organizations world wide 

• Large pool of domain and technology 

experts and skills 

The eClearSettleTM Advantage 

• Global range of securities 

• Multi-entity, multi-market segment (spot, 

odd lot, cash) and multi-currency capability 

• Combination of settlement models (gross 

trade by trade, netting) and payment 

methods 

• Central counter party services 

• Settlement cycle (Rolling T+n, account 

period) 

• Integrated risk and collateral management 

• Interfaces to third party margining 

solutions 

• Compliance with international standards 

and best practices 

• Real-time interfaces with exchanges, 

market places, payment systems and 

participants 

• Component based design using OOAD, 

UML providing easy maintainability, 

scalability and high performance 

• Scalable, extensible solution 

• Multiple delivery channels 

-Message based solution-SWIFT and XML 

-Support for GPRS/WAP, IVR, Notes / 

Exchange and SMS 

• Browser-based interface 

• Integrated Reporting component 

-Flexible and customizable report layouts 

using Crystal 

-Reports in PDF, RTF and HTML formats 

-Automated despatch using email 

e-IBS TM 


As stock markets in the world move towards 

deregulation and shorter settlement cycles, 

the long-term success of brokerage firms will 

increasingly depend on the enhanced 

operational efficiencies of their software 

systems. Systems, which offer seamless 

operations to cater to industry-wide 

standards and possess with them a high 

degree of flexibility and extendibility are 

required. 

TCS e-IBS TM is specifically designed for 

international brokerage institutions operating 

in a global environment. TCS e-IBS TM is a 

futuristic state-of-the-art solution, which has 

been designed with the objective of catering 

to the front, middle and back office 

complexities of a brokerage firm in a multimarket, 

multi-instrument and multi-currency 

environment. The e-IBS TM suite is 

completely integrated across all its various 

components, viz. MATRIX, THEOREM, and 

PRECISION. Each component can be 

deployed to suit individual requirements. This 

is a rule-based solution and offers a great 

deal of flexibility in handling varied 

operational intricacies. 

MATRIX is a multi-market, multi-instrument, 

and multi-currency trading system for Equity 

and Derivatives for both institutional and 

retail investors through offline and online 

interface channels. 

Salient Features 

• Intelligent Order Routing and Management 

based on workflow 

• Advanced Trading Strategies Module with 

online graphical pay-off profiling 

• SPAN interface 

• Arbitrage, Basket trading, and Portfolio 

management 

• Option calculator 

• Online Interface with banks and 

depositories 

• Robust and scalable solution 

• Real-time maintenance of portfolios and 

orders 

• Integrated news, streaming and market 

data 

• Highly secure and reliable Internet trading 

platform 

• Standard message based interface with 

third party trading systems 

• Extensive queries and reports on order / 

trade status and market information 

THEOREM is a comprehensive and 

centralized rule-based risk management 

system, which integrates the front office and 

the back office. 

Contact Name Mr. Jagdish Bhandari E-mail jagdish.bhandari@tcs.com Website www.tcs.com 


• Order -based risk management with online 

position monitoring 

• An integrated view of positions across front 

office and back office 

• Rule based system allowing the user the 

flexibility to define the business rules 

• Centralized risk management across 

various instruments and markets 

• Parameterized and comprehensive risk 

profiles 

• Prudent risk management with balance 

between leverage and conservatism 

• Real-time user defined limits and alerts 

• Automated deactivation and suspension of 

entities 

• Interface with CME’s PC SPAN and 

MORE (TCS Proprietary risk library) engine 

• Password protected access levels 

• Comprehensive audit trails 

• Automated figuration and exception 

monitoring 

• Multiple collateral types with real time 

valuation 

PRECISION is a comprehensive clearing and 

settlement solution, which caters to the 

diverse requirements of brokerage firms. 


• Multi-market, multi-instrument, and 

multi-currency 

• Flexible configuration 

• Automated trade confirmation and position 

adjustment 

• Rule based market and instrument driven 

settlement scheduling 

• Rule based configurable brokerage 

schemes 

• Effective position management with 

configurable netting options 

• Exceptions handling like Buy-in and Sellouts 

• Comprehensive funds and securities 

settlement 

• Multiple collateral types with real-time 

valuation 

• Margin computation based on VaR, SPAN 

• Extensive and configurable MIS reports 

• Near real-time securities and funds 

accounting 

• Multiple Access channels; Web, email, 

Fax, IVR and SMS 

• Regulatory reporting 

• Standard messaging compliant 

• Multi-layered role-based access - Maker 

checker and audit trail facility 

PAGE 25


WORLD FEDERATION OF EXCHANGES 

Thomas Krantz 

Secretary General 

THE SIGNIFICANCE OF THE 

EXCHANGE INDUSTRY 

At the Heart of the World Economy 

Since the end of the 1980s, regulated securities 

and derivatives exchanges have come to play a 

major new role in international finance. That 

role is qualitatively different from anything seen 

since World War II. Quantitatively, the markets 

operated by exchanges have grown to a scale 

unimagined before, positioning them at the 

heart of the world economy. This remains true 

despite current macroeconomic difficulties 

covering large parts of the world. The active 

confrontation of buy and sell orders on a public 

market determines corporate asset values in a 

manner that is fair and visible to all. 

Exchanges have made this business growth 

possible, and the size of their industry has 

changed their position within the international 

economy. They have done this by: 

• aligning their corporate strategies with 

the business potential 

• adapting the rules for trading access and 

listing of securities 

• training their staff and investing in 

infrastructure 

• boosting the commerce of finance with 

new telecom and computer technologies 

• providing stimulus for trading and 

improved risk management through 

derivatives markets 

• supporting pension and retirement 

savings schemes 

• participating in the reorientation of finance 

from bank loans into securities 

• promoting the increase in cross-border 

investment and trading 

This expansion in the work of regulated 

exchanges coincided with a trend in the late 

1990s leading many bourses to switch from a 

business structure based on broker 

cooperatives with member broker/bank 

ownership to for-profit limited companies with 

outside owners. For most of the Federation’s 

members, business objectives changed with 

this new governance form. The heightened 

commercial feel of this industry also affected 

those exchanges maintaining their mutual legal 

form, and they have proven themselves to be 

successful competitors. The dynamism of 

these businesses is one reason for the 

qualitative difference in the role of exchanges in 

this century: the markets could not have grown 

in scale to the extent they did, even considering 

the current downturn, if their operations were 

not of high quality, and recognized as being 

the most efficient venue for listing and trading 

of securities and standardized derivative 

instruments. 

Exchanges are visibly identified with the 

commercial spirit of the times. Exchanges 

symbolize market capitalism. The level of their 

activities gives an instant short-hand summary 

of entire nations’ socioeconomic health. It is 

PAGE 26 

As a social responsibility, and as an 

essential part of further business 

development, exchange managers come 

forward as leaders in public debates on 

capital markets, and to correct inaccuracies 

in the discussions about regulated bourses. 

natural that these enterprises be managed as 

dynamic businesses in their own right, enabling 

them to meet the commercial demands of the 

markets. 

The Transformed Position of Exchanges 

In December 1990, the World Federation of 

Exchanges (formerly FIBV) counted 38 

members. The total market capitalization of 

equities listed on these bourses was US$ 9,400 

billion, and the value of share trading for the 

year hit US$ 6,211 billion. 

By June 2003, the Federation had grown to 56 

members. Total market capitalization had risen 

to US$ 25,481 billion, after reaching a high 

point in March 2000 of US$ 36,286 billion. The 

value of share trading during 2002 fell back to 

US$ 33,453 billion, compared to the previous 

year’s US$ 41,225 billion, and on an annualized 

basis stood at US$ 30,748 billion in June 2003. 

While the business environment is difficult, the 

charts show that the long-term growth trend of 

increasing public reliance on capital market 

financing remains intact. Like the underlying 

growth in the economies themselves, this 

upward trend remains subject to fluctuation. 

This long-term trend translated into: 

• growth in equity market capitalization over 

the period of 171% 

•growth in trading volumes of 395% 

•acceleration in the annual turnover velocity 

of shares from 66% to 121%, doubling the 

liquidity provided on regulated exchanges. 

Enhanced business profitability, privatizations, 

IPOs, indexes and derivative products, and 

cross-border trading fed this transformation. 

The exchanges were key actors which adapted, 

invested, participated and enabled this to take 

place. 

The Scale of Regulated Exchanges 

By all measures, the health of an exchange is 

vital to a market economy. As a percentage of 

gross domestic product, the value of equity 

market capitalization of Federation member 

exchanges varied from a low of 9% to a high of 

313% at the end of 2001, the last year for which 

the IMF’s GDP statistics have been provided. 

The global average market capitalization for 

equities on members’ exchanges was 73% of 

GDP in 2001. Moreover, these assets include 

most of the world’s most highly prized 

companies. 

At the end of 1991, 25,980 foreign and 

domestic companies were listed on member 

exchanges. Ten years later, at the end of 2002, 

this number had grown to 38,333. The world’s 

corporations favor this source of funding, and 

economic theory and practice confirm the 

efficiency of this form of capital financing. 

In 1999, companies and governments raised 

new capital on Federation member exchanges 

amounting to US$ 754 billion, and this 

increased to US$ 896 billion in 2000 under 

market conditions that were becoming less 

favorable. The figures for fresh capital raised 

have dropped steeply since, to US$ 342 billion 

in 2001 and US$ 262 billion in 2002. But these 

amounts remain very significant economically. 

Economic reliance on exchanges is one of the 

key changes in finance over the last decade. 

Public policy makers, corporations, and the 

saving public have come to appreciate the 

importance of these figures as the historical 

trend remains striking. 

Moreover, in many parts of the world, exchange 

index movements have come to be integrated 

into the rhythm of daily life, every few minutes 

on the radio, at regular intervals on television, 

and constantly on the Internet. The capital 

markets have given rise to considerable 

expansion of the specialized printed press, too. 

The names of broad equity market indices are 

commonly recognized as being of social 

importance. When the market moves more than 

a few percent up or down, it is big national 

news. When exchange trading is interrupted for 

whatever reason, that too is major news. 

Clearly, a different kind of financial business 

has emerged on the scene. No other actor has 

such an affect on the public mind, and that, 

too, is meaningful. 

This heightened reliance on public capital 

markets has been taking place in many 

countries around the world, involving by far the 

greater part of the world’s economic life. 

Exchanges’ centrality to social wealth creation 

is established. Corporate treasurers need to 

factor in their ability to tap this source of cash 

by issuing securities, just as finance ministers 

try to balance national budgets with their 

privatizations of state-owned businesses. 

Public awareness of the need to invest has 

prompted great individual interest in equities 

and related exchange-traded products, too. 

A further benefit has been the broadening of 

share ownership, and with it the loosening of 

market forces for better corporate governance 

practices. 

Exchanges Establish Fair Rules for Efficient 

Markets 

Exchanges have a distinct, market-neutral 

identity within the financial services sector. 

They are not insurance companies, investment 

firms, banks, or brokerages. They operate 

regulated securities and derivative markets. 

These markets establish asset values through 

efficient price discovery, enabling the public to 

know how much companies are worth 

according to the latest news and economic 

outlook. 

Putting together rules, know-how and 

technology for transparent trading of assets 

worth three quarters of one year of the world’s 

GDP is quite a responsibility; to meet that 

challenge is to assist in building prosperity. 

Regulated securities exchanges provide


solutions by creating greater efficiencies across 

the public capital markets value chain, and 

diffusing ever more complex and better quality 

financial information to support the work of all 

actors. 

This essay now moves on to state some of the 

business questions exchange operators face. 

A financial market is highly sensitive to its 

environment; operating an exchange is a 

proportionately complex business. Regulation 

helps make the markets more efficient, but 

much also depends on human talent and 

judgment, just as is the case elsewhere in the 

financial services industry. Governments are 

profoundly involved in matters of public 

savings, as are the corporate issuers of 

securities and the investors themselves; 

together with them, operators of exchanges 

must often fine tune rules to keep this business 

model right. Today, the scope of this business 

underscores the dual, simultaneous national 

and international challenge that the functioning 

of these markets represents. 

For fair and transparent price discovery to 

occur, the business of exchanges precedes the 

instant of trade order execution and extends 

well beyond. Even if by law or custom the 

exchanges in every country do not operate 

these diverse activities directly, their 

involvement in them is extensive. The bundle of 

related businesses is what builds a coherent, 

secure market. The entire value chain must 

function smoothly, including: 

• writing the rules for market activity 

• admitting intermediaries (banks or brokers) to 

act on the central market 

• assuring the ability in-house to follow 

intermediaries’ positions, and so establish 

enforcement of market rules 

• admitting securities to listing 

• assuring on-going disclosure of corporate 

information 

• setting up adequate IT and communications 

systems facilities 

• diffusing of market information to a wide 

public 

• trading 

• assuring prompt and final clearing and 

settlement of orders 

• providing for securities registry, transfer 

agent, and depositary activities 

In addition to equities, Federation members 

conduct nearly all of the world’s on-exchange 

trading of government and corporate bonds, 

derivative instruments, investment funds, 

exchange-traded funds (ETFs), warrants, and 

convertible bonds. Also in this commercial 

environment, exchanges are extending further 

into after-trading services in search of good 

returns in related business fields. 

The Business of Running Exchanges 

Whether a for-profit company or a cooperative, 

exchanges must serve their customers and 

earn money to ensure business growth. This 

means: 

• improving staff operations and competency 

• rewriting rules as know-how, technology, 

products and opportunities gradually modify 


the market and create new challenges 

• scaling up IT and telecommunications 

systems 

• connecting markets to ever more players 

• enhancing surveillance and control 

functions. Actors, instruments, and types of 

securities are growing in complexity, and 

trading in them interacts more intensely, often 

across borders. 

• improving the information disclosed on 

companies and market data 

• leading improvements in how corporations 

are governed 

• addressing strong national and cross-border 

competition 

• investing reserves strategically 

• assuring a good return on capital 

• organizing programs for educating users 

of the exchange business 

A growing number of exchanges have 

introduced the shares of their companies on 

the markets they operate, emphasizing at the 

same time the for-profit and public nature of 

this industry. 

With this mix of questions in mind, it is notable 

that technologies and efficiencies at exchanges 

have enabled them to lower unit costs 

throughout the 1990s and afterwards. Up until 

the end of 2002, total revenue growth was 

strong over this period at 300%, and notably 

lower than the 395% increase in annual trading 

volumes. The benefits of scale and technology 

were passed on to customers in lower charges 

to clients. 

Challenges for Exchange Managers 

There is a public good in operating an 

exchange, and managers certainly recognize 

the importance of this. Bourses are not the only 

segment of financial services to have this 

distinction. However huge the markets relative 

to the economy, in the end, exchanges are 

about running regulated businesses. On 

balance, one cannot have regulation without a 

prosperous business environment, and one 

cannot have a prosperous exchange without 

clear rules and respect for them. 

Intangibles matter to exchanges: their marketneutral 

position, and the value of their 

reputation for fairness and transparency in the 

conduct of trading. Managers do their utmost 

to enhance the quality of these assets, for they 

are commercial elements central in running the 

business. 

The question is sometimes implied that the 

quality aspects of the business, the assurance 

of regulatory services, is not entirely compatible 

with a for-profit environment. Yet all businesses 

must assume costs of quality for goods and 

services, whatever the industry. In many 

jurisdictions exchanges are subject to particular 

questioning on this point, while the economic 

scale of this industry, and the market statistics, 

demonstrate that market mechanisms are 

functioning properly. Volume growth and 

reduced bid-ask spreads underscore the 

operating efficiency of exchanges. 

Contact Name Mr. Thomas Krantz E-mail secretariat@world-exchanges.org Website www.world-exchanges.org 

The size of the exchange industry is small 

compared to the economic function of the 

markets. Including consolidated companies, 

Federation members at the end of 2002 

employed 22 062 people, and operated off a 

total capital base of US$ 13.4 billion. 

The corporate size of exchanges is also small 

compared to banks, insurance companies, 

institutional brokerages and other investment 

firms. Each has key financial functions to fulfill, 

including in the capital markets. But given the 

complex work of exchanges and their centrality 

to economic life, their relative size often means 

that these managers are not sufficiently heard 

in public financial policy debates. The public 

agenda may be too keyed to issues of banking 

and insurance; but for successful 

macroeconomic management, the figures in 

this paper demonstrate the need for greater 

focus on regulated exchanges. Their success 

cannot be taken for granted, and the 

experience of bourse managers must be drawn 

upon and used as a key tool in devising public 

policies. 

Exchanges need independence and freedom 

to operate within the rules of the regulatory 

environment. There can be unintended 

consequences of too much regulation that will 

impede the market function. The goal to 

pursue, the hard balance to find, will involve 

unleashing the full benefit of an exchange 

within the set rules of the local jurisdiction, 

remembering that there will never be a situation 

of zero risk for investors or issuers, and that 

governments should not be aiming for that 

objective. That simply is not what financial 

markets are about, and even to imply that 

would give a poor sense of this business. 

In trying to take business off the bourse, many 

other financial actors criticize the central role 

exchanges fulfill. Some commentators 

underplay the competitive pressures Federation 

members feel as enterprises. In acting in this 

way, they harm to price discovery on central 

markets, undermining a mechanism that clearly 

provides a social good. 

Also, in some jurisdictions experimentation with 

market structure has led to sharp falls in 

trading, notable widening in bid-ask spreads, 

or higher costs to final clients – all of these 

being sure signs that the market has become 

less efficient. Exchange managers must be 

involved in regulatory planning, so that 

adaptation to changing commercial conditions 

in finance is taken into account. The investing 

public and listed enterprises must not be 

disadvantaged. 

As a social responsibility, and as an essential 

part of further business development, 

exchange managers come forward as leaders 

in public debates on capital markets, and to 

correct inaccuracies in the discussions about 

regulated bourses. Most recently, they have 

been strengthening rules and helping to have 

legislation enacted that will hold corporate 

leaders to higher standards. Exchange 

enforcement of market rules has been 

reinforced, too. Together these measures will 

renew and enhance the confidence needed 

between public listed enterprises and investors. 

PAGE 27


TAYBURN KURUMSAL 

Ediz Usman 

Partner & Client Relations Director 

THE THREE FUNDAMENTAL 

ASPECTS OF CORPORATE 

COMMUNICATION 

Just as competition is becoming the keynote 

of every sector in today's business world, the 

ability to institutionalize has become one of 

the most important factors that enables a 

company to survive. The economic 

upheavals of the recent past and the 

increasingly tougher competition in every 

sector have made it absolutely clear that 

institutionalization is essential if a company is 

to endure, achieve stability, and grow strong 

in the international arena. 

In such an environment, there are three 

fundamental aspects of corporate 

communication to which attention must be 

given: Branding, Reporting, and Marketing. 

In their efforts to institutionalize themselves, 

companies need to manage their branding 

process effectively; to communicate their 

corporate line, vision, mission, and financial 

strength in the best way possible; and to 

employ new and creative marketing 

techniques. It is at this point that Tayburn 

Kurumsal and Tayburn Tasarim come into 

the picture as business partners that highly 

experienced in corporate communication for 

their clients. 

TAYBURN GROUP 

With a quarter of a century of experience in 

international as well as European markets, 

Tayburn is the biggest advertising agency in 

Scotland and the tenth biggest in the United 

Kingdom. It has been eleven years since we 

began blending Tayburn's know-how with our 

own knowledge of the local market and 

putting them to work in the service of clients. 

For more than a decade we have developed 

and offered productive, high-quality, and 

creative solutions for some of Turkey's 

leading companies in the areas of annual 

reports, branding, design, new media, 

advertising, and marketing. 

Thanks to our expert team, to the knowledge 

and experience acquired on our own and 

through Tayburn, to our customer focus, and 

to our innovative and creative approach to 

service, we are today Turkey's most soughtafter 

service provider in the corporate 

communication segment. Our service area 

as Tayburn Kurumsal and Tayburn Tasarim 


Understanding its customers and providing 

them with high-quality and value oriented 

service underlie Tayburn's fundamental 

business approach. 

is not limited to Turkey. Because of our 

world-class know-how and quality of service, 

we are also called upon by clients operating 

in Europe and in neighboring countries. Our 

own technological infrastructure makes it 

easy for us to provide such clients with fast, 

comprehensive service too. 

Tayburn is also continuously developing itself 

and keeping pace with change. Its goal is to 

be a source of inspiration on all corporate 

communication issues by making the best 

possible use of the opportunities provided by 

technology and offering service at the 

highest international standards. Taking this 

as its point of departure, Tayburn also serves 

clients effectively and comprehensively on all 

the new electronic platforms that technology 

is constantly making available such as 

custom-designing websites according to 

their needs and preparing web-based 

reports, applications, and other electronic 

products. 

VALUE ORIENTED 

Everything that is done at Tayburn is for the 

customer. Understanding its customers and 

providing them with high-quality and value 

oriented service underlie Tayburn's 

fundamental business approach. Our 

business is not limited to classical 

advertising services: we offer high addedvalue 

products and services that are 

informed by our careful and thorough 

understanding of each customer's unique 

corporate communication requirements. 

Nourished by our innovative spirit, our 

approach to business also serves as our 

guide as we give shape to our services in the 

future. Each member of our team performs 

his job with a passion for success. And so 

long as this passion for success remains 

fresh and enduring in our team Tayburn will 

continue to expand its satisfied customer 

base and achieve its corporate objectives. 

Contact Name Mr. Ediz Usman E-mail info@tayburnkurumsal.com Website www.tayburnkurumsal.com 

PAGE 28 

Creative and integrated corporate 

communication solutions 

Since 1994, Tayburn Kurumsal and Tayburn 

Tasarim have been providing its corporate 

customers with the expertise, originality and 

proven experience that they require for the 

development and execution of whatever 

creative communication solutions they may 

be in need of. 

The integrated and creative corporate 

communication products and services that 

we offer you fall under the following main 

headings: 

Reporting 

Developing and producing printed and 

electronic products aimed at enabling 

companies to communicate clearly and 

effectively with all their stakeholders 

(shareholders, employees, suppliers, 

customers) 

• Annual reports and interim reports 

• Environment and human resources reports 

• Electronic annual reports 

• Web reports 

Branding 

Corporate and consumer brand creation, 

development, standardization and protection 

• Logo design 

• Full-service corporate identity creation and 

development 

• Brand launching and relaunching 

• Corporate identity products 

• Consultation services 

Marketing 

Developing, producing, and executing all the 

advertising, promotional, and corporate 

communication products and services that 

corporate customers may need anywhere in 

their product-service-customer cycles 

• Campaigns 

• Corporate publicity films 

• Advertising films 

• Advertisements (national/international) 

• Web-based solutions 

• Brochures, publicity kits, calendars and 

date books 

• Copy-writing and editorial services in 

English, French, German, Italian, Russian, 

Spanish, Turkish. (Other languages available 

on request.)

‹stanbul Edinburgh London 

inspiring solutions 

Süleyman Seba Cad. Ac›su Sok. 1/15 Maçka 34357 ‹stanbul Turkey Telephone +90 212 227 0436 Fax +90 212 227 8857 

Web site www.tayburnkurumsal.com www.tayburntasarim.com www.tayburn.co.uk


IS INVESTMENT 

Ilhami Koc 

General Maneger 

We believe the infancy stage of the capital 

markets in Turkey is coming to an end. When 

compared to emerging capital markets in 

close geographical proximity to Turkey, we 

can see that Turkey has come a long way 

toward establishing a well-functioning, 

transparent and safe market for domestic as 

well as for international investors. Turkey, 

which has been placed amongst emerging 

countries category for a long time, is at last 

starting to be accepted as a country that has 

been experiencing a serious transformation 

process on the way of European Union (EU) 

membership in the last years. This positive 

transformation has two fundamental reasons; 

first one being that EU organization will 

become a benchmark for Turkey in the near 

future and the second one is declining 

inflation in the last 3 years. 

Is Investment was established in 1996 as a 

subsidiary of Is Bank, its main shareholder 

with 92% share, which has always held a 

distinctive position in capital markets. Is Bank 

has accomplished many firsts for the 

establishment and development of the Turkish 

capital markets; it has the highest number of 

investors, manages the largest investor 

portfolios and has handled the majority of 

public offerings. Besides traditional brokerage 

activities, Is Investment has diversified 

financial services like corporate finance 

activities, investment advisory and 

international capital market activities. 

Is Investment's Corporate Finance Department 

offers a wide range of services including initial 

and secondary public offerings of public and 

private companies, public offerings of various 

debt instruments, consultation services for 

mergers & acquisitions, private equity, venture 

capital projects and strategic planning and 

restructuring. 

While the Turkish domestic fixed income 

market has been an investment paradise for 

years due to the high public borrowing 

requirement, in the recent years improving 

macro fundamentals has nourished the 

Turkish equity market into the strongest and 


PAGE 30 

Is Investment has all the means and tools 

to become the foremost player in the 

capital markets - not only in Turkey but 

also internationally. 

most liquid market of the region. We expect 

Turkish markets to attain a deeper dimension 

in terms of client profile as pension funds 

grow and asset management services are 

expanded to a wider range of clients. 

Its large local investor network aside, Is 

Investment is constantly looking to 

broaden its existing client base in Europe 

and United States (US) while concentrating 

recently on developing a network in Middle 

East and Middle Asia as well. 

We have all the means and tools to become 

the foremost player in the capital markets - 

not only in Turkey but also internationally - 

creating a benchmark to be followed by other 

investment banks and brokerage houses 

specifically in Middle East and the 

Commonwealth of Independent States (CIS). 

Our rep-office in Kazakhstan is the first step in 

our quest for attainment of this goal. 

Is Investment's International Capital Markets 

Division, with its experienced staff, is the only 

brokerage house in Turkey that is a member 

of the International Securities Markets 

Association. Is Investment is Turkey's premier 

investment bank in international capital 

markets, holding the largest transaction 

volume in the primary and secondary markets. 

In 2004 alone, Is Investment has had a 

volume of over 1 billion US$ in the primary 

markets. 

Of this amount, about 600 million US$ were in 

Turkish Treasury issuances and the remaining 

400 million US$ in other emerging markets, 

with a majority in Russian and Kazakh credits. 

Is Investment has also been granted comanager 

ships on two of Turkish Treasury's 

Eurobond issuances (9.5% notes due 2014 

and 7.375% notes due 2025 with US$ 1.25 

billion and US$ 2.0 billion issue sizes 

respectively,) and on two corporate Eurobond 

issuances, those of Petrol Ofisi in Turkey 

(9.75% notes due 2009 for US$ 175 million) 

and Intergas Central Asia in Kazakhstan 

(6.875% notes due 2011 for US$ 250 million.) 

In total, Is Investment's participations in 

2004 reached 27 issuances with an 

aggregate size of US$ 17.0 billion, 7 of 

which were in Turkish credits and 20 in 

other Emerging Markets. 

To cite some examples to its participations: 

Gazprom, Sistema, Mega Phone, Russian 

Standard Bank, Vimplecom and Alrosa in 

Russia; Halyk Bank, TengizChevron Oil, ATF 

Bank, Nur Bank, Center Credit in Kazakhstan; 

and Cosan in Brazil. As for the secondary 

markets, Is Investment has had a combined 

transaction volume of more than US$ 3.0 

billon in both 2003 and 2004. Of this amount, 

about 90% of transactions were in fixed 

income, while the rest were in world equity 

markets. However, with a greater appetite for 

risk and a diversification of assets, the share 

of equity transactions appear to be on the rise 

as the investor spectrum widens and the 

market-awareness of clients improves. 

International equity markets are among 

investment instruments considered to be of 

greatest risk, even more so lately with the 

recent weakness in US markets. In the equity 

markets, where daily fluctuations tend to be 

high, practices such as closely monitoring the 

stocks, instantaneously updating investors of 

any nature of developments, and following 

markets from pre-hours till the very late afterhours, 

gain importance and priority, as they 

make the greatest of difference for marketsavvy 

clients. Owing to its wide network of 

international trading houses, Is Investment is 

informed on all developments instantly and 

can transact on the spot with its electronic 

trading platforms and foreign correspondent 

network. Our investors may call us anytime 

during the European and US international 

stock markets' trading hours to receive 

information on these markets and may 

transact instantly on the phone. Our 

commission rates for international equities 

and fixed income securities are very 

competitive among its peer-group companies. 

For International Markets Contact Name Ms. Meltem Citci E-mail mcitci@isyatirim.com.tr 

Mr. Ilkay Dalkilic idalkilic@isyatirim.com.tr 

For Turkish Markets Contact Name Ms. Caglan Yazici E-mail cyazici@isyatirim.com.tr 

For Almaty/Kazakhstan Rep. Office Contact Name Mr. Cengiz Macun E-mail cmacun@isyatirim.com.tr Website www.isinvestment.com


STOCK EXCHANGE PROFILES 

Abu Dhabi Securities Market 32 

UAE Economy 34 

Amman Stock Exchange 36 

Jordan Economy 38 

Armenian Stock Exchange 40 

Armenian Economy 42 

Baku Interbank Currency Exchange 44 

Azerbaijan Economy 46 

Baku Stock Exchange 48 

Banja Luka Stock Exchange 50 

Bosnia and Herzegovina Economy 52 

Belgrade Stock Exchange 54 

Serbia and Montenegro Economy 56 

Bucharest Stock Exchange 58 

Romanian Economy 60 

Bulgarian Stock Exchange 62 

Bulgarian Economy 64 

Cairo and Alexandria Stock Exchanges 66 

Egyptian Economy 68 

Georgian Stock Exchange 70 

Georgian Economy 72 

Istanbul Stock Exchange 74 

Turkish Economy 76 

Takasbank 78 

Karachi Stock Exchange 79 

Pakistan Economy 81 

Central Depository Company of Pakistan Limited 83 

Kazakhstan Stock Exchange 84 

Kazakhstan Economy 86 

Kyrgyz Stock Exchange 88 

Kyrgyz Economy 90 

Lahore Stock Exchange 92 

Macedonian Stock Exchange 94 

Macedonian Economy 96 

Moldovan Stock Exchange 98 

Moldovan Economy 100 

Mongolian Stock Exchange 102 

Mongolian Economy 104 

Muscat Securities Market 106 

Oman Economy 108 

Palestine Securities Exchange 110 

Palestine Economy 112 

Sarajevo Stock Exchange 114 

State Commodity & Raw Materials Exchange of Turkmenistan 116 

Turkmenistan Economy 117 

Tehran Stock Exchange 120 

Iran Economy 122 

Tirana Stock Exchange 124 

Albanian Economy 126 

“Toshkent” Republican Stock Exchange 128 

Uzbekistan Economy 130 

Ukrainian Stock Exchange 132 

Ukrainian Economy 134 

Zagreb Stock Exchange 136 

Croatian Economy 140 

PAGE 31


ABU DHABI SECURITIES MARKET 

Hamad Abdulla Al Shamsi 

General Manager 

The Abu Dhabi Securities Market (ADSM) 

showed remarkable growth during 2004 as 

compared to 2003, continuing the rapid 

growth experienced since its inception in 

2000. 

The trading value increased to US$ 4.5 

billion (AED 16.4 billion) in 2004, an increase 

of 343% when compared to 2003’s trading 

volume of US$ 1.0 billion (AED 3.7 billion). 

The number of trades in 2004 increased by 

996 and as a result gave a total of 83,300 

trades. The turnover ratio was 20% of the 

total subscribed shares with 60% of the total 

shares available in the market. Moreover, the 

daily average trading value in 2004 increased 

to US$ 15.0 million (AED 55 million) from 

US$ 3.8 million (AED 14 million) in 2003. The 

daily average number of shares traded also 

rose to approximately 3.3 million shares from 

900 thousand shares in 2003. 

HISTORY AND DEVELOPMENT 

Securities trading in the United Arab 

Emirates dates back to the early 1960s 

when public shareholding companies began 

to come into existence in the country. It was 

generally a generic and haphazard era 

where the securities market had been 

created and operated by the mediation of 

brokerage firms. 

Moreover, securities trading in such an 

ill-ordered environment had created flaws 

and imbalances in the market, and 

particularly in the absence of a proper 

mechanism to conclusively determining the 

value of securities, supervision and control 

of brokerage firms as well as a lack of 

transparency and disclosure by the 

companies whose shares constitute a part 

of the market trading business. 

This tremulous situation has had an adverse 

impact in establishing a biased and unfair 

policy for evaluating securities fairly, and 

subsequently resulted in severe fluctuations 

in the market. In view of this chaos, the 

shares value had been at times overstated 

which led to heavy consequences and 

losses on the part of investors. 

Having taken the above facts into 

consideration as the issue of regulating the 

PAGE 32 

The market capitalization of companies 

listed at ADSM as at the end of 2004 was 

US$ 48.1 billion (AED 176.6 billion), which 

represented 55% of the United Arab 

Emirates (UAE) GDP. 

During 2004, the share prices of 32 

companies rose (out of a total of 34 

companies traded on ADSM); while share 

prices of 2 companies fell. The market 

capitalization of companies listed at ADSM 

as at the end of 2004 was US$ 48.1 billion 

(AED 176.6 billion), which represented 55% 

of the United Arab Emirates (UAE) GDP. 

The Market index rose by 1,314 points, an 

increase of 74.8% and closed at 3070.9. 

The 74.8% increase in the index represented 

only the capital gain. By adding the 

distributed dividends during 2004 the 

increase was approximately 80%. 

securities market is, undoubtedly, of 

significant importance with view to its crucial 

role in the domestic economy. Plans have 

been set up for organizing this market to 

ensure the integrity and smoothness of 

trading in securities and establish investors’ 

protection. The aforementioned items must, 

of course be subject to the power of supply 

and demand in compliance with the 

principle of information transparency and 

disclosure with respect to the companies 

engaged in the business of securities 

trading. Within this framework, intensive 

efforts exerted with the promulgation of Law 

No. (4) of 2000 concerning the 

establishment of the UAE Securities & 

Commodities Authority and subsequently 

the establishment of the Securities Market. 

FUTURE OUTLOOK 

In 2005, the ADSM plans to: 

• increase activities to support growth in 

listings, turnover and liquidity through: 

• encouragement of listing for family 

companies and foreign companies; 

• increased system capacity to cope with 

growing market volumes; 

• enhanced IT processes and information 

distribution; 

• implementation of remote trading for 

brokers. 

• enhance market standards in: 

• corporate governance; 

• capital adequacy and surveillance of 

brokers; 

• broker education and qualification; 

• automate market surveillance; 

• enhance Registry and CSD services; 

• further bond market initiatives; 

• link trading with Muscat Securities Market; 

• implement a new marketing and 

communications program; and 

• strengthened laws, regulations and rules 

through: 

• commercial and capital market law. 

• securities regulation. 

• ADSM rules for listing, brokers and 

trading.



OFFICIAL 6 MONTH STATISTICS 

US$ Millions # Shares Millions 

Total Volume Avg. Daily Volume Total Volume Avg. Daily Volume 

Stocks 

July-04 597.6 23.0 138.0 5.3 

Aug-04 185.3 7.1 39.2 1.5 

Sep-04 351.1 14.0 67.3 2.7 

Oct-04 239.6 9.2 45.8 1.8 

Nov-04 380.7 21.2 44.5 2.5 

Dec-04 1,202.0 50.1 212.2 8.8 

TOTAL 2,956.2 0.86 547.0 0.16 

Bonds 

July-04 n/a n/a n/a n/a 

Aug-04 n/a n/a n/a n/a 

Sep-04 n/a n/a n/a n/a 

Oct-04 n/a n/a n/a n/a 

Nov-04 n/a n/a n/a n/a 

Dec-04 n/a n/a n/a n/a 

TOTAL n/a n/a n/a n/a 

Other 








Market 


US$ Millions Index 

July-04 40,389.7 2,266.4 

Aug-04 40,848.8 2,298.2 

Sep-04 41,688.8 2,354.7 

Oct-04 41,899.3 2,326.9 

Nov-04 49,396.7 2,699.6 

Dec-04 55,488.4 3,070.9 


MONTHLY STOCK VOLUME VS INDEX 


1,400 

1,200 

1,000 

800 

600 

400 

200 

Stocks Index 

0 

July Aug Sep Oct Nov Dec 

Contact Name Mr. Khalid Khalfan Al-Suwaidi E-mail suwaidik@adsm.co.ae Website www.adsm.co.ae 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 

MONTHLY MARKET CAPITALIZATION 


60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 


PAGE 33



ECONOMIC AND POLITICAL DEVELOPMENTS 

Economic and Political Environment: 

Its most affluent and powerful emirate, Abu 

Dhabi, largely directs the development and 

diversification of prosperous United Arab 

Emirates (UAE), one of the more diversified 

and open market economies of the Middle 

East. Enormous hydrocarbon reserves, 

including almost 10% of known global oil 

deposits (97.8 billion barrels in 2004), and 

the world's fifth largest gas reserves 

(212 trillion cubic feet in 2004), following 

Russia, Iran, Qatar and Saudi Arabia), are 

the basis of the federation's wealth. However 

one emirate, Abu Dhabi, possesses nearly 

95% of all hydrocarbon deposits with Dubai 

and Sharjah holding the majority of the 

remainder. While continual federal budget 

deficits might retard major development 

projects in other nations, the estimated 

US$ 350 billion foreign asset position of 

Abu Dhabi's provides a large, independent 

income stream equivalent to approximately 

60% of the federation's annual GDP. 

Having experienced the adverse impact of 

low oil prices on a number of occasions, 

most recently in 1998, the UAE is 

aggressively diversifying the economy into 

trade, tourism, and heavily subsidized 

PAGE 34 

agriculture and high technology industries. 

The federal government has invested heavily 

in aluminum production, tourism, aviation, reexport 

commerce, and telecommunications 

and the non-oil components of the economy 

in 2003 accounted for more than two-thirds 

of GDP and in excess of 30% of exports. 

Government emphasis on education, 

modern technological infrastructure, a 

business-friendly climate, and comparatively 

more freedom than other Gulf States has 

maintained the Emirates' status as one of the 

most dynamic economies in the region. 

Economic Performance: 

Due to high oil prices, GDP grew 7% in 2003, 

up from only 1.9% in 2002, when oil prices 

were depressed. In a testament to the 

strength of the UAE diversification program, 

non-oil GDP grew a whopping 5%, due to a 

number of projects in construction, upstream 

gas, and downstream oil services. Inflation, 

as measured by the consumer price index 

(CPI) increased slightly to 2.8% from 2.3% 

due to higher oil prices. The fiscal balance 

recorded a large surplus of 13.7% in 2003, 

up from 10.8% in 2002. 

Key Information Contacts 

Abu Dhabi Chamber of Commerce and Industry www.abudhabichamber.ae 

Central Bank of UAE www.uaecb.gov.ae 

Ministry of Finance and Industry www.uae.gov.ae/mofi/ 

Ministry of Planning www.uae.gov.ae/mop 

Ministry of Economy and Commerce www.uae.gov.ae/moec 

UAE GDP, CPI AND INVESTMENT 

(Annual Change in %) 

Structural reforms are moving along at a 

rapid clip. Dubai extended foreign ownership 

of land and properties to certain real estate 

developments and also launched several 

new duty free zones. Abu Dhabi is moving 

ahead to privatize its water and electricity 

sectors by 2006. 

The current account balance has been in 

constant surplus in recent years and 

continuing strength in the oil prices should 

keep the current account in healthy surplus 

for years to come. In 2003, this surplus 

reached US$ 12.1 billion, or about 15.1% of 

GDP. Trade has played a major role in the 

UAE's economic growth and the free trade 

zones of Dubai and Sharjah have been large 

contributors. Both the trade balance and 

current account have registered healthy 

surpluses throughout the 1990s. 1 

1 Economic and Political Overview, County Watch 

Incorporated, 2005 

1999 2000 2001 2002 2003 

Real GDP (at factor cost) 4.4 12.3 3.5 1.9 7 

Hydrocarbon -4.5 13.1 1.7 -8.1 13.8 

Nonhydrocarbon 7.5 12 4 5 5.2 

Consumer price index 2.1 1.4 2.8 3.1 2.8 

Investment (in percent of GDP) 27.8 23.3 24.7 24.1 22.4 

* IMF 2004 Article IV Consultation with UAE



UAE GDP/EMPLOYMENT BY SECTOR OF ORIGIN 

Sector % GDP % Employment 

Agriculture 3.0 7.6 

Industry 52.0 41.8 

Services 45.0 50.7 

UAE MONEY SUPPLY, INTEREST RATES AND 

FOREIGN EXCHANGE RESERVES 

1998 1999 2000 2001 2002 

Money Supply M1 (dirhams-billions) 28 30 34 39 47 

Money Supply M2 (dirhams-billions) 99 110 127 156 174 

Growth Rate M1 9.5% 8.9% 12.6% 15.8% 19.2% 

Growth Rate M2 4.2% 115.0% 15.3% 23.2% 11.0% 

Interest Rates 

deposit rate 4.8% 4.6% E 4.4% E 4.0% E 7.74% E 

lending rate 7.9% 7.5% E 7.5% E 7.5% E 14.5% E 

Foreign Exchange Reserves (US$ millions) 9,077 10,675 13,523 14,146 15,219 

Exchange Rate Period Average (dirhams/US$) 3.6725 3.6725 3.6725 3.6725 3.6725 

Annual % Growth 0.04 0.00 0.00 0.00 0.00 

E: Estimate * Economic Overview, Country Watch Incorporated, 2005 

UAE EXPORTS, IMPORTS AND TRADE BALANCE 


1999 2000 2001 2002 2003 

Exports 36.5 49.6 47.5 51.2 60.8 

Of which: Crude oil 13.6 21.7 17.6 16.7 22.1 

Imports, f.o.b. -27.9 -30.8 -33.5 -36.7 -41.7 

Current account balance 0.9 12.2 6.5 3.5 6.9 

In percent of GDP 1.6 17.3 9.4 4.9 8.5 

Central bank reserves 10.9 13.8 14.3 15.3 15.1 

In months of imports of goods and services 4.3 4.9 4.7 4.4 4.1 

Total external debt 18.8 18.2 19.4 16.7 16.6 

In percent of GDP 34 26 27.9 23.3 20.7 

* IMF 2004 Article IV Consultation with UAE 

PAGE 35


AMMAN STOCK EXCHANGE 

Jalil Tarif 

Executive Manager 

For the second consecutive year the ASE 

performance was outstanding in 2004. 

Performance indicators reached their all-time 

high since the establishment of the securities 

market in 1978. In December 2004, the ASE 

price index reached 4254 points, a record 

high, and closed at 4246 points at the end of 

2004, up by 62.4% compared to its’ 2003 

closing. Trading volume doubled to reach 

US$ 5.4 billion and the ASE's market value 

went up by 67.7% to reach US$ 18.4 billion 

or 185% of the GDP, which indicates the 

important role the ASE plays in the national 

economy. 

As a recognized sign for the increasing 

confidence in the ASE, Wilshire Associates 

issued a revised report including a list of 

emerging markets that have an attractive 

investment climate in securities markets. 

Jordan ranked 10th among the 27 most 

attractive emerging stock markets, jumping 

two steps a head of Jordan’s rank in 2003. 

The improvement in Jordan’s ranking can be 

attributed to regulatory, legislative and 

technical developments that have been 

implemented over the last year. This report 


The Amman Stock Exchange (ASE) was 

established in March 1999 as a non-profit, 

private institution with administrative and 

financial autonomy. It is authorized to 

function as an exchange for the trading of 

securities. The Exchange is governed by a 

seven-member board of directors. An 

executive manager oversees day-to-day 

responsibilities and reports to the board. 

The ASE membership is comprised of 

Jordan’s 30 brokerage firms. 

The history of securities trading in Jordan 

traces its origins back to the 1930s. In 1976, 

the Amman Financial Market was 

established to create a regulated trading 

market. More recently, as part of Jordan’s 

move to upgrade its capital market, a new 

Securities Law was enacted in 1997 

separating the supervisory and legislative 

roles from those of exchange operations. 

As a result, the Jordan Securities 

Commission (JSC) was created at the same 

time as the ASE and the Securities 

Depository Center (SDC) were established. 

The JSC supervises the issuance of and 

trading in securities and monitors and 

regulates the market. The SDC oversees 

clearing and settlement and maintains 

ownership records. 

PAGE 36 

ASE's market value went up by 67.7% to 

reach US$ 18.4 billion or 185% of the GDP, 

which indicates the important role the ASE 

plays in the national economy. 

was prepared for one of the largest USbased 

pension funds, “The California Public 

Employees Retirement System” (CalPERS). 

Also in 2004, the ASE issued new Listing 

Directives in which the trading of public 

shareholding company shares are divided 

into two markets, according to shareholders 

equity, free float, profitability, number of 

shareholders, liquidity and disclosure criteria. 

By these directives, companies listed at the 

first market must provide the ASE with 

quarterly reports. Also the ASE has amended 

it’s internal By-Laws which introduced a set 

of amendments to the organizational 

structure and departments of the ASE. As a 

result, a new Surveillance and Inspection 

Department was created. Further, these new 

Trading Directives include a number of 

ethical rules that brokerage firms must abide 

by in their relations with their clients. 

As part of the ASE’s efforts to strengthen ties 

of cooperation with international market 

institutions, the ASE has been accepted as 

an Affiliate member of the World Federation 

of Exchanges (WFE), this decision was taken 

in recognition of the progress that has been 

To provide a transparent and efficient 

market, the ASE implemented internationally 

recognized directives regarding market 

divisions and listing criteria. It also adopted 

procedures for improving regulatory 

effectiveness. 

On 26 March 2000 the ASE launched an 

automated order-driven Electronic Trading 

System. The new system is in compliance 

with international standards and takes into 

account the G-30 recommendations. This 

system also offers brokers immediate 

access to stock prices and orders and 

enables members to trade remotely. 

made in the business development of the 

ASE, and its efforts to deepen its local 

significance and presence in the Jordanian 

economy. The ASE has also been elected as 

chairman of the Working Committee of the 

Federation of Euro-Asian Stock Exchanges 

(FEAS). 

In 2004, the ASE was the main sponsor of 

the Annual Conference of the International 

Organization of Securities Commissions 

(IOSCO) that was held in Amman May 2004. 

The ASE also hosted a conference on the 

Greek experience in the capital market 

development, this conference came as a 

result of the Cooperation Agreement that 

was signed between the ASE and the 

Thessaloniki Stock Exchange Center in 

October 2002. 

To develop its data dissemination policy, the 

ASE has launched a new website 

www.exchange.jo. The new site contains 

many new advantages and information such 

as, on-line market depth and the company 

guide, in addition to a number of added 

features of interest to investors. 


During 2005 the ASE will: 

• apply for a full membership in the World 

Federation of Exchanges (WFE); 

• upgrade the technical infrastructure; 

namely; the electronic trading system to the 

AtosEuronext V800, the Wide Area Network 

(WAN) to accommodate projects in the 

fields of surveillance systems and 

automating communication with brokers, 

issuers and the disaster recovery site; 

• implement new sectoral distribution, which 

will be consistent with international 

standards; 

• improve information dissemination by 

introducing new retail products; 

• introduce and publish a new price index, 

which is a free float weighted index that was 

tested during 2003 and 2004; and 

• redesign all publications and bulletins, 

while concentrating on the monthly statistical 

bulletin and the companies’ guide.






Stocks 

July-04 397.0 18.9 133.0 6.3 

Aug-04 260.1 11.3 91.0 4.0 

Sep-04 511.8 24.4 158.6 7.6 

Oct-04 574.7 27.4 137.6 6.6 

Nov-04 678.9 39.9 140.6 8.3 

Dec-04 804.4 38.3 124.5 5.9 

TOTAL 3,226.9 26.7 785.3 6.4 

Bonds 

July-04 4.9 0.23 0.0008 0.00005 

Aug-04 0.51 0.02 0.001 0.00008 

Sep-04 0.49 0.02 0.0007 0.00009 

Oct-04 0.03 0.001 0.0002 0.0003 

Nov-04 0.08 0.005 0.0003 0.0004 

Dec-04 0.02 0.001 0.0002 0.0001 

TOTAL 6.0 0.05 0.003 0.0002 

Other 

July-04 0.0 0.0 0.0 0.0 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.0 0.0 0.0 0.0 

Market 



July-04 12,733.4 2,915.7 

Aug-04 12,742.4 2,902.0 

Sep-04 13,509.9 3,068.0 

Oct-04 15,028.0 3,436.0 

Nov-04 17,738.3 4,106.0 

Dec-04 18,383.4 4,245.6 




900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

Stocks Index 


Contact Name Mr. Sami Hattab E-mail info@ase.com.jo Website www.exchange.jo 

4,500 

4,000 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 



20,000 

18,000 

16,000 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 


PAGE 37




Economic and Political Environment: 

King Abdullah II upon ascending to the 

throne following his father's death in 1999, 

has provided re-energized economic 

leadership. King Abdullah, II bin Al-Hussein 

has proven to be a steadfast proponent of 

an invigorated program of economic reforms 

that includes privatization, structural and 

procedural changes that attract foreign 

investment and enable foreign debt 

restructuring and reduction. He also believes 

that efforts should be continued to build a 

modern Jordan that provides its men and 

women with opportunities for a decent life 

and ensures that the gains of development 

are distributed equally among the people. 

King Abdullah belongs to a new generation 

of Western-educated Arab leaders. The 

king's political agenda has been focused on 

economic revival, greater political openness, 

social justice and equality, in order to clearly 

place Jordan actively on the regional and 

international map. While keeping the warm 

ties with the West nurtured by his father, he 

has succeeded in improving ties with Syria 

and the Palestinians and cementing links 

with Saudi Arabia and Kuwait. 


Jordan Securities Commission www.jsc.gov.jo 

Securities Depository Center www.sdc.com.jo 

Jordan Investment Board www.jordaninvestment.com 

Jordan Country Information www.jordan.jo 

Central Bank of Jordan (CBJ) www.cbj.gov.jo 

National Information Center www.nic.gov.jo 

ECONOMIC RATIOS 

Domestic 

savings 

PAGE 38 

Jordan 

Lower-middle-income group 

Trade 

Indebtedness 

Investment 


The real GDP growth by end of the year 2004 

was 7.5% compared to 3.3% for 2003. The 

pickup was due to a huge jump in exports as 

external demand grew, especially from the 

United States. In fact, in the year 2004, 

exports to the U.S. grew by 54%. Jordan 

conducts its monetary policy with a fixed peg 

to the U.S. dollar and believes that its trade 

performance indicates that policy still 

provides for good international 

competitiveness of its exports. In the past 

few years, it has also resulted in virtual 

stability in the price level with inflation as 

measured by both the GDP deflator and the 

CPI registering 1% increases or less and, at 

times, slight deflation. Meanwhile, CPI 

inflation in 2004 was 3.3%, up from 2.3% in 

2003. As for the fiscal policy performance, 

re-estimated figures indicate an increase of 

14.5% in domestic revenues in 2004 as 

compared to the year 2003, and a rise of 

7.0% in public expenditure, putting the fiscal 

deficit at US$ 392 million, or 3.6% of the GDP. 

Jordan's main export commodities are 

phosphates, fertilizers, potash, agricultural 

products and textiles. Its main imports 

include crude oil, machinery, transport 

equipment, food, live animals and 

manufactured goods. In 2004, exports 

(exports and re-exports) grew by 28.2%, and 

imports increased by 41.5%. Foreign direct 

GROWTH OF INVESTMENT AND GDP 

(%) 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

-10 

-12 

97 

GDI GDP 

investment (FDI) has been increased steadily 

in recent years. In the first three quarters of 

the year 2004 it reached US$ 480 million 

compared to US$ 376 million in 2003. 

Jordan's gross international reserves have 

been rising steadily over the past several 

years, and in 2004, these reserves stood at 

more than US$ 4.8, equivalent to the value of 

seven months' merchandise imports. 

Privatization has moved along quite well. 

The centerpiece of the program was the sale 

of a large minority ownership (along with 

management control) in Jordan Telecom to 

France Telecom. The government also sold 

half of its holdings in the Arab Potash 

Company in mid-October 2003 and a 

majority of its stakes in its electricity 

companies in the first half of 2004. 

Furthermore, a new gas pipeline between 

Egypt and Jordan has been completed by 

the private sector, and is expected to be 

extended to Lebanon, Syria, and Turkey. 

Even the post office has been put out to 

foreign management. Several public 

enterprises are being restructured in 2004 to 

be privatized in the year 2005. The flow of 

privatization related funds is earmarked for 

debt reduction and for funding of 

development programs under the Plan for 

Social and Economic Transformation. 

98 99 00 01 02 03 

* World Bank reports



JORDAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





JORDAN MONEY SUPPLY, INTEREST RATES AND 


GROWTH OF EXPORTS AND IMPORTS 

(%) 

16 

12 

8 

4 

0 

-4 

EXPORT AND IMPORT LEVELS 


6,000 

4,000 

2,000 

0 

97 

INFLATION 

(%) 

Exports Imports GDP deflator CPI 

Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (dinars-billions) 2.027 2.120 2.316 2.92 3.193 

Money Supply M2 (dinars-billions) 7.435 7.866 8.419 9.466 10.571 

Growth Rate M1 14.0% 4.6% 9.3% 26.0% 9.3% 

Growth Rate M2 10.0% 5.8% 7.0% 12.4% 11.7% 


deposit rate 6.50% 5.00% 4.50% 2.50% 3.75% 

lending rate 11.38% 10.45% 9.85% 8.92% 7.59% 

Foreign Exchange Reserves (US$ millions) 2,762.6 2,578.4 3,494.6 4,739.5 4,824.3 

Exchange Rate Period Average (dinars/US$) 0.709 0.709 0.709 0.709 0.709 

Annual % Growth 0.0 0.0 0.0 0.0 0.0 

6 

4 

2 

0 

-1 

CURRENT ACCOUNT BALANCE TO GDP 

(%) 

5 

4 

3 

2 

1 

0 

-1 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 

* Economic Overview, Country Watch Incorporated, 2005 

* World Bank reports 

PAGE 39


ARMENIAN STOCK EXCHANGE 

Yermonya Vardevanyan 

Chairwoman 

The year 2004 witnessed a remarkable 118% 

increase in the value of exchange trading to 

nearly US$ 1.6 million, while at the same 

time, the number of securities traded went 

up by over 77%. Securities issued by 101 

listed companies were traded showing a 

25% increase over 2003. At year-end, the 

number of listed companies stood at 196, 

with 20 new companies listed on the stock 

exchange during 2004. Still, the number of 

companies which delisted was rather high 

too, this is primarily attributable to the 

ongoing changes in the corporate ownership 

structure. 

Despite the fact that only equities continued 

to be traded on Armenian Stock Exchange 

(Armex) floor, an important agreement was 


Armenian Stock Exchange (Armex) is the 

successor of the Association of Securities 

Market Participants, which was established 

in Armenia in 1997. In December 2000, it 

was renamed to the Armenian Stock 

Exchange, and on the 13th of February, 

2001, it was officially registered by the 

Securities Commission of the Republic of 

Armenia as a self-regulatory organization 

pursuant to the Law of the Republic of 

Armenia “On Securities Market Regulation”. 

Armex is the only stock exchange registered 

in Armenia. As a voluntary association of 

broker (dealer) companies and a selfregulatory 

organization, Armex approves 

rules and regulations covering a variety of 

activities, including listing, trading, 

information disclosure, as well as rules of 

professional ethics. The self-regulation 

principle provides each member company 

with equal rights to participate in the 

management of the stock exchange. The 

supreme management body of Armex is the 

General Meeting of Members, which elects 

the Observers’ Board. The latter elects the 

Chairman and appoints the Chief Executive 

Officer of the Exchange. 

PAGE 40 

During 2004, Armex witnessed a 

remarkable 118% increase in the value of 

exchange trading to nearly US$ 1.6 million, 

while at the same time, the number of 

securities traded went up by over 77%. 

reached with the Government on launching 

exchange trade in long- and middle-term 

Government bonds in April 2005. In this 

respect, amendments to the existing trading, 

clearing and settlement procedures, as well 

as trading system modifications were 

required. All of these above mentioned 

changes are now near completion. 

Throughout 2004, Armex carried on with its 

efforts to provide market participants and the 

general public with accurate, timely and 

complete information regarding the activities 

of the Armenian securities market, as always, 

striving to keep Armex as transparent as 

possible. Exchange trading statistics and 

information on the most recent 

developments and events was at all times 

Armex is subject to regulation by the state. 

The Securities Commission of the Republic 

of Armenia is the competent state authority 

to regulate the activities of the capital 

market, including the stock exchange, in 

Armenia. This is carried out through 

approving legislative acts and other 

regulatory documents, which are compiled 

with reporting requirements. 

At present the Armenian Stock Exchange is 

focused on improving operations, as well as 

trading procedures and regulations to foster 

a fair and transparent securities market and 

toward complying with worldwide industry 

standards. 

accessible both through the Armex official 

website (www.armex.am), and local media. 

Further steps were initiated to enhance 

cooperation in the region: of significant 

importance was the Memorandum of 

Understanding signed with the Georgian 

Stock Exchange in December 2004, which 

aims to promote information exchange and 

consolidate efforts in investor awareness and 

education. 

In 2005 Armex will endeavor to build on its 

prior achievements while fostering those 

positive trends that may be crucial to the 

ultimate success of the Armenian capital 

market. 


In 2005, Armex plans to: 

• launch trading in government bonds; 

• facilitate launch of trading in securities on 

a non-covered basis; 

• implement exchange trading in foreign 

exchange; 

• introduce the Armex index with publication 

on a regular basis; 

• establish Armex Training Center to 

conduct educational seminars for trade 

participants, broker/dealer community, 

reporting companies and general public; 

• develop and introduce capital adequacy 

requirements for exchange member 

companies; and 

• Continue improving regulations and 

practices towards compliance with WFE and 

IOSCO recommendations.






Stocks 

July-04 0.11 0.006 0.02 0.0008 

Aug-04 0.07 0.003 0.07 0.003 

Sep-04 0.03 0.001 0.02 0.001 

Oct-04 0.16 0.008 0.07 0.003 

Nov-04 0.24 0.01 0.07 0.003 

Dec-04 0.05 0.002 0.03 0.002 

TOTAL 0.66 0.005 0.28 0.002 

Bonds 








Other 








Market 



July-04 29.24 n/a 

Aug-04 15.96 n/a 

Sep-04 16.19 n/a 

Oct-04 15.96 n/a 

Nov-04 17.39 n/a 

Dec-04 18.27 n/a 


MONTHLY STOCK VOLUME 


0.25 

0.20 

0.15 

0.10 

0.05 

0.00 


Contact Name Mr. Armen Melikyan E-mail amelikyan@armex.am Website www.armex.am 



30 

25 

20 

15 

10 

5 

0 


PAGE 41




Politic and Economic Environment: 

Considering that, Armenia was part of the 

former Soviet Union; it has made great 

strides in privatizing and restructuring its 

economy. Agriculture, which accounts for 

40% of GDP and 31.5% of employment, was 

thoroughly privatized in the early 1990s; 

industrial entities began to be divested in the 

mid-1990s, in a process that is ongoing. 

Inflation (measured by GDP Price Deflator) 

declined significantly after 1995, reaching 

single digits by 1999. 

During 2002 and 2003, Armenia's export 

sector expanded at an impressive clip, along 

with increases in capital investment and 

income, as a result of fiscal belt-tightening, 

policy reforms, and a subdued but stable 

currency. 

In the elections of 2003, Kochariam won 

another term in office after two rounds of 

voting. 


Securities Commission of the Republic of Armenia www.sca.am 

Central Depository of Armenia www.cda.am 


Domestic 

savings 

PAGE 42 

Armenia 


Trade 

Indebtedness 

Investment 

President Kochariam's nationalist party 

(called the Republican Party of Armenia) won 

31 seats and the plurality of the parliament. 

The parliamentary elections coincided with a 

referendum authorizing significant and 

substantive changes to Armenia's 

constitution; however the proposed 

constitutional changes failed to achieve 

popular support. 

In August 2003, Armenia abolished the death 

penalty and the sentences of 42 prisoners on 

death row were commuted to life 

imprisonment instead. 

Meanwhile, bilateral relations between 

Armenia and Azerbaijan continued to be 

strained. 


(%) 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

97 

GDI GDP 


Robust and rapid economic expansion 

continued in 2004 with real GDP growth of 

10.1%, in line with growth of 13.9% in 2003. 

Capital investment in construction, increase 

in agricultural gross output, expansion of 

service sector, as well as exports of metals 

and diamonds drove GDP growth. Inflation 

(as measured by the GDP deflator) 

increased to 6.4% in 2003 from 2.6% in 2002 

due mostly to a rise in prices of staple 

goods. However, year 2004 saw significant 

reduction in inflation rate to 2%. In 2004, 

Armenian Dram, the official currency of the 

Republic of Armenia, revaluated against US 

Dollar by impressive 14.16%. 

Fiscal policy remained tight in 2003. 

The fiscal deficit remained the same in 2003 

at 2.2%, reflecting no change from 2002. 

98 99 00 01 02 03 




ARMENIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





ARMENIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

30 

20 

10 

0 

-10 



1,200 

1,000 

800 

600 

400 

200 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (dram-billions) 53 52 71 77 115 

Money Supply M2 (dram-billions) 96 109 152 158 212 

Growth Rate M1 19.6% -0.9% 36.7% 8.3% 49.2% 

Growth Rate M2 36.7% 14.0% 38.6% 4.3% 34.0% 


deposit rate 47.0% 55.1% 24.4% 19.9% 14.8% 

lending rate 48.5% 38.9% 31.6% 26.7% 21.1% 

Foreign Exchange Reserves (US$ millions) 315 319 318 321 425 

Exchange Rate Period Average (dram/US$) 504.92 535.06 539.53 555.08 573.35 

Annual % Growth 2.87 5.97 0.84 2.88 3.29 

20 

15 

10 

5 

0 

-5 


(%) 

0 

-5 

-10 

-15 

-20 

-25 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 43


BAKU INTERBANK CURRENCY EXCHANGE 

Farhad Amirbayov 


During the past year Baku Interbank 

Currency Exchange (BBVB) stopped using 

”on floor” auctions because of changed 

conditions in the market. Further, after the 

installation of new software allowing BBVB to 

offer an electronic system for trading to all 

banks, we were then able to not only give the 

results of bargains, but also to support a 

screen interface of BEST (BBVB Electronic 

Trading System) in our native language. 

When speaking in reference to the 

development of the currency market in 


The Central Bank of Azerbaijan and the four 

largest state banks of the Azerbaijan 

Republic founded the Baku Interbank 

Currency Exchange (Baki Banklarasi Valyuta 

Birjasi - BBVB) on 26 July 1993. This year 

marks a decade since the beginning of 

activity in the financial market. Ever since the 

onset of the activities of this central financial 

institution, the BBVB has become an 

innovative symbol of economic reforms for 

the business public of Azerbaijan. Using 

advanced information technology and 

experiencing success in the creation of 

universal trading platforms, the BBVB, by 

volume of trade and number of financial 

tools, has become the biggest exchange in 

the Caucasian region. 

PAGE 44 

We are planning to offer the market this 

year a spectrum of tools, created on the 

basis of currency SWAP, which will help 

banks to operate in short-term liquidity in 

various currencies and currency positions. 

Azerbaijan, it is necessary to take into 

account the steady turnover growth of the 

interbank market and exchange segment. 

Growth of the currency market is not an 

event in and of its own; it is directly 

connected with the development of foreign 

trade. The major factors which influence 

such increases are the reduction of 

commissions, development of information 

technologies, introduction of new tools and 

reliability of calculation systems. BEST has 

sufficient technological potential for further 

development so as to attract participants, 


The purposes of the BBVB are to: 

• set up regular exchange trading to carry 

out currency operations; 

• determine the market exchange rate of the 

Azerbaijan currency (manat) to foreign 

currencies; 

• create a mechanism for inter-state 

settlements; 

• maintain management and information 

services for currency operations; 

• settle transactions made at the BBVB both 

in national and foreign currencies; 

• organize and carry out exchange trading 

and auctions with interbank credits; and 

• conduct exchange trading with futures. 

including non-residents in addition to 

increasing the number of tools to be used in 

conjunction with BEST and also to increase 

overall volume. 

We are planning to offer the market this year 

a spectrum of tools, created on the basis of 

currency SWAP, which will help banks to 

operate in short-term liquidity in various 

currencies and currency positions.






Stocks 








Bonds 








Other 

July-04 102.4 4.7 0.10 0.005 

Aug-04 98.2 4.5 0.10 0.005 

Sep-04 108.7 4.9 0.11 0.005 

Oct-04 42.9 2.1 0.04 0.002 

Nov-04 57.3 2.9 0.06 0.003 

Dec-04 94.0 4.5 0.09 0.005 

TOTAL 503.3 3.9 0.50 0.004 

Market 



July-04 n/a n/a 

Aug-04 n/a n/a 

Sep-04 n/a n/a 

Oct-04 n/a n/a 

Nov-04 n/a n/a 

Dec-04 n/a n/a 


MONTHLY OTHER VOLUME 


Contact Name Mr. Vugar Israfilov E-mail info@bbvb.org Website www.bbvb.org 

120 

100 

80 

60 

40 

20 

0 

1,200 

1,000 

5 YEAR OTHER VOLUME 


0 

July Aug Sep Oct Nov Dec July Aug Sep Oct Nov Dec 

800 

600 

400 

200 

PAGE 45





Baku, Azerbaijan's capital and largest city 

emerged more than 100 years ago as one of 

the earliest centers of the international 

petroleum industry. At the beginning of the 

21st century, oil and gas activity remains the 

engine of the Azerbaijani economy. Indeed, 

oil exports accounted for 90% of all exports 

in 2002. It appears that oil development in 

the Azeri sector of the Caspian will fuel 

economic development and income growth 

for many years to come, especially after 

official sanctioning of the Baku-Tbilisi- 

Ceyhan (BTC) pipeline, which will pump 

Azeri oil through Georgia and Turkey to the 

Mediterranean terminal at Ceyhan, Turkey, 

and related projects, which will inject an 

estimated US$ 8 billion in investment over 

the next few years. 

In August 2003, the parliament of Azerbaijan 

elected President Aliyev's son, Ilhan Aliyev, 

as the prime minister. The measure was 

viewed as an attempt to secure a peaceful 

political transition, in the event that the ailing 

president were to become incapacitated. 

President Aliyev was scheduled to run for a 

third term in the presidential polls in October 

2003, but withdrew from the election contest 

due to health concerns. His supporters 

transferred their efforts to his son, the new 


National Bank www.nba.az 

State Committee for Securities www.scs.gov.az 

Ministry of Finance www.maliyye.gov.az 

National Depository Center www.mdm.az 

International Bank of Azerbaijan www.bse.az/images/p_ibar.gif 

National Bank of Azerbaijan www.nba.az/ 

State Committee for Securities www.scs.gov.az 

Ministry of Finance www.minfin-az.com 

Ministry of Economic Development www.economy.gov.az 


Domestic 

savings 

PAGE 46 

Azerbaijan 


Trade 

Indebtedness 

Investment 

Prime Minister Ilham Aliyev. The younger 

Aliyev went on to win the election in a 

landslide victory. 

In December 2003, Heydar Aliyev died in a 

United States hospital at the age of 80. 

He was undergoing treatment for heart and 

kidney problems. 

In 2004, bilateral relations with Armenia 

constituted one of the main issues facing 

Azerbaijan's political landscape. The new 

Azerbaijani president expressed his hope 

that the Organization for Security and 

Cooperation in Europe (OSCE) would 

continue in its effort in forging a resolution to 

the conflict in Nagornyy Karabakh. 

On the domestic front, President Aliyev has 

expressed confidence in the economic 

growth of Azerbaijan in the next few years, as 

well as the strengthening of democracy and 

the improvement of human development 

concerns. In these regards, he said, "Our 

assuredness stems from the considerable 

investments in Azerbaijan, the development 

of democratic reforms, and the 

implementation of social programs to 

improve people's quality of life." 


(%) 

90 

60 

30 

0 

97 

GDI GDP 


Foreign direct investment in the petroleum 

sector boosted GDP growth to 11.2% in 

2003 compared to 10.6% in 2002. Consumer 

price inflation has been restrained in recent 

years, declining slightly to 2.2% in 2003 from 

2.8% in 2002. Fiscally speaking, Azerbaijan's 

deficit increased in 2003, to nearly 2%, 

compared to 0.5% in 2002, but this was 

primarily due to infrastructure-related 

expenditures and an increase in pension 

wages. Agricultural work still occupies some 

40% of the Azeri workforce, and the 

unemployment rate has remained low (at 

1.4% in 2003). Although oil revenues 

represent a large portion of Azerbaijan’s 

economy, they have made inroads into this 

problem, with non-oil economy growing 

significantly in 2003. 1 



98 99 00 01 02 03 




AZERBAIJAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





AZERBAIJAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

50 

40 

30 

20 

10 

0 

-10 

-20 



3,000 

2,000 

1,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


97 

Exports 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (manats-billions) 1,183 1,390 1,570 1,693 1,967 

Money Supply M2 (manats-billions) 1,846 2,216 3,843 3,439 3,939 

Growth Rate M1 -22.4% 17.5% 12.9% 7.9% 16.2% 

Growth Rate M2 -15.2% 20.1% 73.4% -10.5% 14.5% 


deposit rate 14.0% 10.0% 10.0% 10.0% 7.0% 

lending rate 14.1% 19.5% 19.7% 19.7% 17.4% 


Exchange Rate Period Average (manats/US$) 3,869 4,120 4,474 4,657 4,861 

Annual % Growth -2.92 6.49 8.59 4.08 4.39 

15 

10 

5 

0 

-5 

-10 


(%) 

0 

-5 

-10 

-15 

-20 

-25 

-30 

-35 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 47


BAKU STOCK EXCHANGE 

Anar Akhundov 

President 

2004 was marked by several important 

events in capital market of Azerbaijan such 

as, in January 2004 the first placement of 

corporate bonds took place at Baku Stock 

Exchange (BSE) and was followed by a 

number of other issues. Amendments made 

to the Civil Code caused significant growth 

of IPOs in the stock market as Decree of the 

National Bank of Azerbaijan for all private 

banks to increase the authorized capital to a 

certain limit by the end of 2004 has assisted 

the BSE to increase the volume of the stock 

market significantly. As the result total 

volume of corporate bonds issues made up 


The establishment of a stock exchange was 

a necessary step in the creation of a 

modern stock market in Azerbaijan. Due to 

its geopolitical location Azerbaijan is an 

important regional center of business 

activity. In this respect the availability of a 

stable and developed securities market 

plays a substantial role in the raising of 

investors' confidence in the economy of 

Azerbaijan and the region. 

The shareholders of the BSE are leading 

Azeri and foreign banks and investment 

companies. The share of one shareholder in 

the capital of BSE is equal to US$ 61,250. 

The supreme decision-making authority of 

the BSE is the General Shareholders 

Meeting. 

The trading floor of the BSE is equipped with 

30 computerized trading stations, 18 of 

which belong to the shareholders of the 

Exchange. The other 12 are available for 

new members. 

Legal bodies (banks, investment funds, 

broker firms) involved in professional 

activities in the securities market with special 

license from the State Committee for 

Securities under the auspices of the 

President of the Azerbaijan Republic can 

become members of the BSE. 

PAGE 48 

In 2004 BSE took first steps to increase 

public awareness, through the issue of 

information bulletins on regular basis, 

these bulletins are disseminated among 

companies involved in different financial 

sectors. 

US$ 14.5 million and IPOs represented 

US$ 20.6 million. 

In comparison with 2003 turnover of stock 

market increased 6.5 times and reached 

US$ 21.7 million in 2004. 

Another important event was the launch of 

the Notes of the National Bank - in 

September 2004, National Bank of 

Azerbaijan executed the first placement of 

Notes and determined the interest rate at the 

level of 4.6%. 


In 2005 BSE plans to increase number of 

securities market participants, by involving 

more investors and issuers. One of the most 

important tasks of the BSE is to make the 

capital market accessible at different levels 

of investment and to strengthen the role of 

the BSE as a financial source of the 

Azerbaijan economy. In 2005 internal 

regulations will be reviewed and developed 

and listing requirements will be divided into 

different levels in order to make them more 

flexible. 

In 2004 BSE took first steps to increase 

public awareness, through the issue of 

information bulletins on regular basis, these 

bulletins are disseminated among 

companies involved in different financial 

sectors. 

KEY INITIATIVES FOR 2005 

Corporate securities market 

• Development of multi-stage listing 

requirements 

• Improvement of commission fees flexibility 

• Introduce of new financial instruments 

Membership 

• Increase the number of members 

• Stimulation of market-makers institution 

Investors 

• Organization of a conference for 

international investors 

• Organization of trainings for local investors 

Public Relations 

• Establishment of contacts with new 

markets 

• Participation in WFE (World Federation of 

Exchanges) 

• Publication of an analytical review of the 

securities market in Azerbaijan 

Trading system 

• Customization of the present trading 

system 

• Development of a depositary system


BAKU STOCK EXCHANGE 




Stocks 

July-04 0.48 0.03 0.14 0.01 

Aug-04 0.71 0.07 0.37 0.04 

Sep-04 0.03 0.003 0.03 0.003 

Oct-04 0.45 0.04 0.29 0.03 

Nov-04 10.5 1.2 5.1 0.57 

Dec-04 7.7 0.48 1.2 0.08 

TOTAL 19.9 0.30 7.2 0.12 

Bonds 

July-04 1.4 0.47 0.004 0.001 

Aug-04 4.1 2.1 0.02 0.01 

Sep-04 11.5 1.4 0.05 0.01 

Oct-04 9.9 1.7 0.05 0.01 

Nov-04 17.0 2.4 0.08 0.01 

Dec-04 10.0 2.0 0.05 0.01 

TOTAL 53.9 1.7 0.25 0.009 

Other 

July-04 0.0 0.0 0.0 0.0 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 3.0 3.0 0.002 0.002 

TOTAL 3.0 3.0 0.002 0.002 

Market 










VOLUME BY TYPE MONTHLY STOCK VOLUME 


Stocks Bonds 

Contact Name Mr. Jamil Azimov E-mail j.azimov@bse.az Website www.bse.az 

70% 

4% 

Other 

26% 

12 

10 

8 

6 

4 

2 

0 


* Please refer to page 46 for the Azerbaijan country report. 

PAGE 49


BANJA LUKA STOCK EXCHANGE 

Milan Bozic 

CEO 

2004 was a year of significant improvement 

in the Banja Luka Stock Exchange (BLSE) 

market performance. BLSE obtained an 

important role in the transitional processes in 

Bosnia and Herzegovina. The most important 

results are related to an increase in turnover, 

which amounted to US$ 65.3 million, 

showing an increase of 50% in comparison 

with 2003. During 86 trading days in 2004 

there were over 80,000 transactions 

concluded, which is 300% more than in 

2003. Significant progress was also made in 

regard to the structure of turnover. More than 

45% of total turnover was achieved on the 

official market, which is a consequence of 

admitting to this market segment 3 

companies and 13 Privatization Investment 

Funds (PIFs). Total market capitalization also 

increased from US$ 522.7 million on 

December 31st, 2003 to US$ 1.3 billion on 

December 31st, 2004. More than 60% of the 

above mentioned amount is related to the 

official market. 


The adoption of The Law on Securities in 

1998 provided the necessary legal 

framework to establish the capital market of 

the Republic of Srpska and the Stock 

Exchange. The National Assembly of the 

Republic of Srpska appointed the first 

members of Republic of Srpska Securities 

Commission in 2000 as the highest authority 

and supervisory body in the capital market 

of the Republic of Srpska. In the beginning 

of 2001 the Central Registry of Securities 

was established in accordance with the Law 

on Central Registry, which started with the 

registration of securities from the 

privatization process as the first market 

material. All of these events have created 

the necessary environment for the 

establishment of the Stock Exchange. 

On 9 May 2001, eight Banks and one 

company trading in securities signed the 

Contract that established the BLSE as the 

first Stock Exchange in the Bosnia and 

Herzegovina. In August 2001, the Republic 

of Srpska Securities Commission issued a 

working permit to the Banja Luka Stock 

Exchange, which operates as non-profit, 

self-regulatory, private organization. 

PAGE 50 

As a result of improvement of the financial 

disclosure, the participations of foreign 

institutional investors have significantly 

increased, which indicates the 

internationalization of the BLSE market. 

During 2004, two BLSE indices were created. 

The Stock Exchange Index of The Republic 

of Srpska (BIRS), which includes 10 

companies with the largest market 

capitalization, indicated an increase of 15% 

for an 8 month period. Total return on BIRS 

for this period was over 20%. The 

Privatization Investment Funds Index (FIRS) 

includes 13 shares of Privatization 

Investment Funds (PIFs). FIRS increased 

from September 1st to December 31st, 2004 

by 85%. 

Positive growth indicates increasing 

investor’s interest and confidence in the 

BLSE, which is largely due to the BLSE’s 

promotional and educational activities. 

As a result of improvement of the financial 

disclosure requirements (Financial 

statements for Privatization Investment 

Funds are disclosed on a monthly basis), the 

participation of foreign institutional investors 

has significantly increased, which indicates 

On 5 March 2002, a contract for the transfer 

of license between the Directorate for 

Privatization and the BLSE was signed that 

provided the BLSE with an electronic trading 

system (BTS) developed by the Ljubljana 

Stock Exchange. 

The first Banja Luka Stock Exchange trading 

session took place on 14 March 2002, 

involving six Members that traded 20 listed 

securities. 

In September 2002, the Law on Takeover 

came into force and thus further improved 

the position of small shareholders and the 

quality of corporate governance in the 

Republic of Srpska. 

On 21 January 2003, the first session of The 

Listing Commission took place and stocks 

of 13 Privatization Investment Funds were 

admitted to the official market of the BLSE. 

On May 2004, the Stock Exchange Index of 

Republic of Srpska (BIRS) was established 

as the first index in the Republic of Srpska. 

the internationalization of BLSE market. We 

are especially proud of the increasing 

number of small local investors, which 

indicates the success of the BLSE in 

educational activities. This has not been an 

easy task, bearing in mind that almost all 

citizens had a reason not to believe in new 

things such as investing in capital markets, 

because of the frozen saving accounts issue. 

An important result during 2004 was 

participation in the privatization of more than 

60 state owned companies. Finally, the BLSE 

became a full member of FEAS in November 

2004. 

Note: Please note that there is a difference 

between BLSE reported numbers in the 

message from the CEO and the FEAS 

statistics based on auction for state owned 

capital and block transactions reported to 

BLSE which are not included in the FEAS 

statistics. 


In 2005 the BLSE plans to: 

• install a new web information portal, which 

will enable investors to access a large scope 

of data, such as the macroeconomic 

situation in Bosnia and Herzegovina, trading 

information, financial statements and 

ownership structure of the listed; 

• encourage new listing of successful local 

companies; 

• continue with educational and promotional 

activities; 

• initialize creation of national corporate 

governance standards; 

• introduce new market instrument such as 

long term governments bonds issued on the 

basis of the frozen savings; and 

• initiate continual trading with securities 

listed on the official market.






Stocks 

July-04 2.0 0.23 13.8 1.5 

Aug-04 2.9 0.32 19.3 2.1 

Sep-04 5.0 0.56 43.7 4.9 

Oct-04 3.4 0.42 12.7 1.6 

Nov-04 5.7 0.44 86.0 6.6 

Dec-04 6.2 0.44 20.7 1.5 

TOTAL 25.2 0.40 196.2 3.0 

Bonds 








Other 








Market 



July-04 731.3 576.0 

Aug-04 785.3 616.3 

Sep-04 918.3 748.2 

Oct-04 884.1 698.7 

Nov-04 1,059.4 774.3 

Dec-04 1,080.6 776.2 




7 

6 

5 

4 

3 

2 

1 

0 

Stocks Index 


Contact Name Mr. Nebojsa Vukovic E-mail blberza@blic.net Website www.blberza.com 

800 

700 

600 

500 

400 

300 

200 

100 

0 



1,200 

1,000 

800 

600 

400 

200 

0 


PAGE 51





Bosnia and Herzegovina (BiH) is comprised 

of two distinct entities – The Republic of 

Srpska (RS), which accounts for one-third of 

the population and contains mostly Serbs, 

and the Federation of Bosnia and 

Herzegovina (Federation), which accounts 

for the other two-thirds of the population and 

consists mostly of Muslims and Croats. Both 

entities enjoy significant autonomy, with their 

own police, army, and tax and customs 

systems. There is also a tiny Northern district 

controlled by both entities called Brcko, 

which has its own tax laws. 

BiH’s economy is well-diversified. Services 

account for nearly three-fifths of GDP, 

industry nearly a quarter and agriculture just 

under one-fifth. The relative share of 

agriculture is twice as high in the RS as in 

the more urbanized Bosnia and Herzegovina 

Federation. 


Republic of Srpska Securities Commission www.khov-rs.org 

Central Registry of Securities www.crhovrs.org 

Government of Republic of Srpska www.vladars.net 

Central Bank of BiH www.cbbh.ba 

Tax Administration of Republic of Srpska www.poreskaupravars.org 


Domestic 

savings 

PAGE 52 

Bosnia & Herzegovina 


Trade 

Indebtedness 

Investment 

A lot of progress has been made at reducing 

ethnic tensions and rebuilding basic 

infrastructure and that provides a basis for 

future growth. Real GDP has been buoyant 

since the mid-1990s with the economy 

recovering from its low war-era base. 

In October 2002, Bosnia was scheduled to 

hold its fourth presidential election within the 

strictures of the tripartite system, which had 

been established under the Dayton Accords. 

The members of the presidency at the time 

included Beriz Belkic (Muslim/Bosniak), who 

became chairman on Feb. 14, 2002; Jozo 

Krizanovic (Croat); and Zivko Radisic (Serb). 

The October 2002 elections involved 52 

parties and over 7,000 candidates and 

marked a historic turning point because they 

were run by the Bosnian authorities and not 

the international apparatus resulting from the 

Dayton Accords. 


(%) 

40 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

97 

GDI GDP 


The country's monetary policy has been 

prudent and effective. After adoption in 1997 

of a currency board arrangement linking the 

convertible mark (KM) to the Deutsche mark 

(now to the Euro), with controls on money 

supply growth and a tightly managed foreign 

exchange trading band, inflation rates have 

largely stabilized in the lower single-digits. 

Average inflation for the entire country was 

0.3% in 2002 and even lower in 2003. 

The consolidated fiscal deficit was reduced 

from 2.2% of GDP in 2002 to a small surplus 

of 0.4% in 2003 due to responsible spending 

by both entities. In 1998, the government 

subscribed to an IMF-financed economic 

reform program, aimed at reconfiguring the 

inefficient fiscal structure and sharply 

reducing direct state participation in 

productive sectors. 1 



98 99 00 01 02 03 




BOSNIA AND HERZEGOVINA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





BOSNIA HERZEGOVINA MONEY SUPPLY, INTEREST RATES AND 



(%) 

70 

60 

50 

40 

30 

20 

10 

0 

-10 



4,000 

3,000 

2,000 

1,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (KM's-billions) 0.38 1.15 1.47 2.79 3.15 

Money Supply M2 (KM's-billions) 1.82 2.33 2.59 4.92 5.38 

Growth Rate M1 11.9% 199.4% 28.1% 89.7% 13.0% 

Growth Rate M2 22.0% 27.5% 11.3% 90.0% 9.4% 


deposit rate 51.9% 9.1% 14.7% 16.5% 4.5% 

lending rate 73.5% 24.3% 30.5% 25.0% 12.7% 

Foreign Exchange Reserves (US$ millions) 175 452 497 1,221 1,321 

Exchange Rate Period Average (KM's/US$) 1.7597 1.8371 2.2144 2.1872 2.08 

Annual % Growth 1.48 4.40 15.64 2.96 -4.9 

14 

12 

10 

8 

6 

4 

2 

0 


(%) 

0 

-10 

-20 

-30 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 53


BELGRADE STOCK EXCHANGE 

Gordana Dostanic 

Managing Director 

During 2004 many fundamental investment 

laws were adopted, which set a legal 

foundation for the transitional changes and 

market economy in progress. It is expected 

that the aforementioned legislative activities 

will have a strong influence on the economic 

flows in the year to come. 

2004 has also seen a deceleration in the 

privatization process, as well as a decrease 

in industrial growth and exports, which 

brought with it slower growth of employment 

rates and higher inflation than projected. 

These circumstances made a less than 

favorable environment for the development 

of the Belgrade Stock Exchange (BSE), and 


The BSE was first founded on November 

21st 1894, but the first transactions were 

conducted in January 1895. The last 

transactions on the BSE were carried out in 

April 1941. The Exchange continued to exist 

formally until 1953, but at that time there 

were no trading activities. 

• The BSE was reestablished in 1989 as 

Yugoslav Capital Market, in the accordance 

with the Capital and Money Market Law. 

The name was changed back to Belgrade 

Stock Exchange in 1992. The most 

important events in recent history were: 

• September 2002 – trade in Republic of 

Serbia foreign currency savings bonds 

started; 

• March 2003 – Introduction of continuous 

trading method for Republic of Serbia 

bonds; 

• September 2003 – The celebration of 110 

years from founding of Belgrade Stock 

Exchange started with the exhibition in Nis; 

• October 2003 – testing of the system for 

remote trading started. 

PAGE 54 

During 2004 many fundamental investment 

laws were adopted, which set a legal 

foundation for the transitional changes and 

market economy in progress. 

have left their mark on the otherwise 

dynamic development of the only financial 

market in Serbia. 

New relationships, new organizational 

principles and new terminology brought into 

Serbia by the market transition process have 

found a fertile ground and rooted deeply in 

everyday business and life. Even though the 

citizens in Serbia usually do not have 

substantial savings, they are becoming more 

interested in the movements on the Stock 

Exchange and are moving their savings from 

banks to investing it in the capital market. 

Other factors that have influenced the growth 

and development of the financial market in 

During 2004 many landmark events 

occurred. On March 2nd, after a long period 

of testing, the system for remote trading 

became operational. In July all equities 

listed on the BSE started daily trading. 

At that time, there were 190 companies 

listed on the BSE. On the 18th of October 4 

companies transferred to a continuous 

trading system, which was, until then, used 

only for government bonds of the Republic 

of Serbia. By the end of the year, three more 

companies have changed their trading 

system from daily to continuous trading. 

On the 16th and 17th of November The 

Third International BSE Conference was 

held, as a culmination of the celebration of 

110th anniversary of BSE. On the 13th of 

December, after six months of testing, 

BELEX fm, the free market index, was 

published for the first time. 

the past year were new legislation 

concerning investment funds, changes in 

insurance legislation and the dispersion of 

ownership rights through the privatization 

process. 

Even though turnover was lower in 2004, in 

comparison to 2003, the activities on the 

Belgrade SE were very dynamic. This 

resulted in greater independence of the 

Stock Exchange and the development of 

new technologies, which in turn helped 

educational and informational activities. 

There are still big developments to come on 

the Belgrade Stock Exchange. 


In 2005, BSE will: 

• continue development of the BELEX client 

application’s functionality and start of project 

for automating the control function in the 

BELEX trading platform; 

• define requests for redesign of the BELEX 

trading platform in whole; 

• develop the listing function, especially 

concerning enlistment on the A and B lists; 

• monitor the BSE Rules and their 

application, in order to eliminate possible 

problems and improve securities’ liquidity; 

• motivate the most successful companies 

to enlist on the A and B lists and explore the 

possibilities for introducing new securities 

and other instruments on the market; 

• perform liquidity analysis for certain 

securities and programs for increasing their 

liquidity; 

• develop reporting capabilities through 

various types of reporting: web presentation, 

data vending, publications, and cooperation 

with the media; 

• create and implement the BSE Academy 

program; 

• maintain and enhance the communication 

with the BSE Members, and activities in 

presenting the Exchange to the general 

public in Serbia and abroad; 

• develop of Human Resources; and 

• take an active part in the international 

meetings organized by FEAS, FESE or 

similar international organizations and 

organize one or more international or 

regional meetings, with the goal of 

promoting international cooperation.






Stocks 

July-04 25.7 1.2 1.9 0.09 

Aug-04 33.7 1.5 2.4 0.11 

Sep-04 39.0 1.8 2.2 0.10 

Oct-04 41.4 2.0 1.2 0.06 

Nov-04 29.3 1.3 1.3 0.06 

Dec-04 73.5 3.2 1.9 0.08 

TOTAL 242.6 1.8 11.1 0.08 

Bonds 

July-04 11.9 0.54 9.9 0.45 

Aug-04 11.8 0.53 9.8 0.45 

Sep-04 15.0 0.68 12.3 0.56 

Oct-04 11.2 0.53 8.9 0.42 

Nov-04 15.3 0.70 11.5 0.52 

Dec-04 14.2 0.62 10.4 0.45 

TOTAL 79.4 0.60 62.9 0.48 

Other* 

July-04 3.7 0.17 0.0 0.0 

Aug-04 3.7 0.17 0.0 0.0 

Sep-04 0.69 0.03 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 8.1 0.06 0.0 0.0 

* other # volume figures are not available at this time. 

Market 



July-04 2,071.1 996.0 

Aug-04 2,343.2 983.6 

Sep-04 2,282.5 980.1 

Oct-04 2,593.8 1,072.2 

Nov-04 2,949.1 1,137.8 

Dec-04 3,280.6 1,166.4 




80 

70 

60 

50 

40 

30 

20 

10 

0 

Stocks Index 


Contact Name Ms. Svetlana Cerovic E-mail svetlana.cerovic@belex.co.yu Website www.belex.co.yu 

1,200 

1,000 

800 

600 

400 

200 

0 



3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 


PAGE 55





Serbia and Montenegro, the two republics 

still left in the old Yugoslav federation, had 

agreed in March 2002 to scrap remnants of 

the ex-communist state and to create a new, 

looser union of Serbia and Montenegro. The 

European Union (EU)-brokered deal was 

intended to prevent further changes to 

Balkan borders by settling Montenegrin 

demands for independence. 1 

The ruling minority coalition in Serbia, which 

is lead by the Democratic Party of Serbia 

(DSS) and also includes the G17 Plus and 

the Serbian Renewal Movement-New Serbia 

(SPO-NS) alliance, remains under pressure. 

The reformist Democratic Party (DS) and the 

extreme nationalist Serbian Radical Party 

(SRS), both of which are in opposition, 

continue to top the opinion polls. 

The Serbian authorities have tightened fiscal 

policy since mid-2004 in order to contain 

inflationary pressures, and are likely to run a 

smaller central government deficit than the 

US$ 534 million envisaged in the revised 

2004 budget. The 2005 budget approved by 

parliament on November 20th envisages a 

further reduction in the annual budget deficit 

equivalent to 1.4% of projected GDP. The 

National Bank of Serbia has also tightened 

monetary condition in recent weeks. 

PAGE 56 


The IMF’s decision on December 15th, 2004, 

to release another set of financing has 

provided further evidence that the outside 

world regards economic policy in Serbia and 

Montenegro as broadly on track, following 

the debt-rescheduling agreement earlier in 

2004 between Serbia and the London Club 

of commercial creditors. 

Industrial production in Serbia and 

Montenegro rose by 7.2% year on year in the 

first nine months of 2004, on the back of a 

strong recovery in manufacturing. GDP 

growth in Serbia and Montenegro at 6.5% in 

2004 and it is estimated that Serbia and 

Montenegro’s current-account deficit 

forecast will fall slightly as a percentage of 

GDP in 2005-2006 as the trade gap rises 

more slowly. 2 

1 http://www.cia.gov/cia/publications/factbook/geos/yi.html# 

Econ 

2Facts and Figures from Serbia and Montenegro Outlook, 

EIU ViewsWire. New York: Jan 28, 2005. 


National Bank of Serbia www.nbs.yu/english/index.htm 

Securities and Exchange Commission www.sec.sv.gov.yu/index.html 

Central Securities Depository and Clearing House www.crhov.co.yu/indexe.htm 

Ministry of Economy www.mpriv.sr.gov.yu/ 


Domestic 

savings 

Serbia and Montenegro 


Trade 

Indebtedness 

Investment 


(%) 

40 

30 

20 

10 

0 

-10 

-20 

-30 

97 

GDI GDP 

98 99 00 01 02 03 




SERBIA AND MONTENEGRO MONEY SUPPLY, INTEREST RATES AND 



(%) 

30 

20 

10 

0 

-10 

-20 

-30 

-40 



8,000 

6,000 

4,000 

2,000 

0 

97 

Exports Imports 

Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

INFLATION 

(%) 

90 

80 

70 

60 

50 

40 

30 

20 

10 


(%) 

0 

-2 

-4 

-6 

-8 

-10 

2000 2001 2002 2003 2004 

Money Supply (M1) (dinars-millions) 27,026 58,233 93,815 99,544 111,179 

Money Supply (M2) (dinars-millions) 32,897 68,098 110,900 124,886 146,613 

Foreign Currency Reserves of National Bank of Serbia (NBS) (US$ millions) 524 1,169 2,280 3,550 4,244 

Average Money Market Interest Rates 117.43 55.31 32.21 27.14 n/a 

Average Interest rate on NBS Securities N/A 20.75 10.30 11.35 16.30 

Discount Rate of NBS 26.34 16.43 9.50 9.00 8.50 

Value of US$ against Dinar 63.16 67.67 58.98 54.64 57.94 

Real GDP Growth (%) 5.0 5.5 4.00 3.0 6.0 

Investment (% of GDP) 14.2 13.6 16.20 15.9 16.5 

Gross Domestic Savings (%of GDP) -2.7 -7.2 -7.20 -6.6 -8.6 

Exports of Goods and Services (US$ millions) 29.6 23.7 20.90 19.9 24.2 

Imports of Goods and Services (US$ millions) 46.5 44.6 44.30 42.4 49.4 

Current Account Balance (US$ millions) -339 -521 -1,383 -1,960 -2,492 

GNI per Capita (US$, Atlas method) 1,220 1,250 1,400 1,900 2,530 

Real Annual Growth Rates (%, calculated from 1998 prices) 

Gross domestic product at market prices 5.0 5.5 4.00 3.0 6.0 

Gross domestic income 5.1 5.5 4.00 3.1 6.0 

Balance of Payments 

Exports 2,547 2,743 3,241 4,069 5,623 

Imports 4,004 5,160 6,857 8,675 11,463 

Resource balance -1,457 -2,417 -3,616 -4,606 -5,840 

Net current transfers 1,119 1,915 2,344 2,895 3,745 

Current account balance -339 -528 -1,383 -1,960 -2,492 

GDP deflator CPI 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 57


BUCHAREST STOCK EXCHANGE 

Stere Farmache 

General Manager & CEO 

Following the positive economic climate 

Central Eastern European (CEE) emerging 

markets registered in the last years, 2004 

was the fifth year in a row when Romania’s 

GDP continued to grow (8.1% year-on-year 

basis) and inflation continued to decrease. 

The inflation rate dropped below 10% for the 

first time since 1989 to 9.3%. Further, the fall 

in saving interest rates and the decrease in 

the yield rate for Government bonds issued 

in 2004, as well as the volatility of foreign 

currencies contributed to an increase in the 

number of investors and capital driven 

toward the Bucharest Stock Exchange (BSE). 

The total market capitalization of the BSE in 

2004 increased three times to reach almost 

US$ 12 billion compared to US$ 3.7 billion at 

the end of 2003. The market capitalization 

currently represents 17% of Romania’s GDP. 

Furthermore, all three indices computed by 


Trading in equities in Romania dates back to 

1882, a year after the legal framework was 

passed. The market was very slim and from 

the beginning official trading was soon 

substituted by off-exchange trading. 

However, with the exception of the two world 

wars and the economic depression, the 

market grew to significant levels reaching, in 

terms of listed securities, 56 shares (banks, 

oil, mining, industrial, insurance and 

transportation companies) and 77 fixed 

income securities, in 1935. 

The peak was reached in 1938 but after the 

end of the Second World War, in 1948, the 

stock market was left without any public 

companies due to the nationalization of the 

entire economy. For almost fifty years 

Romania did not have one of the most vital 

institutions of a modern economy. 

The adoption in 1994, by the Parliament of 

Romania, of the Securities and Exchanges 

Act made the reconstruction of a modern 

capital market possible. Based upon the 

provisions of this Act, the main institutions of 

the Romanian capital market: the National 

Securities Commission, the BSE, brokerage 

companies, and the National Association of 

the Securities Dealers have been set up. 

PAGE 58 

The total market capitalization of the BSE in 

2004 increased three times to reach almost 

US$ 12 billion. The market capitalization 

currently represents 17% of Romania’s GDP. 

the BSE posted significant increases; 

reaching all time highs in 2004. On the last 

trading day of 2004 all indices recorded 

values two times higher than those of the last 

trading day of 2003. Thus, the BET index 

stood at 101% above the value on the last 

trading day of 2003. The BET-C index posted 

an annual growth rate of 104%, while BET-FI 

recorded an annual growth rate of 115%. The 

daily average turnover also increased from 

US$ 1.3 million in 2003 to over US$ 3.3 

million in 2004 and the turnover for 2004 of 

US$ 746.8 million increased by more than 

161% as compared to 2003 (US$ 285.7 

million). 

2004 also brought 3 new issuers to the BSE, 

representing banking, energy and textiles 

businesses. In addition, several listed 

companies raised capital through the BSE 

totaling US$ 16.3 million. It was the first time 

The BSE was re-established in April 1995, 

by a decree of the National Securities 

Commission (NSC) at the request of 24 

brokerage houses – the founding members 

– to trade on the BSE. A new law on 

securities was approved by the Parliament in 

2002. 

The BSE is a self-financing and selfregulating 

institution of public interest, 

operating on corporate principles. Trading is 

performed on the BSE in a dematerialized 

environment: Exchange operations have 

been conducted exclusively through the 

electronic systems since the reestablishment 

of the Exchange. 

that one company initiated an IPO in the 

amount of US$ 3 million. With the support of 

the Romanian Government, a multi-annual 

program “A Strong Market” was launched to 

develop the capital market and to 

consolidate the financial market for a 

successful integration of Romania to the 

European Union (EU) in 2007. Thus, seven 

large state-owned companies are planned to 

be listed on the BSE during the coming two 

years, and are expected to contribute to a 

higher liquidity and to increase in the market 

capitalization by 20%. 

In December 2004, the BSE and Wiener 

Borse AG (WBAG) signed a Memorandum of 

Understanding, which establishes the basis 

of a co-operation between the two 

institutions. 


In 2004, Romania's Stock Exchange has 

been one of the best performers in the 

region. According to our estimations, the 

upward trend will continue accelerate during 

the next years before the Romania’s 

integration in the EU and the market 

capitalization of the BSE will exceed 20% of 

the GDP in 2005. 

The BSE plans for 2005 are to: 

• allow new types of intermediaries to enter 

the market (according to the provisions of 

the new Romanian Capital Market Act), such 

as commercial banks and other credit 

institutions, including investment firms from 

member and non-member EU countries; 

• transform the BSE into a joint stock 

company; 

• introduce new instruments provided for by 

the new legislation, such as financial 

derivatives; 

• launch indexes for economic sectors that 

are represented on the stock market; and 

• finalize preparation for the implementation 

of a new trading system for shares: ARENA. 

ARENA is a trading system developed inhouse, 

which is now used only for 

supporting the bond market.






Stocks 

July-04 48.3 2.2 597.8 27.2 

Aug-04 36.7 1.7 396.0 18.0 

Sep-04 37.3 1.7 421.2 19.1 

Oct-04 111.8 5.3 1,957.6 93.2 

Nov-04 91.3 4.2 1,010.0 45.9 

Dec-04 107.0 6.3 1,298.2 76.4 

TOTAL 432.3 3.6 5,680.7 46.6 

Bonds 

July-04 2.9 0.13 0.01 0.001 

Aug-04 1.2 0.05 0.01 0.0003 

Sep-04 3.2 0.14 0.01 0.001 

Oct-04 2.4 0.12 0.01 0.001 

Nov-04 14.8 0.67 0.06 0.003 

Dec-04 3.5 0.21 0.02 0.001 

TOTAL 28.0 0.22 0.13 0.001 

Other 

July-04 0.0 0.0 0.0 0.0 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.0 0.0 0.0 0.0 

Market 



July-04 6,336.4 728.7 

Aug-04 5,871.3 701.7 

Sep-04 6,106.4 727.9 

Oct-04 6,865.7 915.2 

Nov-04 8,145.1 1,027.5 

Dec-04 11,937.6 1,149.4 




120 

100 

80 

60 

40 

20 

0 

Stocks Index 


Contact Name Ms. Adriana Tanasoiu E-mail Adriana.Tanasoiu@bvb.ro Website www.bvb.ro 

1,200 

1,000 

800 

600 

400 

200 

0 



12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 


PAGE 59





Romania's transitional economy has 

achieved marginal progress during the last 

decade. Large portions of Romania are 

suitable for agriculture with some regions 

endowed with the highly fertile chernozem 

soil, which is so prevalent in neighboring 

Ukraine. Agricultural privatization has 

proceeded with 75% of the sector transferred 

from the state by 1995. Although, periodic 

drought and inadequate capital investment 

have threatened Romania's historic 

agricultural self-sufficiency. Minerals, forestry 

and fishery are also significant contributors 

to economic output. Romania's capable, low 

cost work force and tourism potential hold 

promise for the future. Foreign direct 

investment, which has historically originated 

predominately from EU nations, has totaled 

US$ 7 billion over the last decade, 

cumulatively about 15% of current GDP. 

In July 2003, President Iliescu visited 

President Vladimir Putin in Russia. The trip 

was made for the purpose of signing a 

mutual friendship treaty. Earlier, in May 2003, 

Romania and Russia reached an agreement, 

which mutually recognized national 

sovereignty and their respective borders. 

Efforts were also made to resolve a dispute 

over the annexation of the country now 

known as Moldova by the former Soviet 

Union in 1940. 1 


National Securities Commission www.cnvmr.ro 

Ministry of Public Finance www.mfinante.ro 

National Bank of Romania www.bnro.ro 


Domestic 

savings 

PAGE 60 

Romania 


Trade 

Indebtedness 

Investment 


On the back of improving macroeconomic 

stability and buoyant economic growth, 

S&P’s recently revised its outlook on 

Romania’s sovereign credit ratings from 

stable to positive and consequently placed 

the country into investment grade level . 

The outlook change is based on the strong 

commitment of the new centrist Government 

to step up economic, institutional and 

structural reforms, expected to strengthen 

country’s perspectives to join EU in 2007. 

The unemployment rate has continued on a 

declining path throughout the 2004 year, 

after having reached a maximum in February 

and March (7.8%). Since then, the rate has 

continuously decreased, with the exception 

of November when it slightly increased by 

0.1% month over month basis. 

2004 inflation dropped for the first time below 

10% to 9.3% year-over-year basis in 

December 2004, marginally exceeding the 

9% initial target. An important contribution to 

the drop in last year inflation came also from 

- National Bank of Romania, which 

maintained a restrictive monetary policy up 

to June, thus avoiding a surplus of cash in 

the economy. 

Tax collection improvement has reduced the 

January - November fiscal deficit to 0.2% of 

GDP, in spite of the electoral year. 


(%) 

20 

15 

10 

5 

0 

-5 

-10 

-15 

97 

GDI GDP 

Announced as one of the main priorities of 

the new Cabinet formed by a coalition of four 

reformist centre-right parties headed by the 

new Prim-Minister, fiscal code has been 

amended to allow the introduction of the flat 

income tax of 16% as of January 1st 2005. 

Starting from the same date, the tax on 

corporate profit has also been lowered to 

16% from 25%. 

According to preliminary estimates, in 2004 

current account deficit widened to 6.2% of 

GDP (as against 5.8% in 2003) on the back 

of imports inflated by higher consumption 

and ROL appreciation. FDI financed 70% of 

the gap in line with 2003’s coverage. 2004 

FDI expectations point to US$ 4.7 billion, 

80% above the established US$ 2.6 billion 

target, suggesting a 6.2% share of GDP (as 

against 2.7% one year earlier). Such a strong 

hike in FDI’s share is mainly due to the 

EBRD and IFC’s payments totaling US$ 222 

million for 25% stake of Romanian 

Commercial Bank as well as OMV’s US$ 871 

million paid for 33.34% stake in SNP Petrom. 



98 99 00 01 02 03 




ROMANIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





ROMANIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

-10 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

97 


98 99 00 01 02 03 



Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (lei-billions) 21,115 28,431 44,320 61,603 83,907 

Money Supply M2 (lei-billions) 92,530 134,115 185,060 270,512 373,715 

Growth Rate M1 17.7% 34.7% 55.9% 39.0% 36.2% 

Growth Rate M2 48.9% 44.9% 38.0% 46.2% 38.2% 


deposit rate 37.9% 35.0% 35.0% 35.0% 29.0% 

lending rate 64.0% 74.2% 51.9% 42.2% 27.0% 


Exchange Rate Period Average (lei/US$) 8,876 15,333 21,709 29,061 33,055 

Annual % Growth 23.82 72.75 41.58 33.87 13.74 

INFLATION 

(%) 

160 

140 

120 

100 

80 

60 

40 

20 


(%) 

0 

-1 

-2 

-3 

-4 

-5 

-6 

-7 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 61


BULGARIAN STOCK EXCHANGE 

George Draychev 

CEO 

2004 has definitely been a good year for the 

Bulgarian Stock Exchange (BSE) and for the 

capital market as a whole. If we take into 

consideration the SOFIX (the official index of 

the BSE-Sofia), 2004 has seen a very good 

performance. Starting at 454 points at the 

beginning of last year it reached over 625 

points at year’s end. Market capitalization 

has grown significantly, reaching US$ 2 

billion at the end of 2004, comprising 8% of 

GDP. Currently there are 331 companies 

listed or admitted for trading on the 

Bulgarian Stock Exchange, 31 of which are 

on the Official Market and 300 on the 

Unofficial Market. 

The positive development of the stock 

market is the result of the overall stabilization 

of the Bulgarian economy. We are seeing a 

positive impact from the government’s 

commitment to develop the capital market 

and to use this market as a public and 

transparent mechanism for privatization. 

The Exchange is currently working on 


The first Stock Exchange Act was adopted 

in 1907 and regulated the structure and 

operations of stock and commodities 

exchanges. The Securities, Stock 

Exchanges & Investment Intermediaries Act 

was adopted in July 1995, which led to a 

process of stock exchange consolidation. In 

July 1997, the present Bulgarian Stock 

Exchange-Sofia was established. In 

accordance with the requirements of the 

new law, a Securities & Stock Exchange 

Commission was set up. 

On 9 October 1997 the Commission 

officially licensed the BSE-Sofia. The first 

trading session on the regulated market 

took place on 21 October 1997. By the end 

of 1999 there were 32 companies listed on 

the Official Market and about 1,000 

companies admitted for trading on the Free 

(OTC) Market as a result of the mass 

privatization program. On 6 December 2001 

the Commission officially licensed the BSE- 

Sofia to organize an Unofficial Market, which 

replaced the Free Market and set clear rules 

for regulation of all companies traded on the 

Exchange. 

PAGE 62 

We are seeing a positive impact from the 

government’s commitment to develop the 

capital market and to use this market as a 

public and transparent mechanism for 

privatization. 

enhancing the existing information disclosure 

framework. The BSE-Sofia, the Central 

Depository and the Financial Supervision 

Commission have established a joint project 

for the development of an integrated 

electronic system for disclosure of 

information called EXTRI. This new system 

will enable issuers to disclose information 

simultaneously to the country’s three main 

securities institutions - BSE-Sofia, the 

Depository and the Commission. The system 

will accommodate the processing of both file 

transfers and paper documents for 

disclosure of price-sensitive and other 

information required by the market. 

As a web-based system, each EXTRI user 

will be registered and submitted documents 

will have to be signed via electronic 

signature. The official launch of the system is 

scheduled for 2005 and a number of positive 

effects are anticipated as a result of its 

implementation. 

In December 1999 a new Public Offering of 

Securities Act was adopted by the 

Parliament. The law is aimed at providing 

protection for investors and creating 

prerequisites for the development of a 

transparent capital market in Bulgaria with 

criteria similar to those of the European 

Union. 

The Securities & Stock Exchange 

Commission was first renamed the National 

Securities Commission, but in March 2003 it 

was replaced by a new supervisory body - 

the Financial Supervision Commission 

(FSC). More than just a name change, the 

move pulled together the regulation of a 

number of financial (non-banking) sectors 

under one body. The regulatory changes 

during the year directly improved conditions 

for investors and issuers, as well as 

underlined the government’s commitment to 

encourage wider overall development of the 

capital markets. 

Steps will be taken to stimulate market 

liquidity and increase the attractiveness of 

the markets on the BSE-Sofia. The main 

objective is to attract more companies for 

listings and more issuers to the stock 

exchange. 

The BSE intends to broaden the spectrum of 

financial instruments traded on the 

exchange. This includes the establishment of 

a derivatives (futures & options) market. 

Recently a new index was introduced – the 

BG 40. The reason for the introduction of the 

BG 40 is to give an alternative measure of 

overall market performance with a broader 

base and different method of calculation. 

The launching of the new index is considered 

to be part of the long-term plans to introduce 

index-based derivatives in the market. 


In 2005 the Bulgarian Stock Exchange (BSE) 

will continue to improve the operational 

efficiency of its trading system, market 

surveillance and disclosure framework. 

The BSE, the Central Depository and the 

Financial Supervision Commission will 

launch an integrated electronic system 

for disclosure of information called EXTRI. 

This new system will enable issuers to 

disclose simultaneously to the three 

securities institutions in Bulgaria. As a webbased 

system, each EXTRI user will be 

registered and submitted documents will 

have to be signed via electronic signature. 

Thus we will have a standardized reporting 

system which will also facilitate data 

processing. We expect the amount of 

current paperwork to be reduced by at least 

90%. 

At the beginning of 2005 the BSE will 

introduce its new index – BG 40. The idea 

behind the new index is to give an 

alternative measure of overall market 

performance with a broader and different 

method of calculation.






Stocks 

July-04 15.0 0.68 25.4 1.2 

Aug-04 12.3 0.56 2.5 0.12 

Sep-04 27.0 1.4 11.6 0.58 

Oct-04 111.7 5.3 12.7 0.60 

Nov-04 146.5 6.7 57.3 2.6 

Dec-04 153.6 7.7 67.8 3.4 

TOTAL 466.1 3.7 177.5 1.4 

Bonds 

July-04 0.89 0.04 0.0008 0.00004 

Aug-04 5.3 0.24 0.006 0.0003 

Sep-04 5.4 0.27 0.006 0.0003 

Oct-04 7.7 0.37 0.008 0.0004 

Nov-04 12.1 0.55 0.01 0.0004 

Dec-04 18.4 0.92 0.02 0.0009 

TOTAL 49.8 0.40 0.05 0.0004 

Other 

July-04 7.7 0.35 52.5 2.4 

Aug-04 5.1 0.23 34.4 1.6 

Sep-04 7.4 0.37 46.8 2.3 

Oct-04 21.6 1.0 115.4 5.5 

Nov-04 120.8 5.5 360.2 16.4 

Dec-04 92.3 4.6 168.2 8.4 

TOTAL 254.9 2.0 777.4 6.1 

Market 



July-04 1,923.1 531.4 

Aug-04 2,054.2 556.3 

Sep-04 2,241.7 586.5 

Oct-04 2,332.8 639.8 

Nov-04 2,582.9 630.7 

Dec-04 2,800.8 625.3 




160 

140 

120 

100 

80 

60 

40 

20 

0 

Stocks Index 


Contact Name Mr. Panteley Karassimeonov E-mail bse@bse-sofia.bg Website www.bse-sofia.bg 

700 

600 

500 

400 

300 

200 

100 

0 



3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 


PAGE 63





Bulgaria’s monetary and fiscal policy, 

macroeconomic and political stability, 

functioning free-market economy, privatized 

financial sector, favorable tax rates, flexible 

labor laws and competitive wage rates all 

have contributed to a quantifiable and 

qualitatively improved business climate. 

Bulgaria’s membership in NATO and the 

forthcoming EU accession on January 1st, 

2007 give additional guarantees to potential 

investors. 

The combination of high-growth, low 

inflation, stable currency, low interest rate, 

price and wage stability, low tax rates, low 

budget deficit makes Bulgaria very 

competitive in Central and Eastern Europe. 

Bulgaria owes its progress to sound 

monetary and fiscal policies in effect since 

1997. A currency board, a fixed exchange 

rate and conservative fiscal policy have led 

to steady economic growth and a declining 

government deficit, creating a business 

climate conductive to private investments. 

One of Bulgaria’s success stories has been 

its stable currency. The Bulgarian lev has 


Financial Supervision Commission www.fsc.bg 

Central Securities Depository www.cdad.bg 

Bulgarian National Bank www.bnb.bg 

Ministry of Finance www.uae.gov.ae/mop 

Ministry of Economy and Commerce www.minfin.government.bg 


Domestic 

savings 

PAGE 64 

Bulgaria 


Trade 

Indebtedness 

Investment 

been pegged to the Euro since 1997, 

obviously, with a zero fluctuation in terms of 

exchange rates. 

Parliamentary elections will be held in June 

2005. Whatever the outcome of these 

elections the next Bulgarian government has 

to follow the road-map to EU membership. 


Key Economic Indicators: 

• Real GDP growth was 4.9% in 2002 and 

4.3% in 2003 and expected to be 5.6% in 

2004. 

• Inflation declined steadily over the last 

years reaching 2.3% in 2003; 

• Registered unemployment went down to 

13.6% in 2003 (4% lower than the previous 

year), which is the lowest level in 5 years; 

• Estimations for 2004 are 12% 

unemployment rate; 

• After having declined continuously over 4 

years to reach 4.7% in 2002, the current 

account deficit has increased to 8.5% of 

GDP in 2003. In 2004 the deficit was 6,9% of 

GDP; 

• The catching-up in terms of GDP per 

capita, however has been very slow 


(%) 

40 

20 

0 

-20 

97 

GDI GDP 

remaining at only 29% of the EU-25 average 

in 2003 (just a 3% increase from 1997); and 

• Public debt has continued falling from 

above 100% of GDP in 1997 to 46% of GDP 

at the end of 2003. For 2004 the figure is 

44%. 

In its 2004 Regular Report, the European 

Commission reiterated its recognition of 

Bulgaria as being a functioning market 

economy (first recognized as market 

economy in 2002). Furthermore, the 2004 

report concludes that Bulgaria should be 

able to cope with competitive pressure and 

market forces within the Union. 

The Commission’s Regular Report also 

mentions Bulgaria’s further good progress in 

structural reforms over the last years. This 

holds in particular for the increasing role of 

the private sector through privatization and 

the reduction of state aid, the positive 

development of the banking sector and 

some improvements in the regulatory 

environment. 

98 99 00 01 02 03 




BULGARIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





BULGARIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

20 

15 

10 

5 

0 

-5 



10,000 

8,000 

6,000 

4,000 

2,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (levas-billions) 2,960 3,300 3,980 4,880 5,540 

Money Supply M2 (levas-billions) 6,390 7,220 9,550 12,000 14,000 

Growth Rate M1 21.7% 11.5% 20.4% 22.8% 13.5% 

Growth Rate M2 11.9% 13.0% 32.2% 26.7% 12.2% 


deposit rate 5.1% 4.5% 4.6% 4.7% 3.3% 

lending rate 13.3% 12.8% 11.5% 11.1% 9.4% 


Exchange Rate Period Average (levas/US$) 1.7604 1.8364 2.1233 2.1847 2.0770 

Annual % Growth 4.67 4.32 15.62 2.89 -4.93 

1,000 


(%) 

10 

8 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

16 

12 

8 

4 

0 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 65


CAIRO & ALEXANDRIA STOCK EXCHANGES 

Mohamed Abdel Salam 

Chairman 

The Egyptian market has made its way 

through the economic and financial 

liberalization and reform process that began 

in the last decade. The market continues to 

develop and each year adds more 

instruments and mechanisms to support 

transactions, enhance efficiency, and protect 

market participants. Locally, 2003/2004 

witnessed the appointment of a reformminded 

Cabinet in June that has been 

earnestly working to remove obstacles to 

investment, starting with customs and tax 

reforms and in parallel promoting an 

investment-friendly reputation and 

overcoming investment obstacles in Egypt 

by recognizing the strong potentials in the 

Egyptian market for local and foreign 

investors. 

The year 2003/2004 witnessed the 

undertaking of major projects at Cairo and 

Alexandria Stock Exchanges (CASE), 

including bringing information technology to 

bear in connecting the trading system in the 

stock exchange, the Capital Market Authority 

and Misr for Clearing Settlement and 

Depositary. 


The Egyptian Stock Exchange is comprised 

of two exchanges: the CASE, and is 

governed by the same board of directors 

that share the same trading, clearing and 

settlement systems. The Alexandria Stock 

Exchange was officially established in 1888 

followed by Cairo in 1903. The two 

Exchanges were very active in the 1940s, 

when the Egyptian Stock Exchange ranked 

fifth in the world. Nevertheless, the central 

planning and socialist policies adopted in 

the mid-1950s led to the demise of activity 

on the Exchanges, which remained dormant 

throughout the period between 1961 and 

1992. 

In 1990, the Egyptian government started an 

economic reform and restructuring program. 

The move toward a free-market economy 

has been remarkably swift and the process 

of deregulation and privatization has 

stimulated stock market activity. In mid- 

1997, the Exchange started its 

modernization plan that included an 

overhaul of its trading system, listing and 

membership rules, OTC trading and investor 

education. 

PAGE 66 

We, at CASE, are planning to introduce new 

market instruments like margin trading, and 

short selling since it represents a positive 

step towards the introduction of derivatives 

into the market. 

The past year also witnessed launching of 

the Primary Dealers System for bonds in 

October 2004, and the 13 banks acting as 

Primary Dealers have covered the three 

issues of treasury bonds amounting to 

US$ 156 million in a step forward to support 

the bond market, increase the number of 

efficient financial tools in the market, and 

strengthen the role of securitization in 

supporting the real estate market. We, at 

CASE, are planning to introduce new market 

instruments like margin trading, and short 

selling since it represents a positive step 

towards the introduction of derivatives into 

the market. 

Internationally, the government took steps 

toward developing an international Financial 

service Center in Egypt. This support begins 

with putting in place the necessary legislation 

and regulatory environment up-front to 

providing the necessary resources to 

develop the center on an on-going basis. In 

addition, concerning efforts pursued to 

attract other foreign investors, we are 

introducing the concept of corporate 

governance through one of its requirements 

of disclosure and transparency through 

CASE aims to be one of the core financial 

centers in the Middle East North Africa 

(MENA) region, through the adoption of 

leading-edge technology, commitment to 

continuous improvement in its rules and 

regulations, the products and services it 

offers, and alliances forged with international 

markets. CASE is striving to strengthen its 

competitive position by embracing a strong 

customer orientation, offering timely and 

secure services to investors, members and 

market participants as well as promoting the 

confidence and understanding of investors 

of its operations. In short, fairness, efficiency 

and transparency constitute our ongoing 

vision and ultimate objectives. 

enhancing the relationship between CASE 

and the other regional institutions. 

We, at CASE, are working on all fronts when 

it comes to attracting foreign investments. 

Some programs in particular will be used to 

attract investors. For example, the unified 

Arab Stock Exchange, which will be located 

in the Egyptian smart village. Based on the 

development needed, we can capitalize on 

our historical, geographical, cultural, and 

market knowledge to take the lead 

regionally. In opening our gates we are 

targeting bringing back the capital and 

investments to the region by putting together 

the Arab blue chip stocks to be traded in one 

place, strengthening the flow of capital and 

creating better investment opportunities for 

domestic and foreign investors, and 

enhancing the flow of information and 

transparency through the regional stock 

markets. In addition to encouraging more 

investment in Egypt, CASE will continue its 

efforts for enhancing investor education, 

pledging to maintain a market that is fair and 

trustworthy. 


CASE’s vision for 2005 is to become the 

main gateway for investment in the MENA 

Region while operating with the utmost 

fairness, efficiency and transparency. In this 

respect, CASE has set a three year plan. 

For 2005 CASE plans to: 

• link CASE trading system with the clearing 

company (Misr Clearing Settlement and 

Depository –MCSD) in a step towards 

having a straight through processing 

environment; 

• develop the Surveillance department 

according to international standards; 

• support and develop the infrastructure of 

the Pan Arab Stock Exchange; 

• re-locate the Exchange to the Smart 

Village, being the major component of the 

regional financial center; 

• apply Corporate governance principles 

within the Exchange; 

• introduce new products such as (margin 

trading and short selling – 1st Quarter 2005), 

(the Exchange Traded Funds – 2006 ) and 

(the derivatives – 2007), to increase market 

liquidity and turnover; and 

• implement e-Gov within the Exchange.






Stocks 

July-04 271.9 13.6 129.2 6.5 

Aug-04 428.1 18.6 146.8 6.4 

Sep-04 616.2 28.0 156.0 7.1 

Oct-04 380.9 19.0 82.9 4.1 

Nov-04 510.3 25.5 137.7 6.9 

Dec-04 702.4 31.9 174.8 7.9 

TOTAL 2,909.9 22.8 827.4 6.5 

Bonds 

July-04 0.14 0.007 0.01 0.001 

Aug-04 0.10 0.004 0.005 0.0002 

Sep-04 0.33 0.01 0.02 0.001 

Oct-04 0.19 0.009 0.01 0.001 

Nov-04 181.9 9.1 1.1 0.06 

Dec-04 219.7 10.0 1.3 0.06 

TOTAL 402.4 3.2 2.5 0.02 

Other 

July-04 42.5 2.1 31.8 1.6 

Aug-04 146.8 6.4 33.0 1.4 

Sep-04 107.1 4.9 28.0 1.3 

Oct-04 95.4 4.8 59.5 3.0 

Nov-04 80.6 4.0 72.6 3.6 

Dec-04 129.7 5.9 97.1 4.4 

TOTAL 602.1 4.7 322.0 2.6 

Market 



July-04 29,665.9 1,577.3 

Aug-04 31,118.9 1,752.5 

Sep-04 33,168.3 2,089.8 

Oct-04 34,392.8 2,296.1 

Nov-04 36,042.9 2,362.0 

Dec-04 37,579.7 2,568.0 




800 

700 

600 

500 

400 

300 

200 

100 

0 

Stocks Index 


Contact Name Mr. Khaled Abdel Rahman E-mail karahman@egyptse.com Website www.egyptse.com 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 



40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 


PAGE 67





Strengthening macroeconomic indicators in 

recent years provided grounds for optimism 

that the reform process has paved the way 

for a period of more rapid modernization and 

solid economic growth. Economic reforms 

have come within the past decade under 

President Hosni Mubarak. Key elements of 

the reform program are: structural 

adjustment financing through the IMF-World 

Bank, strong policy action to curb fiscal 

deficits and inflation, tax and policy changes, 

including large-scale privatization of state 

industries, opening the economy to private 

(including foreign) investment, and pursuit of 

funding from a flexible range of sources to 

expedite needed development. A 

combination of bilateral and private moneyvariously 

channeled as loans, grants, and 

incentivized investment-has been committed 

to numerous infrastructure projects. 

Egypt's sectoral diversification is impressive. 

Agriculture still accounts for about 17% of 

GDP. The principal export crops are cotton 

and winter vegetables. A substantial 

industrial sector has benefited from synergy 

between investment from Persian Gulf oilproducing 

countries and Egypt's own 

abundant labor. Egypt is the Arab world's 

dominant manufacturer of raw and fabricated 

metals, vehicles, and pharmaceuticals. The 

near and medium-term industrial outlook 

appears favorable. 


Central Bank of Egypt www.cbe.org.eg 

Capital Market Authority www.cma.gov.eg 

Misr Settlement, Clearance and Depository www.mcsd.com.eg 

Ministry of Finance www.mof.gov.eg 

Ministry of Investment www.investment.gov.eg 


Domestic 

savings 

PAGE 68 

Egypt 


Trade 

Indebtedness 

Investment 

A new government was appointed in July 

2004, headed by Dr. Ahmed Nazif, with a 

clear goal to revive the economy. To that 

end, the new government has formulated a 

package of structural and financial reforms. 

These include: a streamline in tariff brackets 

to only six brackets (down from a previous 27) 

and an overhaul of customs procedures with 

a reduction in tariff rates from 14.6% to 9.1%, 

a newly proposed income tax law, where rate 

of income tax will be slashed to 20% down 

from a previous 40%. The corporate tax will 

be reduced and unified at 20%, the revival 

and the speeding up of the privatization 

program, the government presented a 

medium-term financial sector restructure 

program covering banking and non-banking 

sectors with the aim to improve efficiency 

and reduce costs. 

In December 2004, Egypt signed the 

Qualified Industrial Zone Protocol (QIZ), 

which is expected to have sustained impacts 

on export growth and trade efficiency as well 

as stimulate foreign investment in Egypt. On 

19 December 2004, Fitch Credit Rating 

revised their outlook of Egypt long term 

currency rating of “BBB” from negative to 

stable. 


(%) 

20 

15 

10 

5 

0 

-5 

97 

GDI GDP 


Egypt's recent economic indicators reflect 

robust signs of an upturn in the Egyptian 

Economy. 2003/04 real growth recorded 

4.4% up from 3.2% in the previous year. 

The economic recovery was helped by the 

stability in currency prices, the growth in 

exports of goods and services as well as the 

increased confidence in the new Cabinet. 

Preliminary estimates during the first quarter 

of FY 2004/2005 projects an annualized rate 

of 4.8% and maybe surpassing the 5% at the 

end of the year. 

The FY 2003/04 current account revealed a 

large surplus of US$ 3.7 billion compared to 

US$ 1.9 billion in the previous year. This was 

mainly attributed to the success in non-oil 

exports promotion (with exports of good and 

services growing by 6%) and a surge in 

tourism revenues. Foreign Reserves reached 

a five year high of US$ 16.6 billion at the end 

of January 2005, which covers almost 10 

months of imports. Last, but not the least, 

the Egyptian pound has strengthened 7% 

vis a vis the US Dollar, coming on the back 

of a strong current account surplus and the 

launch of the US$ Interbank market which 

resulted in increased availability of foreign 

exchange. 

On the other hand, Egypt's foreign debt 

position remains strong and sustainable. 

Despite an increase in Egypt’s foreign debt 

to US$ 29.5 billion in the first quarter of 2005, 

it remains quite safe as it stands at less than 

40% of the country’s GDP. Debt to GDP 

stands at less than 40% of GDP. 

98 99 00 01 02 03 




EGYPT GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





EGYPT MONEY SUPPLY, INTEREST RATES AND 



(%) 

15 

10 

5 

0 

-5 

-10 



18,000 

12,000 

6,000 

0 

INFLATION 

(%) 


97 98 99 00 01 02 03 

0 

Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (pounds-billions) 59 59 62 67 76 

Money Supply M2 (pounds-billions) 221 234 261 295 333 

Growth Rate M1 20.3% 0.8% 5.3% 7.9% 13.0% 

Growth Rate M2 10.8% 5.7% 11.6% 13.2% 12.6% 


deposit rate 12.0% 12.0% 12.0% 11.0% 10.0% 

lending rate 13.0% 13.0% 13.2% 13.3% 13.8% 


Exchange Rate Period Average (pounds/US$) 3.388 3.405 3.690 4.490 4.500 

Annual % Growth 0.00 0.50 8.37 21.68 0.22 

10 


(%) 

3 

2 

1 

0 

-1 

-2 

-3 

8 

6 

4 

2 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 69


GEORGIAN STOCK EXCHANGE 

George Loladze 

Chairman of the Supervisory Board 

The year 2004 was a landmark one for the 

Georgian Stock Exchange (GSE), due to the 

unprecedented increase of the basic trade 

figures compared with previous years, 

reflecting the overall revitalization of the 

economy in the wake of the “Rose 

Revolution” of 2003. 

As to the future, the Georgian capital market 

has an opportunity to intensify its 

development through the recently resumed 

privatization process. GSE has rich 

experience in organizing privatization 

auctions, as well as, in providing the 

necessary legislative and IT support. 

Undoubtedly, through sustainable 


Equity securities first appeared in Georgia in 

1991 after the declaration of independence 

that signaled the beginning of marketoriented 

reforms. A vast majority of the 

newly established joint-stock companies 

were owned by a rather small number of 

private shareholders and trading in these 

shares was relatively inactive. With the 

launching of the Mass Privatization Program 

in 1994, approximately 1,300 state-owned 

enterprises were organized as joint-stock 

companies, creating about half a million 

individual private shareholders. However, 

during a five-year period (1994-1999), the 

lack of an appropriate legal framework and 

organized market infrastructure seriously 

impeded the secondary trading of these 

shares and any over-the-counter market 

activity was nearly nonexistent. 

The GSE was founded in 1999 by a group of 

Georgian securities market professionals, 

leading banks, investment and insurance 

companies. Today it is the only organized 

securities market in Georgia. Designed and 

established with the assistance of the United 

States Agency for International Development 

(USAID) and operating within the legal 

framework of corporate and securities laws 

drafted with the assistance of American and 

German experts, the GSE can assert that it 

is designed and operated to comply with 

“global best practices” and offers an 

attractive investment environment to foreign 

investors. 

To promote the concept of self-regulation, 

the GSE membership adopted new rules. 

After approval of these rules by the National 

Securities Commission of Georgia, the GSE 

was officially recognized as a self-regulatory 

organization (SRO) and received a stock 

exchange license in January 2000. 

PAGE 70 

It is our strong belief that the principles of 

transparency and disclosure underlying the 

operation and development strategy of the 

GSE, are the unquestionable guaranty of 

our success. 

conducting of privatization the Georgian 

capital market will continue on its path of 

sound growth and development. 

Progress of the capital market, in many 

respects, depends on the soundness of 

corporate governance in Georgia. Thus, 

good corporate governance is one of the top 

priorities on our agenda. In 2003, the GSE 

established a corporate governance training 

program for corporate representatives, legal 

professionals and the mass media. The 

leading professionals of the National 

Securities Commission of Georgia, the GSE, 

Central Securities Depository, and other 

capital market institutions prepared and 

The GSE utilizes an automated trading 

facility. Thousands of securities can be 

traded by its members from the workstations 

at the GSE floor or remotely from their 

offices. The GSE adopted the platform 

employed by the Russian trading system 

(RTS) in Moscow. However, RTS - as an 

excellent informational-communication 

system - was significantly modified to 

ensure those requirements outlined under 

the GSE trading rules reflected the 

peculiarities of Georgian securities market. 

Official trading at the GSE began in March 

2000. The number of companies admitted 

for trading at the GSE trading system 

increased gradually and by the end of 2004 

reached 277. Practically all of these 

companies are former state owned and 

operated companies transformed into jointstock 

companies and then privatized. The 

growing but still low trade volumes reflect 

the nascent stage of the Georgian capital 

market and the level of development of the 

Georgian economy. 

In 2002, as a result of active cooperation 

with the National Securities Commission and 

the Ministry of State Property Management, 

the Special Privatization Auctions 

commenced at the GSE. In 2003 the GSE 

started trading government securities. 

2004, was a landmark year for the GSE, due 

to the unprecedented increase in basic 

trading figures compared with previous 

years, reflecting the overall revitalization of 

the economy in the wake of the “Rose 

Revolution” of 2003. 

distributed the Corporate Governance 

Manual. In parallel, we have initiated the 

establishment of the Georgian Corporate 

Directors Association and the development 

of the National Corporate Governance Code 

on this basis. 

It is our strong belief that the principles of 

transparency and disclosure underlying the 

operation and development strategy of the 

GSE, are the unquestionable guaranty of our 

success. The GSE will continue promoting 

the policy to encompass all different sectors 

of the Georgian capital market, and we will 

gladly cooperate with all actors, who strive 

for the economic development of Georgia. 


In 2005 the GSE plans to: 

• make important changes in its trading 

system and trading rules so as to increase 

the efficiency of the Treasury Bills trading on 

the stock exchange; 

• intensify the trading process. In particular, 

the trading sessions will be conducted on 

daily basis and an additional trading session 

will be introduced during the trading day; 

• increase the efficiency of trading and 

• increase the liquidity of the market; 

• introduce partially guaranteed trading of 

securities; 

• remove the Day-trading restriction on the 

GSE; and 

• launch a new web-site for the GSE, which 

along with traditional statistics will provide a 

corporate reports database for the 

companies who are admitted to the trading 

system. In addition, the creation and 

publication of a company database will 

allow companies to publish their annual, 

semi-annual and current reports which is 

required by law and thus improve disclosure 

standards and corporate transparency.






Stocks 

July-04 2.6 0.29 6.6 0.73 

Aug-04 4.7 0.53 4.8 0.54 

Sep-04 0.28 0.03 0.16 0.02 

Oct-04 3.7 0.52 1.7 0.24 

Nov-04 4.4 0.55 1.9 0.24 

Dec-04 0.52 0.06 0.44 0.05 

TOTAL 16.3 0.33 15.7 0.30 

Bonds 








Other 








Market 



July-04 178.4 n/a 

Aug-04 192.1 n/a 

Sep-04 190.9 n/a 

Oct-04 200.0 n/a 

Nov-04 205.2 n/a 

Dec-04 206.2 n/a 




5.0 

4.0 

3.0 

2.0 

1.0 

0 


Contact Name Mrs. Eka Katamadze E-mail info@gse.ge Website www.gse.ge 



200 

150 

100 

50 

0 


PAGE 71





Following the Soviet Union's dissolution, 

Georgia has faced a problematic and 

disruptive political and economic transition 

during which the public sector workforce was 

cut by almost half. Given this very difficult 

transition experience in the early years after 

independence, and uncertain prospects for 

regional economic and political stability, the 

turnaround in the Georgian economy after 

1994 was remarkable. Despite a shock to the 

economy from widespread power outages in 

the first quarter, GDP growth for all of 2001 

accelerated to 4.5%. One of the major 

factors accounting for slower growth in the 

past several years has been drought that has 

a significant effect in view of agriculture's 

30% contribution to Georgian GDP. 

Georgia is to be on a major new energy 

corridor from the Caspian Sea to the Black 

Sea-the Baku-Ceyhan Pipeline from 

Azerbaijan to the Turkish Mediterranean port 

of Ceyhan, which began construction in the 

summer of 2002. It is already a key transit 

way for 'early oil' from Azerbaijan via the 

Baku-Supsa Pipeline that terminates at 

Georgia's Black Sea port of Supsa and 

commenced deliveries in 1999. Over the next 

several years, investment activities 

associated with 135 miles of the Baku- 

Ceyhan line will spur economic activity in 

Georgia (and temporarily higher current 


Ministry of Finance of Georgia www.mof.ge 

National Securities Commission of Georgia www.nscg.gov.ge 

National Bank of Georgia www.nbg.gov.ge 

Georgian Central Securities Depository www.gcsd.ge 

Georgian Securities Industry Association www.gsia.ge 


Domestic 

savings 

PAGE 72 

Georgia 


Trade 

Indebtedness 

Investment 

account deficits). The country should benefit 

from its emerging role as a key transit point 

for huge flows of Caspian oil that are 

projected to move west over the next 

decade. 

In November 2003, opposition forces 

stormed the Georgian parliament and took 

over its control. President Eduard 

Shevardnadze declared a state of 

emergency but soon resigned from office. 

On Nov. 26, 2003, Mikhail Saakashvili 

announced his participation in the 

presidential election and went on to win the 

presidency in 2004. 


GDP rose by and 4.5 and 5.4% in 2002 and 

2001, respectively, despite power supply 

disruptions early in the year. Ending of the 

drought brought a sharp rebound in 

agricultural output that helped lift the growth 

rate. Services industries, especially transport, 

were also quite strong in 2001. Inflation, at 

3.4% in 2001, was the lowest since 

independence. Tough anti-corruption 

legislation has already proved fruitful in 

driving the shadow economy down to 30% of 

GDP in 2003. 

Georgia's current account has been in 

persistent deficit in recent years. The current 

account deficit is smaller than the trade 


(%) 

80 

60 

40 

20 

0 

-20 

-40 

-60 

97 

GDI GDP 

deficit because Georgia has surpluses in 

services (including net factor income 

payments) and in unilateral transfers 

(including non-loan foreign aid grants). In the 

capital and financial account, the 

transactions are dominated by official aid 

loans and by foreign direct investment, much 

of which has been, and will be in the next 

several years, associated with new oil 

pipeline construction. 

Over the past four years, Georgia has 

attracted as much as US$ 220 million in FDI 

(in 1998 when the Baku-Supsa pipeline was 

being built) and as little as US$ 62 million in 

1999 in the aftermath of the Russian financial 

crisis. In 2001, the net inflow of FDI totaled 

US$ 100 million, but that is expected to more 

than double by 2004 when the Baku-Ceyhan 

pipeline investment will be peaking. Perhaps 

the most significant development in the 

region is the U.S.-backed $2.9 billion Baku- 

Tbilisi- Ceyhan (BTC) oil pipeline that 

originates in Baku, passes through the 

Republic of Georgia, and terminates at 

Ceyhan, Turkey. This will greatly accelerate 

energy sector growth going forward. 1 



98 99 00 01 02 03 




GEORGIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





GEORGIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

60 

40 

20 

0 

-20 



1,600 

1,200 

800 

400 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (lari-billions) 0.25 0.28 0.37 0.39 0.45 

Money Supply M2 (lari-billions) 0.37 0.45 0.62 0.74 0.87 

Growth Rate M1 -10.0% 10.0% 33.7% 7.0% 14.9% 

Growth Rate M2 -1.1% 21.1% 39.4% 18.5% 17.9% 


deposit rate 17.0% 14.6% 10.2% 7.8% 9.8% 

lending rate 46.0% 33.4% 32.8% 27.3% 31.8% 


Exchange Rate Period Average (lari/US$) 1.3898 2.0245 1.9762 2.0730 2.1957 

Annual % Growth 7.12 45.67 -2.39 4.90 5.92 

20 

16 

12 

8 

4 

0 


(%) 

0 

-2 

-4 

-6 

-8 

-10 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 73


ISTANBUL STOCK EXCHANGE 

Osman Birsen 

Chairman and CEO 

The Turkish economy continued to 

strengthen in 2004, following the consecutive 

crises in 2000 and 2001. The inflation rate fell 

to below 10 percent for the first time after 

thirty years. A very significant development 

for Turkey was the determination of a date 

for starting the membership negotiations with 

the European Union. 

The Istanbul Stock Exchange enjoyed the 

good news in the Turkish economy. The ISE 

main index, National-100, appreciated by 

38% in US Dollar terms. Among world 

markets, the ISE was the 9th highest yielding 


In 1981, the Capital Market Law was 

enacted and one year later, the Capital 

Markets Board was established. In October 

1983, the Parliament approved the 

Regulations for the Establishment and 

Functions of Securities Exchanges, which 

paved the way for the establishment of the 

Istanbul Stock Exchange (ISE), formally 

inaugurated on 26 December 1985. 

Currently, there are three markets operating 

at the ISE: the stock market, the bonds and 

bills market and the international market. 

The ISE provides a fair and transparent 

environment for trading of a wide variety of 

securities, namely, stocks, exchange traded 

funds, government bonds, Treasury bills, 

money market instruments (repo/reverse 

repo), corporate bonds and foreign 

securities as well as foreign exchange 

futures contracts. 

As of end of 2004, 99 out of 110 members 

have been provided with remote access to 

the stock market trading systems. At the 

end of 2004, the number of orders sent by 

members via Ex-API (Express Application 

Programming Interface) terminals reached 

77% of all orders, with the number growing 

steadily. Trading on the bonds and bills 

market is already carried out remotely. 

PAGE 74 

In 2004, a very significant development for 

Turkey was the determination of a date for 

starting the membership negotiations with 


market in 2004. The ISE Equity Market 

average daily trading volume increased by 

46% to reach US$ 593 million in 2004. The 

ISE stands at 22nd rank among world stock 

markets in terms of trading volume at yearend. 

Market capitalization also registered an 

increase of 42%, reaching US$ 98 billion. 

The ISE Bonds & Bills Market average daily 

trading volume, on the other hand, increased 

by 59% in US Dollar terms and reached US$ 

1.742 million, ranking 6th among world 

markets in terms of bond trading volume. 

The ISE currently owns 23.95% of the ISE 

Settlement and Custody Bank (Takasbank), 

30% of the Central Registry Agency and 

18% of the Turkish Derivatives Exchange 

(TurkDEX). On the international level, the ISE 

has participations in the Kyrgyz and Baku 

Stock Exchanges with stakes of 24.51% and 

5.55%, respectively. 

As the chairing Exchange of the Federation 

of Euro-Asian Stock Exchanges (FEAS) and 

the project leader of the Southeast 

European Cooperation Initiative (SECI), the 

ISE leads many projects, one of which is to 

establish a linkage among the securities 

markets in the region via an electronic 

network of intermediaries of these 

exchanges. Additionally, the Enterprise 

Development and Finance Project 

conducted jointly by ISE and OECD, is 

expected to be completed in 2005. 

Also, Istanbul, Athens and Tel Aviv Stock 

Exchanges have continued their efforts to 

encourage their members to establish an 

electronic member-to-member order routing 

platform among the three stock exchanges. 

A regional index covering the three markets 

and the promotion for the establishment of 

regional funds are also planned in 2005. 

Local CSDs also have continued their 

cooperation to facilitate cross border 

settlement and clearing. 


• The ISE has been included in the 

privatization program. Work toward 

demutualization and privatization of the ISE 

in coordination with the Capital Markets 

Board (CMB) is on-going. 

• As of January 1, 2005, the “New Turkish 

Lira (YTL)” will be the new currency unit of 

Turkey. The Turkish Lira will be converted to 

New Turkish Lira as TL 1,000,000 = YTL 1. 

The smallest unit (the 100th part of one New 

Lira) will be “New Turkish kurus (Yeni kurus - 

Ykr)”. TL banknotes and coins will be 

withdrawn as of January 1, 2006. Within the 

context of the introduction of YTL (ISO 

Code:TRY), information as regards to major 

changes to take place on the ISE markets is 

available on ISE’s website (www.ise.org). 

• The Derivatives Market of the ISE, where 

currency futures contracts were traded will 

be closed on January 28, 2005. As of the 

same date, the Turkish Derivatives 

Exchange Inc. (TurkDEX) which was 

established in Izmir, will start to operate. 

The ISE has participated in the paid-in 

capital of TurkDEX by 18%. The website 

of TurkDEX is www.vob.org.tr. 

• Efforts toward software development 

under the Central Surveillance Project jointly 

carried out by the CMB and the Istanbul 

Stock Exchange continued in 2004 and work 

towards creating a new software system 

which will allow real time surveillance to be 

carried out electronically and more 

efficiently, is scheduled to be finished in 

2005. 

• The Disclosure Automation Project which 

will enable the companies to directly 

disclose information using internet 

technologies and digital certificates, is 

planned to be completed in early 2005.






Stocks 

July-04 9,067.3 412.2 5,099,292.7 231,786.0 

Aug-04 8,563.0 407.8 4,978,962.0 237,093.4 

Sep-04 16,017.9 728.1 8,566,767.3 389,398.5 

Oct-04 12,442.8 622.1 6,105,460.6 305,273.0 

Nov-04 12,434.3 621.7 5,302,610.0 265,130.5 

Dec-04 14,980.3 713.3 6,763,723.5 322,082.1 

TOTAL 73,505.7 584.2 36,816,816.0 291,793.9 

Bonds 

July-04 21,496.7 977.1 0.05 0.002 

Aug-04 19,878.2 946.6 0.04 0.002 

Sep-04 22,217.4 1,009.9 0.04 0.002 

Oct-04 21,386.2 1,069.3 0.04 0.002 

Nov-04 21,964.6 1,098.2 0.04 0.002 

Dec-04 29,799.5 1,295.6 0.05 0.002 

TOTAL 136,742.6 1,066.1 0.27 0.002 

Other 

July-04 88,610.2 4,027.7 0.03 0.002 

Aug-04 93,612.3 4,457.7 0.03 0.002 

Sep-04 98,464.5 4,475.7 0.03 0.002 

Oct-04 81,702.1 4,085.1 0.03 0.002 

Nov-04 102,446.0 5,122.3 0.04 0.002 

Dec-04 111,142.1 4,832.3 0.04 0.002 

TOTAL 575,977.3 4,500.1 0.21 0.002 

Market 



July-04 69,753.07 771.6 

Aug-04 70,139.60 783.79 

Sep-04 77,500.48 853.77 

Oct-04 84,939.92 907.05 

Nov-04 84,678.63 918.23 

Dec-04 98,073.05 1,075.12 




18,000 

16,000 

14,000 

12,000 

10,000 

Stocks Index 

8,000 

6,000 

4,000 

2,000 

0 


Contact Name Mr. Eren Kiliclioglu E-mail dis@imkb.gov.tr Website www.ise.org 

1,200 

1,000 

800 

600 

400 

200 

0 



100,000 

90,000 

80,000 

70,000 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 


PAGE 75





Turkey’s serious steps towards economic 

reforms and a one party majority in the 

Parliament after the 2002 general elections 

brought political and economic stability. 

The government implemented a three-year 

economic program successfully between 

2002-2004 and showed its willingness to 

continue structural reforms with a new threeyear 

stand-by agreement with the IMF for the 

years 2005-2008. As a result of the political 

stability and adherence to economic and 

political reforms, Turkey has recorded strong 

economic growth for three consecutive years 

in a row and exhibited an increase in exports 

by nearly doubling figures during the 

program while bringing down the inflation to 

a historic low of 9.3% at the end of 2004. 

Finally, due to strong economic and political 

performance during this three years’ time, 

Turkey has been granted a date to open 

negotiations for full membership at the 

European Union (EU) Summit on the 17th of 

December 2004 further, the road to full 

membership is expected to give a boost to 

the Turkish economy in the coming years. 

Turkey has seen the positive outcomes of its 

devotion to an economic program which 

included the implementation of structural 

reforms and tight fiscal and monetary 

policies for three years ending 2004. 

Turkey’s growth rate reached 7.9% in 2002, 

5.8% in 2003 and accelerated to 8.7% during 

the first three-quarters of 2004. Economic 

growth was accompanied by a decrease in 

inflation to single digits and record highs in 

exports as well as a recovery in domestic 

PAGE 76 

demand and a strengthening of the Turkish 

Lira. As a result of economic stability, the 

government decided to introduce the new 

currency “New Turkish Lira (TRY)” as of 

January 1, 2005. The Turkish Lira previously 

in circulation is converted to New Turkish Lira 

as TL 1,000,000 = TRY 1. 

Also, a new three-year stand-by agreement 

with the IMF covering the years 2005-2008 

will ensure the continuance of sound 

macroeconomic policies, structural reforms, 

tight fiscal and monetary policies as well as 

easing the public sector debt dynamics. 

The consequence of the 16-17th of 

December 2004 the EU Leaders’ Summit 

was to open negotiations aimed at full 

membership of Turkey to EU and Turkey is 

expected to start accession negotiations in 

October 2005. Negotiations are expected to 

take nearly a decade; however, the process 

of negotiations will help sustain economic 

and political stability through the roadmap 

drawn by the EU. EU membership anchor is 

expected to increase the inflow of foreign 

portfolio and direct investments to Turkey. 


Due to Turkey’s success in the 

implementation of tight fiscal and monetary 

policies, inflation rate in 2004 was below the 

year-end target as in the two previous years. 

A year-to-year CPI rate for 2004 announced 

by the State Institute of Statistics was 9.3%, 

compared to the official 12% target. 


Capital Markets Board of Turkey www.cmb.gov.tr 

The Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.tr 

ISE Settlement and Custody Bank Inc. (Takasbank) www.takasbank.com.tr 

Central Registry Agency Inc. of Turkey www.mkk.com.tr 

The Turkish Derivatives Exchange (TurkDEX) www.turkdex.org.tr 


Domestic 

savings 

Turkey 


Trade 

Indebtedness 

Investment 


(%) 

40 

30 

20 

10 

0 

-10 

-20 

-30 

-40 

-50 

97 

GDI GDP 

As a result of strict monetary policy and 

strong fiscal performance, the Central Bank’s 

overnight interest rates declined to 18% at 

the end of 2004, from 26% at the end of 

2003. Meanwhile, exports increased by 

32.9% to US$ 62.8 billion and imports 

increased by 40.1% to US$ 97.2 billion in 

2004 as compared to 2003. 

In 2004, the ISE-National 100 Index, the main 

stock market index on the Istanbul Stock 

Exchange (ISE) increased by 34.1% in TRY 

terms and by 38.2% in US$ terms as 

compared to the values at the end of 2003. 

The main stock market indicator, the ISE 

National-100 Index increased to a level of 

24,972 in TRY (US$ 19,655) at the end of 

2004 from 18,625 (US$ 14,660) at the end of 

2003. The stock market yearly total traded 

value increased by 42.1% in TRY to TRY 

208.4 billion and by 47.5% in US$ to US$ 

147.8 billion in 2004 compared to 2003. 

The market capitalization of 297 ISE traded 

companies increased to a level of TRY 132.6 

billion (US$ 98.1 billion) at the end of 2004 

from TRY 96.1 billion (US$ 69.0 billion) at the 

end of 2003. 

The turnover in public debt securities, 

transacted on the Outright Purchases and 

Sales Market, increased to TRY 372.7 billion 

(US$ 262.6 billion) in 2004 from TRY 213.1 

billion (US$ 144.4 billion) in 2003. The 

Repo/Reverse Repo Market turnover 

increased to a level of TRY 1,551.4 billion 

(US$ 1,090.5 billion) in 2004 from TRY 

1,040.5 billion (US$ 701.5 billion) in 2003. 

98 99 00 01 02 03 




TURKEY GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





TURKEY MONEY SUPPLY, INTEREST RATES AND 



(%) 

30 

20 

10 

0 

-10 

-20 

-30 

97 

98 99 00 01 02 03 



70,000 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (Yeni Turkish Lira (TRY)-billions) 2.433 4.709 7.406 10.839 16.53 E 

Money Supply M2 (TRY-billions) 20.472 41.013 57.632 107.296 165.805 E 

Growth Rate M1 63.1% 93.6% 57.3% 46.3% 52.5% E 

Growth Rate M2 89.7% 100.3% 40.5% 86.2% 54.5% E 


deposit rate 67.0% 60.0% 60.0% 60.0% 55.0% 

lending rate 80.1% 78.4% 47.2% 74.7% 50.5% 


Exchange Rate Period Average (TRY/US$) 0.26 0.418 0.625 1.225 1.507 

Annual % Growth 71.68 60.62 49.29 96.03 22.98 


INFLATION 

(%) 

90 

60 

30 


(%) 

2 

1 

0 

-1 

-2 

-3 

-4 

-5 

0 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 


PAGE 77


TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC. AFFILIATE MEMBER 

Emin Catana 


Takasbank is honored to be an Affiliate 

Member of the Federation of Euro-Asian 

Stock Exchanges. First of all, I would like to 

thank the FEAS Membership for their 

initiative to embrace Central Securities 

Depositories (CSDs) and Clearing & 

Settlement Institutions as “Affiliate 

Members”. 

Functional Titles of the Affiliate 

Member 

• Central Securities Depository of Turkey, 

• Clearing and Settlement Institution for ISE 

markets, 

• Clearing House for the Turkish Derivatives 

Exchange, 

• National Numbering Agency of Turkey, 

• Custodian for the Mutual Funds and 

Pension Funds incorporated in Turkey. 

Services Provided 

• Execution of corporate actions, 

• Safekeeping of physical securities, 

• Custody and transfers of securities in 

book-entry form, 

• Web based monitoring service for the 

investor sub-accounts, 

• Central clearing and settlement for the 

organized market (based on multilateral 

netting), 

• Real time gross DvP “member to member” 

settlement, 

• Settlement and custody for foreign 

securities, 

• Cash settlement and transfer facilities 


PAGE 78 

I believe the inclusion of Central Securities 

Depositories (CSD) and Clearing & 

Settlement Institutions will complement all 

the hard work that the Stock Exchanges 

have endeavored to accomplish for the 

sake of our markets. 

I believe, this new initiative will bring enriched 

expertise and knowledge into FEAS, in the 

areas of clearing, settlement and custody, 

which are vital components of organized 

securities markets. The inclusion of CSDs 

and Clearing & Settlement Institutions should 

also be expected to complement all the hard 

work that the member exchanges have 

endeavored to accomplish, since the 

inception of this organization and for the 

sake of FEAS markets. 

(domestic and cross-border), 

• Takasbank Money Market, 

• Securities Lending and Borrowing, 

Cash Credits, 

• Allocation of ISIN for securities issued in 

Turkey. 

Type of Commercial Entity 

Private sector for-profit company 

(non-deposit taking banking institution) 

Ownership 

Istanbul Stock Exchange (ISE): 26% 

Banks (20): 40% 

Brokerage Houses (70): 34% 

Board of Directors (11 members) 

Istanbul Stock Exchange: 4 

Capital Markets Board: 1 

Banks: 3 

Brokerage Houses: 2 

and the President and CEO of Takasbank 

Regulated by 

Capital Markets Board 

Banking Regulation and Supervision Board 

Central Bank of Turkey. 

Contact Name Mr. Osman Gunsel Topbas E-mail gtopbas@takasbank.com.tr Website www.takasbank.com.tr 

I am pleased to say that Takasbank will be 

excited and ready to share the experience 

and knowledge it has accumulated in Turkey 

and in the international markets for a 

relatively long period of time, with its peers at 

FEAS. Last but not the least, I would like to 

thank the President of FEAS, the Secretariat 

and all members for their trust and friendship 

in accepting us as an affiliate member to the 

FEAS family. 

Form of Securities 

Physical, bearer, immobilized. 

Form of Settlement 

Book-entry. 

Settlement Period 

Equities: T+2 

Bonds and Bills: T+0 

Does the CSD act as a central 

counter party? 

Yes (However, settlement is not fully 

guaranteed. Default procedure is applied.) 

Size of Guarantee Fund (as of 

March 2005) 

ISE Equities Market: US$ 24.1 million 

ISE Bonds and Bills Market: US$ 37.6 million 

Memberships to International 

Organizations: 

Association of National Numbering Agency 


Association (ISSA), Society for Worldwide 

Interbank Telecommunications (SWIFT).


KARACHI STOCK EXCHANGE 

Muhammad Yasin Lakhani 

Chairman 

The Karachi Stock Exchange (KSE) has 

achieved another milestone as the KSE 100 

Index crossed the level of 6000 points and 

closed at 6218.4 points on December 31, 

2004 and the market capitalization increased 

from US$ 16.6 billion to US$ 29.0 billion. The 

record-breaking performance of the KSE 

during the last five years is attributed to the 

positive and consistent policies of the 

government and a number of measures 

implemented by the Exchange including 

stringent risk management. The consistent 

policies and measures adopted by the 

Exchange was instrumental in the Exchange 

being declared as “The Best Performing 


The KSE has been declared as the “Best 

Performing Stock Market of The World For 

the year 2002”, as declared by the 

international magazine “Business Week”. 

Similarly the US newspaper, USA Today, 

termed Karachi Stock Exchange as one of 

the best performing bourses in the world. 

As of December 31, 2004, 661 companies 

were listed with the market capitalization of 

US$ 29.0 billion having listed capital of 

US$ 6.8 billion. The KSE 100 Index reached 

6,218.4 on December 31, 2004. The KSE 

came into existence on 18 September 1947. 

It was later converted and registered as a 

company limited by guarantee on 10 March 

1949. Although as many as 90 members 

were licensed at that time, only half a dozen 

were active as brokers. Initially, only five 

companies were listed with a paid-up capital 

of Rs 37 million (US$ 0.62 million). 

In 1991 the secondary market was opened 

to foreign investors on an equal basis with 

local participants. This measure, along with 

a policy of privatization, has resulted in rapid 

growth of the market since 1991. 

Privatization has been adopted as a 

philosophy, and activities that were 

previously reserved for the public sector 

have now been opened to the private sector. 

The change is most marked in the financial 

sector where a number of commercial 

banks, investment banks, discount 

institutions, leasing companies, life 

insurance companies, Modarabas and 

mutual funds have been created by private 

initiatives. 

The KSE has taken a number of measures 

to increase investor’s confidence by 

making the Exchange more transparent and 

introducing modern technology in order 

make the market truly modern and efficient. 

Market of the World” for the year 2002 by 

international magazine “Business Week” and 

a US newspaper “USA Today”. 

The KSE has taken a number of measures to 

increase investor’s confidence by making the 

Exchange more transparent and introducing 

modern technology in order to convert the 

market into a truly modern and efficient one. 

In this regard Internet based trading has 

started from December 6, 2004. Margin 

Financing has also been introduced from 

October 08, 2004 and phasing out of existing 

COT companies would be completed by 

June 30, 2005. In addition, corporate 

The regulatory agency is the Securities & 

Exchange Commission of Pakistan (SECP), 

formed on 1 January 1999 by dissolving the 

Corporate Law Authority that was 

established in 1981. The SECP administers 

the compliance of the Companies 

Ordinance, 1984, the Securities and 

Exchange Ordinance, 1969, the laws 

governing Modarabas, leasing companies, 

NBFIs and other corporate laws, and is run 

by five commissioners under the chairman. 

The Asian Development Bank’s Capital 

Market Restructuring Plan envisages the 

conversion of the CLA into the SECP as an 

autonomous regulatory authority. The new 

system provides autonomy to the SECP, 

and at the same time an accountability 

mechanism through the establishment of the 

Securities and Exchange Policy Board. All 

policy decisions are made by the Board on 

recommendation of the SECP, which is also 

empowered to take suo moto action and is 

answerable to the Parliament. 

governance is now the part of KSE’s listing 

regulation. Transparency has been enhanced 

with the implication of quality audits, 

quarterly financial reports and timely 

dividend payouts. 

Out of 23 offerings in year 2004, three were 

of state owned entities whose shares were 

allotted under government's privatization 

program and the government offloaded 

additional shares of SSGC and PIA whereas 

PPL's shares were offered for the first time to 

the market participants. The PPL offering 

received a record 755,000 applications for its 

15% public offering. 


The coming period is expected to be very 

challenging and the KSE is contemplating 

the initiation of further projects and initiatives 

to ensure that the KSE should remain one of 

the premier growing stock exchanges of the 

world. The future goals are as follows: 

• listing of companies on the OTC counter 

to pave way for the smaller companies to 

raise financing through the stock exchange; 

• introduction of new derivative products 

including Index Futures; 

• introduction of cross border listings; 

• introduction of new indices, which are 

more market reflective & representative; 

• increase in the free float by bringing more 

companies to the KSE and also to 

encourage the already listed companies to 

increase their capital and / or to make their 

shares available in the market; 

• educate the investors and guide and train 

the brokers and their staff; 

• publish guides on investment in equity in 

local languages; 

• promote quality research and to 

encourage careers in this important area; 

• strengthen the existing monitoring of 

compliance with the code of Corporate 

Governance by listed companies; 

• strengthen the Market Monitoring and 

Surveillance Department; and 

• consolidation of the existing Exchange 

Rules & Regulations in a single Rule Book. 

PAGE 79




PAGE 80 



Stocks 

July-04 5,360.4 243.7 5,439.1 247.2 

Aug-04 3,907.2 177.6 4,615.1 209.8 

Sep-04 3,837.6 174.4 4,676.1 212.6 

Oct-04 4,788.0 228.0 5,194.8 247.4 

Nov-04 3,849.1 226.4 3,863.3 227.3 

Dec-04 10,790.7 490.5 10,445.4 474.8 

TOTAL 32,533.0 256.8 34,233.8 269.8 

Bonds 

July-04 0.43 0.02 0.005 0.0002 

Aug-04 43.5 2.0 0.008 0.0004 

Sep-04 0.01 0.0007 0.0001 0.000002 

Oct-04 0.001 0.0001 0.00001 0.000001 

Nov-04 0.005 0.0003 0.0001 0.000003 

Dec-04 0.01 0.0006 0.0002 0.00001 

TOTAL 44.0 0.33 0.01 0.0001 

Other 








Market 



July-04 24,459.8 5,289.9 

Aug-04 24,603.7 5,346.2 

Sep-04 25,139.4 5,217.7 

Oct-04 24,116.2 5,332.2 

Nov-04 26,033.9 5,567.8 

Dec-04 28,965.6 6,218.4 




12,000 

10,000 

Stocks Index 

8,000 

6,000 

4,000 

2,000 

0 


Contact Name Mr. Mohammed Yacoob Memon E-mail gm@kse.com.pk Website www.kse.com.pk 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 



30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

July Aug Sep Oct Nov Dec





Although agriculture is declining as a 

percentage of total output, this sector 

remains the primary economic activity in 

Pakistan. Cotton, wheat, rice and sugarcane 

are the primary crops, which benefit from an 

extensive irrigation system. The annual 

cotton crop is of particular importance as it 

provides the input to the textile and garment 

industry, which is the nation's dominant 

export industry. Pakistan is attempting to 

increase its information technology sector, 

but only 3% of the populace has telephones 

at home. Having achieved a degree of selfsufficiency 

in the armaments sector, Pakistan 

is now promoting arms sales as a means of 

generating more diversified export revenue. 

In June 2004, President Pervez Musharraf 

accepted the resignation of Prime Minister 

Mir Zafarullah Khan Jamali,. Jamali 

nominated Chaudhry Shujaat Hussain, the 

president of the ruling Pakistan Muslim 

League, as his interim prime minister. For his 

part, Prime Minister Chaudhry Shujaat 

Hussain said that former Finance Minister 

Shaukat Aziz would be the next prime 

minister following elections in the National 

Assembly. Shaukat Aziz went on to be sworn 

in as prime minister. In July, he escaped 

unhurt from an apparent assassination 

attempt. 


Government of Pakistan www.pak.gov.pk 

Ministry of Finance www.finance.gov.pk 

Privatization Commission www.privatisation.gov.pk 

State Bank of Pakistan www.sbp.org.pk 

Security and Exchange Commission of Pakistan www.secp.gov.pk 


Domestic 

savings 

Pakistan 


Trade 

Indebtedness 

Investment 

In September 2004, the peace process 

between India and Pakistan appeared to be 

making some much lauded progress. India's 

Prime Minister Manmohan Singh and 

Pakistan's Pervez Musharraf met in New York 

on the sidelines of the opening of the United 

Nations General Assembly. Reports say the 

talks went well with both leaders voicing a 

desire to continue working together. 


Economic activity rebounded in 2002 and 

2003 as GDP grew at 4.4% and 5.5%, 

respectively, after having slowed in 2001. 

The Pakistani economy was firing on all 

cylinders, and growth was led by a doubling 

of net remittances from abroad due to 

favorable external conditions, and sharp 

increase in demand for Pakistani exports. 

Internal consumption was boosted as well, 

as favorable consumer financing led to a rise 

in the internal consumption and production 

of autos and electronics. Gross capital 

formation picked up as well, to 15.5% of 

GDP in 2003 from 14.7% in 2002, due to 

investment induced by privatization and 

deregulation in the oil and gas, 

communications, and financial sectors. This 

growth led to expanded activity in the 

nation’s cement industry, and helped spur 

modernization efforts in the textile industry. 


(%) 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

-10 

97 

GDI GDP 

The current account deficit, which exceeded 

6% of GDP in 1995-1997 was reduced to 

1.3% of GDP in 2000 owing to the strength of 

textile exports. It then swung into surplus in 

2001 despite steeply falling exports – imports 

declined as well and overseas remittances 

surged as the war on terrorism cracked 

down on 'underground' systems of 

repatriating Pakistani workers' earnings 

without using the banking system. As both 

exports and imports shot up by 19.6% and 

20.1%, respectively, in 2003 due to a more 

favorable external environment, the current 

account surplus moderated to 5.2% of GDP 

from 6.3% in 2002. Pakistan typically runs a 

deficit of US$ 1-2 billion in its merchandise 

trade account and a deficit on international 

services of about US$ 3 billion, but it has 

also typically received large amounts in 

remittances from Pakistanis working abroad, 

many in the oil fields of the Middle East. 

These repatriated earnings have made a 

significant contribution to the current account 

over the years. The movement of such 

remittances through the banking system 

rather than through informal payment 

channels is a major factor in the 

improvement in Pakistan's current account 

balance. 1 



98 99 00 01 02 03 


PAGE 81



PAKISTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





PAKISTAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

-10 



12,000 

8,000 

4,000 

0 

PAGE 82 

97 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (rupes-billions) 732 795 876 965 1,118 

Money Supply M2 (rupes-billions) 1,263 1,317 1,477 1,650 1,928 

Growth Rate M1 4.6% 8.6% 10.1% 10.2% 15.9% 

Growth Rate M2 7.9% 4.3% 12.1% 11.7% 16.8% 


deposit rate 16.5% 13.0% 13.0% 10.0% 7.5% 

lending rate 10.8% 9.0% 8.6% 8.5% 5.5% 


Exchange Rate Period Average (rupes/US$) 44.943 49.118 53.648 61.927 59.724 

Annual % Growth 9.84 9.29 9.22 15.43 -3.56 

INFLATION 

(%) 

14 

12 

10 

8 

6 

4 

2 

0 


(%) 

6 

4 

2 

0 

-2 

-4 

-6 

97 


97 

98 99 00 01 02 03 

98 99 00 01 02 03 




CDC CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED AFFILIATE MEMBER 

M. Hanif Jakhura 

CEO 

Since commencement of its operations in 

1997, The Central Depository Company of 

Pakistan Limited (CDC) has achieved an 

indispensable position in the capital market 

of Pakistan by providing concrete benefits to 

its clients in terms of efficiency, security, 

reliability and cost effectiveness. The 

government of Pakistan’s aggressive 

privatization policy deployed through 

ROLE OF THE DEPOSITORY 

The Central Depository Company of Pakistan 

Limited (CDC) is the country’s sole 

depository for equities, corporate debt and 

bonds. It provides settlement and depository 

services to all three stock exchanges of the 

country (Karachi, Lahore and Islamabad), 

financial institutions and qualified private 

investors. The CDC was incorporated on 

January 21, 1993 as a public limited 

company and began live operations on 

September 3, 1997. The Company was 

established under the Central Depositories 

Act in 1997 with the scope to manage and 

operate the Central Depository System 

(CDS), an electronic book-entry system. The 

Company is sponsored by all the three stock 

exchanges of Pakistan as well as national 

and multinational institutions. The CDC is 

regulated by the Securities and Exchange 

Commission of Pakistan. It is market practice 

to use CDS for custody and compulsory to 

use it for settlement of securities live on 

CDS. 

The Company also manages the operations 

of the National Clearing and Settlement 


The Central Depository Company of 

Pakistan Limited (CDC) has achieved an 

indispensable position in the capital market 

of Pakistan by providing concrete benefits 

to its clients in terms of efficiency, security, 

reliability and cost effectiveness. 

exchanges, capital reforms undertaken by 

the Securities and Exchange Commission of 

Pakistan and the continued reliable services 

of the CDC have resulted in the market 

boom with a record increase in the Karachi 

Stock Exchange (KSE) index by almost 

56.50% since June 2004 and the market 

capitalization has surged to US$ 38.62 billion 

as of February 28, 2005. 

System (NCSS) on behalf of the National 

Clearing Company Pakistan Limited 

(NCCPL). 

The CDC started providing Investor Account 

Services (IAS) to retail investors, both 

individual and corporate in 1999. The CDC 

has also started Trustee and Custodial 

Services for closed-end and open-end 

mutual funds in the year 2002. 

Participation Criteria 

Participants/Account Holders 

Members of stock exchanges, banks, DFIs, 

corporate bodies and qualified private 

investors are eligible to become 

participant/account holder of CDC. 

Eligible Pledgee 

Financing institutions may join CDC as 

eligible pledge. 

Issuers 

All issuers of listed securities must join CDC 

in the capacity of an Issuer. 

Contact Name Mr. Aftab Ahmed Diwan E-mail diwan@cyber.net.pk Website www.cdcpakistan.com 

Size of Guarantee Fund 

CDC does not operate a guarantee fund. 

Does the CSD act as a central 

counter party? 

No 

Memberships in other 

International Organizations 

Association of National Numbering Agency 


Association (ISSA), Asia-Pacific Central 

Securities Depositories Group (ACG) 

Legal Status 

Public Limited Company (Unlisted) 

Type of Commercial Entity 

For-profit company 

Regulated by 

Securities and Exchange Commission of 

Pakistan 

PAGE 83


KAZAKHSTAN STOCK EXCHANGE 

Azamat Joldasbekov 

President 

In the year of 2004 the organized securities 

market of Kazakhstan continued to develop 

in the same manner of previous years. The 

development of the market was foremost 

characterized by the growth of trade 

volumes. The Kazakhstan Stock Exchange 

(KASE) turnover reached an equivalent of 

US$ 58 billion. 


KASE (previously the Kazakhstan Interbank 

Currency and Stock Exchange) was founded 

on 17 November 1993 as a closed-end jointstock 

company, on the basis of an earlier 

established Center of Interbank Currency 

Transactions (Currency Exchange) of the 

State National Bank. The main stimulus to 

create KASE was the introduction of the 

national currency, the Kazakhstan tenge, on 

15 November 1993. 

Starting in November 1995, KASE began 

trading state T-bills. In November 1996, it 

received its securities trading license from 

the National Securities Commission (NSC). 

As a result of a proposal tendered by the 

government in December 1996, KASE was 

chosen as a model exchange to trade 

securities of the largest enterprises of 

Kazakhstan. 

In September 1997, a closed joint-stock 

company, the Almaty Financial Instruments 

Exchange, separated from KASE. Two 

exchanges resulted from the adoption, in 

March 1997, of the law “On Securities 

Market” with the provision that a stock 

exchange could only operate in securities. 

However, on 1 April 1999, a merger took 

place between KASE and the Almaty 

Financial Instruments Exchange (AFINEX), 

thus making KASE the only organized 

market in Kazakhstan. 

PAGE 84 

The development of the market was 

foremost characterized by the growth of 

trade volumes. The KASE turnover reached 

an equivalent of US$ 58 billion. 

Significant changes have occurred during 

2004: 

• the advanced version of our electronic 

trading system was successfully launched in 

January, 2005; 

• according to the Government's decision 

the primary T-bill market was to be relocated 

to the KASE since the beginning of 2005; as 

a result, the year of 2004 was used by us to 

fulfill all necessary legal and technical 

preparations for such cordial change; and 

• foreign securities started to be traded on 

the KASE: T-bills (Russia) and corporate 

securities – shares of PetroKazakhstan Inc 

(Canada). 

In 2001 KASE became a shareholder of the 

Kyrgyz Stock Exchange. 

The most important event of 2003 year was 

the passage of two new laws that determine 

legal infrastructure of the stock market – the 

law "On joint stock companies" and the law 

"On securities market" that substituted the 

laws of previous years. In October, 2003 

KASE with its new subsidiary company 

"eTrade.kz" LLP launched the "eTrade.kz" 

project. The purpose of the project was the 

organization of an internet-trading system to 

carry out the operations with the financial 

instrument at KASE. 

At the beginning of 2004 the KASE will 

change organization-legal structure from a 

"closed joint stock company" to a "joint stock 

company" as a result of the newly 

implemented changes in the 

aforementioned law, “On joint stock 

companies”. 

In order to meet the more complicated 

requirements of market regulation, we 

created 2 new sub-divisions: the Supervision 

department and the Monitoring subdepartment 

under the Listing department. 

Our main tasks for 2005 are to: 

• modify the Listing rules; 

• re-fresh the KASE basic legal framework; 

• modernize our main information 

technologies; and 

• launch a completely new version of the 

KASE web-site. 


By the resolution of Kazakhstan government 

a program was approved on securities 

market development for the years 2005- 

2007. Within the framework of this program, 

in 2005, the Exchange will revise listing 

rules, in order to bring them into conformity 

with the new legislation and include changes 

concerning the dividing of the two official 

categories of the exchange's trading list into 

subcategories. 

The plans of KASE for 2005 include: 

• adding requirements for listing companies 

concerning requiring the presentation of 

information about using corporate 

governance norms; 

• organizing an initial offering of government 

bonds (T-bonds) on the stock exchange; 

• creating a reserve center, which could be 

used as a reserve trade platform in case of 

emergency. For realizing this task it's 

planned to found a subsidiary company, 

whose competence will comprise the 

reserve copying and storing of information 

of the trade organizer and central 

depository; 

• developing and launching new indexes of 

the stock market; 

• re-designing and launching an updated 

version of the KASEs website with improved 

navigation and some new features; and 

• adding the participation of unit investment 

funds on the stock exchange.






Stocks 

July-04 62.7 2.9 259.5 11.8 

Aug-04 169.7 8.1 251.0 12.0 

Sep-04 129.2 5.9 194.4 8.8 

Oct-04 94.0 4.7 95.7 4.8 

Nov-04 57.4 2.6 204.0 9.3 

Dec-04 73.4 3.5 153.9 7.3 

TOTAL 586.4 4.6 1,158.5 9.0 

Bonds 

July-04 2,445.8 106.3 4,269.0 185.6 

Aug-04 2,283.9 108.8 4,512.3 214.9 

Sep-04 2,029.0 96.6 2,860.3 136.2 

Oct-04 2,102.9 95.6 4,206.6 191.2 

Nov-04 2,292.2 114.6 6,654.4 332.7 

Dec-04 2,706.9 128.9 8,530.8 406.2 

TOTAL 13,860.8 108.5 31,033.4 244.5 

Other 

July-04 426.9 18.6 n/a n/a 

Aug-04 1,337.2 63.7 n/a n/a 

Sep-04 735.9 35.0 n/a n/a 

Oct-04 651.9 29.6 n/a n/a 

Nov-04 460.4 23.0 n/a n/a 

Dec-04 1,577.8 75.1 n/a n/a 

TOTAL 5,190.2 40.8 n/a n/a 

Market 



July-04 3,350.22 196.87 

Aug-04 3,184.05 188.31 

Sep-04 3,308.83 200.18 

Oct-04 3,646.35 204.67 

Nov-04 3,954.81 207.47 

Dec-04 3,940.67 213.37 




180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

Stocks Index 


Contact Name Mr. Babenov Bolat E-mail bolat@kase.kz Website www.kase.kz 

250 

200 

150 

100 

50 

0 



4,000 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 


PAGE 85





Kazakhstan's relatively progressive Central 

Asian transitional economy is gathering 

momentum as its massive oil potential 

materializes and multiple export alternatives 

develop. The East Kashagan oilfield with 

recoverable reserves of more than seven 

billion barrels is the largest oil discovery in 

more than 40 years. Diverse mineral 

reserves, including tungsten, lead, silver, 

barite and zinc, and agricultural production 

augment the country's hydrocarbon wealth. 

The non-oil economy has also grown at an 

average 8% clip from 2000-2002. Land 

ownership rights were clarified in early 2001 

with the passage of legislation permitting 

private ownership for the first time in 

Kazakhstan. Recently 2,500 collectives have 

been converted into over 90,000 individual 

farms. Education, healthcare, pension, tax 

and government budgetary reform have all 

progressed significantly in the last two years. 

In April 1995, Nazarbayev's tenure as 

president was extended until Dec. 1, 2000, 

by a national referendum. More than 95% of 

those who went to the polls voted in favor of 

extending Nazarbayev's term. More than 91% 

of the potential electorate participated in the 

poll. Under pressure from parliament, 

however, Nazarbayev agreed to stand for re- 

PAGE 86 

election in January 1999, and was reelected, 

winning nearly 80% of the votes cast. As he 

was elected for a seven-year term, the next 

presidential election is expected in 2006. 

President Nursultan Nazarbayev has been - 

and continues to be - Kazakhstan's central 

political figure and primary foreign and 

domestic policy-maker. 


GDP growth rocketed along at 9.5% in 2002, 

following a very strong 13.5% growth rate in 

2000. Growth is estimated at 10.6% in the 

first quarter of 2003. The petroleum sector is 

the driving growth factor, with increasing 

revenues welcoming foreign investment. The 

inflation rate remained inline at 6.5% in 2002, 

but inched upward to 7% in the beginning of 

2003. The unemployment rate declined to 

9.5% in 2002 from 10.5% in 2001, continuing 

a welcome downward trend. The fiscal 

balance remained in surplus in 2002, the 

equivalent of 1.6% of GDP from a deficit of 

2.9% in 2001. Kazakhstan has made 

excellent progress in staunching 

expenditures and raising tax revenue, not 

only from oil production, which depends 

upon prices, but also from VAT reform. 

As oil prices recovered slightly in 2002 and 

imports of consumer and capital goods 


Financial Institutions' Association of Kazakhstan www.afk.kz/eng/ 

National Bank of Kazakhstan www.nationalbank.kz 

Ministry of Finance of the Republic of Kazakhstan www.minfin.kz 

Central Securities Depository www.csd.kz/ru 

Kazakhstan Agency for Financial Market and Financial Organizations Regulation And Supervision www.afn.kz 


Domestic 

savings 

Kazakhstan 


Trade 

Indebtedness 

Investment 


(%) 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

97 

GDI GDP 

slowed, the trade deficit recovered slightly, 

pushing the current account deficit for the 

year to under 2% GDP from 3.6% 2001. Not 

surprisingly, Kazakhstan runs deficits on 

both its services and net factor income 

accounts within the current account of the 

balance of payments. Payments to foreign oil 

companies pursuant to production sharing 

agreements and joint ventures are reflected 

in these accounts, and given the very large 

inflows of foreign investment made already in 

the oil sector, the returns on those 

investments will quite likely keep the services 

and income accounts in deficit for years into 

the future. 

Foreign direct investment, concentrated in 

the oil and gas sector, has averaged over 

US$ 2 billion since 2000. Kazakhstan retired 

its outstanding IMF obligation of US$ 385 

million ahead of schedule and reduced 

public external debt to 14% GDP in 2002. 

Foreign currency reserves reached more 

than US$ 3 billion by year-end 2002, up from 

US$ 2 billion in 2001. This trend continued 

into the first quarter of 2003 with US$ 4 

billion in reserves. 1 



98 99 00 01 02 03 




KAZAKHSTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





KAZAKHSTAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

25 

20 

15 

10 

5 

0 

-5 

-10 

-15 



14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (tenges-billions) 119 206 236 270 382 

Money Supply M2 (tenges-billions) 149 274 397 557 724 

Growth Rate M1 -21.3% 73.4% 14.7% 14.3% 41.5% 

Growth Rate M2 -14.1% 84.4% 45.0% 40.2% 30.0% 


deposit rate 23.6% 15.6% 6.6% 5.3% 5.5% E 

lending rate 25.0% 18.0% 14.0% 9.0% 7.5% 


Exchange Rate Period Average (tenges/US$) 78.30 119.52 142.13 146.74 153.28 

Annual % Growth 3.79 52.64 18.92 3.24 4.46 


18 

12 

6 

0 


(%) 

3 

2 

1 

0 

-1 

-2 

-3 

-4 

-5 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 


PAGE 87


KYRGYZ STOCK EXCHANGE 

Andrey Zalepo 

Acting President 

In 2004 trading volume of the Kyrgyz Stock 

Exchange (KSE) were increased 4.3 times in 

comparison with 2003, and the total quantity 

of the transactions increased 23%. The index 

of tenders in KSE in 2004 represents the 

best index of tenders in KSE’s history. 


The KSE was founded in 1994. The official 

opening and the first trade in stocks took 

place in May 1995, while a privatization 

process was in full swing in our country. 

At the initial stage of its existence and up 

until 2000, the KSE had functioned as a 

non-profit organization with a total 

membership of 16. In May 2000 the KSE 

was transformed into a joint-stock company; 

simultaneously we acquired one of the 

largest shareholders and a reliable partner in 

the Istanbul Stock Exchange, which has 

actively assisted us in improving our 

activities. In 2001 the Kazakhstan Stock 

Exchange became a shareholder allowing 

the KSE to significantly increase its technical 

software potential. At present the KSE is a 

closed-type non-profit joint-stock company 

with 17 shareholders. 

A significant contribution has been made by 

the US Agency on International 

Development (USAID) for the sake of our 

continued development. Thanks to the 

USAID, the KSE has obtained powerful 

financial support that has allowed our 

Exchange to become independent. 

PAGE 88 

In 2004 trading volume of the Kyrgyz Stock 

Exchange (KSE) were increased 4.3 times 

in comparison with 2003, and the total 

quantity of the transactions increased 23%. 


Priorities for the KSE in 2005 are: 

• launching of new indices for energy and 

financial companies; 

• introduction of a cryptographic information 

defense system to be used in the process of 

trading; 

• implementation of new forms and 

methods of information disclosure to secure 

transparent operation of listed companies; 

and 

• formation of services on the state 

securities market.






Stocks 

July-04 15.0 0.68 3.9 0.18 

Aug-04 0.34 0.02 1.2 0.06 

Sep-04 1.5 0.07 2.2 0.10 

Oct-04 1.5 0.07 1.8 0.09 

Nov-04 4.6 0.23 7.8 0.39 

Dec-04 21.1 0.92 9.6 0.42 

TOTAL 44.0 0.33 26.6 0.21 

Bonds 

July-04 0.05 0.00 0.02 0.0009 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0021 0.0001 0.00002 0.000001 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.06 0.0004 0.02 0.00015 

Other 








Market 



July-04 45.3 96.3 

Aug-04 43.8 92.4 

Sep-04 37.8 80.5 

Oct-04 33.2 69.3 

Nov-04 34.2 70.6 

Dec-04 34.0 68.1 




25 

20 

15 

10 

5 

0 

Stocks Index 


Contact Name Mr. Mahmud Usuphanov E-mail mahmud@kse.kg Website www.kse.kg 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 



50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 


PAGE 89





Although small and mountainous, Kyrgyzstan 

has potential for economic development. 

The country has steadfastly followed the 

prescribed Western reform template, but with 

modest success. Like many CIS nations, 

Kyrgyzstan experienced a steep decline in 

industrial production by the mid-1990s as the 

Soviet-era infrastructure and technology were 

not competitive in world markets. With the 

existing industrial sector in decline, the 

government elected to emphasize the 

agricultural sector, which performed 

especially well in 1997-1998, for near term 

growth. Kyrgyzstan also possesses 

significant amounts of mineral wealth 

including gold, mercury and uranium. While 

lacking major hydrocarbon deposits, 

Kyrgyzstan does have considerable 

hydroelectric power generation potential, 

much of it undeveloped, and exports 

electricity from its existing facilities. 

In 1994, new legislation was instituted that 

abolished the existing legislature, and 

replaced it with a smaller bicameral body. 

Elections for positions within the new 

legislature were held in 1995. At the end of 

1995, a new presidential election was called; 

Akayev won a commanding victory and was 

effectively re-elected. In 1996, the elimination 

of certain cabinet positions and a reshuffle of 

posts were decreed. 

PAGE 90 

In recent years, Akayev's vision has been to 

make Kyrgyzstan the "Switzerland" of Central 

Asia. To this end, governmental transition 

has continued. New changes in government 

were announced by Akayev in April 1998, 

cutting the number of deputy prime ministers 

from three to one, disbanding one ministry, 

reforming another to a state agency, and 

reshuffling the principal officials. 


The Kumtor gold mine, which has propped 

up the economy since the middle of the last 

decade, recently had its reserve estimate 

substantially downgraded to a remaining 

economic life of less than 10 years, forcing 

Kyrgyzstan to look into other sources of 

growth for the future. In 2002, a landslide at 

the mine lowered production significantly, 

while bad weather led to lower hydroelectric 

energy production, causing a decline in GDP 

growth of 0.5% for the year. This was down 

from 5.3% growth in 2001. However, growth 

outside of mining and energy registered 

3.5% for the year, and growth in 1Q 2003 

was 4.7%, led by 15% growth in the nonmining 

sectors of energy and manufacturing, 

especially food processing, construction 

materials, and paper. To prepare the 

economy for the transition into non-mining 

endeavors, and to cull new sources of 

revenues to combat continuing deficits of 10- 

12% of GDP, the government is shoring up 


National Bank of the Kyrgyz Republic www.nbkr.kg 

Ministry of Finance www.minfin.kg 

State Commission on Securities Market www.nsc.kg 

4.Ministry of Foreign Trade and Industry of the Kyrgyz Republic www.mvtp.kg 


Domestic 

savings 

Kyrgyzstan 


Trade 

Indebtedness 

Investment 


(%) 

30 

20 

10 

0 

-10 

-20 

-30 

97 

GDI GDP 

the tax base with several new tax measures 

including an extension of the VAT. Strong 

demand for the currency kept the 12-month 

rate of inflation low relative to its regional 

trade partners, at 4.1% in May 2003. This 

reflected an increase from 2.3% at year-end 

2002, as food prices grew. 

The current account deficit narrowed to 2.6% 

of GDP in 2002 from 3.3% despite a weaker 

trade balance in 2001 as higher gold prices 

offset declines in gold and energy exports for 

the year. Kyrgyzstan has been successful, 

however, in petitioning a number of its 

bilateral creditors for debt re-scheduling. 1 



98 99 00 01 02 03 




KYRGYZSTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





KYRGYZSTAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

20 

10 

0 

-10 

-20 



900 

600 

300 

0 

97 

INFLATION 

(%) 


97 

Exports 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (som-billions) 3.21 4.20 4.61 5.56 7.68 

Money Supply M2 (som-billions) 4.95 6.62 7.40 8.23 11.00 

Growth Rate M1 2.9% 31.0% 9.6% 20.7% 38.1% 

Growth Rate M2 17.5% 33.7% 11.7% 11.3% 33.9% 


deposit rate 54.0% 51.6% 32.8% 10.7% 6.8% 

lending rate 73.4% 60.9% 51.9% 37.3% 24.8% 


Exchange Rate Period Average (som/US$) 20.838 39.008 47.704 48.378 46.937 

Annual % Growth 20.01 87.2 22.29 1.41 -2.98 

40 

30 

20 

10 

0 


(%) 

0 

-5 

-10 

-15 

-20 

-25 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 91


LAHORE STOCK EXCHANGE 

Hamid M. Imtiazi 

Managing Director and CEO 

Pakistan’s capital market showed 

spectacular performance during the year 

2004, as a result of favourable macroeconomic 

environment along with the 

support of regulatory reforms implemented 

by the Securities and Exchange Commission 

of Pakistan. The fundamentals of the 

economy remained conducive for capital 

formation. Low interest rates, excess liquidity 

along with vigorous structural reforms gave a 

boost to the investment activities. 

During the year 2004, LSE-25 Index gained 

501.86 points or 20.1% over December 31, 

2003 to finish at 2997.61 points on 

December 31, 2004. Market capitalization 

increased to US$ 28.2 billion as on 

December 31, 2004, showing a 72.8% 

increase over December 31, 2003. In the 

regular market, the average daily turnover of 

shares was 80.0 million shares in the year 

2004. 

The government policy of privatization has 

been very successful in attracting smaller 

investors for broad-basing the share 

ownership in the country. During the year, 

the government off-loaded some of its 


The LSE was incorporated in Lahore, the 

provincial capital of Punjab, Pakistan, under 

the Securities and Exchange Ordinance in 

1969, as a company limited by guarantee. 

LSE caters to the needs of entrepreneurs for 

raising capital and provides investment 

opportunities to institutional investors and the 

general public. The activities of the Exchange 

have increased in all areas since inception. 

LSE introduced screen-based electronic 

trading in 1996 and became the first fully 

automated Stock Exchange of Pakistan. LSE 

has become a key institution in the financial 

sector of Pakistan and has a membership of 

152 brokerage houses. As of December 31, 

2004, there were 527 listed companies, 

having a listed capital of US$ 6.4 billion with a 

market capitalization of approximately US$ 

28.2 billion. 

LSE acts as a frontline regulator of the market 

under the apex regulator, the Securities & 

Exchange Commission of Pakistan. LSE has 

made large investments in technology & 

automation to keep pace with globalization of 

securities trading. The Exchange is fully 

committed to providing a transparent, 

efficient, fair and investor friendly environment 

for the benefit of investors and issuers. The 

PAGE 92 

Low interest rates, excess liquidity along 

with vigorous structural reforms gave a 

boost to the investment activities at the 

LSE in 2004. 

shares in major public sector organizations 

like Oil & Gas Development Company Ltd., 

Pakistan Petroleum Ltd., Sui Southern Gas 

Company Ltd. and Pakistan International 

Airlines through the stock exchanges and 

has further plans to off-load its shares in Kot 

Addu Power Company, State Life Insurance 

Corporation, United Bank Ltd. and Pakistan 

Steel Mills in the near future. 

As part of second generation capital market 

reforms being pursued by the Securities & 

Exchange Commission of Pakistan, 

demutualization and the possibility of 

integration of the three stock exchanges of 

Pakistan is being seriously considered by the 

members of the exchanges and we hope 

that during the year 2005 a decision will be 

taken in the best interest of capital markets 

of the country. 

In the year 2004, the Lahore Stock Exchange 

(LSE) introduced System Audit Regulations 

by which the system audit of the LSE 

Members has been made compulsory. This 

would ensure that the LSE Members comply 

with the laws regulating the trading in the 

securities market. 

goal is to bring LSE up to international 

standards in operational, technical, regulatory 

and quality management areas and to ensure 

that not only domestic but also foreign 

investors are attracted to the Exchange. 


In 2005 Lahore Stock Exchange plans to: 

• continue with its strategy of increasing its 

geographical outreach through the use of 

information technology in order to attract 

higher trading volumes. LSE has already 

successfully opened its first branch office at 

Faisalabad and the second branch will be 

opened at Silakot, very soon. Similar Offices 

at Multan and Gujranwala are also being 

contemplated; 

• phase-out of Carry-Over Trading and its 

replacement with Margin-Trading; 

• frame a strategy for the demutualization 

and integration of the three stock exchanges 

of Pakistan in the interest of the Exchange 

and capital markets of the country; 

• enhance trading in the derivative market 

and introduce new products; 

• replace existing exposure monitoring 

system with Value at Risk Margin System in 

line with global practices; 

Furthermore, a Surveillance Department has 

also been established at the Exchange with 

the primary objective of monitoring the 

market activity with a view to ensure its 

integrity. 

The LSE has also, successfully developed 

and implemented the automated trading 

system (Ultra Trade). Our IT Department has 

now developed a comprehensive internet 

trading software branded as “Broker Net” for 

the stockbrokers who want to extend their 

business over the internet using their own 

infrastructure. 

The LSE’s major objectives remain to provide 

investors with efficient and transparent 

trading, safe and secure settlement and 

accurate and timely information 

dissemination. The LSE is also increasing its 

geographical outreach by establishing 

branches in other cities of the province. The 

first such branch office has become 

operational in Faisalabad in November 2004 

while second such office is being planned in 

Sialkot in 2005. 

• re-design LSE official website and to 

disseminate the stock alerts over the mobile 

phones of investors; 

• establish a centralized call centre for IT 

support to traders; 

• market BrokerNet-Broker hosted Internet 

Stock Trading Solution; 

• promote and market the indigenously 

developed trading software i.e. Ultra Trade 

and related systems to other stock 

exchanges; 

• implement a regular timetable for the 

Broker System Audit, in order to build 

investors’ confidence; 

• strengthen the surveillance function of the 

Exchange; and 

• enhance investor education activities.


LAHORE STOCK EXCHANGE 




Stocks 

July-04 1,326.9 60.3 1,323.9 60.2 

Aug-04 841.1 40.1 985.0 46.9 

Sep-04 881.0 40.0 999.5 45.4 

Oct-04 940.5 44.8 1,077.4 51.3 

Nov-04 729.7 42.9 833.2 49.0 

Dec-04 1,558.3 67.8 1,647.1 71.6 

TOTAL 6,277.6 49.3 6,866.2 54.1 

Bonds 








Other 








Market 



July-04 24,165.6 2,731.0 

Aug-04 24,117.4 2,720.0 

Sep-04 24,476.6 2,685.6 

Oct-04 23,722.8 2,642.1 

Nov-04 25,458.0 2,746.3 

Dec-04 28,232.1 2,997.6 




1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

Stocks Index 

0 


Contact Name Mr. Amir Raza Khan E-mail amir@lahorestock.com Website www.lahorestock.com 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 



30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 


* Please refer to page 81 for the Pakistan country report. 

PAGE 93


MACEDONIAN STOCK EXCHANGE 

Dr. Evgeni Zografski 

CEO 

2004 was a successful year for the 

Macedonian Stock Exchange (MSE). Total 

turnover rose more than 10.0% compared 

with 2003 although trading in equities and 

bonds was higher than 2003 (equities 13.5% 

and bonds 14.4% higher). 

The stable inflation rate (around 2% per 

annum) and a fixed foreign exchange rate to 

the Euro created further financial and fiscal 

stabilization which has provided the right 

environment for sustainable economic 

growth for the next few years. 


The MSE was founded on September 13, 

1995 and commenced trading on March 28, 

1996, as a central marketplace for trading in 

securities and the first organized stock 

exchange in the history of the Republic of 

Macedonia. 

The MSE was founded as a not-for-profit 

joint stock company. According to the 

legislation that was in force in 1996 only 

eligible founders of the MSE were banks 

and other financial institutions (saving 

houses and insurance companies) MSE had 

initially 19 members: 13 banks, 3 saving 

houses and 3 insurance companies. Since 

1997, according to the new Law on 

Issuance and Trading in Securities, MSE 

members could only have been legal entities 

which sole activity is trading in securities 

(brokerage houses). Due to these changes 

the number of MSE members decreased to 7. 

The new Securities Law from 2000 

introduced again the possibility of banks 

being MSE members (starting from 2002). 

All MSE members must be licensed for 

trading in securities by the Macedonian 

Security and Exchange Commission. 

Only brokers, authorized by the MSE 

members may trade in securities at MSE 

(in Macedonia there are 253 brokers). 

MSE currently has 14 members - 8 

brokerage houses and 6 banks. 

Starting from June 20, 2001 (with the new 

amendments of the Securities Law), MSE 

started to operate on a for-profit basis. MSE 

shareholders may be any legal and private 

domestic or foreign entity. Shareholdings 

per entity is limited up to 10% of the MSE 

outstanding shares. 

PAGE 94 

The stable inflation rate (around 2% per 

annum) and a fixed foreign exchange rate 

has provided the right environment for 

sustainable economic growth for the next 

few years. 

The main features of the MSE operations in 

2004 are as follows: 

• 68 listed companies with market 

capitalization of around US$ 413 million 

(EUR 303.5 million) (7.2% of GDP),showing 

increase of 14% compared with 2003; 

• significantly higher volume of trading in 

listed government bonds (turnover of four 

government bonds was 14.4% higher than 

2003); 

Currently MSE has 20 share holders 

(8 brokerage houses, 8 banks, 1 insurance 

company and 3 private investors). 

At their meeting on 25 December 2003, 

Shareholders issued 10% of outstanding 

shares to the Athens Stock Exchange. 


• After the expiration of the mandatory 

listing (as of end of 2004) the number of 

listed companies at the MSE is likely to be 

decreased (from around 70 to 60 

companies); 

• The level of disclosure and corporate 

governance are planned to be strengthened 

simultaneously with the revising of the MSE 

Listing Rules and the development of the 

MSE Code of Corporate Governance (with 

technical assistance of the USAID Corporate 

Governance and Company Law Project and 

the Dutch Ministry of Finance); 

• Dissemination of the data related with the 

listed companies is planned to be 

reorganized by introducing a software 

application (internet based) that will be used 

by the issuers for their public disclosure 

purposes; 

• The participation of the foreign portfolio 

investors on the Macedonian securities 

market should increase due to the better 

transparency achieved during the 

mandatory listing period and favorable 

financial ratios of some of the Macedonian 

companies compared with their peers in the 

region; 

• After obtaining the first credit rating from 

S&P in July 2004 (BB with positive outlook), 

the Macedonian Government announced 

that it will start with the issuance of new 

government bonds in 2005. 

• Two newly founded private pension funds 

within the mandatory second pillar of the 

reformed pension system in the Republic of 

Macedonia will start their operations in the 

second half of 2005, creating the first 

institutional investors on the market. The 

• 87 residual government shares with 

the turnover of US$ 8.5 million 

(EUR 6.4 million); and 

• MBI index increased 14.7% reaching level 

of 1,352. 

The international cooperation of the MSE 

with the other stock exchanges in the region 

(Athens Stock Exchange, Thessalonica Stock 

Exchange, Belgrade Stock Exchange, 

Zagreb Stock Exchange and Bulgarian Stock 

Exchange) was also intensified in 2004. 

amounts collected from the pension fund’s 

members in one part should be invested at 

the secondary securities market, especially 

in debt instrument traded at the MSE; 

• Pension reforms will contribute to the 

development of one of the missing elements 

of the Macedonian securities market – 

setting up the custody operations with major 

Macedonian banks. 

• MSE will initiate introduction of new 

products on the market a project of the 

securitization of the bank’s and interenterprise’s 

claims; 

• MSE will consider changes in its trading 

system in order to boost trading in some of 

the illiquid stocks – modifying its current call 

market system for these securities with the 

aim of increasing the size and transparency 

of its public order book; and 

• MSE should continue its international cooperation 

arrangements – finishing the 

private offering of its shares to Hellenic 

Exchanges Holding SA (10% of MSE 

shares), maintaining already established 

informational network SEM-ON.NET (with 

exchanges from Ljubljana, Varazdin, 

Sarajevo, Banja Luka, Belgrade and 

Podgorica) and becoming a corresponding 

member of FESE.






Stocks 

July-04 3.5 0.21 1.44 0.09 

Aug-04 1.8 0.10 0.29 0.02 

Sep-04 4.5 0.26 0.57 0.03 

Oct-04 46.7 3.11 5.42 0.36 

Nov-04 8.7 0.48 5.73 0.32 

Dec-04 11.4 0.64 0.71 0.04 

TOTAL 76.6 0.80 2.40 0.14 

Bonds 

July-04 3.1 0.18 3.9 0.23 

Aug-04 1.5 0.09 1.9 0.11 

Sep-04 1.9 0.14 2.4 0.17 

Oct-04 2.5 0.16 2.8 0.19 

Nov-04 2.2 0.12 2.4 0.14 

Dec-04 3.3 0.18 3.5 0.19 

TOTAL 14.5 0.15 17.0 0.17 

Other 

July-04 0.0002 0.0001 0.40 0.02 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.002 0.0001 0.40 0.02 

Market 



July-04 347.6 1,195.8 

Aug-04 347.6 1,225.2 

Sep-04 1,085.2 1,278.9 

Oct-04 361.8 1,287.0 

Nov-04 452.5 1,329.0 

Dec-04 413.1 1,351.6 




50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 


Contact Name Mr. Milco Kupev E-mail mse@mse.com.mk Website www.mse.com.mk 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 



400 

350 

300 

250 

200 

150 

100 

50 

0 


PAGE 95





The Former Yugoslav Republic of Macedonia 

(FYROM) is a small, mountainous Balkan 

country with a population of just over two 

million. In 1991, it declared its sovereignty 

from Yugoslavia, and has since experienced 

mixed success in liberalizing its economy. 

The industrial sector comprises about 18% of 

GDP and employs about one-third of those 

holding jobs in the formal economy. 

The largest components of industrial 

production are metals, chemicals and food 

and beverage processing. Most industry was 

state-owned prior to 1991, but a 

considerable amount of it has been 

privatized. The country is moving to a market 

economic system. 

On February 26, 2004, Macedonian 

President Boris Trajkovski was killed when 

his plane crashed in mountainous terrain in 

southern Bosnia and Herzegovina. A special 

election was held in April to vote on a new 

president. Branko Crvenkovski claimed 

victory over three other rivals and was 

inaugurated as the new president. In his 

inaugural speech President Crvenkovksi 

reiterated his commitment to Macedonian 

entry into the EU and NATO. 


Central Securities Depository www.cdhv.org.mk 

Macedonian Privatization Agency www.mpa.org.mk 

Securities Exchange Commission www.sec.gov.mk 

National Bank of Republic of Macedonia www.nbrm.gov.mk 

Ministry of Finance www.fin.gov.mk 


Domestic 

savings 

PAGE 96 

Macedonia 


Trade 

Indebtedness 

Investment 

In March 2004, FYROM submitted its 

application to join the European Union. 

Meanwhile, former Interior Minister Hari 

Kostov was approved in June 2004 by 

parliament as the new Macedonian head of 

government and prime minister. 


Real GDP growth increased to 3.1% in 2003 

from 0.9% in 2002 due to individual 

consumption and the reopening of a major 

steel exporter. Despite FYROM's many 

structural issues, they have successfully 

lowered inflation from levels of hyperinflation 

to approximately 1% in 2003, by sticking to a 

de facto exchange rate peg with the Euro. 

Furthermore, prudent fiscal management 

reduced the government debt to around 40% 

from high levels in the 1990s, and curtailed 

the deficit to 1.4% of GDP, after letting it slip 

to 3.5% in 2002. 

In March 2004, FYROM submitted a formal 

application for candidacy of accession into 

the European Union (EU), fiscal, monetary, 

and structural actions will be tailored toward 

this goal. The current account deficit 

strengthened in 2003, to 6.3% from 8.5% in 


(%) 

15 

10 

5 

0 

-5 

-10 

-15 

97 

GDI GDP 

2002, due primarily to public tightening of the 

belt with regard to capital expenditures. 

Foreign direct investment has generally been 

low, only financing 25% of the deficit in 2003. 

The current account deficit is driven by a 

large deficit on merchandise trade, and by 

service transactions with the rest of the world 

that result in net payments to foreigners. 

Macedonia's current account deficit, unlike 

many poorer transitioning country's, is not 

financed primarily by loans from multilateral 

agencies like the World Bank, European 

Development Bank and IMF. Rather, portfolio 

investment, associated with privatization 

activities, has financed the largest portion of 

the current account gap. Accordingly, the 

country added to its holding of international 

reserves during the last few years, and as of 

year-end 2003, reserves stood in excess of 

US$ 900 million, or four months of import 

coverage. 1 



98 99 00 01 02 03 




MACEDONIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





MACEDONIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

30 

20 

10 

0 

-10 

-20 



2,500 

2,000 

1,500 

1,000 

500 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (denars-billions) 15 20 22 11 28 

Money Supply M2 (denars-billions) 29 38 46 60 69 

Growth Rate M1 9.1% 32.4% 13.1% -50.1% 148.2% 

Growth Rate M2 13.0% 32.0% 21.4% 32.1% 14.6% 


deposit rate 8.9% 8.9% 7.9% 10.7% 10.7% 

lending rate 21.0% 20.5% 18.9% 19.4% 18.4% 


Exchange Rate Period Average (denars/US$) 54.462 56.902 65.904 68.037 64.350 

Annual % Growth 8.92 4.48 15.82 3.24 -5.42 

7 

6 

5 

4 

3 

2 

1 

0 

-1 


(%) 

0 

-2 

-4 

-6 

-8 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 97


MOLDOVAN STOCK EXCHANGE 

Dr. Corneliu Dodu 

President 

The securities market is an integral part of 

the overall financial market and its activity 

reflects the state of affairs of the Republic. 

With the country's goal to become integrated 

into the European Union as well as a globally 

recognized developed stock market, foreign 

policy has become the priority. 

As mentioned before the main priority for the 

Moldovan Stock Exchange (MSE) is foreign 

policy as Moldova is striving for integration 

into the European Union. Therefore 

development has been aimed at creating a 

civilized and developed securities market 

with the perspective of integrating into the 

world market capital through gradual 

transition. 


In December 1994, the MSE, a closed 

company, was established under the law on 

Securities Circulation and Stock Exchanges. 

Originally, 34 securities market professionals 

participated in trading. The first transactions 

were held on 26 June1995, which is 

considered the date of the founding of the 

MSE. 

Due to the assistance of the USAID, the 

Exchange is equipped with advanced 

technology for stock auctions. In 1998 the 

MSE established the National Securities 

Depository (NSD), a non-commercial jointstock 

company. 

At the initial stage of the MSE's 

development, the authorized capital 

adequacy standards were set as an 

authorized capital of US$ 18,030 (238,000 

lei). In 1998 capital adequacy increased 

from US$ 29,697 (392,000 lei) and is now 

US$ 37,879 (500,000 lei). The equity capital 

sufficiency norms of US$ 75,758 (1.0 mil lei), 

and guaranty fund adequacy norms of 30% 

of the authorized capital as set by the 

legislation are currently in practice. 

PAGE 98 

With the country's goal to become 

integrated into the European Union as well 

as a globally recognized developed stock 

market, foreign policy has become the 

priority. 

A major objective for the coming year is to 

continue the reorganization of investment 

funds. One way to achieve this goal is 

through the establishment of holdings. 

The volume of transactions registered in 

2004 was US$ 54 million compared to 

US$ 34.5 million in 2003. In 2004, 

transactions in 254 trading sessions with 

trading in 5.1 million stocks belonging to 387 

joint-stock companies were achieved. 

The transaction of the year was the public 

offering of the stocks of the meat factory 

"Carmez", which brought to the market a 

tender offer of 92.5 on a volume of US$ 1.5 

million or 7% of total market volume. 

In April 2000, the MSE received the status of 

a self-regulating non-commercial 

organization. At the beginning of 2002, the 

National Commission introduced the CNVM- 

32 index. The world famous index, Dow 

Jones, serves as a basis for the calculation 

of the CNVM-32. The Dow Jones index is 

worked out in real time using the results of 

the New York Stock Exchange auctions. 

In June 2003, the MSE celebrated its eighth 

anniversary. During the period of its 

development, the MSE underwent a difficult 

evolution. But thorough changes have taken 

place, which have had a great influence on 

the activities of all participants of the stock 

market, including the Exchange itself. 

Also in 2004, a series of restrictions were 

implemented in the legislature. These 

restrictions changed not only settlement of 

transactions, but also their structure. Buying 

and selling transactions amounted to 68% of 

total volume, SWAP transactions were 1%, 

REPO transactions were 4% of the total 

volume, tender - 15% of total volume 

auctions - 1% and auctions with equal share 

holdings - 11% of total volume. The number 

of registered companies as of 31 December 

was 1076, including 24 listed companies. 


Below are the MSE’s plans for 2005: 

• improve technologies to high-speed 

networks that will increase capacity; 

• introduce a module for electronic 

settlement with banks; 

• trade in public securities and introduce 

derivative products; and 

• introduce a “remote broker” system, which 

is currently underway.






Stocks 

July-04 2.1 0.10 3.1 0.14 

Aug-04 2.5 0.13 6.0 0.30 

Sep-04 0.55 0.02 2.5 0.11 

Oct-04 0.87 0.04 3.3 0.16 

Nov-04 2.1 0.10 6.5 0.29 

Dec-04 34.6 1.5 0.4 0.02 

TOTAL 42.8 0.31 21.8 0.17 

Bonds 








Other 

July-04 0.0 0.0 0.0 0.0 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.0 0.0 0.0 0.0 

Market 

Capitalization * 


July-04 639.46 n/a 

Aug-04 0.0 n/a 

Sep-04 0.0 n/a 

Oct-04 0.0 n/a 

Nov-04 0.0 n/a 

Dec-04 573.92 n/a 

* MSE restating its market cap. The calculation for Aug-Nov was 

not available. 




35 

30 

25 

20 

15 

10 

5 

0 


Contact Name Mrs. Silvia Haidarli E-mail silvia@moldse.md Website www.moldse.md 

5-YEAR STOCK VOLUME 


60 

50 

40 

30 

20 

10 

0 

2000 2001 2002 2003 2004 

PAGE 99





Food processing comprises a significant 

portion of light industry with vegetable 

preservation, sugar refining, cigarette 

production and winemaking as major 

activities. Endowed with virtually no 

indigenous hydrocarbons and small reserves 

of coal, Moldova is highly dependent on 

neighboring Russia, Romania and the 

Ukraine for energy and a significant part of 

the country's external indebtedness is to 

Russia's Gasprom for natural gas. 

The Moldovan economy was in decline 

throughout the 1990s, sometimes 

precipitously such as in 1994 when drought 

destroyed virtually the entire grape harvest 

causing GDP to decline 31%. The Russian 

financial crisis of 1998 hit Moldova 

particularly hard as exports withered, the lei 

depreciated nearly 50% and inflation, which 

had moderated in recent years, increased as 

world energy prices escalated sharply from 

1999. The economy contracted by 6.5% in 

1998 and 3.4% in 1999. Despite both a 

severe drought and destructive freezing 

conditions near the end of the year which 

ruined crops and caused widespread 

damage to power and telecommunications 

infrastructure, Moldova reported real GDP 

growth of 2% for 2000. 


National Securities Commission of Moldova www.cnvm.md 

National Securities Depository dodon@moldse.md 

Department of Privatization www.privatization.md 


Domestic 

savings 

PAGE 100 

Moldova 


Trade 

Indebtedness 

Investment 

The eastern European nation's parliament 

elected Communist Party leader Vladimir 

Voronin as the new president on April 4, 

2001. The result was widely expected after 

Moldova's communists swept to power in 

general elections in February. Voronin, 59, a 

former baker and police general, captured 

71 of the 89 votes cast by members of 

parliament. "I call on all the parties in 

parliament and outside to reconcile and take 

the country out of the crisis, " Voronin said 

after the vote. He said his priority was to 

reach a settlement with eastern Moldova's 

Slavic separatists, who broke away in 1992 

after a war that claimed 1,500 lives. Voronin 

also pledged to continue relations with the 

World Bank and the International Monetary 

Fund. He promised to have good relations 

with neighboring Ukraine and Romania. 


After GDP growth of 2.1% for 2000, a sharp 

recovery ensued. GDP growth registered 

6.1% in 2001 and around 7% in 2002, due to 

better weather and the improving economy 

in Russia. The National Bank of Moldova 

tightened monetary policy and brought 

inflation down to single digit rates in 

mid-2002. 


(%) 

20 

10 

0 

-10 

-20 

97 

GDI GDP 

In 2000, export growth as measured in US 

dollars was virtually zero as further lei 

depreciation and falling export commodity 

prices affected the value of exports, but 

imports revived and the current account 

expanded again to US$ 135 million, 

equivalent to more than 10% of GDP. 

Despite rapid growth in 2001, exports 

recovered as the currency stabilized and 

Russia recovered, causing the current 

account deficit to fall to 7.4% GDP, about 

US$ 119 million. The typical pattern in 

Moldova's current account in recent years 

has been a significant deficit in merchandise 

trade and a somewhat smaller deficit on 

trade in international services, combined with 

a steady inflow of remittances from 

Moldovans working outside the country and 

a paradoxical surplus on net factor income 

payments (which is not expected of a 

country with an external debt load equivalent 

to 90% of GDP). 1 



98 99 00 01 02 03 




MOLDOVA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





MOLDOVA MONEY SUPPLY, INTEREST RATES AND 



(%) 

30 

20 

10 

0 

-10 

-20 

-30 



1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (lei-billions) 1.07 1.48 2.02 2.50 3.56 

Money Supply M2 (lei-billions) 1.76 2.52 3.57 4.85 6.73 

Growth Rate M1 -18.0% 38.9% 36.7% 23.6% 42.4% 

Growth Rate M2 -8.3% 42.9% 41.7% 35.8% 38.6% 


deposit rate 30.5% 28.5% 22.2% 14.2% 5.9% 

lending rate 30.8% 35.5% 33.8% 28.7% 23.5% 


Exchange Rate Period Average (lei/US$) 5.3707 10.516 12.434 12.865 13.571 

Annual % Growth 16.16 95.80 18.24 3.47 5.48 

40 

30 

20 

10 

0 


(%) 

0 

-4 

-8 

-12 

-16 

-20 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 101


MONGOLIAN STOCK EXCHANGE 

Rentson Sodkhun 

Chairman and CEO 

In 2004 Mongolian Stock Exchange’s (MSE) 

main objectives were to improve the 

efficiency of the stock trading, especially to 

increase the volume of bond trading, attract 

investors and build confidence among 

investors, improve the quality of stock market 

research and its advocacy, increase public 

confidence and the surveillance of securities. 

As a result, some progress was achieved in 

2004; including the expansion of the 

company bond market, some of which trade 

in foreign currency and the establishment of 

a new underwriting entity, which is to provide 

professional services to the stock market. 


During the transitional period from a central 

planned economy to a market economy in 

Mongolia, many social and economic 

changes were made, such as the 

establishment of new relations, new entities, 

new productions and services. Two of those 

changes were the founding of the MSE on 

18 January 1991 by government resolution 

and the initiation of the privatization process. 

According to the privatization policy adopted 

by the government in 1992-1995, 96.1 

million shares valued at tugrugs 8.2 billion 

(US$ 7.0 million) of 475 state-owned entities 

were traded by the MSE. 

The Securities and Exchange Law was 

passed in 1994 and the Corporate Law in 

1995 resulting in the establishment of the 

secondary market. Twenty-nine broker firms, 

operated and financed by the MSE, were 

privatized. New statutes of the MSE were 

adopted by the government resolution of 

1995. 

PAGE 102 

In 2005 our efforts will focus on creating a 

favorable legal environment for the 

Mongolian Stock Exchange. 

Nevertheless, it is necessary to note that due 

to macroeconomic situations there has been 

no significant improvement on investment 

through the stock market, this lack in 

improvement has been especially influenced 

by the current Mongolian market economy. 

The stagnant situation of the Mongolian 

stock market where as sustainable 

development persists in the banking sector 

shows a lack of appropriate state policy in its 

coordination. Furthermore, flexible and 

accurate policy to support relationship 

between the monetary and the fiscal policies 

and development of its legal environment are 

in demand. 

With the start of secondary market activity, 

shares of more than tugrugs 38 billion 

(US$ 32.5 million) were traded during 1996- 

2003. Since the inception of government 

bond trading in 2000, and corporate bond 

trading in 2001, to date government bonds 

valued at tugrugs 105.4 billion (US$ 90.2 

million), and corporate bonds valued at 

tugrugs 6.9 billion (US$ 6.0 million) have 

been traded. 

The new Securities and Exchange Law, 

adopted by Parliament in December 2002, 

declared the MSE to be a business entity, 

allowing it to carry out legal business 

services. 

According to the government resolution, the 

MSE was reorganized as a profit-making, 

state-owned shareholding company. 

In 2005 our efforts will focus on creating a 

favorable legal environment for the MSE. 

We are planning to submit amendments to 

related laws with an aim to improve the 

investment environment and the stock 

exchange activities. A close link between the 

MSE, security issuers and investors as an 

important part of our policy will be pursued 

along with actions to expand the company 

bond market. Increasing transparency and 

efficiency of service provided by the MSE are 

also priority areas. Finally, we are planning to 

introduce a new type of bond at the MSE, 

such as a mortgage bond. 


In 2005 the MSE plans to: 

• develop a government and corporate 

bond market, increase the bond market size 

and issue bonds in foreign currency; 

• prepare for privatization in the stock 

exchange; 

• develop an information disclosure system 

so as to disseminate information through 

mass media TV, radio and newspapers in a 

fair and proper way. 

• improve public confidence and continue 

training programs for market participants 

and peoples; and 

• activate the Government support on 

security tax policies and laws for security 

issuer and investors.






Stocks 

July-04 0.02 0.001 0.58 0.03 

Aug-04 0.01 0.0003 0.16 0.01 

Sep-04 0.03 0.001 0.76 0.03 

Oct-04 0.04 0.002 0.26 0.01 

Nov-04 0.05 0.002 1.1 0.05 

Dec-04 0.15 0.01 1.3 0.06 

TOTAL 0.29 0.0002 4.2 0.03 

Bonds 

July-04 0.0001 0.0001 0.00001 0.0 

Aug-04 0.50 0.05 0.02 0.001 

Sep-04 0.44 0.05 0.02 0.002 

Oct-04 0.05 0.01 0.006 0.001 

Nov-04 0.02 0.002 0.002 0.0003 

Dec-04 0.84 0.09 0.01 0.001 

TOTAL 1.8 0.03 0.05 0.001 

Other 








Market 



July-04 28.8 595.8 

Aug-04 27.5 669.7 

Sep-04 24.6 707.4 

Oct-04 30.2 571.4 

Nov-04 26.6 623.0 

Dec-04 24.8 590.7 




0.16 

0.14 

0.12 

0.10 

0.08 

0.06 

0.04 

0.02 

0.00 

Stocks Index 


Contact Name Mr. Ganbat Battulga E-mail battulga@mse.mn Website www.mse.mn 

800 

700 

600 

500 

400 

300 

200 

100 

0 



35 

30 

25 

20 

15 

10 

5 

0 


PAGE 103





In the second half of the 1990s, privatization 

of the larger enterprises began to accelerate 

and many of these were sold for cash to 

foreign investors. In 1998 and 1999, more 

than 50 large companies were sold and 

hundreds more small companies were 

organized from state-owned assets and sold 

off. But, in the run-up to the parliamentary 

elections of 2000, support for the reforms, 

which implied substantial disruption of 

traditional labor employment patterns, ran 

down. By then, the world economy was 

slowing and the appetite of foreign investors 

for assets in countries like Mongolia was 

decreasing. Accordingly, only nine large 

enterprises were sold in 2000 and just one in 

2001. Some of the best assets were still in 

the process of being sold off in 2002. 

Mongolia’s privatization program has 

successfully progressed through 2004, and 

the private sector now accounts for 85% of 

the economy. Agriculture Bank and, Mongol 

Daatgal, Mongolia’s largest insurance 

company were privatized in 2003. NIC, an oil 

company, was also privatized early in 2004. 

In June 2003, shortly after assuming his new 

political role, Chinese President Hu Jintao 

arrived in the Mongolian capital of Ulan Bator 


Parliament of Mongolia www.parl.gov.mn 

Ministry of Finance www.mofe.pmis.gov.mn 

The Central Bank of Mongolia www.mongolbank.mn 

Mongolian Chamber of Commerce & Industry www.mongolchamber.mn 

National Statistical Office of Mongolia www.nso.mn 


Domestic 

savings 

PAGE 104 

Mongolia 


Trade 

Indebtedness 

Investment 

for talks with the Mongolian government. The 

trip was aimed at reaffirming the close 

bilateral relationship between Mongolia and 

China. A year later in June 2004, in 

parliamentary elections in Mongolia, early 

results suggested that the main contest 

would be between the ruling MPRP and the 

Motherland Democratic Coalition (MDC). In 

August 2004, Tsakhia Elbegdorj was 

appointed to the post of prime minister by 

the country's Great Hural. Born in 1963, 

Elbegdorj was a member of parliament and 

the vice parliamentary speaker from 1996 to 

2000, and served briefly as prime minister 

before this appointment in 2004. Although 

Elbegdorj was aligned with the MDC, he was 

expected to form a coalition government with 

the MPRP. 


GDP grew 5% in 2003, up from 3.9% growth 

in 2002, due to a 4.5% increase in 

agricultural output and a buoyant services 

sector. Agriculture, recording the first rise in 

output since 1999, as weather conditions 

improved after several extremely harsh 

winters. Growth in crops was very strong, 

while livestock and animal husbandry 

increased slightly. Fiscally speaking, the 

deficit narrowed to 3.6% of GDP from 5.6% 

in 2002, after the government implemented 


(%) 

12 

10 

8 

6 

4 

2 

0 

-2 

97 

GDI GDP 

the Public Sector Management and Financial 

Law, which streamlined cash management 

and bolstered spending accountability. 

Foreign funding typically covers about 70% 

of the deficit. Total external debt stood at 

US$ 1.1 billion at year-end 2003, or 91% of 

GDP. 

Merchandise exports rose 14.5% as 

compared to a 3.9% decline in 2002 due to 

higher demand for commodities such as 

gold, copper, and cashmere. Imports also 

rose by 14%, leading to a widened trade 

deficit. However, due to a strengthening of 

the balance of payments surplus resulting 

from foreign remittances of around US$ 78 

million in 2003, and FDI inflows increasing 

94% due to gold prospecting, the current 

account deficit narrowed to 14.7% of GDP 

from 16% (not including grants). Aid grants 

from multilateral agencies allowed Mongolia 

to build its international reserves to more 

than US$ 240 million by year-end 2003. Aid 

grants also play a significant role in reducing 

the current account deficit from what it would 

be solely on the basis of private current 

transactions. 1 



98 99 00 01 02 03 




MONGOLIA MACROECONOMIC ACTIVITY GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





MONGOLIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

14 

12 

10 

8 

6 

4 

2 

0 

-2 



800 

600 

400 

200 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (togrogs-billions) 83 115 131 156 188 

Money Supply M2 (togrogs-billions) 167 220 259 331 470 

Growth Rate M1 8.5% 39.0% 13.9% 19.4% 20.2% 

Growth Rate M2 -1.7% 31.6% 17.6% 27.9% 42.0% 


deposit rate 23.3% 11.4% 8.7% 8.6% 9.9% 

lending rate 46.8% 39.3% 32.8% 30.2% 28.4% 

Foreign Exchange Reserves (US$ millions) 94 E 136 E 179 E 206 E 350 E 

Exchange Rate Period Average (togrogs/US$) 840.83 1,022.00 1,077.00 1,098.00 1,110.00 

Annual % Growth 6.44 21.53 5.36 1.95 1.15 


40 

30 

20 

10 

0 


(%) 

10 

8 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

-10 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 


PAGE 105


MUSCAT SECURITIES MARKET 

Ahmed Saleh Al-Marhoon 

Director General 

We are consciously working on developing 

and operating an efficient and transparent 

securities market to the best standard 

expected by our local and foreign investors. 

We believe that exchanges that adhere to 

good governance, greater transparency and 

greater accountability, are able to foster 

investors` confidence as well as creating 

attractive investment environment. 

We at Muscat Securities Market (MSM), 

however, have devised a comprehensive 

road map that enables us to build capacity 

and promote sustainable capital market 

development strategy specifically aimed at 


The Muscat Securities Market (MSM) was 

established by Royal Decree issued on 21 

June 1988 to regulate and control the 

Omani securities market and to participate, 

effectively, with other organizations for the 

setting up of the infrastructure of the 

Sultanate’s financial sector. 

After ten years of continuous growth there 

was a need for a better functioning of the 

market. The MSM has been restructured by 

two Royal Decrees (80/98) and (82/98). 

Royal Decree (80/98) dated 9 November 

1998, which promulgated the new Capital 

Market Law, provides for the establishment 

of two separate entities: an exchange – the 

Muscat Securities Market (MSM) – where all 

listed securities will be traded, and the 

Capital Market Authority (CMA) – the 

regulatory body. The exchange is a 

governmental entity, financially and 

administratively independent from the 

regulatory body but subject to its 

supervision. Thus the securities industry in 

Oman is well established to enhance 

investors’ confidence by developing and 

improving all the processes pertaining to the 

stock market. 

PAGE 106 

We believe that exchanges that adhere to 

good governance, greater transparency and 

greater accountability, are able to foster 

investors` confidence as well as creating 

attractive investment environment. 

improving access to the regional and 

international capital markets. 

In view of the above, MSM recently revised 

its legislation with respect to listing, trading 

and clearance and settlement regulations to 

enable MSM to cater for our market demand. 

One of our eminent projects is to replace the 

MSM existing trading system with Aots- 

Euronext Trading System that is used by 

some western and other emerging stock 

markets. 

There are recent amendments to the Capital 

Market Law and its executive regulation, 

which aim at enhancing the efficiency and 

transparency as well as securing the 

integrity of the market. The recent enactment 

of the code of corporate governance and 

other rules and regulations, during the 

current year, has a clear effect on the 

investors’ confidence on the market and is 

positively reflected in the market index 

movement. 

We expect that the new trading system will 

be implemented at the end of 2005 and will, 

inevitably, enhance the capability of MSM 

and make it the first exchange in the GCC 

countries that uses this advanced trading 

system. 

We are in the process of upgrading MSM 

website to improve the navigation, content 

and overall value of the website for users. 


In 2005 MSM plans to: 

• develop policies and strategies to provide 

both domestic and foreign investors with 

reasonably reliable savings and investment 

opportunities; 

• revise the legislations of the market with 

regard to the listing, trading and clearance 

and settlement mechanisms. In order to 

ensure a sustainable stock market 

development strategy, aimed at improving 

access to the regional and international 

capital markets, we are in the process of 

implementing a comprehensive Growth- 

Plan; 

• replace the existing MSM trading system 

with Aots–Euronext Trading System, which is 

in place in some of the Western and other 

Emerging Stock Markets; and 

• make the information dissemination more 

efficient, we are also in the process of 

upgrading the MSM website.






Stocks 

July-04 155.9 7.1 25.3 1.2 

Aug-04 135.5 5.9 26.0 1.1 

Sep-04 219.7 10.0 44.4 2.0 

Oct-04 170.6 8.1 27.1 1.3 

Nov-04 77.2 5.1 14.6 1.0 

Dec-04 106.1 4.8 17.7 0.80 

TOTAL 865.0 6.8 155.0 1.2 

Bonds 

July-04 0.53 0.02 0.14 0.01 

Aug-04 0.40 0.02 0.12 0.01 

Sep-04 2.50 0.11 0.83 0.04 

Oct-04 0.44 0.02 0.08 0.00 

Nov-04 0.68 0.05 0.19 0.01 

Dec-04 0.95 0.04 0.12 0.01 

TOTAL 5.5 0.04 1.5 0.01 

Other 

July-04 1.0 0.07 0.25 0.02 

Aug-04 2.6 0.17 0.79 0.05 

Sep-04 6.6 0.44 1.40 0.10 

Oct-04 3.4 0.23 0.41 0.03 

Nov-04 1.9 0.13 0.40 0.03 

Dec-04 3.8 0.25 0.98 0.07 

TOTAL 19.4 0.22 4.3 0.05 

Market 



July-04 9,327.7 3,440.5 

Aug-04 9,079.3 3,414.3 

Sep-04 8,442.9 3,492.8 

Oct-04 9,640.6 3,444.9 

Nov-04 9,420.8 3,370.2 

Dec-04 9,317.9 3,375.1 




250 

200 

150 

100 

50 

0 

Stocks Index 


Contact Name Mr. Talal H. Al Nasseb E-mail talal21@msm.gov.om Website www.msm.gov.om 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 



10,000 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 


PAGE 107





Oman has been launching a massive drive 

to build the basic infrastructure facilities and 

improve living standards of its citizens since 

1970. The key economic indicators such as 

Gross National Product (GNP); Gross 

Domestic Product (GDP); per capita income; 

money supply (M3); trade balance and 

foreign currency reserves indicated 

remarkable growth in 2004. 

The policy response of Oman to the 

changing international and domestic 

economic conditions is marked by its clearcut 

willingness to adjust and remain flexible. 

Oman's fiscal position has been showing 

considerable growth since the 1970s. 

The nation has witnessed noticeable 

economic achievements in 2004 that are 

reflected in its modern physical 

infrastructure. Considerable progress in 

basic health and education systems and the 

improvement in standard of living have been 

commendable. 


Ministry of National Economy www.moneoman.gov.om 

Capital Market Authority www.cma-oman.gov.om 

Oman Chamber of Commerce and Industry www.cbo-oman.org 

Financial Corporation www.fincorp.org 

National Bank of Oman www.nbo.co.om 

PAGE 108 


According to provisional estimates, the 

domestic economy registered a record 

12.5% growth in 2004 as against 6.9% 

recorded in 2003. A sharp increase in oil 

prices brought windfall profits for Oman in 

2004. Oman crude realized an average price 

of US$ 33.9 a barrel last year compared with 

the budgeted price of US$ 21.0 a barrel, an 

increase of US$ 12.9 a barrel. The government 

had increased public expenditure by another 

US$ 784 million during the year, resulting in 

a higher deficit of US$ 2.1 billion as against 

the budgeted deficit of US$ 1.3 billion. 

Though the oil revenues were estimated at 

US$ 4.3 billion, it grew by a whopping 

US$ 3.3 billion to US$ 7.6 billion. Thus the 

total actual revenues rose by nearly 43% to 

US$ 10.9 billion as against the estimated 

US$ 7.6 billion. Oil revenues contributed 

more than 69.5% of total income in 2004. 

From the additional revenues of US$ 3.3 

billion, the total exposure is US$ 2.5 billion, 

comprising budgeted deficit of US$ 1.3 

billion, additional allocations of US$ 784 

million and payment of foreign debts of US$ 

539 million. The remaining surplus amount is 

expected to be reserved as additional 

resources for the government. 

The actual public expenditures in 2004 were 

US$ 9.6 billion. The increased revenues 

indicate that the government’s estimates of 

US$ 7.6 billion revenues were conservative 

and prudent, based on conservative oil price 

forecast of US$ 21.0 per barrel. The record 

revenues achieved in 2004 will help 

government continue its ongoing economic 

reform programs and other development 

initiatives. Oman’s external debt position 

comfortably stands at US$ 3.4 billion as 

against staggering debts of many other 

countries in the region. The excess of 

planned aggregate expenditure of US$ 9.6 

billion over budgeted revenue receipts of 

US$ 8.0 billion leaves a deficit of US$ 1.4 

billion for 2005. The deficit represents 17% of 

total revenues and 6% of GDP. The 2005 

current expenditure of US$ 7.2 billion 

accounts for 75% of total expenditures, with 

investment spending (US$ 2.3 billion) and 

support to private sector (US$ 171.9 million) 

taking the remaining 25%. The oil price 

estimated for 2005 budget at US$ 23 a barrel 

also seems lower than the expected actual 

realization. 

OMAN MACROECONOMIC ACTIVITY 

TRADE BALANCE (GOODS & SERVICES), NATIONAL INCOME PRODUCTS ACCOUNT (US$ Millions) 

1998 1999 2000 2001 2002 

Exports 5,797 7,638 11,743 11,423 11,767 E 

Imports 6,848 5,810 6,159 6,988 7,199 E 

Trade Balance -1,051 1,828 5,584 4,434 4,568 E 

* Economic Overview, Country Watch Incorporated, 2005



OMAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





OMAN MONEY SUPPLY, INTEREST RATES AND 


1998 1999 2000 2001 2002 

Money Supply M1 (rials-billions) 0.51 0.51 0.55 0.70 0.77 

Money Supply M2 (rials-billions) 2.13 2.27 2.40 2.63 2.76 

Growth Rate M1 -8.0% 1.1% 7.5% 27.7% 10.0% 

Growth Rate M2 4.8% 6.4% 6.0% 9.2% 5.2% 


deposit rate 8.5% 8.1% 7.6% 4.5% 2.9% 

lending rate 10.1% 10.3% 10.1% 9.2% 8.6% 


Exchange Rate Period Average (rials/US$) 0.3845 0.3845 0.3845 0.3845 0.3845 

Annual % Growth 0 0 0 0 0 

OMAN MACROECONOMIC ACTIVITY 

BALANCE OF PAYMENTS (US$ Billions) 


1997 1998 1999 2000 2001 2002 

Current Account Balance -0.007 -2.916 -0.255 3.423 2.315 -0.565 E 

Goods and Services 1.813 -1.007 1.829 5.584 4.434 1,384 E 

Net Investment Income -0.390 -0.476 -0.682 -0.710 -0.588 -0.597 E 

Net Current Transfers -1.430 -1.433 -1.402 -1.451 -1.531 -1,352 E 

Capital and Financial Account 0.083 1.483 0.106 -0.486 -0.897 0.026 E 

Net Errors and Omissions 0.526 0.702 0.399 -0.674 -0.384 0.001 E 

Overall Balance 0.602 -0.731 0.250 2.263 1.034 -0.538 E 

Official Reserves Stock 1.549 1.064 2.768 2.380 2.365 3.173 

Current Account (% of GDP) 0.0% -20.7% -1.6% 17.2% 11.6% -2.7% E 


PAGE 109


PALESTINE SECURITIES EXCHANGE 

Dr. Rami Himdallah 

Chairman 

I am pleased to put in front of you the 

outstanding results that Palestine Securities 

Exchange (PSE) achieved during 2004. PSE 

was able to achieve its best results ever 

since its incorporation in 1997. These results 

cover many areas: trading volume, market 

capitalization, number of executed 

transactions, and the number of trading 

sessions. Al- Quds Index has also increased 

to a new all time high. Accordingly, PSE has 

managed to recover its losses that it had 

incurred during the past several years of the 

Al –Aqsa Intifada. Meanwhile, PSE has 

celebrated two important anniversaries in 

2004. The first is the tenth year of 

establishment and the second is the first 

trading session (18th of February 1997). 

The astonishing results that PSE achieved 

can be attributed to many interrelated 

factors. First: The listed companies achieved 

very good financial results for the year ended 


As early as 1995, a number of pioneers in 

the Palestinian private sector realized the 

importance of creating a well-regulated 

market for securities. Their ideas 

materialized into an agreement signed with 

the Palestinian National Authority (PNA) on 

November 7, 1996 to operate the PSE as a 

private shareholding company. On February 

18, 1997, PSE conducted its first trading 

session as the first fully automated and 

electronic Arab stock exchange. 

Despite its modest beginning, the exchange 

maintained continued growth in terms of 

listed companies, number of sessions and 

trading volumes. From only a few 

companies listed in early 1997, the number 

of listed companies rose to 24 in 2004 and 

is expected to grow further after the 

promulgation of a number of laws including 

the securities law by the PNA. There are six 

brokerage firms that are members of the 

PSE, with branch offices in most Palestinian 

cities. 

PAGE 110 

PSE has celebrated two important 

anniversaries in 2004. The first is the tenth 

year of establishment and the second is the 

first trading session (18th of February 1997). 

2003. Second: The relative political stability 

that has been witnessed during 2004 has 

contributed towards regaining confidence in 

the Palestine economy and the investment 

process in general. Third: PSE has 

implemented a new marketing strategy that 

aims towards increasing the public 

awareness and confidence in Palestine Stock 

Exchanges and the listed companies. 

Fourth: The year 2004 has witnessed the 

listing of two new companies, Palestine 

Electric Company and Birzeit Pharmaceutical 

Company. Palestine Electric Company, 

which is the largest listed company in terms 

of the number of shareholders, started 

trading in May 2004. Fifth: PSE has extended 

the trading hours to two hours instead of one 

hour. PSE also takes measures that aim to 

increase that liquidity of the market. Sixth: 

The performance of the member companies 

(Brokerage firms) has improved which has 

been reflected of the array of services they 

It is worth noting that, in 1999, the PSE was 

ranked the first among Arab stock markets 

in terms of its index gain. The "Al-Quds" 

Index grew by some 53%. In the first three 

quarters of the following year, the Index 

enjoyed a similar growth rate. The difficult 

times in Palestine during the fourth quarter 

of that year, however, adversely altered 

expectations. Times that followed were even 

more difficult, yet PSE managed to survive 

and, sparing no effort, remained determined 

to conduct the business of providing 

services to its members and listed 

companies, thus reinforcing the market's 

status and experience as well as boosting 

investor's confidence in it. 

Although the existing setup is capable of 

trading several financial instruments, only 

equities are currently traded at PSE, with 

ongoing plans to trade other securities in the 

future. 

offer to their clients and the quality of those 

services. Finally, PSE has performed a 

number of institutional trades during the 

year. 

The above-mentioned performance has been 

supplemented by other activities that have 

long term implications and that aim to 

putting PSE on the world financial markets’ 

map. PSE has signed a memorandum of 

Understanding with the Arab Monetary Fund. 

Quarterly bilingual brochures, newsletters, 

and periodicals are published by PSE. In 

order to cope with new developments, PSE 

has initiated a modernized set of rules and 

procedures that will be put in place in the 

near future. Further trading information is 

recently disseminated across local T.V 

stations, Jawwal’s mobile services and the 

website of the exchange has been 

redesigned. 


The excellent results of 2004 have 

contributed significantly on the future 

outlook of the next year, 2005. As 2004 is 

considered a recovery year for the PSE, the 

goals, ambitions, targets, and expectations 

of 2005 are greater than ever before. The 

PSE looks forward to accomplishing 

successes in 2005 in the following areas: 

• listing a number of shareholding 

companies; 

• replacing the existing PSE regulations, 

rules, and procedures with upgraded ones 

compatible with the new related laws; 

• updating the trading and CDS Software 

systems as well as hardware systems; 

• attracting more investors to invest in an 

improving investing environment; 

• enhancing Investor Education to increase 

the public awareness in the securities sector 

with some focus on the young generation; 

• expanding the data dissemination 

process, and developing its mechanism; 

• participating in exchange visits and 

experience with foreign bourses and related 

institutions and participating in different 

events; 

• holding more specialized training courses 

in the securities sector; 

• developing a disclosure system, and 

encouraging sound corporate governance; 

and 

• promoting the brokerage firms to expand 

business geographically to cover all 

potential investment centers.






Stocks 

July-04 4.8 0.23 3.6 0.17 

Aug-04 10.7 0.47 6.5 0.28 

Sep-04 35.9 1.7 15.6 0.74 

Oct-04 34.1 1.6 18.6 0.89 

Nov-04 23.4 1.3 10.3 0.58 

Dec-04 35.0 1.7 13.0 0.62 

TOTAL 144.0 1.2 67.7 0.55 

Bonds 








Other 








Market 



July-04 772.2 172.6 

Aug-04 888.2 209.1 

Sep-04 1,013.1 249.4 

Oct-04 1,014.9 253.2 

Nov-04 1,081.7 272.7 

Dec-04 1,096.5 277.6 




40 

35 

30 

25 

20 

15 

10 

5 

0 

Stocks Index 


Contact Name Dr. Hasan Yassin E-mail yassin@p-s-e.com Website www.p-s-e.com 

300 

250 

200 

150 

100 

50 

0 



1,200 

1,000 

800 

600 

400 

200 

0 


PAGE 111





In 2003, the Palestinian economy stabilized 

after two years of sharp contraction. The 

World Bank estimates that per capita Gross 

Domestic Product increased about 1% in 

2003. The stabilization occurred against a 

backdrop of a modest decline in violence. 

Moreover, there were fewer curfews (the 

most extreme form of closure) and the 

Government of Israel’s transfer of previously 

withheld tax revenues produced a shortacting 

fiscal stimulus. 

Former Palestinian Prime Minister Mahmoud 

Abbas, the candidate of the ruling Fatah 

faction, won the January 2005 poll to replace 

the late Palestinian leader Yasser Arafat. 

Mr. Abbas, also known as Abu Mazen, had 

already succeeded Yasser Arafat as leader 

of the Palestinian Liberation Organisation 

(PLO), having been Mr. Arafat's deputy since 

1969. 

Many analysts regard Mahmoud Abbas as a 

moderate. He has condemned the armed 

Palestinian uprising and favors the 

resumption of negotiations with Israel. But he 

faces the key challenge of persuading armed 

groups to stop their campaign of anti-Israeli 

attacks. 


Ministry of Finance www.mof.gov.ps 

Ministry of National Economy www.met.gov.ps 

Palestinian Central Bureau of Statistics www.pcbs.org 

Palestine Media Center www.palestine-pmc.com 

The Palestinian Legislative Council www.pal-plc.org 


Domestic 

savings 

PAGE 112 

Palestine 


Trade 

Indebtedness 

Investment 

Mahmoud Abbas was born in 1935 in Safed, 

a town in present-day northern Israel. He cofounded 

Fatah - the main political grouping 

within the PLO - with Yasser Arafat in the late 

1950s. 

Mr. Abbas established contacts with left-wing 

Israelis in the 1970s, and was the main 

Palestinian architect of the 1993 Oslo 

accords, which led to the foundation of the 

Palestinian Authority. 1 


Precipitated by several one-off factors, the 

World Bank estimates that Palestinian Gross 

Domestic Product (GDP) grew by 6% in real 

terms in 2003. Positive growth in 2003 is a 

significant improvement, compared with the 

two previous years during when the 

economy shrank by more than 25%. Several 

factors underlie the stabilization of the 

Palestinian economy in 2003. Fewer curfews 

and reduced violence in the period, which 

followed the launch of the Road Map in April 

2003, enabled a “catch-up” in private sector 

activity and household spending. The 

resumption of revenue transfers and a 

modest rebound of the Israeli economy also 

helped. However, the resumption of growth 

has delivered only marginal improvements in 

per capita incomes. 


(%) 

10 

0 

-10 

-20 

-30 

-40 

-50 

-60 

-70 

-80 

97 

GDI GDP 

The PA’s fiscal situation eased somewhat in 

2003, but remained difficult. The PA’s fiscal 

situation has been severely constrained by 

the intifada. Fiscal revenues increased in 

2003 due to improved tax collection, the 

resumption of withheld revenue transfers and 

macroeconomic stabilization. Clearance 

revenues amounted to US$ 442 million in 

2003 compared with US$ 150 million in 

2002. The GoI also rebated a total of US$ 

294 million in previously withheld clearance 

revenues to the PA; these revenues allowed 

the PA to pay off some of its arrears to 

suppliers which had accumulated during 

2002. These revenues also boosted private 

sector liquidity. Revenues also got a boost 

from reform of the Petroleum Commission. 

The commission has operated under the 

direct control of the Ministry of Finance since 

July 2003. 2 

1 BBC News Online, 

http://news.bbc.co.uk/1/hi/world/middle_east/country_profile 

s/803257.stm 

2 World Bank Report on Palestine, October 2004 

98 99 00 01 02 03 




PALESTINE MONEY SUPPLY, INTEREST RATES AND 



(%) 

10 

5 

0 

-5 

-10 

-15 

-20 

-25 



3,000 

2,000 

1,000 

0 

97 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

INFLATION 

(%) 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 


(%) 

0 

-10 

-20 

-30 

-40 

1999 2000 2001 2002 2003 

Real Growth 

Gross domestic product 8.40 -5.00 -14.80 -10.10 6.10 

Private consumption 9.80 -5.60 -12.50 -14.20 3.40 

Public consumption 9.30 8.90 -4.30 0.70 0.10 

Investment 35.90 -30.50 -41.20 5.00 5.40 

Exports 1.20 -7.90 -15.50 -11.80 -4.00 

Imports 22.50 -16.40 -20.00 -6.60 -3.00 

Real GDP, cumulated decline since 1999 -5.60 -19.60 -27.70 -23.30 

Real GDP per Capita, cumulated decline since 1999 -9.50 -26.40 -37.30 -36.60 

Net Factor Income, NIS (US$ millions) 3,121 2,733 1,611 1,579 1,894 

Net Current Transfers, NIS (US$ millions) 1,547 2,349 3,896 5,250 6,479 

Population (million) 2.83 2.95 3.09 3.26 3.42 

Exchange Rate (NIS:US$) 4.14 4.08 4.2 4.74 4.55 

GNI per Capita, US$ 1,739 1,620 1,201 97 1,041 

Consumer Price Inflation (%) 5.50 2.70 1.20 5.70 4.40 

97 


97 

98 99 00 01 02 03 

98 99 00 01 02 03 

* World Bank Staff Calculated & PCBS 


PAGE 113


SARAJEVO STOCK EXCHANGE 

Almir Begic 


In year 2002 when the Sarajevo Stock 

Exchange (SASE) started operating no one 

thought we could make it. Today after three 

years of operations and the SASE’s 

continuous development of an efficient 

capital market that offers security to 

investors, we can proudly say in some 

market segments we are the leader in the 

region. 

During the past year the SASE has 

accomplished exceptional results. Four new 

brokerage houses were accepted for 

membership and the total number of the 

SASE members is now 17. The Official 

Market was created and 11 Privatization 

Investment Funds were listed there. The 

implementation of continuous trading, under 


The Sarajevo Stock Exchange (SASE) was 

founded in September of 2001 by eight 

brokerage houses and commenced trading 

on April 12 of 2002. The SASE is a central 

marketplace for securities trading in the 

Federation of Bosnia and Herzegovina. 

The SASE is a joint-stock company which, 

originally had eight founding members. 

According to the Securities Law, the SASE 

members can only be legal entities i.e. 

brokerage houses with headquarters in the 

Federation of Bosnia and Herzegovina 

whose sole activity is trading in securities. 

The SASE currently has 17 members, whose 

headquarters are spread around the 

Federation of Bosnia and Herzegovina, the 

majority being in the capital, Sarajevo. 

All members of SASE must be licensed for 

trading in securities by the Securities 

Commission of the Federation of Bosnia 

and Herzegovina. Only those brokers 

authorized by the SASE members, who have 

passed a broker’s exam, which tests their 

expertise in dealing in securities, are allowed 

to trade. The Securities Commission defines 

the manner and conditions for taking the 

exam and for revoking the license. A broker 

is required to hold a valid license issued by 

the Commission. 

Trading on the SASE is performed 

electronically through an order driven 

electronic trading system BTS (Stock 

Exchange System). BTS is a computer 

assisted information and trading system, 

PAGE 114 

Today after three years of operations the 

SASE’s continuous development of an 

efficient capital market that offers security 

to investors, we can proudly say in some 

market segments we are the leader in the 

region. 

the name of Multi Fixing Trading Schedule 

(MFTS), was introduced in the first quarter of 

2004 for most liquid securities. All these 

factors together with the increasing of the 

trading days from two to four and enabling 

investors to monitor trading in real time over 

the Internet contributed to the SASE’s market 

capitalization increase of almost 400% while 

Bosnian Investment Funds Index (BIFX) grew 

over 150% during the same period. 

The SASE is not achieving this growth alone. 

The reforms that the Council of Ministers is 

implementing; reconstruction of the business 

environment under the initiative of the Office 

of the High Representative, activities of the 

Capital Markets Council under the 

coordination of the Central Bank of Bosnia 

which enables remote entry, modification, 

halt and removal of orders, automated 

matching of orders and concluding trades, 

supervision of orders and trades, as well as 

survey of information on trading and on 

listed securities. 

In 2003 SASE joined the Stock Exchange 

Monitor, which is an informational platform 

of the Stock Exchanges in South Eastern 

Europe. At the moment, there are 8 

participating exchanges, which operate 

markets with more than 2,190 securities and 

more than 170 brokerage houses. 

At the beginning of 2004, trading at the 

SASE Official Market started and all 11 

Privatization Investment Funds were listed 

there. The Official Market is a higher level 

market where only securities that meet 

special conditions and are approved by the 

Securities Commission and SASE’s addition 

board can be listed there. Also in 2004, after 

two years of trading with only call auction 

trading system, continuous trading has been 

introduced at the SASE under the name 

Multi Fixing Trading Schedule (MFTS). Only 

the most liquid securities on the SASE have 

been transferred to MFTS. 

In conclusion, after only two years of 

operations market capitalization of SASE 

has reached over US$ 2.6 billion. 

and Herzegovina, and continuous 

cooperation with all capital market 

participants is of crucial importance for 

development of stable securities markets. 

With combined and coordinated efforts, the 

SASE is contributing to further development 

of the capital market and of Bosnia and 

Herzegovina as a whole. 


The SASE finished 2004 with excellent 

results. This trend is expected to continue in 

2005 together with grater market efficiency 

and better market transparency. SASE’s 

vision for 2005 is as follows: 

• introduction of first Investment Funds 

together with transformation of all 

Privatization Investment Funds into 

Investment Funds; 

• issue government securities by the 

Bosnian Central Bank which will activate 

trading platform for bonds on SASE; 

• list additional companies currently under 

privatization process; 

• enact new legislation by the Parliament 

enabling Net Settlement which will permit 

“day trading”; 

• create a portal to allow investors easier 

access to annual statements and other 

financial data of all companies listed on the 

SASE; 

• commence negotiation with companies 

and offer them listing privileges under the 

SASE Official Market; and 

• create the SASE’s Top 15 Companies 

Index.


SARAJEVO STOCK EXCHANGE 




Stocks 

July-04 6.9 0.53 2.8 0.21 

Aug-04 9.0 0.70 2.8 0.21 

Sep-04 12.5 0.89 3.5 0.25 

Oct-04 8.1 0.68 1.7 0.14 

Nov-04 19.1 1.4 3.5 0.25 

Dec-04 37.7 2.1 7.2 0.40 

TOTAL 93.3 1.0 21.5 0.25 

Bonds 








Other 








Market 



July-04 1,259.3 2,640.0 

Aug-04 2,108.7 3,556.0 

Sep-04 2,302.7 3,717.0 

Oct-04 2,395.4 3,139.0 

Nov-04 2,449.3 3,265.0 

Dec-04 2,609.8 3,283.5 




Stocks Index 

40 

35 

30 

25 

20 

15 

10 

5 

0 


Contact Name Mr. Goran Kahvedzic E-mail goran.kahvedzic@sase.ba Website www.sase.ba 

4,000 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 



3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 


* Please refer to page 52 for the Bosnia and Herzegovina country report. 

PAGE 115


STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTAN 

The exchange is one of the most important domestic economic 

institutions to date and acts as the main body for import and 

export operations in the country as well as a government 

regulator. 


The State Commodity and Raw Materials 

Exchange of Turkmenistan (SC&RME) was 

created by decree of the President of 

Turkmenistan - Saparmurat Turkmenbashi - 

in 1994. The Exchange is one of the most 

important domestic economic institutions to 

date and acts as the main body for import 

and export operations in the country as well 

as a governmental regulator. 

There are many indicators of activity 

regarding the Exchange. During 2003, 813 

export contracts for the sum of US$ 917.9 

million were registered. These figures are 

indicative of the favorable political and 

economic situation in Turkmenistan, its rich 

natural resources, and of utmost 

importance, the reliability and stability of 

state organizational structures to attract 

business from all over the world. The State 

Commodity and Raw Materials Exchange of 

Turkmenistan has relationships with more 

than 21 countries. 


Businesspeople from Turkey, Moldova, 

China, Russia, the USA, Germany, Great 

Britain, the UAE and the Ukraine among 

others, buy oil products, liquefied gas, 

cotton fiber, stockinet, cotton yarn, 

handmade Turkmen carpets, hides and 

knitwear from Turkmenistan. 

An information and analytical system was 

created for the SC&RME to enable direct 

operational control of contract execution as 

well as for information retrieval. The InfoBase 

database will be developed to allow the 

retrieval of world quotations on significant 

commodities in real time and to facilitate 

potential marketing outlets for domestic 

commodity production. 

Contact Name Mr. Murad Muradov E-mail muradovma@exchange.gov.tm Website www.turkmenbusiness.org 

PAGE 116 


The following plans are currently underway: 

• further development of external economic 

links with foreign trade companies; 

• streamlining the uses of PR companies 

and the services they provide in terms of 

mass media disclosure; 

• expansion of external contacts with 

international and regional organizations; 

• simplification of the contract registration 

procedure; and 

• increasing the level of skill and experience 

of Exchange staff through interactions 

between organizations.





Turkmenistan, continues to formulate 

ambitious national development projects, the 

funding of which will largely be determined 

by the country's ability to monetize its worldclass 

natural gas reserves of some 100 

trillion cubic feet (2.9 trillion cubic meters) 

with more likely still to be found. With the 

completion of the Korpezhe-Kurt Kui pipeline 

to Iran, the first gas pipeline from Central 

Asia not to cross Russia, gas exports are not 

totally dependent on Russia and Ukraine. 

But, the vast majority of Turkmenistan's gas 

production, about 80%, still moves through 

Russian pipelines. 

Turkmenistan possesses considerable 

natural resources despite the fact that the 

Kara Kum Desert covers 80% of the country. 

Exploitation of gas reserves (the fourth 

largest in the world) has been severely 

impaired by Turkmenistan's inability to 

access Western markets for its gas. 

Turkmenistan has a wide range of other 

industrial minerals including the world's third 

largest sulfur deposit. While less than 5% of 

Turkmenistan is utilized for agricultural 

production, cotton is a major export crop 

and the sector employs nearly half of the 

work force. Turkmenistan's agricultural sector 

has the productive potential to export a 

variety of products. As such, the government 

is currently promoting the textile and food 

processing industries and has initiated a 

number of transportation infrastructure 

projects. The private sector is estimated to 

contribute approximately 30% to the annual 


Domestic 

savings 

Turkmenistan 


Trade 

Indebtedness 

Investment 

GDP. Recent robust economic growth 

suggests that Turkmenistan will likely delay 

any further privatization among the larger 

state-owned enterprises (SOEs) and the 

financial sector. 

After independence in 1991, Saparmurat 

Niyazov, head of the Communist Party of 

Turkmenistan since 1985, and president 

since October 1990 when the post was 

created, was elected president of the new 

country in a direct election on June 21, 1992. 

Running unchallenged, he was elected with 

a reported 99.5% of the vote. In a Jan. 15, 

1994 referendum, a reported 99.99% of the 

electorate voted to extend Niyazov's term in 

office, which had been set expire in 1997, 

until the year 2002. This measure was 

undertaken in response to a motion by the 

leaders of the DPT that he be appointed 

"president for life." President Saparmurat 

Niyazov announced on Feb. 16, 2001, his 

intention to hold presidential elections in 

2010, although he was named 

Turkmenistan's president for life two 

years ago. 


(%) 

25 

20 

15 

10 

5 

0 

-5 

-10 

-15 

97 

GDI GDP 


In an effort to combat a number of 

consecutive years of hyperinflation, the 

government in 1996-1997 restrained budget 

deficits, tightened credit and eased currency 

controls in accordance with IMF 

recommendations. Inflation (as measured by 

the GDP deflator) was reduced from over 

1,000% to under approximately 35% by 1998 

and then declined further to 9.1% by yearend 

2003. Fiscal deficits have been quite 

small since the resumption of normal 

production of natural gas; the deficit in 2003 

is estimated to have been just 0.9% of GDP, 

basically in line with numbers posted for the 

last few years. 

The 2003 current account recorded a surplus 

of 1.3% of GDP, unchanged from 2002, due 

to strong growth in natural gas production. 

With continued growth in this sector, 

Turkmenistan anticipates more robust 

merchandise trade and current account 

surpluses in coming years. The government 

reported, FDI of US$ 51 million during the 

first four months of 2000. Production sharing 

contracts with international oil and gas 

production companies are the vehicle by 

which the government hopes to boost the 

current low level of foreign investment. 1 



98 99 00 01 02 03 


PAGE 117



TURKMENISTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





TURKMENISTAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

100 

80 

60 

40 

20 

0 

-20 

-40 



3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 

97 

PAGE 118 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (manat-billions) 1,140 1,491 2,322 E 2,616 E 3,125 E 

Money Supply M2 (manat-billions) 1,214 1,588 2,477 E 2,790 E 3,333 E 

Growth Rate M1 40.9% 30.8% 55.7% E 12.7% E 19.5% E 



deposit rate 30.0% 24.0% E 30.0% E 30.0% E 9.12% E 

lending rate 29.0% 29.5% 9.1% E 9.1% E 2.8% E 


Exchange Rate Period Average (manat/US$) 5,200 5,200 5,200 5,200 5,200 

Annual % Growth 12.38 0.00 0.00 0.00 0.00 E 

E: Estimate 

INFLATION 

(%) 

80 

60 

40 

20 

0 


(%) 

20 

0 

-20 

-40 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



TEHRAN STOCK EXCHANGE 

Dr. Hussein Abdoh Tabrizi 

Secretary General 

2004 at the Tehran Stock Exchange (TSE) 

was a year of enthusiasm on all dimensions. 

The trading volume witnessed a remarkable 

growth: Market capitalization was US$ 47.0 

billion, an increase of 36.6% in comparison 

to the previous year. This year, the average 

total return of investment on TSE listed 

stocks exceeded 33%, which in comparison 

to an inflation rate of 15% shows a high real 

rate of investment return in Iran's economy. 

Also, the total turnover to the TSE, compared 

with the previous year figures, reached US$ 

13.3 billion, an increase of 157%. 

The TSE expects to perform a series of 

development plans for market administration, 

regionalization, the introduction of new 

financial instruments, reinforcement of 

stockbroker regulations (in collaboration with 

the World Bank), and to continue the 

establishment of regional floors in major 

cities. The main elements of the rise in 

capital market interest among citizens in 

recent years can be attributed to: 

• The higher rate of return in comparison to 

traditional investment in other assets, 


Having a well organized stock market to 

speed up the process of industrialization of 

the country goes back to the 1930s when 

Bank Melli Iran studied market possibilities. 

The outbreak of World War Two and 

subsequent economic and political events 

delayed the establishment of the TSE until 

1967. The TSE opened in April 1968. 

Initially, only government bonds and certain 

state-backed certificates were traded. 

During the 1970s, increasing global oil 

prices boosted the capital demand for 

stocks. In 1979, after the Islamic revolution, 

operation of the TSE was closed down. This 

period of closure ended in 1989 and since 

then, the TSE has continuously expanded. 

By the end of 2004, 411 companies owned 

by approximately 3 million investors were 

listed on the TSE. 

PAGE 120 

This year, the average total return of 

investment on TSE listed stocks exceeded 

33%, which in comparison to an inflation 

rate of 15% shows a high real rate of 

investment return in Iran's economy. 

• Transference of government assets 

through IPOs to TSE's investors (allocated 

shares for privatization in 2005 will increase 

to US$ 3 billion as compared to US$ 2 billion 

in 2004), and 

• Greater opportunities in other aspects of 

the capital market as compared to the 

saturated money market opportunities. 

In March 2005, a new foreign portfolio 

investment regulation to facilitate a gradual 

approach to the repatriation of both principle 

and dividends of foreign investors is to be 

enacted. Initially it will be offered to 

institutional investors with limits on the 

percentage of foreign ownership. 

Parallel to electronic expansion is a program 

to give Iranian investors further access to the 

capital market. Currently, there are regional 

trading floors in 10 provinces, with trading 

floors at other provinces planned for 

operation for 2005. The TSE plans to add 

more trading floors in Tehran as well. 


Foreign investor laws/regulations include a 

new Foreign Portfolio Investment regulation 

to be enacted by the end of March 2005. 

This is a gradual approach with respect to 

the repatriation of both principal and 

dividends by foreign investors. It will be 

initially offered to institutional investors, and 

there will be limits on the percentage of 

ownership by foreigners. 

There have been numerous efforts for the 

geographical expansion of the exchange. 

There are now regional trading floors in 

10 provinces that are fully operational. 

The trading floors at other provinces will be 

operational in 2005. There are also plans for 

expansion to more trading floors in Tehran. 

The TSE also intends to develop a mutual 

trading platform with the Istanbul Stock 

Exchange, Muscat Securities Market and 

some other members of FEAS to further 

regionalize the Exchange. ISE and TSE 

members will cooperate. 

The TSE intends to play more active role 

among FEAS member countries; actively 

participate in the Working Committee and 

Task Forces. 

The TSE is also planning to develop a 

common trading platform with Iran's 

neighboring countries as well as FEAS 

members. 

The TSE Services Company (TSESC) has 

been approved for FEAS Affiliate 

Membership. TSESC has recently initiated 

application for membership to the 

International Organization of Securities 

Commissions (IOSCO). 

Future plans also include the offering of new 

financial instruments of the TSE; such as 

derivatives, exchange traded mutual funds, 

and Real Estate Investment Trusts (REITS). 

There is also a plan for cross-listing of TSE’s 

listed companies at the regional and 

European Exchanges. 

Finally, TSE is in the final stage of 

implementing its new software. This is one of 

the most sophisticated software which 

comprehensively support all facets of 

Exchange’s products and activities such as 

securities, futures, options and derivatives, 

and also clearing and settlement. 

Our Services company, “TSE Services 

Company (TSESC)” – a wholly-owned 

subsidiary of the TSE – which has been 

newly accepted as Affiliate Member in FEAS, 

has applied for membership to the 

International Organization of Securities 

Commissions (IOSCO). 

There are plans to offer new financial 

instruments including derivatives, exchange 

traded mutual funds and Real Estate 

Investment Trusts (REITs). 

There is also a plan for cross-listing of TSE’s 

listed companies at the regional and 

European Exchanges. 

Finally, TSE is in the final stage of 

implementing its new software. This is one 

of the most sophisticated software suites 

which comprehensively supports all facets 

of Exchange’s products and activities such 

as securities, futures, options and 

derivatives, and also clearing and 

settlement.






Stocks 

July-04 935.4 46.8 1,048.6 52.4 

Aug-04 938.9 42.7 988.7 44.9 

Sep-04 650.2 32.5 732.0 36.6 

Oct-04 920.9 41.9 1,075.8 48.9 

Nov-04 1,172.3 55.8 1,414.3 67.3 

Dec-04 1,595.8 79.8 1,313.2 65.7 

TOTAL 6,213.5 49.9 6,572.5 52.6 

Bonds 








Other 








Market 



July-04 43,296.5 13,635.1 

Aug-04 42,898.7 13,031.1 

Sep-04 45,157.0 13,662.8 

Oct-04 43,837.7 13,169.5 

Nov-04 47,569.7 13,807.5 

Dec-04 46,995.1 13,543.3 




Stocks Index 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 


Contact Name Mr. Karim Karimi E-mail int.dept@tse.ir Website www.tse.ir 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 



50,000 

40,000 

30,000 

20,000 

10,000 

0 


PAGE 121





Iran's economy is characterized by a large 

measure of central planning and state 

ownership of petroleum and other large 

enterprises alongside village agriculture and 

small-scale private trading and service 

ventures. President Mohammed Khatami has 

continued to follow the market reform plans 

of former President Ali Akbar Hashemi- 

Rafsanjani and has indicated he will pursue 

diversification of Iran's oil-reliant economy. 

The president remains popular among the 

electorate. 

Iran possesses truly enormous reserves of oil 

and natural gas: proven oil reserves are 

125.8 billion barrels or about 10% of the 

world's total and more than 800 trillion cubic 

feet of natural gas, second only to Russia's 

colossal gas resources. Iran, like many 

petroleum-rich countries, relies very heavily 

on oil export revenues: 80% of total export 

revenues are from petroleum and some 50% 

of government revenue is generated from 

that industry. Development of the nation's 

gas reserves has been primarily to meet 

internal needs in view of the difficulty in 

arranging for export of the gas either to its 

neighbors or to more distant markets. 


PAGE 122 

Iran 


Economic growth has taken place in the 

agricultural sector, which makes up about 

20% of GDP. The establishment of largescale 

irrigation projects has helped 

expansion of the production of export-based 

items such as pistachios, flowers and dates. 

Nevertheless, the agricultural sector remains 

vulnerable to the weather and periodic 

drought is still a threat to much of the 

country's arable land. In terms of GDP, the 

largest sector in Iran is the services sector, 

which contributes 45% of GDP. 

In 2004, 50.57% of the electorate 

participated – in elections. President 

Mohammed Khatami’s term is due to end in 

June 2005. President Khatami is seen as a 

reformist and during his tenure has tried to 

bring about market economy reforms. 


Iran's real GDP grew by 5.9% in 2003, 

compared to 7.2% growth in 2002, due to 

strong oil prices and added contributions 

from the non-oil sectors in light of the recent 

global uptick. Inflation (as measured by the 

GDP deflator) was 16.6% in 2003, down from 

a very high 29.8% in 2002 that was the result 

of a rapid depreciation of the currency. 

Fiscally speaking, the deficit was brought 

down in 2003 to 0.2% of GDP from -2.4% of 


(%) 

30 

20 

10 

0 

-5 

GDP due to higher revenues from oil and 

spending restraint. The deficit is set to 

decline even further by year-end 2004 due to 

record-high oil prices. External debt 

remained low at US$ 11.9 billion, or 8.7% of 

GDP. The current account surplus narrowed 

in 2003 to 0.5% of GDP, from 3.1% in 2002, 

despite rapid export growth attributable to a 

reemergence of consumer demand for 

imported goods. 

The recent dramatic run-up in oil prices will 

certainly fuel an expansion in the current 

account surplus in 2004. Net transfer 

payments from abroad are also economically 

meaningful: in 2003 they totaled US$ 1.23 

billion, mostly from remittances of Iranians 

working abroad. The capital and financial 

account recorded a healthy surplus in 2003 

of 3% of GDP, up from 2.1% in 2002, due to 

strong oil and gas related FDI inflows. FDI 

was US$ 1.7 billion in 2003, up from US$ 1.2 

billion in 2002. Foreign reserves increased as 

well, to US$ 24.5 billion in 2003, or over six 

months of import coverage. 1 




TSE Services Company www.tsesc.com 

Central Bank of the Islamic Republic of Iran www.cbi.ir 

Iranian Chamber of Commerce, Industries and Mines (ICCIM) www.iccim.com 

Organization for Investment, Economic & Technical Assistance (OIETAI) a division of the Ministry of Finance www.investiniran.ir 

Domestic 

savings 

Trade 

Indebtedness 

Investment 

97 

GDI GDP 

98 99 00 01 02 03 




IRAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





IRAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

20 

10 

0 

-10 

-20 



35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (rials-billions) 67,444 81,952 102,170 125,667 162,471 

Money Supply M2 (rials-billions) 141,883 172,387 211,054 269,356 343,493 

Growth Rate M1 22.7% 21.5% 24.7% 23.0% 29.3% 

Growth Rate M2 20.4% 21.5% 22.4% 27.6% 27.5% 


deposit rate 8.0% 8.0% 8.0% 8.0% 8.00% E 

lending rate 18.5% 18.5% 18.5% 18.5% 18.5% E 


Exchange Rate Period Average (rials/US$) 8,100 8,135 7,909 7,924 7,978 

Annual % Growth 0.00 0.43 -2.78 0.19 0.68 


40 

30 

20 

10 

0 


(%) 

14 

12 

10 

8 

6 

4 

2 

0 

-2 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 


PAGE 123


TIRANA STOCK EXCHANGE 

Dr. Elvin Meka 


During 2004, Tirana Stock Exchange (TSE) 

emerged, as a well-regulated institution, 

capable of ensuring reasonable levels of 

protection for various groups of interest, 

which may consider and choose to use the 

securities market as an investment or 

financing alternative. 

The most important event for 2004 was the 

TSE’s development of a securities market 

strategy, drafted by TSE’s staff and based 

upon the development plan for the securities 

market in Albania, prepared by GMA Capital 

Markets Ltd. By being aware of the special 

role, the securities market plays within the 

financial system, we aimed, since TSE’s 

inception, to obtain quality foreign assistance 

to draw up this baseline document for the 

development and functioning of the entire 

securities industry in Albania. We are proud 

to declare TSE as the first institution, within 

Albanian financial system, to possess a 

detailed development strategy since its 


The Securities Act was approved by the 

Parliament on 1 March 1996, paving the way 

for the establishment of the Albanian 

Securities Commission (ASC) on 16 April 

and the Tirana TSE on 2 May 1996. Once 

the law was approved, the necessary rules 

and regulations of the ASC and the TSE 

were prepared and adopted. 

The TSE opened officially on 2 May 1996, as 

the first exchange in Albania’a financial 

history. The TSE was originally established 

as a department of the Bank of Albania with 

the goal of spinning off as a separate 

institution after a transition period of several 

years. At the beginning, trading sessions 

were held every Monday and Thursday. By 

October 1997, the sessions were increased 

to every business day, and 3- and 6-month 

maturity T-bills were added to the existing 

instruments traded. Primary auctions for 

T-bills were conducted by the TSE until 

1 August 1998. 

PAGE 124 

The most important event for 2004 was the 

TSE’s development of a securities market 

strategy, drafted by TSE’s staff and based 

upon the development plan for the 

securities market in Albania, prepared by 

GMA Capital Markets Ltd. 

commencement. On the other hand, we 

managed to offer to the political factor a 

complete, formal and integral document, with 

clear strategic alternatives, which will serve 

as a key transforming mechanism of different 

endeavors into tangible results and 

contributions, regarding the country’s rapid 

economic growth, financial & economic 

reforms. It should be noted that this plan is 

fully integrated with the government program 

for financial transparency and reduction of 

the informal economy. 

We have already deepened cooperation and 

relations with the business community. 

Business listing interest has just begun to 

leave the empirical phase and is turning to a 

real one, mainly driven by the imperative 

needs for substantial fresh funds out of 

traditional banking channels, consolidation of 

market positions, and required respective 

reforms within the framework of free trade 

agreements. Following this interest, the TSE, 

The major change in the legal framework of 

the TSE was the approval by the Parliament 

of some revisions to the actual Securities 

Law, which came into force in March 2001. 

Under these new changes, the Ministry of 

Finance took all practical steps to develop 

and institutionalize the capital market in 

Albania during 2002. In this way, the TSE 

was finally established for the first time, in 

March 2002, as an independent institution 

(joint-stock company), with the sole owner 

the Ministry of Finance. 

The TSE obtained its full license on 1 July 

2003, thus becoming the first licensed 

securities market in Albania. During 2003, 

for the first time in its short history of 

development, the TSE admitted four full 

members. 

in close cooperation with the Chamber of 

Commerce, organized several promotional & 

training seminars and workshops, aimed at 

unfurling the capital market as a financing 

alternative. On the other hand, we continued 

to attract membership interest within the 

TSE, by adding a new member for 2004, 

thus establishing grounds for a complete 

institutional framework of securities market 

with relevant participants. 

To close, I want to thank all private and 

government entities, academic circles, 

general public and media for their kind 

understanding, support, encouragement in 

our persisting attempts toward creating the 

securities market in Albania and believe that, 

during 2005, we will accomplish our main 

objective of transforming TSE in a real 

securities market. 


The main priorities and objectives of the TSE 

for 2005 are as follows: 

• Cooperation with respective government 

structures in reference to implementing the 

new Tirana Stock Exchange & Securities 

Market Development Strategy, including 

partial privatization of strategic and nonstrategic 

state owned enterprises through 

initial public offering; 

• Cooperation and assistance of domestic 

businesses in order to prepare the first initial 

public offering; 

• Preparation of the facilities for possible 

primary auctions of short term Government 

securities within the TSE; 

• Continued public education & information 

campaigning to promote both the TSE & 

capital market, as well as to attract domestic 

business at TSE listing, by making them 

aware of advantages the securities market 

may offer them; and 

• Improvement of information technology, at 

the TSE including the implementation of the 

Electronic Trading System for securities.






Stocks 








Bonds 








Other 








Market 










5-YEAR CURRENCY EXCHANGE 


160 

120 

80 

40 

0 

2000 2001 2002 2003 2004 

Contact Name Ms. Enkela Idrizi E-mail eidrizi@tse.com.al Website www.tse.com.al 

PAGE 125





Economic expansion resumed after a period 

of contraction prior to 1998, with annual GDP 

growth of at least 7% from 1998 through 

2001. Albania has been cooperating with the 

IMF to restructure its economy as a condition 

for receiving both adjustment and poverty 

reduction financing. 

Among the results to date: the public sector 

workforce has been trimmed from more than 

900,000 in 1990 to slightly over 200,000, and 

broad money supply growth has been more 

than halved since 1996. Containment of 

fiscal deficits has improved as stepped-up 

tax collection efforts produced a marked 

improvement in government revenue in 2003. 

As monetization of fiscal deficits have been 

reduced, inflation has also dramatically 

decreased. The official unemployment rate in 

2003 was about 16%. 

In August 2002, the ruling Socialists made 

the decision to combine the functions of the 

party chairmanship and the party 

premiership in parliament (since the 

Socialists were in control of the government, 

this meant that the head of the party in 

parliament would also be the head of the 

government). With this decision made, Fatos 

Nano, once again, became the new prime 

minister. 


Bank of Albania www.bankofalbania.org 

Ministry of Finance www.minfin.gov.al 

Albanian Institute of Statistics www.instat.gov.al 

Albanian Securities Commission www.instat.gov.al 

Ministry of Economy www.mepp.gov.al 

Chamber of Commerce and Industry www.cci.gov.al 


Domestic 

savings 

PAGE 126 

Albania 


Trade 

Indebtedness 

Investment 

In early 2003, Albania commenced the initial 

discussions with the European Union in 

regard to the Stabilization and Association 

Agreement. These talks were regarded as 

the first step toward eventual accession in 


In the late 1990s until 2001, Albania showed 

steady expansion of gross domestic product 

(GDP). Although flooding problems that 

plagued parts of Europe in 2002 may have 

slowed growth rates, the developments on 

the economic front were encouraging. 


Economic growth increased to approximately 

6% in 2003, up from 4.7% growth in 2002. 

Whereas droughts, floods, and frequent 

blackouts hindered growth in 2002, 2003 

saw improvements in the power 

infrastructure, which spurred higher exports 

and sales in the industrial sector. 

Tax receipts also improved in 2003, by 1%. 

Improving revenue mobilization has become 

a top priority for Albania. Under the most 

recent IMF Poverty Reduction and Growth 

Facility, plans for a more effective tax 

administration include shrinking the large 

informal economy making the tax collection 

system more consistent and equitable. 


(%) 

40 

30 

20 

10 

0 

-10 

97 

GDI GDP 

Inflation has consistently remained below 

3.5% since December 2002, allowing policy 

makers the ability to gradually reduce 

interest rates to around 7% by years’ end. 

The overall deficit (excluding grants) declined 

to between 5 and 6% of GDP in 2003, from 

6.3% of GDP in 2002 due to stepped-up tax 

collection efforts and constrained public 

spending. This movement reduced total 

public debt to approximately 61% of GDP. 1 



98 99 00 01 02 03 




ALBANIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





ALBANIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

50 

40 

30 

20 

10 

0 

-10 

-20 



1,600 

1,200 

800 

400 

0 

97 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (leks-billions) 84 103 124 143 153 

Money Supply M2 (leks-billions) 240 293 328 394 417 

Growth Rate M1 -8.7% 23.0% 20.4% 15.3% 6.7% 

Growth Rate M2 20.6% 22.3% 12.0% 19.9% 5.9% 


deposit rate 23.4% 18.0% 10.8% 7.0% 8.5% 

lending rate 27.5% 21.6% 22.1% 19.7% 15.3% 


Exchange Rate Period Average (leks/US$) 150.63 137.69 143.71 143.49 140.15 

Annual % Growth 1.14 -8.59 4.37 -0.16 -2.32 

INFLATION 

(%) 

35 

30 

25 

20 

15 

10 

5 

0 


(%) 

0 

-2 

-4 

-6 

-8 

-10 

-12 

-14 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 127


“TOSHKENT” REPUBLICAN STOCK EXCHANGE 

Bakhtiyor Radjabov 

Chairman 

As a result of all of the hard work of the staff 

of the “Toshkent” Republican Stock 

Exchange (TRSE) in 2004, TRSE has 

achieved certain positive results. In 2004, 

4465 transactions with the shares of 959 

joint-stock companies and 2 transactions 

with corporate bonds have been carried out 

on the trading platforms of the TRSE. 

• Shares of the privatized enterprises 

accounted for 32.5% of the total volume in 

dollars for the year; 

• Shares of other joint-stock companies 

accounted 12.4%; 

• Shares in the secondary market accounted 

for 54.8% and 

• Shares representing hard currency 

accounted for US$ 10.8 million. 

In comparison with the corresponding period 

of 2003, the trading volume of shares has 

increased 1.2 times, while the trading volume 

of shares for hard currency has increased 

1.3 times. Most importantly, during the last 

financial year, structural changes have 


A stock department was established in 

1991, which became a pioneer of 

Uzbekistan’s securities market, and was 

eventually transformed in 1994 into the 

“Toshkent” Republican Stock Exchange 

(TRSE) - a closed joint-stock company. 

The TRSE became an open joint-stock 

company in 1998. Establishment of the 

TRSE was closely connected to its market 

performance and a policy of establishing 

public joint-stock companies on the basis of 

privatized government enterprises. Currently, 

the TRSE has 37 shareholders. 

Throughout its development, the TRSE 

completed a complex infrastructure, a 

central office in Tashkent, and branches and 

brokerage offices in all regions nationwide. 

In 1994, 12 brokerage offices were members 

of the Exchange and as of 31 December 

2002, this number had increased to 86. 

On 1 February 1998, a listing procedure was 

introduced. On 1 September 1998, shares of 

the first listed company began trading on 

the TRSE. A specialized trading platform, for 

the purpose of selling shares of privatized 

enterprises to foreign investors for hard 

currency, was launched on 1 January 1999. 

PAGE 128 

For the first time the trading activity during 

2004, in the in the secondary market has 

exceeded 50% of the total activity in the 

primary market. 

occurred in exchange trades. For the first 

time the trading activity in the secondary 

market has exceeded 50% of the total activity 

in the primary market. 

We expect that the development of the 

secondary market will continue in 2005. 

Currently, there are securities of 700 

companies in circulation in the secondary 

market, which should considerably increase 

the share of securities in the secondary 

market. 

In 2005 TRSE plans to increase the volume 

of securities. Most importantly, we will carry 

out technical modernization of the system of 

electronic exchange trades: 

1. Perfection of the technology of exchange 

trades: 

First, TRSE will create of a platform for the 

secondary circulation of shares in the 

secondary market, working on technology 

based on simple auction. Second, TRSE will 

create a special platform on fulfillment of 

transactions. 

In 2001, work on Exchange information and 

electronic trading systems continued. The 

website www.uzse.com started operations in 

2001, and today the TRSE continues work 

on a transition to modern web-technology 

trading. In addition, there is a new system 

that allows investors to receive "video-listing" 

through the internet and consequently make 

an informed decision prior to visiting the 

place. A video-listing of more than 200 

enterprises has been prepared and 

advertised through the internet. 

The Exchange has developed weekly ratings 

of its activities by regions and industries on 

such parameters as attraction of investors, 

stock popularity, confidence among the 

population and volume of investments. This 

has enabled investors to have an actual 

picture of equity market dynamics in 

Uzbekistan. 

Founded nine years ago as Uzbekistan’s 

first stock exchange, the TRSE is actively 

taking part, always keeping in mind its major 

role, in the development of the Uzbek capital 

market. 

2. Modernization by updating the equipment: 

TRSE will complete modernization of 

equipment in all branches and in the 

exchange itself. 

3. Modernization of trading system of TRSE: 

TRSE will translate into a new technological 

platform for the whole trading system of the 

Stock Exchange and create a uniform 

database. Further TRSE will endeavor to 

open facilities for regional broker offices to 

access the trading system from distance and 

implement maintenance of a closed network 

of data transmission for all regional 

branches. 


The priority directions of the development of 

the TRSE in 2005 will become the opening 

of three additional trade sections: 

1. Section on transactions for additional 

issued shares; 

2. Section on transactions for shares of 

unlisted companies; 

3. Section on transactions for TURNIP (the 

deals with inverse contract). 

Additionally, our Stock Exchange is planning 

to change the software system and bring it 

to standards in accordance with Rules of the 

Stock Exchange, as well as prepare new, 

more complex software, in particular: 

• development of the module on conclusion 

of turnip-deals, based on technology of 

continual double auction; 

• modernization of software system, based 

on technologies of the simple auction; and 

• full modernization of software system of 

the TRSE with transition on new technical 

platform.






Stocks 

July-04 3.2 0.14 4.1 0.19 

Aug-04 3.8 0.17 4.1 0.19 

Sep-04 2.3 0.10 2.9 0.13 

Oct-04 2.5 0.11 2.4 0.11 

Nov-04 4.3 0.20 9.1 0.41 

Dec-04 6.6 0.30 9.1 0.41 

TOTAL 22.7 0.01 31.7 0.01 

Bonds 

July-04 0.0 0.0 0.0 0.0 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.0 0.0 0.0 0.0 

Oct-04 0.0 0.0 0.0 0.0 

Nov-04 0.0 0.0 0.0 0.0 

Dec-04 0.0 0.0 0.0 0.0 

TOTAL 0.0 0.0 0.0 0.0 

Other 








Market 



July-04 11.8 80.5 

Aug-04 3.0 61.9 

Sep-04 13.5 105.5 

Oct-04 22.9 89.5 

Nov-04 4.4 48.6 

Dec-04 4.3 108.1 




7 

6 

5 

4 

3 

2 

1 

0 

Stocks Index 


Contact Name Mr. Hamid Nasriddinov E-mail nasriddinov@uzse.com Website www.uzse.com 

120 

100 

80 

60 

40 

20 

0 



25 

20 

15 

10 

5 

0 


PAGE 129





Uzbekistan is one of the more prosperous of 

the Central Asian transitional economies. A 

wealth of mineral, energy, and agricultural 

resources, coupled with one of Central Asia's 

largest populations, provide the ingredients 

for a burgeoning economy. The agrarian 

sector is the backbone of the Uzbek 

economy, making up 30% of Uzbekistan's 

GDP in 2001 and 30.6% in 2002. Uzbekistan 

is one of the world's largest cotton producers 

and exporters and produces a significant 

amount of gold and natural gas. The country 

has more than tripled its liquid hydrocarbon 

production since independence. 

President Karimov has moved, slowly, to 

liberalize the depressed economy. Despite 

the possibility of social unrest if reforms lead 

to temporary lower living standards and 

unemployment, he promised to extend 

privatization, assist small businesses, and 

free the Uzbek currency in order to win IMF 

approval. 

PAGE 130 


GDP grew 4.2% in 2002, sparked by 

industrial production growth of 8.5% and 

agricultural production growth of 6.1% due to 

a good harvest. The monthly inflation rate 

went down to 1.6% in 2002 from 1.9% in 

2001. The national budget was executed with 

a deficit of 0.8% of GDP, beating the 2% 

benchmark approved by parliament. The 

deficit was financed mainly by receipts from 

privatization and from Central Bank loans. 

The impending privatization of Uzbek’s gas 

utilities will speed up the creation of a market 

environment in the gas sector. This should 

inject some much-needed FDI into the 

economy. 1 




Ministry of Finance www.mf.uz/eng 

National Bank of Uzbekistan http://eng.nbu.com/about/history/index.php 

State Central Securities Depository www.deponet.uz/english.shtml/ 

Portal of the State Authority www.gov.uz/en/ 


Domestic 

savings 

Uzbekistan 


Trade 

Indebtedness 

Investment 


(%) 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

97 

GDI GDP 

98 99 00 01 02 03 




UZBEKISTAN GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





UZBEKISTAN MONEY SUPPLY, INTEREST RATES AND 



(%) 

10 

0 

-10 

-20 



4,500 

4,000 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 

97 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (sum-billions) 92 100 132 E 159 E 192 E 

Money Supply M2 (sum-billions) 116 126 166 E 199 E 241 E 




deposit rate 21.0% 17.0% 18.0% E 24.0% E 30.0% E 

lending rate 33.0% 32.3% 28.0% E 24.0% E 30.0% E 

Foreign Exchange Reserves (US$ millions) 1,105 1,113 931 1,120 1,257 

Exchange Rate Period Average (sum/US$) 98.35 123.17 250.00 350.00 700.00 

Annual % Growth 22.63 25.24 102.97 40.0 E 100 E 


INFLATION 

(%) 

80 

60 

40 

20 

0 


(%) 

8 

6 

4 

2 

0 

-2 

-4 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 


PAGE 131


UKRAINIAN STOCK EXCHANGE 

Valentin Oskolsky 

Chairman of the Board 

2004 can be characterized as a successful 

year for the Ukrainian Stock Exchange (USE) 

because of the increase of securities traders’ 

activity. The annual stock exchange turnover 

increased 72 times in comparison to 2003. 

The main reason for this leap was the initial 

public offering of options and its entrance in 

the secondary market. In 2004 the number of 

options issuers has increased and, of 

course, bids growth resulted from asks’ 

growth. 

In 2004 good progress was made from the 

legislation stand point. Starting from the 1st 

of January 2004 the Civil and Economic 

Codes became valid which is expected to 

encourage market activity. 


The USE is a pioneer in the capital market of 

Ukraine, created according to Law “On 

Securities and the Stock Exchange”, and 

registered by decision of the Cabinet of 

Ministers on 29 October 1991. The USE is a 

closed joint-stock company with an 

authorized capital divided into 288 ordinary 

nominal shares belonging to legal entities. In 

1997, according to the Law “On State 

Regulation of Securities Market in Ukraine”, 

the Securities and Stock Market State 

Commission re-registered the USE. Since 

June 1998 the USE has been a selfregulated 

organization. There are 122 

registered brokerage companies as USE 

members as of 1 January 2005. The USE 

has 3 branches in the largest Ukrainian 

regions. In 1993, the USE became a pioneer 

of money privatization and implemented the 

exchange mechanism of price creation. 

PAGE 132 

It is our belief that the chosen strategy of 

the USE will gradually result in the creation 

of a transparent, liquid, investment 

opportunity attractive to both national and 

foreign investors in the capital markets. 

The USE continues to work at technical 

trading improvements. Electronic trading was 

tested during 2004. The USE also continued 

with arrangements to implement electronic 

documentation turnover and electronic digital 

signature according to Ukrainian legislation. 

One of the main problems of the Ukrainian 

market is the absence of a real secondary 

market. Throughout the existence of the 

market the main trading sector was the 

privatization market. Trading of state-owned 

shares was successfully performed through 

the USE, but we believe that our efforts on 

creating a free-float market in Ukraine will 

soon be realized. 

The USE is a member of the Coordinating 

Council for the functioning of securities 

markets charged by the President of 

Ukraine. It’s also a member of the 

Consulting & Experts Council in the SSMSC, 

the Ukrainian Chamber of Commerce and 

Industry, the Academy of Economic Science 

and the Academy of Engineering Science of 

Ukraine, the Board of Ukrainian Council on 

Economic Education and the Ukrainian 

Community “Intelligence of the Nation”. 

Chairman of the Board of USE Mr. Valentin 

Oskolsky is also President of Union of 

Economists of Ukraine and President of 

Article Numbering Association of Ukraine. 

The USE has created many educational 

programs in association with the Slavonic 

University. 

The official publication, “Hermes”, can be 

found in the daily newspaper “Ukraine 

Business”. 

The USE as a co-founder of the Kiev 

Slavonic University continued its work with 

students, through the Securities Chair. 

Starting from 2002 there has been a Student 

Stock Exchange at USE. Every student has 

an opportunity to become an exchange 

specialist and then a broker. Through 

gaining theoretical and practical knowledge, 

accumulating experience, students realize 

the importance of capital markets and can 

make their choice of future professions 

based on real exposure. 

It is our belief that the chosen strategy will 

gradually result in the creation of a 

transparent, liquid, investment opportunity 

attractive to both national and foreign 

investors in the capital markets. 


Plans for the USE in 2005 include: 

• putting into operation the System of 

Electronic Trading (SELT at USE); 

• expansion through SELT on the basis of 

secondary securities turnover and trading 

the internal state loan bonds; 

• creation of the conditions and basis for 

formation and development for a derivatives 

market; 

• implementation of a derivative market 

section in SELT USE; 

• participation of the USE in the privatization 

processes planned to be implementated by 

the State Privatization Program and the Law 

of Ukraine “On State Budget of Ukraine for 

2005”; 

• improvement of technologies for trading 

State-owned shares of privatized 

companies; 

• promotion for the attraction of direct 

national and foreign investments to develop 

strategically important industry companies 

during the process of its privatization; 

• development of electronic documentation 

turnover and electronic digital signature 

according to new Ukrainian legislation; 

• development of Exchange information 

areas, expansion of publishing, scientific, 

methodical and educational activities in 

order to prepare specialists for national 

capital market; and 

• strengthening of international cooperation 

with foreign stock exchanges and 

international financial organizations. 

.






Stocks 

July-04 0.13 0.03 3.47 0.69 

Aug-04 0.02 0.01 0.59 0.15 

Sep-04 0.52 0.13 31.1 7.8 

Oct-04 0.21 0.04 3.34 0.67 

Nov-04 0.53 0.07 16.0 2.0 

Dec-04 0.13 0.03 7.96 1.6 

TOTAL 1.6 0.05 62.4 2.1 

Bonds 








Other 

July-04 22.1 0.92 1.1 0.05 

Aug-04 31.0 1.1 1.4 0.05 

Sep-04 83.2 5.9 4.9 0.35 

Oct-04 15.2 2.5 4.3 0.71 

Nov-04 123.8 30.9 6.5 1.6 

Dec-04 0.02 0.006 0.0003 0.0001 

TOTAL 275.3 6.9 18.2 0.46 

Market 



July-04 634.2 n/a 

Aug-04 626.1 n/a 

Sep-04 674.3 n/a 

Oct-04 633.2 n/a 

Nov-04 574.8 n/a 

Dec-04 572.0 n/a 




0.6 

0.5 

0.4 

0.3 

0.2 

0.1 

0.0 


Contact Name Mrs. Hanna Yatsyuk E-mail Hanna.Yatsyuk@ukrse.kiev.ua Website www.ukrse.kiev.ua 



700 

600 

500 

400 

300 

200 

100 

0 


PAGE 133





Among the Commonwealth of Independent 

States (CIS), the Ukraine, with its abundant 

industrial and agricultural resource base, 

was generally considered the leading 

candidate for rapid transition to a market 

economy. The Ukrainian industrial complex, 

centered in the mineral rich southeastern 

region, provided a wide range of valuable 

raw materials and finished products to the 

other republics of the former U.S.S.R. 

Likewise, the historic ability of Ukraine's rich 

soil to supply large quantities of diverse 

agricultural products within the region was 

widely expected to be an engine of growth 

and development in the market economy 

transition. 

Similar to other transitional CIS countries, an 

informal economy has evolved in the 

Ukraine, which is estimated to now generate 

approximately 50% of total (but unreported) 

gross domestic product. Privatization of large 

enterprises has moved slowly, but the 

amount of privatization proceeds in total has 

been rising. In 2000, for example, sales of 

state-owned enterprises generated proceeds 

equivalent to about 1.3% of GDP, more than 

double that amount received the previous 

year. 

Viktor Yushchenko was sworn in as president 

after winning a rerun of the troubled 2004 

election. He described the outcome as a 

PAGE 134 

"great national victory" and promised to take 

Ukraine along the road of European 

integration. 

Mr. Yushchenko is an economist and banker 

by training. He served as prime minister 

under Leonid Kuchma between 1999 and 

2001 when he was credited with steering 

through successful economic reforms. 

Mr. Yushchenko is regarded as a pro- 

Western liberal reformer. He promises to 

build a country in which there is freedom, 

democracy and rule of law. He also pledges 

that alleged corruption by the outgoing 

authorities and several high-profile crimes 

will be investigated. 1 


In 2003, Ukraine's steel exports were 

gobbled up by China, while capital 

investment in Russia garnered a need for 

Ukrainian machinery. This export boom 

spurred investment and construction in 

Ukraine, that when coupled with an 

expansion in access to consumer credit, 

drove real GDP growth of 9.3% in 2003, up 

from 5.2% in 2002. The inflation rate (as 

measured by the GDP deflator) increased to 

9.1% in 2003 from inflation of only 2.9% in 

2002 due to skyrocketing food prices related 

to a poor harvest. The fiscal balance in 2003 

rested at a small deficit of 0.2% of GDP 

compared to a deficit of 0.4% of GDP in 


Securities and Stock Market State Commission www.ssmsc.gov.ua 

Ministry of Finance www.minfin.gov.ua 

State Property Fund of Ukraine www.spfu.gov.ua 

State Committee of Financial Monitoring www.sdfm.gov.ua 

State Commission for Regulation of Financial Services Markets in Ukraine www.dfp.gov.ua 


Domestic 

savings 

Ukraine 


Trade 

Indebtedness 

Investment 


(%) 

30 

20 

10 

0 

-10 

-20 

-30 

97 

GDI GDP 

2002 – relatively small, but still reflecting 

inefficient tax administration. Prospects for 

continued growth looks good if the 

government can continue to maintain 

macroeconomic stability. Wage levels in the 

Ukraine, though rising fast now, are still 

about one half those in Russia and less than 

one quarter of those typical of the countries 

that entered the European Union in May 

2004. 

Exports grew 25% in 2003, resulting in a 

current account surplus of 5.9% of GDP. In 

the financial and capital account, foreign 

direct investment (FDI) is flowing in, partly in 

response to privatization efforts. In 2003 FDI 

jumped to US$ 1.4 billion. Accordingly, the 

Ukraine's overall balance of payments has 

swung into surplus and the NBU has been 

accumulating foreign currency reserves as a 

result. The level of those reserves as of yearend 

2003 was nearly US$ 6.7 billion, up 

significantly from the severely depleted level 

of the crisis year 1998. 2 

1 BBC News Online, 

http://news.bbc.co.uk/1/hi/world/europe/country_profiles/11 

02303.stm, January 2005 



98 99 00 01 02 03 




UKRAINE GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





UKRAINE MONEY SUPPLY, INTEREST RATES AND 



(%) 

25 

20 

15 

10 

5 

0 

-5 

-10 

-15 

-20 



25,000 

20,000 

15,000 

10,000 

5,000 

0 

97 


Exports 

97 

98 99 00 01 02 03 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (hyrvnias-billions) 10 14 21 30 40 

Money Supply M2 (hyrvnias-billions) 16 22 32 45 64 

Growth Rate M1 14.8% 36.4% 47.1% 43.1% 35.2% 

Growth Rate M2 24.0% 40.6% 44.5% 43.0% 42.3% 


deposit rate 60.0% 45.0% 27.0% 12.5% 7.0% 

lending rate 54.5% 55.0% 41.5% 32.3% 25.4% 

Foreign Exchange Reserves (US$ millions) 761 1,046 1,353 2,955 4,241 

Exchange Rate Period Average (hyrvnias/US$) 2.4495 4.1304 5.4402 5.3722 5.3266 

Annual % Growth 31.57 68.62 31.71 -1.25 -0.85 

INFLATION 

(%) 

30 

20 

10 

0 


(%) 

7 

6 

5 

4 

3 

2 

1 

0 

-1 

-2 

-3 


97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 135


ZAGREB STOCK EXCHANGE 

Marinko Papuga 


The year 2004 was extremely successful for 

the Zagreb Stock Exchange (ZSE). Turnover 

in equities rose 75%, the number of new 

shares listed in the Official Market doubled 

and market capitalization is up 66.3%. Value 

of new corporate bond issues listed exceeds 

US$ 502.5 million (HRK 2.8 billion). Four new 

government bonds issues together with 

previously listed issues created a US$ 3.5 

million (HRK 19.6 billion) large government 

debt market on the ZSE. The number of 

transactions increased 47%, and last but not 

least the official equity index CROBEX hit a 

record high of more than twenty times its 

starting value in 2004, and finally set at new 

30% higher level. 


The ZSE was incorporated in 1991 as a 

joint-stock company with 25 commercial 

banks and insurance companies. Today, the 

ZSE has 46 shareholders and 38 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. 

PAGE 136 

The ZSE, measured by market size (market 

capitalization) is one of the leading non- 

European Union markets in the region. 

All of these statistics combined with 

increased retail investor’s interest for equities 

is a solid platform for further capital market 

development. The ZSE, measured by market 

size (market capitalization) is one of the 

leading non-European Union markets in the 

region. In year 2005 we will focus our efforts 

on further improvement on technology side, 

introduction of a new financial instruments 

and continuous care for market transparency 

and efficiency. 

In 2004 there were many new developments 

on the Zagreb Stock Exchange. 

• The number of bonds listed almost 

doubled as compared to 2003 and for the 

first time two new municipal bond issues 

“City of Koprivnica” and “City of Zadar” were 

listed on the Zagreb Stock Exchange. 

• In 2004 four new (additional) government 

bond issues were listed on the ZSE, thus 

creating a US$ 3.5 million (HRK 19.6 billion) 

large government debt market. 

• Four new corporate bond issues were 

listed on the ZSE. The total amount of new 

corporate bonds issues issued by the 

largest Croatian companies PLIVA, Agrokor, 

Podravka & Atlantic exceeds US$ 0.5 million 

(HRK 2.8 billion) (total corporate bonds 

market capitalization is US$ 0.9 million 

(HRK 4.7 billion)). 

• Turnover in shares rose 75%. 

• In 2004, the official equity index 

CROBEX’s value increased twenty times to 

set a new all time high level. 


In 2005 ZSE plans to: 

• focus efforts on further improvement in 

technology 

• introduce new financial instruments 

• continue care for market transparency and 

efficiency






Stocks 

July-04 26.5 1.2 0.72 0.03 

Aug-04 28.8 1.4 0.57 0.03 

Sep-04 43.3 2.0 1.1 0.05 

Oct-04 49.5 2.5 0.98 0.05 

Nov-04 77.8 3.7 1.2 0.06 

Dec-04 67.8 3.1 1.6 0.07 

TOTAL 293.7 2.3 6.2 0.05 

Bonds 

July-04 308.9 14.0 418.2 19.0 

Aug-04 299.6 14.3 404.7 19.3 

Sep-04 370.6 16.8 420.3 19.1 

Oct-04 267.4 13.4 392.5 19.6 

Nov-04 431.9 20.6 455.4 21.7 

Dec-04 630.1 28.6 691.9 31.4 

TOTAL 2,308.5 18.0 2,782.9 21.7 

Other 

July-04 0.02 0.001 0.17 0.01 

Aug-04 0.0 0.0 0.0 0.0 

Sep-04 0.08 0.004 0.66 0.03 

Oct-04 0.10 0.01 0.81 0.04 

Nov-04 0.03 0.002 0.25 0.01 

Dec-04 0.06 0.003 0.45 0.02 

TOTAL 0.29 0.002 2.3 0.02 

Market 



July-04 6,703.0 1,187.6 

Aug-04 7,012.4 1,226.7 

Sep-04 8,161.0 1,388.2 

Oct-04 9,018.6 1,450.5 

Nov-04 10,336.6 1,600.7 

Dec-04 10,951.9 1,565.8 




80 

70 

60 

50 

40 

30 

20 

10 

0 

Stocks Index 


Contact Name Mr. Zeljko Kardum E-mail zeljko.kardum@zse.hr Website www.zse.hr 

1,800 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 



12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 


PAGE 137





Croatia's location on the Adriatic links the 

interior of eastern and southern Europe with 

the Mediterranean. The country possesses 

great tourist assets - notably a scenic 

coastline rich in historically significant sites, 

especially the old city of Dubrovnik. In terms 

of sector distribution, services account for 

nearly two-thirds of economic activity, 

supplemented by substantial contributions 

from agriculture (including forestry and 

fishing) and industry. 

Only in the last year has the economy begun 

to show the kind of performance its people 

and infrastructure should be able to deliver. 

Privatization of state-owned banks, the oil 

company and the electricity industry all 

remain to be completed. 

In February 2003, Croatia submitted its 

formal application for membership in the 

European Union. For its part, the European 

Union was to issue a response to Croatia's 

request to join the regional body over the 

course of the next year. 

Domestic politics dominated the landscape 

in late 2003. On Oct. 17, 2003, the 

Parliament (Sabor) was dissolved, thus 


Croatian Securities Commission www.crosec.hr 

Ministry of Finance www.mfin.hr 

Croatian Government www.vlada.hr 


Domestic 

savings 

PAGE 138 

Croatia 


Trade 

Indebtedness 

Investment 

ending its four-year term and paving the way 

for elections. Three days later on Oct. 20, 

2003, President Stipe Mesic announced that 

parliamentary elections would take place on 

November 23. The main issues centering the 

election included the economy, particularly 

the shift from a centrally- planned economy 

to a market system. The final results showed 

that the opposition HDZ had secured a clear 

victory with approximately 34% of the votes 

and 66 out of 152 seats. Then, on Dec. 23, 

2003, the parliament approved a minority 

government headed by Prime Minister 

Sanader. Apart from economic 

reconstruction, the reform process, and 

European Union accession, the other main 

issue facing the new government included 

Croatian cooperation with the United Nations 

war crimes tribunal and the right of return for 

thousands of Serb refugees. 


In 2003, GDP recorded growth of 

approximately 4.7%, after spurting to 5.2% in 

2002 as weak export markets in Europe were 

overcome by strong capital investment in 

roadways. A tight monetary policy and 

maintenance of high real interest rates 

succeeded admirably in containing inflation 

during the 1995-2002 period. Over the past 


(%) 

40 

20 

0 

-20 

97 

GDI GDP 

five years (1999-2003), consumer prices rose 

by an average of just under 5%, but that 

included energy price and restructuringrelated 

increases in 2000 that were transitory. 

In 2003, consumer price inflation was just 

2%. The other side of this coin, however, is 

the kuna's overvaluation on foreign exchange 

markets, which has reduced Croatia’s export 

competitiveness. 

Government officials announced the 

objective of raising Croatia's share of 

Mediterranean-region tourist receipts from 

the present 3% to 10% and expects to have 

more than seven million tourist arrivals 

annually over the next several years. The 

banking crisis of 1998-1999 has been 

overcome with higher capitalization and 

improved public confidence reflected in 

higher deposit rates. Monetary policy has 

succeeded not only in keeping inflation 

reasonably low, but also in stabilizing the 

international value of the kuna. In 2002 and 

2003, like most European currencies, the 

kuna appreciated significantly against the 

U.S. dollar. 1 



98 99 00 01 02 03 




CROATIA GDP/EMPLOYMENT BY SECTOR OF ORIGIN 





CROATIA MONEY SUPPLY, INTEREST RATES AND 



(%) 

25 

20 

15 

10 

5 

0 

-5 



14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

97 

98 99 00 01 02 03 

INFLATION 

(%) 


Exports 

97 

Imports 

98 99 00 01 02 03 

1998 1999 2000 2001 2002 

Money Supply M1 (kuna-billions) 14 14 18 24 31 

Money Supply M2 (kuna-billions) 57 56 73 106 116 

Growth Rate M1 -1.4% 1.8% 30.1% 31.5% 30.2% 

Growth Rate M2 13.0% -1.8% 29.1% 45.7% 9.6% 


deposit rate 5.9% 7.9% 5.9% 5.9% 4.5% 

lending rate 15.8% 14.9% 12.1% 9.6% 12.8% 


Exchange Rate Period Average (kuna/US$) 6.3623 7.1124 8.2766 8.3400 7.8690 

Annual % Growth 4.29 11.79 16.37 0.77 -5.65 

8 

6 

4 

2 

0 


(%) 

10 

5 

0 

-5 

-10 

-15 

97 

97 

98 99 00 01 02 03 

98 99 00 01 02 03 



PAGE 139


MEMBER LIST 

PAGE 141


Abu Dhabi Securities Market 

Address: Al Ghaith Tower, Hamdan Street P.O. Box 54500 Abu Dhabi, U.A.E. Phone: (2) 627 7777 Fax: (2) 612 8728 E-mail: info@adsm.co.ae 

Web Address: www.adsm.co.ae Country Code: 971 

Company’s Name City Code Telephone Fax E-mail Address 

Abu Dhabi Aviation Co. 2 575 8000 575 7775 

Abu Dhabi Co for Building Materials (BILDCO) 2 645 5500 645 5544 

Abu Dhabi Commercial Bank 2 627 0000 677 6499 

Abu Dhabi Islamic Bank 2 634 3000 634 2222 

Abu Dhabi National Foodstuff Co. (FOODCO) 2 673 1000 673 2100 

Abu Dhabi National Hotels Co. 2 444 7228 444 8495 

Abu Dhabi National Insurance Co. (ADNI) 2 626 4000 626 8600 

Abu Dhabi Ship Bldg (ADSB) 2 551 0333 551 1067 

Ajman Companies 1 6 526 3232 526 3233 

Ajman Companies 2 6 740 7100 740 1900 

Al Dhafra Insurance Co. 2 672 1444 672 9833 

Al-Ain Ahlia Insurance Co. 2 445 9900 445 6685 

Al-Khazna Insurance Co. 2 676 7000 676 8500 

Al-Wathba National Insurance Co. 2 677 0566 677 6628 

Bank of Sharjah 4 282 7278 282 5262 

Commercial Bank International 7 222 7555 222 7444 

Emirates Insurance Co. 2 644 0400 644 5227 

Etisalat 2 618 4202 633 233 

First Gulf Bank 2 693 4000 622 4979 

Fujairah Companies 1 9 202 9312 222 4516 









Gulf Cement Company 7 266 8222 266 8288 

Gulf Pharmaceutical Industries (Julphar) 7 246 1461 246 1462 

National Bank of Abu Dhabi 2 611 1111 627 5881 

National Bank of Sharjah 6 568 1000 568 0101 

National Corporation for Tourism & Hotels 2 409 9777 409 9778 

National Marine Dredging Co. 2 551 6000 551 6500 

Oasis International Leasing Co. 2 627 3880 627 3990 

Qatar Telecommunication Co. (Q-tel) 974 440 0525 483 0112 

RAK Co. for White Cement & Construction Materials 7 266 8888 266 8866 

Ras Al Khaimah Companies 1 7 228 1127 228 6106 



Ras Al Khaimah Poultry & Feeding Co. 7 246 2222 246 2220 

Ras Al-Khaimah Cement Company 7 266 0111 266 0006 

Ras Al-Khaimah Ceramics 7 244 5046 244 5270 

Sudanese Telecommunication Co. Ltd. 24911 770 099 782 322 

Umm Al Qiwain Companies 1 6 765 5225 765 1525 

Umm Al Qiwain Companies 2 6 765 5522 765 5520 

Union Cement Company 7 202 8203 266 8635 

Union Insurance Co. 6 746 6996 746 6997 

Union National Bank 2 674 3141 677 3482 

United Insurance Co. 4 222 2440 222 8668 

Amman Stock Exchange 

Address: P.O. Box 212466, Amman 11121, Jordan Phone: (6) 566 4109 Fax: (6) 566 4071 E-mail: info@ase.com.jo 

Web Address: www.exchange.jo Country Code: 962 


Al-Amal Financial Investments Co. Ltd. 6 567 1485 566 7993 

Al-Eman Financial Investment 6 566 3173 566 4988 

Al-Shorouq Financial Brokers 6 569 5512 569 5551 

Al-Watanieh for Financial Services Co. 6 566 3851 568 2803 watanieh@index.com.jo 

Aman for Securities 6 566 2362 566 2381 info@amansecurities.jo 

Amman Investment & Securities 6 566 9689 567 2572 

Arab Co-operation Financial Investment Co. 6 562 9300 562 9300 alie@abci.com.jo 

Atlas Investment Group 6 552 6491 552 6492 mail@atlasinvest.net 

Bank of Jordan 6 560 0900 567 5951 boj@bankofjordan.com.jo 

Export & Finance Bank 6 569 4250 569 2062 securities@efbank.com.jo 

Imcan for Financial Services 6 560 4222 560 1444 imcan@tisgroup.com 

Industrial Development Bank 6 464 2216 464 7821 idb@indevbank.com.jo 

PAGE 142


Amman Stock Exchange (con’t) 


International Financial Center 6 567 4558 569 6720 

Jordan & Gulf Investment 6 567 5617 567 5617 

Jordan Investment and Finance Bank 6 562 2401 562 2405 investment@jifbank.com.jo 

Jordan Islamic Bank 6 565 3046 565 3047 jib@islamicbank.com.jo 

Jordan National Bank 6 562 4361 562 4362 brokerage@jnb.com.jo 

National Portfolio Securities 6 567 3101 568 8793 info@mahfaza.com.jo 

Philadephia Investment Bank 6 560 9800 565 7536 pibccb@go.com.jo 

Samir & Sameh Bros. for Investment 6 567 1546 568 4476 

Selwan Financial Brokers 6 565 1546 565 1549 selwan@firstnet.com.jo 

Shareco Brokerage Co. Ltd. 6 567 3812 569 5644 shareco@nets.com.jo 

Societe General de Banque.Jordan 6 568 1651 568 1258 meibsg@meib.com 

Tanmia Securities Inc. 6 567 2460 568 3559 info@tanmiainc.com 

The Arab Financial Investment 6 569 2425 569 2423 

The Financial Investment Company for Shares and Bonds 6 567 1569 569 9626 

Trans Jordan for Financial Services 6 565 0257 567 2980 money@go.com.jo 

Union Bank for Saving and Investment 6 567 5558 566 6149 info@unionbankjo.com 

United Arabian Jordanian for Investment and Brokerage Services 6 567 1578 569 6156 

United Co. for Financial Investment 6 581 5070 586 5870 ufico@accessme.com 

Armenian Stock Exchange 

Address: 5B M. Mkrtchian Street, Yerevan 375010, Republic of Armenia Phone: (1) 543321 Fax: (1) 543324 E-mail: info@armex.am 

Web Address: www.armex.am Country Code: 374 


AB Securities Ltd. 1 532 815 532 829 absec@arminco.com 

Aerobrok Ltd. 1 222 725 aerobrok@yahoo.com 

Alinvest Ltd. 1 454 112 alinvest2000@yahoo.com 

Alphasecurities Ltd. 1 397 866 

Ameria Invest CJSC 1 524 040 546 800 vardan@ameria.am 

Armenbrok CJSC 1 528 986 528 986 armbrok@web.am 

Astvan Ltd. 1 626 747 

Ayti Brok Dil Trust Ltd. 1 348 837 aytibrok@yahoo.com 

Capital Invest Ltd. 1 542 589 526 417 mzaven@yandex.ru 

Centre of Securities Ltd. 1 581 578 centsec@hotmail.com 

Etalon Invest Ltd. 1 520-669 etaloninvest@cornet.am 

Financo Financial Analytical Ltd. 1 542 431 588 973 galstyan@unibank.am 

Private Invest CJSC 1 521 812 521 051 privat@arminco.com 

Renesa CJSC 1 544 527 

Sarinyan & Co. Investment Ltd. 1 544 242 544 353 sarinyanandco@cornet.am 

SK Brok Ltd. 1 640 804 yekerobyan@yahoo.com 

Tonton Ltd. 1 545 477 545 407 info@tontoninvest.com 

Vrinco Ltd. 1 531 805 vrinco@freenet.am 

Yerevan Broker Ltd. 1 544 657 

Baku Interbank Currency Exchange 

Address: 57, Acad H. Aliyev Str., AZ1110 Baku, Azerbaijan Phone: (12) 465 6309 Fax: (12) 465 6516 E-mail: info@bbvb.org 

Web Address: www.bbvb.org Country Code: 994 


AFbank 12 493 5442 493 0942 bank@continet.baku.az 

Amrahbank 12 497 8862 497 8863 amrahbank@artel.net.az 

Anar 12 498 9437 498 4235 elmar@anarbank.baku.az 

Aqrarkredit Non Bank Credit Organization 12 438 0530 497 5002 asb@baku-az.net 

Atabank 12 493 3496 498 7447 atabank@atabank.com 

Atlantbank 12 498 0981 497 6989 atlant@azdata.net 

Atra 12 495 8093 498 1274 atrabank@azdata.net 

Azal 12 498 6056 498 9701 azalbank@azeronline.com 

Azdemiryolbank 12 440 2722 493 7567 damir@azeri.com 

Azerigazbank 12 497 5017 498 9615 agbbank@azeri.com 

Azernegliyyatbank 12 461 7332 493 4804 ragim@artel.net.az 

Azer-Turk Bank 12 497 4316 498 3702 azerturk@artel.net.az 

Azinvestbank 12 497 7455 497 7456 azinvest@azeronline.com 

Bank of Baku 12 447 0055 447 0024 root@bankofbaku.com 

Birlikbank 12 441 6775 493 3281 info@birlikbank.baku.az 

CapitalBank 12 493 6630 498 6605 abn_amro@artel.net.az 

Caspian Investment Bank 12 493 4949 493 8450 cibank@azersun.com 

Caucase Development Bank 12 497 3272 497 1222 tdb@kbr.co-az.net 

Debutbank 12 496 4551 497 4560 debutbank@azeronline.com 

Deka-Bank 12 498 1157 498 1147 office@dekabank.com 

PAGE 143


Baku Interbank Currency Exchange (con’t) 


Gunay Bank 12 498 0456 498 1439 gunaybank@azeri.com 

Ilkbank 12 465 6369 465 6512 office@ilkbank.baku.az 

Is Bankasi Azerbaijan 12 498 0247 498 0250 azerbaijan@isbankasi.baku.az 

Kocbank Azerbaijan Ltd. 12 497 7795 497 0276 koank@azeronline.com 

Mugan 12 498 3411 498 3511 bank@mugan.baku.az 

NBC Bank 12 492 0110 496 0220 nbank@baku-az.net 

Nikoyl 12 497 2972 497 3379 bank@nikoil.az 

Open Joint-Stock Society Kovsar 12 497 3034 497 3029 bank@usal.baku.az 

Para-Bank 12 447 1000 493 0882 para@azeri.com 

Postbank 12 498 8929 498 8929 seymur@postbank.org 

Rabitabank 12 492 6097 497 1101 rbtbank@azeri.com 

Respublika 12 490 6748 490 6749 info@bankrespublika.az 

Royal Bank of Baku 12 498 6588 498 1317 rbb@artel.net.az 

Standart Bank 12 492 4030 498 0778 mostbank@azeuro.net 

Tekhnikabank 12 493 8752 493 8711 technika@azerin.com 

The International Bank of the Azerbaijan Republic 12 498 1842 498 9128 ibar@ibar.az 

The National Bank of the Azerbaijan Republic 12 493 1122 493 5541 info@nba.az 

Turan 12 497 2588 497 2577 turanbank@azdata.net 

Unibank 12 498 2244 498 0953 office@mbank.baku.az 

United Credit Bank 12 490 0641 490 6104 info@ucb.baku.az 

Zaminbank 12 493 4190 498 8105 mail@zaminbank.com 

Baku Stock Exchange 

Address: 19, Bul-Bul Avenue A21000 Baku, Azerbaijan Phone: (12) 498 9820 Fax: (12) 493 7793 E-mail: info@bse.az 

Web Address: www.bse.az Country Code: 994 


Agrar Kredit SKT 12 498 2731 498 2731 agrarkredit@azeronline.com 

Atabank 12 497 8700 498 7447 atabank@atabank.com 

Azdemiryolbank 12 440 2429 498 0933 sr1954@azdata.net 

Azerigazbank 12 497 1565 498 9615 agbbank@azeri.com 

Azerturkbank 12 497 4317 498 3702 azerturk@artel.net.az 

Capital Management 12 497 3211 497 3210 info@texnikabank.com 

CI Bank 12 493 0145 493 8450 cibank@azerin.com 

Ilk Bank 12 490 6369 490 6512 administrator@ilkbank.az 

International Bank of Azerbaijan 12 493 0091 493 4091 ibar@ibar.az 

Kocbank Azerbaijan 12 497 7795 497 0276 kocbank@artel.net.az 

Mars Investment 12 497 3162 497 3336 office@azinvestgroup.com 

Standard Capital 12 497 5501 497 5504 kocbank@artel.net.az 

UniBank 12 498 2244 498 0953 samir.balayev@unibank.az 

United Credit Bank 12 490 0641 490 0644 ucb@ucb.baku.az 

United Universal Bank 12 441 3219 441 4119 aibbank@artel.net.az 

Banja Luka Stock Exchange 

Address: Petra Kocica bb, 78 00 Banja Luka, Bosnia and Herzegovina Phone: (51) 326 040 Fax: (51) 326 056 E-mail: blberza@blic.net 

Web Address: www.blberza.com Country Code: 387 


Balkan Investment Bank a.d. Banja Luka 51 245 155 245 145 v.stokanic@balkaninvestment.com 

Bobar Banka a.d. Bijeljina 51 211 552 218 388 ana.mirosavljevic@bobarbanka.com 

Eurobroker a.d. Banja Luka 51 309 160 325 082 sasa.grbic@eurobroker.ba 

Grand Broker a.d. Banja Luka 51 211 799 211 798 grbroker@teol.net 

Hypo-Alpe-Adria Bank a.d. Banja Luka 51 223 820 223 828 bratoljub.radulovic@kristalbanka.ba 

LHB Banka a.d. Banja Luka 51 226 570 212 671 vbfond-broker@blic.net 

Nova Banjaluka Banka a.d. Banja Luka 51 243 392 243 299 vladan.jovic@novablbanka.com 

Nova Banka a.d. Bijeljina 51 241 923 310 135 jasnav@novabanka.com 

Razvojna Banka Jugoistone Evrope a.d. Banja Luka 51 242 111 242 422 brokeri@razvojnabanka.com 

Zepter Komerc Banka a.d. Banja Luka 51 241 164 215 771 bojan.blagojevic@zepterkomercbanka.com 

Belgrade Stock Exchange 

Address: 1, Omladinskih Brigada Street, 11070, Belgrade, Serbia Phone: (11) 322 1599 Fax: (11) 138 242 E-mail: info@belex.co.yu 

Web Address: www.belex.co.yu Country Code: 381 


AB Invest 11 323 2977 323 2977 abinvest@eunet.yu 

AC-Broker 11 361 7765 361 7765 info@ac-broker.co.yu 

Alco Broker 11 305 0376 sanja.jovanovic@abanka.co.yu 

AS Financial Center 11 262 2266 262 2266 asbroker@yubc.net 

B&C Investments 21 442 221 443 464 bcgroup@eunet.yu 

PAGE 144


Belgrade Stock Exchange (con’t) 


Belgrade Independent Broker 11 322 3227 322 3227 office@bibroker.co.yu 

Beo Monet 11 303 3709 303 3563 beomonet@ikomline.net 

Beopublikum Brokerska Kuca 11 334 5171 334 5080 publikum@infosky.net 

Broker Nis 18 520 377 520 377 brokerni@infosky.net 

Broker Point 11 262 2439 624 460 office@brokerpoint.co.yu 

Buda Cash 11 306 7855 306 7855 budacash@eunet.yu 

Cacanski Nezavisni Brokeri 32 341 770 341 772 cnb@ptt.yu 

Centrobanka 11 322 8807 322 5904 office@centrobanka.co.yu 

Centrobroker 11 329 0839 751 999 cbroker@eunet.yu 

Citadel Securities 11 328 4036 628 165 office@citadel-securities.com 

Confidence 11 242 3045 242 3045 office@confidence.co.yu 

Convest 21 455 629 450 595 convest@eunet.yu 

Darik Broker 32 344 3052 344 4813 office@darikbroker.co.yu 

Delta Broker 11 201 2690 201 2677 broker@deltayu.com 

Dil Broker 11 323 5406 324 5035 vborovac@dilbroker.co.yu 

Dinara Broker 11 323 8913 323 8913 

East-West Invest 11 308 6240 308 6241 ewistan@drenik.net 

Ecotel 11 303 0307 303 0308 office@ecotel.co.yu 

Eki Broker 11 324 1378 324 1378 eki_brok@verat.net 

Eksim Banka 11 323 3918 323 3171 

Emissio Broker 11 316 5900 316 5900 emissio@beotel.yu 

Energobroker 11 311 5261 311 5312 broker@energobroker.co.yu 

Euro Fineks Broker 11 309 6920 309 6920 fineks@eunet.yu 

Fidelity Broker 21 300 530 301 535 fidelit@eunet.yu 

Fima International 11 334 1066 334 0787 fima@beotel.net 

Fimaks Broker 11 339 8768 339 8915 broker@fimaks.co.yu 

First Global Brokers 11 311 3047 311 1172 info@fgb.co.yu 

Galenika Broker 11 316 2260 219 6572 company@galenikabroker.co.yu 

GT Broker 11 413 815 418 064 dragangt@eunet.yu 

Hipobroker 11 301 5654 office@hipobroker.co.yu 

Hypo Alpe-Adria-Securities 11 201 6352 301 5709 aleksandar.zinaic@hypo-alpe-adria.co.yu 

Ilirika Investments 11 330 1000 330 1050 info@ilirika.co.yu 

Imtel Trade 11 301 6822 301 6822 office@imteltrade.com 

Inbrok 11 618 808 614 421 inbrok_office@yahoo.com 

Intercitybroker 11 308 3130 308 3150 icb@eunet.yu 

Investbroker 11 324 8650 303 5006 investbroker@beotel.yu 

ITM Monet 11 361 5929 361 4148 itmmonet@beotel.yu 

Jorgic Broker 11 311 7835 311 7840 jorgicb@ptt.yu 

Jubanka 11 32 34931 334 0611 mgostiljac@jubanka.com 

Jubmes Broker 11 311 0275 311 3851 broker@jubmes.co.yu 

KBK Broker 11 344 4494 434 820 kbkbrok@eunet.yu 

Komercijalna Banka 11 324 0911 323 9201 dukakis@kombank.com 

M&V Investments 21 612 788 612 788 ns@mvi.co.yu; bg@mvi.co.yu 

Makler Invest 11 334 5351 334 5351 office@maklerinvest.co.yu 

Max-Dill 32 222 277 222 277 office@maxdill.co.yu; vesna@maxdill.co.yu 

Mediolanum Invest 11 367 0137 367 0137 veljamed@eunet.yu 

Meridian Invest 11 330 5876 330 5908 mebainv@meridian-invest.com 

MMK Group 18 521 951 521 925 

Multibroker 11 334 1158 334 1158 multi@eunet.yu 

NBA Broker 11 313 1286 146 691 nbabrok@eunet.yu 

Novosadska Banka 21 613 168 613 168 bdoric@novban.co.yu 

Pan Broker 11 246 4231 pan.brok@net.yu 

Sab Monet 11 382 1002 sabmonet@yubc.net 

SBD Broker 24 558 275 554 003 office@sbdbroker.co.yu 

Senzal 11 180 902 328 5722 senzal@senzal.co.yu 

Sinteza Invest Group 11 301 8740 info@sinteza.net 

Societe Generale Yugoslav Bank 11 311 1515 328 2230 sogeyu@eunet.yu 

Sumadija Broker 34 303 011 303 021 sumbrok@eunet.yu 

Synergy Capital 11 328 4825 262 2784 ipantelic@syn-cap.com 

Tandem Financial 21 425 777 office@tandemfin.com 

TBI Stockbroker 11 322 3764 322 3763 stockbroker@sbb.co.yu 

TDK Broker 32 340 205 340 205 tdkkbroker@yu1.net 

Tema Broker 21 443 809 472 1640 info@temabroker.co.yu 

Tezoro Broker 11 627 070 632 346 office@tezorobroker.co.yu 

Trziste Novca 11 361 3846 361 2286 info@tn.co.yu 

Unibroker 11 144 388 145 690 unibrok@infosky.net 

Vojvodanska Banka 21 488 6731 616 023 broker@voban.co.yu 

Yu Finansijski Centar 11 344 0307 444 0844 yufc@eunet.yu 

PAGE 145


Bucharest Stock Exchange 

Address: 34-36 Carol I Boulevard, 14th Floor, Sector 2, Bucharest, 020922, Romania Phone: (21) 307 9502 Fax: (21) 307 9519 E-mail: bvb@bvb.ro 

Web Address: www.bvb.ro Country Code: 40 


Actinvest 268 470 938 411 387 actinvest@rdsbv.ro 

Active International 21 307 6020 307 6024 broker@active.ro 

Alpha Finance Romania 21 209 2233 231 5332 office@alphafinance.ro 

BCR Securities 21 222 3703 222 7404 office@bcrsecurities.ro 

BRD Securities-Groupe Societe Generale 21 301 4150 301 4159 liviu.giugiumica@brd.ro 

BT Securities 264 430 564 431 718 rares.nilas@btsecurities.ro 

Bucuresti Global Invest 21 330 8222 3303 490 iulian.buturuga@bgi.ro 

CAIB Securities 21 203 2288 230 8490 valerian.ionescu@ro.hvb-cee.com 

Capital Securities 21 210 7660 210 7745 office@capitalgroup.ro 

Carpatica Invest 269 217 781 211 398 carpaticainvest@carpaticainvest.ro 

Compania Romana de Investitii Investco 21 336 1018 337 3365 office@cri-investco.ro 

Confident Invest Bucuresti 21 315 3093 313 8349 confident@rdsnet.ro 

Delta Valori Mobiliare 21 255 2247 255 4645 ssif_delta@rdsnet.ro 

Dorinvest 21 312 9962 312 9970 dorinvest@dorinvest.ro 

Eldainvest 236 472 113 473 393 eldainv@xnet.ro 

Equity Invest 21 650 3812 310 4362 office@equity.ro 

Estinvest 237 238 901 237 471 esin@estinvest.ro 

Eteba Romania 21 330 7187 330 7153 invest@eteba.ro 

Euro Invest Vision 21 211 0137 211 0531 euroinvestvision@eiv.ro 

European Securities 21 212 5738 212 5740 eurosec@rdslink.ro 

Eurosavam 244 510 160 591 495 eurosavam@ploiesti.rdsnet.ro 

Finaco Securities 21 666 4870 666 4870 finaco@xnet.ro 

Finans Securities - Societate de Servicii de Investitii Financiare 21 301 7250 331 0965 adrian.simionescu@finansbank.ro 

G.I.F.-Grupul de Intermediere Financiara 21 311 2702 312 6757 gif@rdsnet.ro 

Global Valori Mobiliare 21 410 1000 410 2222 office@globalsecurities.ro 

GM Invest 21 311 2282 315 5642 doruandrei@gminvest.ro 

Goldring 265 269 195 269 195 goldring@goldring.ro 

H&C Securities 232 239 019 233 530 iacobut_emanoil@email.ro 

Harinvest 250 735 296 733 898 harinvest@onix.ro 

HB Invest 268 320 029 324 147 hbinvest@easynet.ro 

HTI Valori Mobiliare 21 326 0936 320 2424 office@hti.ro 

Ieba Trust 21 337 4710 337 2584 office@iebatrust.ro 

IFB Finwest 257 281 612 281 611 ifb@ifbfinwest.ro 

ING Securities 21 222 1600 222 1935 bogdan.juravle@ingromania.ro 

Intercapital Invest 21 305 5177 305 5178 office@intercapital.ro 

Interdealer Capital Invest 264 432 266 433 212 interdealer@xnet.ro 

Interfinbrok Corporation 241 639 071 547 829 office@interfinbrok.ro 

Intervam 21 315 70 80 315 8222 intervam@rdsnet.ro 

Invest Trust 251 415 287 417 658 office@investtrust.ro 

Muntenia Global Invest 21 337 0947 337 0946 office@rainvest.ro 

Netinvest 21 313 5350 313 5351 netinvest@rdsnet.ro 

Nova Invest 261 768 478 768 870 svm@nova.ro 

Oltenia Grup Invest 251 410 502 418 215 olteniag@home.ro 

Prime Transaction 21 322 4614 321 5981 office@primet.ro 

Raiffeisen Capital & Investment 21 302 0088 320 9954 dragos.neacsu@rci-bucharest.raiffeisen.at 

Roinvest Bucovina 230 520 133 520 133 roinvest_bucovina@yahoo.com 

Rombell Securities 21 232 0185 232 0197 rombell@grivco.ro 

Romcapital 256 490 122 490 121 romcapital@rdstm.ro 

Romexterra Finance 265 250 132 250 141 romexterrafin@rdslink.ro 

S.S.I.F. Orizont Vest 259 415 031 414 990 orizontv@rdslink.ro 

Societatea de Servicii de Investitii Financiare Romintrade 268 410 605 410 592 office@onlinebroker.ro 

SSIF Broker 264 433 677 433 363 staff@sivmbroker.ro 

SSIF Mobinvest 259 467 335 410 894 ago@rdslink.ro 

Super Gold Invest 248 213 417 215 862 sold@cyber.ro 

Swiss Capital 21 222 7575 222 6169 office@swisscapital.ro 

Target Capital 264 590 776 590 775 office@targetcapital.ro 

TGH Investment 232 216 562 212 744 tghinv@tgh.ro 

Transilvania Capital 266 206 441 206 442 transilvania@nextra.ro 

Trend 234 519 346 519 396 diana@svmtrend.ro 

TVM 21 314 0892 314 0245 tvm@ines.ro 

Unicapital 21 231 8992 231 8991 office@unicapital.eunet.ro 

Unicredit Securities 21 330 3518 330 3586 dsr@dsr.ro 

Valmob Intermedia 248 214 661 210 195 valmob@gic.ro 

Vanguard 21 336 9325 336 9233 office@vanguard.ro 

Voltinvest 251 419 342 415 956 voltinvest@sifolt.ro 

WBS Romania 21 310 4125 310 4124 office@wbs.ro 

World Rom Securities 21 312 0084 312 1590 office@worldrom.com 

PAGE 146


Bulgarian Stock Exchange 

Address: 1,Macedonia Sq., Floor 12, 1000, Sofia, Bulgaria Phone: (2) 986 5915 Fax: (2) 987 5566 E-mail: bse@bse-sofia.bg 

Web Address: www.bse-sofia.bg Country Code: 359 


7M 2 987 2353 986 1179 brokers@ifc7m.com 

ABV Investments 52 601 591 601 593 paveldd@dir.bg 

Accept Invest 2 971 4921 980 04763 accept@exco.net 

Alianz Bulgaria 2 988 5488 981 9307 cap.market1@bank.allianz.bg 

Argo Invest 2 931 0361 931 0361 argoinv@bnc.bg 

Aval IN 2 980 4825 986 0911 aval.in@ibn.bg 

BACB 2 965 8358 944 5010 aboneva@baefinvest.com 

Balkan Advisory Company 2 981 2724 981 7200 plamen_s@bac.bg 

Balkan Investment Company 2 943 9215 943 4718 mar_dimovska@abv.bg 

BBG Simex - Bulgaria 2 980 9330 980 7510 office@bbg-simex.com 

BenchMark Finance 2 962 5405 962 5388 office@benchmark.bg 

Beta Corp 2 986 5566 986 5566 boko@beta-corp.com 

BG ProInvest 2 981 0033 981 0048 vborisova@mbox.bol.bg 

BNP - Paribas Bulgaria 2 980 1237 921 8687 toni.skakalova@bnpparibas.com 

Bora Invest 2 983 1577 980 4770 borainvest@evrika.net 

Bulbank 2 923 2596 988 4636 e.petkov@sof.bulbank.bg 

Bulbrokers 2 980 6685 981 4182 klimentr@bulbrokers.bg 

Bulex Invest 52 632 416 609 550 bulex@varna.net 

Bulfin Invest 2 950 1690 653 665 office@bulfininvest.bg 

Bulgarian Post Bank 2 980 3484 983 8104 ivivanov@postbank.bg 

Bull Trend Brokerage 2 986 4998 986 7998 bull_trend@spnet.net 

Bullinvestment 2 442 839 441 893 bulins@ttm.bg 

Capital Finance 2 981 1755 981 1755 capfin@hotmail.com 

Capital Ing. Project 64 800 627 800 627 capital_ip@mail.orbitel.bg 

Capital Markets 2 933 0030 933 0034 capital_markets@netissat.bg 

Capman Gelsor 2 980 1283 981 6831 mail@capmanbg.com 

CEE Securities Plc 2 975 1690 975 1690 ynedev@cee-securities.com 

Central Cooperative Bank 2 926 6274 980 4386 k.marinov@ccbank.bg 

Corporate & Commercial Bank 2 937 5661 937 5662 mitko@corpbank.bg 

Dealing Financial Company 2 987 0235 987 9240 dfco@mail.bol.bg 

Delta Stock 2 971 2643 739 957 nedkov@deltastock.bg 

Demir Bank 2 989 4444 989 4848 b.israel@demirbank.bg 

DSK Bank 2 980 4058 980 6477 vkostadinov@telelink.bg 

DZI - Investment 2 988 2150 988 2150 dimitar.tonchev@dzi.bg 

DZI Bank 2 930 7135 980 2623 boyan@dzibank.bg 

East 2 981 6076 981 6781 abagar_finance@netissat.bg 

Economic & Inv. Bank 2 985 0026 5 981 3518 anikolov@hq.eibank.bg 

Elana Trading 2 980 2494 981 0941 atanasov@elana.net 

Emporiki Bank 2 917 1717 917 1156 botiana.antova@emporiki.bg 

Euro - Finance 2 980 5657 981 1496 contact@euro-fin.com 

Euro Garant 2 986 7678 980 8242 eurogar@ich-bg.com 

Eurobank 2 969 0722 969 0790 bnikov@eurobank.bg 

Eurodealing 2 981 1732 981 1732 diling@bse.bg 

Euroforum 2 965 1651 953 1621 zinoviev@mail.bg 

Ever 2 737 724 981 0847 ever@ever.bg 

Faktory 2 962 0585 943 4157 factory@mail.bol.bg 

FINA-S 2 955 4055 955 4055 ceo@fina-s.com 

Fininvest 78 510 80 227 10 alexandrina_@hotmail.com 

First Financial Brokerage House 2 980 0879 980 0878 abrashev@ffbh.bg 

First Investment Bank 2 910 01 980 5033 invest@fibank.bg 

Fico Invest 52 603 519 603 519 head@fikoin.bg 

Hebros 2 688 870 903 721 liliya.anachkova@hebros.bg 

HVB Bank Biochim 2 932 0129 932 0104 michael.slavov@biochim.com 

ING Bank - Sofia Branch 2 917 6400 981 4111 emil.asparouchov@ingbank.com 

Intercapital Markets 2 980 1220 980 1220 mayster@intercapital.bg 

International Bank for Trade and Development 2 981 0950 981 0950 bicdcapital@netscape.net 

Investbank 2 981 6938 980 7722 mincho@ibank.bg 

IP Favorit 2 981 3469 981 3467 favorit@ipfavorit.com 

Karoll 2 981 1381 986 5363 nmartinov@karoll.net 

Makler 2002 32 620 698 622 139 makler@techno-link.com 

McCup Brokers 2 954 9979 954 9982 elena@maccupbrokers.biz 

Metrik 2 981 5822 981 4610 metrik_bg@yahoo.com 

Municipal Bank 2 981 9270 981 5147 p.matev@yahoo.com 

Naba Invest 52 699 550 699 553 naba@bulstar.net 

PEB Teximbank 2 833 3240 833 3240 zu@teximbank.bg 

Populiarna Kasa 95 32 627 727 265 353 niki@balkansys.com 

Positiva 2 846 6623 846 8293 positiva@data.bg 

Raiffeisenbank - Bulgaria 2 919 8545 2 919 85452 stoian.nikolov@rbb-sofia.raiffeisen.at 

Real Finance 52 603 830 603 830 dimitrov@real-finance.net 

PAGE 147


Bulgarian Stock Exchange (con’t) 


Sofia International Securities 2 988 6340 988 6341 info@sis.bg 

Sofia Invest Brokerage 2 980 4431 981 7119 amenkajiev@sib.orbitel.bg 

Somoni 2001 42 541 97 605 202 somoni2001@mbox.contact.bg 

Standart Investment 2 971 7667 870 3270 standardinvest@rotop.com 

Statos Invest 2 981 3709 980 0447 contact@status-invest.bg 

TBI Invest 2 980 8120 937 5069 n_tisheva@tbiam.bg 

Tokuda Kredit Expres Bank 2 981 0167 981 5378 g.evtimov@tcebank.com 

UG Market 32 625 401 625 402 office@ugmarket.com 

Unibank 2 812 0247 986 2879 feib@asico.net 

Unionbank 2 987 7620 980 2367 atanasovm@unionbank.bg 

United Bulgarian Bank 2 811 3753 988 0811 dimitrova_k@sof.ubb.bg 

Unity Invest - 99 2 986 3351 986 3351 valtod@abv.bg 

Varchev Finance 52 631 000 634 040 alexminator@abv.bg 

VIP-7 52 631 020 631 020 vip7@mail.orbitel.bg 

Zagora Finakorp 42 600 204 234 43 zagora98@hotmail.com 

Zlaten Lev Brokers 2 965 4511 965 4552 zlatenlev@online.bg 

Cairo & Alexandria Stock Exchanges 

Address: 4A, El Sherefeen St. Cairo, Egypt Phone: (2) 395 5266 Fax: (2) 395 5799 E-mail: info@egyptse.com 

Web Address: www.egyptse.com Country Code: 20 


Agead Securities Brokers 2 302 3735 305 4038 agyad@yahoo.com 

Al Ahram Co. Stock Exchange & Securities Brokers 2 393 3543 390 6579 ahrambrk@hotmail.com 

Al Aliaa Stock Brokerage House 2 338 5195 761 7509 alaliaa@mist-net.net 

Al Amalka Securities Trading 2 304 7732 305 2846 alamalk@thewayout.net 

Al Hamd for Stock Brokerage 2 624 2376 623 4176 

Al Karma Brokerage Co. 2 417 3597 417 3597 alkarma@link.net 

Al Manar for Stock Exchange 2 396 1905 396 1907 

Al Nasr Securities Brokerage Co. 2 519 2703 519 2778 research@alnasrsecurities.com 

Al Rowad Securities Brokerage SAE 2 749 7600 335 8978 

Al Shark El Awsat for Securities Brokerage 2 393 5995 393 5823 sh_elkhodry20@yahoo.com 

Al Shorouk Brokerage 2 578 1177 578 1166 alshorouk@link.com.eg 

Alex Securities Brokerage Co. 3 484 0655 484 1021 kamel_1@mist-net-com 

Aman Securities Co. 2 794 2883 794 3232 amanbrok@yahoo.com 

Arabia Company for Stockbrokers 2 392 4345 393 3677 arabia_brokers@hotmail.com 

Axion Dor 2 736 8550 736 1410 

Bab El Molouq Securities 3 486 0800 485 9551 bab_el_molouq@mist-n 

Bankers Group for Bookkeeper & Brokerage 2 395 8382 395 8384 ramzytolba@hotmail.co 

Baraka for Securities Brokerage 2 395 6111 392 1478 baraka@linknet.com 

Brokers Stock Exchange 3 485 6128 485 6128 brokers_com@yahoo.com 

Cairo International Securities Exchange 2 636 2748 636 2748 cise@hotmail.com 

Cairo National Co. Securities Negotiation 2 760 9394 760 9438 cnrs@mist-net.com 

Capital Securities Brokerage 2 261 7188 404 2449 csb@gega.net 

Champollion Brokerage 2 392 5737 393 4828 osmanchamp@hotmail.com 

Commercial International Brokerage Co. 2 338 3906 761 8379 helguindy@cibcegypt.com 

Continental for Securities Trading & Bookkeeping 2 336 7065 336 9725 

Correct Line Brokerage & Stock Exchange 2 338 0568 338 0568 correctline2003@hotmail.com 

Counsel Inc. 2 792 1100 792 1300 counselinc@consultant.com 

Delta Securities Egypt 2 347 2120 347 2180 info@delta-securities.com 

Dynamic Securities Trading Co. 2 303 8370 305 3423 info@d-securities.com 

Egypt Brokerage 2 578 0401 575 9815 gfm.01014@mcsd.com.eg 

Egypt Trust Securities 2 395 2515 395 2515 e_trust@hotmail.com 

Egyptian American Co. for Brokerage 2 336 6448 338 8442 eab1091@hotmail.cim 

Egyptian Group for Securities 2 792 0183 792 0183 egsecurities@hotmail.com 

Egyptian Kuwaiti Securities Co. 2 579 8551 579 8554 egku181@hotmail.com 

El Alamia for Brokerage 2 393 5874 393 5874 alamia-b@internetegypt.com 

El Amal Stock Brokerage Company 3 545 8947 545 8947 

El Dawlia Company for Securities 3 486 0505 484 4457 

El Eman Securities Brokerage 2 419 9529 417 2295 

El Etehad Brokerage Company 2 395 7265 395 4839 

El Fath Stockbrokers 2 794 4712 794 6216 

El Giza for Securities Trading 2 568 2701 571 3179 gizabk@link.net 

El Horreya Securities Brokerage Co. 2 390 4940 395 2172 horreya105@hotmail.com 

El Karnak Stock Brokerage 2 3937 7715 393 7715 elkarnak@yahoo.com 

El Kheir for Circulating & Keeping Securities 3 483 6966 480 3767 elkhair.comp@maileit 

El Kinanah Brokerage Securities Co. 2 395 5053 395 5046 info_kinanah.com.eg 

El Mahrousa for Securities Trading 3 486 8267 487 1490 mahrousa101@hotmail.com 

El Misryeen Securities Brokers 2 395 4880 395 4691 

El Mokattam Securities Brokerage 2 396 0123 395 5614 gfm.01086@mcsd.com.eg 

PAGE 148


Cairo & Alexandria Stock Exchanges (con’t) 


El Mostakbal Brokerage Co. 2 577 5361 577 5361 

El Nour Securities 2 304 5686 304 5686 alnoursecurities@hotmail.com 

El Omanaa El Motahedeen for Bookkeeping & Brokerage 3 484 5088 484 4712 gfm_02019@mcsd.com. 

El Safa for Securities Brokerage 3 487 4030 487 4030 

El Salam Co. for Brokerage 2 391 9215 392 8162 salambrk@arabia.com 

El Tadamon El Arabi Brokerage Co. 2 338 5466 335 3990 tadamonar@link.net 

European Group for Brokerage & Bookkeeping 2 

Farana Securities Trading 2 748 1484 748 1484 gfm_01022@mcsd.com.eg 

Financial Brokerage Group 2 338 8851 338 8668 ops@efg-hermes.com 

Fleming Al Mansour Securities Brokerage 2 eg-brok@usa.net 

Fleming CIIC Securities Brokerage 2 

Fortune Securities Co. 2 336 8129 336 2373 fortune@link.com.eg 

Global Capital Securities 2 418 7750 415 7313 

Golden Hand for Securities Brokerage and Bookkeeping Co. 2 392 4570 395 3796 golden_hand98@hotmail.com 

Golden Share Stocks 2 

Golden Way Securities 2 338 4171 338 6533 goldenway@golden-way.net 

Guarantee for Securities Exchange 2 392 6578 392 4255 gurantee_1136@yahoo.com 

HC Brokerage 2 749 6009 749 6055 hcgroup@hc-si.com 

Helwan Brokerage & Bookkeeping 2 554 8838 554 8838 helwan_co@hotmail.com 

Hermes for Securities Brokerage 2 338 8851 338 5400 

Honest for Brokerage & Bookkeeping 2 520 3780 519 0666 

Horus for Brokerage 2 588 9410 588 9410 horas2003_8@hotmail.com 

HSBC Securities Egypt 2 738 0145 738 0028 Shereenghattass@hsbc.com 

International Brokerage Group 2 590 5184 590 5195 lbggroup@egypto line.com 

International for Securities 2 418 3340 418 6272 int_for_sec@hotmail.com 

Investia Misr Romania 2 761 7688 761 7680 saz@investiaco.com 

Lepon Securities Brokerage & Bookkeeping 2 736 3220 736 3617 m_saleh2003@yahoo.com 

Lotus Securities Trading 2 

Luxor Securities Brokerage Co. 2 592 0634 592 9071 luxor@yahoo.com 

Maadi Co. for Stock Dealing 2 760 0261 760 0261 maadi@mist-net.net 

Marwa Brokerage Co. 2 578 0625 578 3855 gfm.01051@mcsd.com.eg 

Mediterranean Co. for Brokerage Securities 2 576 7187 576 7879 badrello@link.net 

Metro Company for Bookkeeping & Stock Dealing 2 526 0445 526 0447 info@metrobrokerage.com 

Mina Brokers Stock Exchange 2 417 2930 417 2930 

Miracle for Securities Transactions Co. 2 392 1378 392 1377 miracle_securities@hotmail.com 

Misr International for Trading Securities 3 484 8138 484 8265 mis@investiaco.com 

Nile Investments Securities 2 760 2951 338 8653 www.nileinv.com 

Okaz Stockbrokers & Investment Consultants 2 589 5321 589 1499 okaz@okaz-stockbrokers.com 

Optima Securities Brokerage 2 578 4725 578 4726 optimabrokrage.com 

Oroba Stock Exchange Corporation 2 391 1802 393 0234 oroba@link.net 

Pharaonic Brokerage Co. 2 393 5200 390 1399 pharonic_b@hotmail.com 

Pioneers for Securities 2 392 2461 392 2461 pioneers_brokers@usa.net 

Premiere Brokerage Co. 2 

Prime Securities 2 338 1526 338 1993 prime@primeegypt.com 

Prizma Securities Company 2 338 1810 338 1813 okaz@okaz-stockbrokers.com 

Profit for Securities 2 390 3843 390 4891 profit_securities@yahoo.com 

Queen for Brokerage & Stock Exchange 2 575 3652 575 3931 queenq@hotmail.com 

Roots Stock Brokerage House 2 395 3041 395 2799 

Safir International for Stockbrokers 2 639 7093 639 5081 safirnet@inteotch.com 

Sigma Securities 2 735 6060 736 8044 securities@sigma-cap.com 

Stars Securities Brokerage 2 401 4089 262 4260 starsm@hotmail.com 

Strategic Securities Group 2 304 1260 304 1290 ssgroup@link.net 

Swiss Group for Securities Brokerage 2 450 3150 451 2030 

Takamol Securities Brokerage Co. 3 485 4500 485 4500 

Team for Securities Exchange Co. 3 487 1568 484 8926 tahio teem@hotmail.com 

The Golf for Stock Brokerage 3 541 1756 543 6601 

Three Way for Stock Exchanges Brokerage 2 792 5045 792 5045 gfm_01116@mesd.com.eg 

Tiba Brokerage Co. 2 390 5906 390 5906 tiba4@excite.com 

Top for Brokerage 2 623 6941 623 6941 top_4_brokerage@yahoo.com 

Triple A Securities 2 574 5427 579 7442 

Tropicana for Brokerage and Bookkeeping 2 395 0014 395 0014 tropicana@mbox.link.com.eg 

Trust Group for Securities 2 792 4026 792 5884 trust@trust.com.eg 

Tycoon for Brokerage & Bookkeeping 2 792 2701 794 6800 sadany2@yahoo.com 

United Brokerage Corporation & Bookkeeping 2 569 9108 569 9108 u.b.c@link.net 

United Brothers Co. 2 

United Economic Group 2 579 0647 574 7012 

United Securities Stockbrokers 2 390 9994 390 9995 

Universal Stock Exchange 2 358 5298 358 9042 

Wall Street Securities 2 395 3034 395 3034 wallstr2000@yahoo.com 

Watania Brokers 3 484 3527 484 3527 

Wedian Securities Stock Brokerage and Bookkeeping 2 393 8930 393 9235 gfm_01082@mcsd.com.eg 

Yasmine Brokerage Co. 3 485 8111 484 4216 yasmbrok@yahoo.com 

PAGE 149


Georgian Stock Exchange 

Address: 74a Chavchavadze Avenue Tbilisi 0162 Georgia Phone: (32) 220 718 Fax: (32) 251 876 E-mail: info@gse.ge 

Web Address: www.gse.ge Country Code: 995 


AB Group 32 252 815 252 815 gogit@posta.ge 

Basis 32 922 922 986 548 

Bona 32 230 074 

Cartu Broker 32 230 021 251 410 cartubroker@cartubank.ge 

Delpho 32 330 906 330 906 

Forsam-2000 32 222 593 f2000@mail.ge 

Galt & Taggart Securities 32 235 800 235 804 ikirtava@galtandtaggart.ge 

Georgian Investment Group 

(recent Investment Bank Investcontract) 32 225 907 225 907 info@inbestgroup.ge 

Georgian Stock Company 32 987 109 987 109 forex@ugb.com.ge 

GMB Group 88222 760 01 760 04 

Helman 32 941 828 922 900 davidchkonia@mail.ru 

Industria Investi 70596 760 08 705 96 achikom@msn.com 

Kabarjina 32 250 052 

Oden 32 294 621 

TBC Broker 32 222 537 222 537 lbadalashvili@tbcbank.com.ge 

Tbilintercapital 32 433 095 tic@wanex.net 

Istanbul Stock Exchange 

Address: IMKB Building, Resitpasa Mah., Tuncay Artun Cad., Emirgan, 34467 Istanbul, Turkey Phone: (212) 298 2100 Fax: (212) 298 2500 

E-mail: dis@imkb.gov.tr Web Address: www.ise.org Country Code: 90 


ABN Amro Bank N.V. Amsterdam/Istanbul Branch 212 359 4040 359 5050 

ABN Amro Yatirim Menkul Degerler A.S. 212 311 1000 311 1002 

Acar Yatirim Menkul Degerler A.S. 212 216 2661 266 0543 trade@acar.com.tr 

Ada Menkul Degerler A.S. 212 213 2570 288 5796 admweb@rumeli.com 

Adabank A.S. 212 272 6420 288 5796 

Ak Yatirim Menkul Degerler A.S. 212 252 8989 249 1287 musteri.hizmetleri@akyatirim.com.tr 

Akbank T.A.S. 212 270 0044 269 7383 akmen1@akbank.com.tr 

Akdeniz Menkul Degerler Tic. A.S. 212 233 1102 234 4101 

Alan Yatirim Menkul Degerler A.S. 212 236 6869 236 7293 imkb@alanyatirim.com.tr 

Alfa Menkul Degerler A.S. 212 352 6060 352 5612 

Altay Yatirim Menkul Degerler A.S. 212 229 5980 225 0135 

Alternatif Yatirim A.S. 212 315 5800 231 3842 bilgi@ayatirim.com.tr 

Alternatifbank A.S. 212 232 4400 233 3780 abank.imkb@abank.com.tr 

Anadolu Yatirim Menkul Kiymetler A.S. 212 233 3322 233 3318 

Anadolubank A.S. 212 296 9811 296 5715 

Arap Turk Bankasi A.S. 212 225 0500 224 9687 treasury@arabturkbank.com 

Ari Menkul Kiymetler A.S. 216 369 0590 369 1509 arimenkul@superonline.com 

Arigil Menkul Degerler A.S. 212 251 0554 252 0661 arg@turk.net 

Arti Menkul Kiymetler A.S. 212 234 7390 234 9668 

As Menkul Kiymetler A.S. 212 232 2721 232 9045 asmenkul@superonline.com 

Ata Yatirim Menkul Kiymetler A.S. 212 310 6200 310 6210 

Ataonline Menkul Kiymetler A.S. 212 310 6060 259 0764 

Ayborsa Menkul Degerler Tic. A.S. 212 220 0930 220 3851 ayborsa@ayborsa.com.tr 

B.A.B. Menkul Degerler Ticareti A.S. 212 234 4428 296 2834 babmenkul@tnn.net 

Bahar Menkul Degerler Ticareti A.S. 216 345 4438 347 8980 bahar@baharmenkul.com.tr 

Bankeuropa Bankasi A.S. 212 231 4010 233 1968 fon.yonetimi@sitebank.com.tr 

Baran Menkul Degerler A.S. 216 445 0364 373 5520 brn.imkb@doruk.net.tr 

Baskent Menkul Degerler ve Yatirim A.S. 212 291 2121 219 0535 baskent@baskentyatirim.com.tr 

Bayindirbank A.S. 212 340 1345 340 1339 

Bender Menkul Degerler A.S. 212 252 2000 293 3490 imkb@bendersecurities.com 

Bizim Menkul Degerler A.S. 216 360 4760 360 1355 bmd@bmd.com.tr 

BNP-Ak Dresdner Bank A.S. 212 339 5700 339 5705 treasury@bnp-ak-dresdner.com.tr 

Bumerang Menkul Degerler A.S. 212 323 1718 323 1728 bilgi@bumerang.com.tr 

C Kredi ve Kalkinma Bankasi A.S. 212 290 3232 290 3238 

C Menkul Degerler A.S. 212 290 3232 290 2690 

Calyon Bank Turk A.S. 212 279 7070 282 6301 indosuez@turk.net 

Camis Menkul Degerler A.S. 212 350 3002 350 5150 ccakir@sisecam.com.tr 

Censa Menkul Degerler A.S. 212 346 0300 346 0333 censa@netone.com.tr 

Citibank A.S. 212 288 7700 288 7760 

Cagdas Menkul Degerler A.S. 212 236 4510 236 4520 cagdasmd@netone.com.tr 

Calik Yatirim Bankasi A.S. 212 339 1414 339 1444 

Deger Menkul Degerler A.S. 212 286 4800 286 4818 degermenkul@degermenkul.com.tr 

Deha Menkul Kiymetler A.S. 212 252 7190 252 7198 deham@sim.net.tr 

Delta Menkul Degerler A.S. 212 236 4274 236 6567 deltamenkul@deltamenkul.com.tr 

Deniz Yatirim Menkul Kiymetler A.S. 212 275 3500 212 5412 info@denizyatirim.com 

PAGE 150


Istanbul Stock Exchanges (con’t) 


Denizbank A.S. 212 355 0800 267 2724 

Deutsche Bank A.S. 212 317 0100 317 0105 sibel.turkmen@bankerstrust.com 

Dis Yatirim Menkul Degerler A.S. 212 358 0770 358 0778 dis_yatirim@disbank.com.tr 

Disbank A.S. (Turk Dis Ticaret Bankasi A.S.) 212 274 4280 211 5879 hazine@disbank.com.tr 

Diler Yatirim Bankasi A.S. 212 297 1790 253 9454 o.yakar@dilerbank.com.tr 

Dundas Unlu Menkul Degerler A.S. 212 330 0202 330 0178 

Dunya Menkul Degerler A.S. 212 512 8465 527 2337 dunya@dunyamenkul.com.tr 

Eczacibasi Menkul Degerler A.S. 212 319 5999 319 5790 info@emdas.com 

Egemen Menkul Kiymetler A.S. 232 489 4530 489 6130 egemen@egemen.com 

Ekinciler Yatirim Menkul Degerler A.S. 212 266 2766 266 1607 ekincileryatirim@ekinvest.com 

Ekol Menkul Degerler A.S. 212 511 9922 513 7125 fekol@ihlas.net.tr 

Ekspres Yatirim ve Menkul Degerler A.S. 212 336 5100 336 5101 

Entez Menkul Degerler Ticareti A.S. 216 348 0433 346 6343 

Erciyes Menkul Degerler A.S. 212 292 0606 292 0688 

Es Menkul Degerler Yatirim A.S. 216 554 0404 554 0405 

Eti Menkul Kiymetler A.S. 212 347 8181 347 7635 akift@etimenkul.com.tr 

Euro Yatirim Menkul Degerler A.S. 212 354 0700 356 2076 

Evgin Yatirim Menkul Degerler Ticareti A.S. 212 270 1046 282 8820 

Finans Yatirim Menkul Degerler A.S. 212 282 1700 282 2250 imkb@finansinvest.com 

Finansbank A.S. 212 216 7070 216 1538 treasury@finansbank.com.tr 

Form Menkul Degerler A.S. 212 284 8495 284 8492 tezeller@superonline.com 

Garanti Yatirim Menkul Kiymetler A.S. 212 318 2838 217 8470 

Gedik Yatirim Menkul Degerler A.S. 216 453 0000 453 0101 gedik@gedik.com 

GFC General Finans Menkul Degerler A.S. 212 233 1010 296 8575 gfc@gfc.com.tr 

Gisad Menkul Degerler A.S. 212 358 4030 358 4605 

Global Menkul Degerler A.S. 212 244 5566 244 5567 global@global.com.tr 

GSD Yatirim Bankasi A.S. 216 489 9750 489 9781 

Guney Menkul Degerler A.S. 212 212 6300 216 0049 guney@guneymenkul.com.tr 

Guven Menkul Degerler A.S. 212 212 3270 288 5038 guvenmenkul@turk.net 

Hak Menkul Kiymetler A.S. 212 296 8484 232 9823 hakmenkul@hakmenkul.com.tr 

Halk Yatirim Menkul Degerler A.S. 212 393 0303 292 9946 

HC Istanbul Menkul Degerler A.S. 212 317 2727 317 2726 hcistanbul@hcistanbul.com 

Hedef Menkul Degerler A.S. 212 310 2700 227 8333 

HSBC Bank A.S. 212 366 1173 336 2641 midland@escortnet.com 

HSBC Yatirim Menkul Degerler A.S. 212 366 1600 336 2472 

Inter Yatirim Menkul Degerler A.S. 212 236 4141 236 3918 info@interyatirim.com.tr 

Iktisat Yatirim Menkul Degerler A.S. 212 267 5610 267 5627 iktisatyatirim@iktisatyatirim.com.tr 

Info Menkul Degerler A.S. 212 319 2600 324 8428 

Is Yatirim Menkul Degerler A.S. 212 350 2000 350 2001 info@isyatirim.com.tr 

JP Morgan Chase Bank New York/Istanbul Branch 212 227 9700 227 9727 

K Yatirim Menkul Degerler A.S. 212 212 3878 356 2228 

Kalkinma Yatirim Menkul Degerler A.S. 212 213 3005 211 9702 info@kmd.com.tr 

Kent Yatirim Ve Menkul Degerler A.S. 212 245 4482 293 7936 

Koc Yatirim Menkul Degerler A.S.-Koc Yatirim 212 217 4777 212 5334 saloz@kocmenkul.com.tr 

Kocbank A.S. 212 274 7777 354 2706 danyal@kocbank.com.tr 

Marbas Menkul Degerler A.S. 212 225 0111 225 0122 marbas@marbasmenkul.com.tr 

Med Menkul Degerler A.S. 212 345 0228 345 0227 medmenkul@usa.net 

Meksa Yatirim Menkul Degerler A.S. 212 351 5261 351 5182 

Menka Menkul Degerler Ticareti A.S. 216 348 1654 345 9321 menka@superonline.com 

Merkez Menkul Degerler A.S. 312 311 6665 311 3397 merkez@merkezmenkul.com.tr 

MNG Bank A.S. 212 368 3434 368 3535 mngbank@mngbank.com.tr 

MNG Menkul Kiymetler Yatirim A.S. 212 249 9333 293 4888 mng@mngyatirim.com.tr 

Nurol Menkul Kiymetler A.S. 212 286 8000 286 8001 info@nurolonline.com 

Nurol Yatirim Bankasi A.S. 212 286 8000 286 8001 

Oyak Bank A.S. 212 335 1000 286 6334 oyakbank@superonline.com 

Oyak Yatirim Menkul Degerler A.S. 212 319 1200 351 0599 

Oncu Menkul Degerler A.S. 212 251 8380 251 9012 www.oncumenkul.com.tr 

Oner Menkul Kiymetler A.S. 212 234 4062 225 9892 onr.imkb@superonline.com 

Pamuk Yatirim Menkul Degerler A.S. 212 275 2424 213 2851 genborsa@superonline.com 

Pay Menkul Degerler A.S. 212 275 1708 275 0185 paymenkul@paymenkul.com.tr 

Piramit Menkul Kiymetler A.S. 212 293 9500 293 9559 pramit@ravanda.net 

Polen Menkul Degerler A.S. 212 252 1212 249 3544 polen@polen.com.tr 

Prim Menkul Degerler A.S. 212 283 8888 283 8890 info@prim.com.tr 

Raymond James Yatirim Menkul Kiy. A.S. 212 287 4004 287 5910 rjs@prjs.com.tr 

San Menkul Degerler A.S. 212 243 3500 249 1332 san.imkb@superonline.com 

Sanko Menkul Degerler A.S. 212 413 0500 413 0505 

Sayilgan Menkul Degerler Ticareti A.S. 212 520 4242 513 5209 sayilgan@aidata.net.tr 

Societe Generale Paris/Istanbul Branch 212 282 1942 282 1844 socgenist@superonline.com 

Soymen Menkul Kiymetler A.S. 312 468 8750 468 8101 soymen@soymen.com.tr 

Standard Yatirim Menkul Kiymetler A.S. 212 323 4885 323 4849 ubyatirim@ubyatirim.com.tr 

Stok Menkul Degerler A.S. 212 274 1988 274 2954 stok@stokmenkul.com.tr 

PAGE 151


Istanbul Stock Exchanges (con’t) 


Strateji Menkul Degerler A.S. 212 288 5521 288 4811 strateji@strateji.com.tr 

Sumer Menkul Degerler A.S.-Sumer Menkul 212 286 2540 285 4369 sumeryatirim@sumeryatirim.com.tr 

Seker Yatirim Menkul Degerler A.S. 212 213 4370 213 4391 

Sekerbank T.A.S. 212 319 7200 

T.C Ziraat Bankasi Head Office Capital Markets Dept. 212 276 5960 276 9316 

T. Garanti Bankasi A.S. 212 318 1818 216 6093 

T. Halk Bankasi A.S. 212 393 0579 393 0596 hazops@halkbank.com.tr 

T. Ihracat Kredi Bankasi A.S. (Eximbank A.S.) 312 417 1300 425 2947 ankara@Eximbank.gov.tr 

T. Is Bankasi A.S. 212 316 0000 316 0900 tib@isbank.com.tr 

T. Kalkinma Bankasi A.S. 312 417 9200 417 1220 tkbhzn@tkb.com.tr 

T. Sinai Kalkinma Bankasi A.S. 212 334 5050 243 2975 servis@tskb.com.tr 

T. Vakiflar Bankasi T.A.O. 312 455 7575 455 7690 

Tacirler Menkul Degerler A.S. 212 355 4646 282 0997 tacirler@superonline.com 

TAIB Yatirim Menkul Degerler A.S. 212 347 5454 347 0111 taibyat@yatirimbank.com.tr 

TAIB Yatirim Bank A.S. 212 347 5454 347 0111 yatirim@yatirimbank.com.tr 

Taksim Menkul Degerler A.S. 212 251 7116 249 7483 taksimmenkul@turk.net 

Taris Menkul Degerler A.S. 232 446 1470 446 3199 tarisytr@tarisbank.com.tr 

TEB Yatirim Menkul Degerler A.S. 212 345 1111 345 0714 invest@teb.com.tr 

Tekfenbank A.S. 212 357 0707 357 0808 spo@bankekspres.com.tr 

Tekstil Bankasi A.S. 212 335 5335 276 2383 

Tekstil Menkul Degerler A.S. 212 276 2727 276 2900 tekstilmenkul@tekstilbank.com.tr 

Tezal Menkul Degerler A.S. 212 385 0101 385 0199 tezal@bumed.com.tr 

Ticaret Menkul Degerler A.S. 212 514 5844 514 5846 

Toprak Menkul Degerler A.S. 212 344 0900 344 0913 

Toros Menkul Kiymetler Ticareti A.S. 212 231 5252 231 3849 torossec@superonline.com 

TSKB Menkul Degerler A.S. 212 334 5050 292 8012 

Turkish Bank A.S. 212 225 0330 225 0353 tbtreasury@turkishbank.com 

Turkish Yatirim A.S. 212 233 4848 240 8885 tky@turkishyatirim.com 

Turk Ekonomi Bankasi A.S. 212 251 2121 249 6568 htirasin@comnet.com.tr 

Ulus Menkul Degerler A.S. 212 257 3232 257 1193 eposta@ulusmenkul.com 

Universal Menkul Degerler A.S. 212 329 7900 276 5617 

Vakif Yatirim Menkul Degerler A.S. 212 352 3577 352 3620 vakyat@vakifbank.com.tr 

WestLB AG Dusseldorf/Istanbul Branch 212 339 2500 283 0460 treasury_is@westlb.com.tr 

Yapi Kredi Yatirim Menkul Degerler A.S. 212 280 1030 325 2245 ykryatirim@superonline.com.tr 

Yapi ve Kredi Bankasi A.S. 212 339 7000 339 6060 hazine@ykb.com 

Yatirim Finansman Menkul Degerler A.S. 212 317 6900 282 1550 

Ziraat Yatirim ve Menkul Degerler A.S. 212 285 1150 285 1661 

Karachi Stock Exchange 

Address: K.S.E. Building, Stock Exchange Rd., Offl. I. Chundrigar Road, Karachi-74000, Pakistan Phone: (21) 241 5213 Fax: (21) 242 9653 

E-mail: companyaffair@kse.com.pk Web Address: www.kse.com.pk Country Code: 92 


A. Jabbar H. Ali Mohammed Khanani 21 241 6321 242 6180 

A. Latif Noorani 21 241 0240 242 8776 

A. Razzak Haji Jan Mohammed Kapadia 21 241 3087 

A. Rehman H. A. Durvesh 21 241 6059 

A. Sattar Dawood Adhi 21 241 1558 

A. Sattar Motiwala Securities (Pvt.) Ltd. 21 244 6230 

A.H.K.D. Securities (Pvt.) Ltd. 21 244 4499 

AAG Securities (Pvt.) Ltd. 21 242 9382 

Aba Ali Habib 21 241 2491 241 3822 

Aba Hussain A. Karim 21 241 3087 

Abbasi Securities (SMC-PVT.) Ltd. 21 242 3785 241 8823 aijaz_abbasi@hotmail.com 

Abdul Aziz Badi 21 241 7279 

Abdul Aziz Moosa Khanani 21 242 1752 

Abdul Aziz Tayub Patel 21 241 6647 

Abdul Aziz Umer 21 241 2280 

Abdul Kadir Yusuf 21 243 9867 243 9870 shares@akystocks.com 

Abdul Majeed Zakaria 21 242 8184 amzhv@super.net.pk 

Abid Ali Habib 21 241 7674 

ACE Securities (Pvt.) Ltd. 21 244 4313 242 6900 

Adam Securities (Pvt.) Ltd. 21 242 0909 243 7380 

Afroz Ali Merchant 21 241 7434 

Akhai Securities (Pvt.) Ltd. 21 241 8672 

Al-Asar Securities (Pvt.) Ltd. 21 243 6786 243 2086 

Alfa Adhi Securities (Pvt.) Ltd. 21 242 2550 242 5669 info@alfa-tec.com 

Alfalah Securities (Pvt.) Ltd. 21 242 2359 242 2358 smemon@alfalahsec.com 

Ali Hassnain Yusuf Ali 21 244 1100 242 8488 

Ali Husain Rajabali Ltd. 21 241 7601 242 0485 ahrl@cyber.net.pk 

PAGE 152


Karachi Stock Exchanges (con’t) 


Al-Mal Securities & Services Ltd. 21 244 4829 242 7082 al-mal@cyber.net.pk 

Altaf Adam 21 244 0242 242 7768 altafadam001@hotmail.com 

Amanullah Haji Mohammed Marfani 21 241 6480 242 4363 

Amber Haroon Saigol 21 567 0001 

Amin Issa Tai 21 242 9505 242 3469 

Amin Siddique Parekh Securities (Pvt.) Ltd. 21 241 1524 

Amin Zakaria 21 241 0301 

Ample Securities (Pvt.) Ltd. 21 244 6796 241 2412 

AMS Brokerage (Pvt.) Ltd. 21 568 2349 

AMZ Securities (Pvt.) Ltd. 21 241 8491 241 8495 info@amzsecurities.com 

Apex Capital Securities (Pvt.) Ltd. 21 247 2390 247 2397 

Aqeel Karim Dhedhi Securities (Pvt.) Ltd. 21 242 6651 242 6429 

Arif H. Yousuf Saya 21 241 7393 242 7664 

Arif Habib Securities Ltd. 21 241 5213 242 9653 ahsl@cyber.net.pk 

Ashfaq Zakaria Ghory 21 242 0005 

Asian Securities Ltd. 21 242 6649 587 0404 asian@khi.comsats.net.pk 

Azee Securities (Pvt.) Ltd. 21 241 1698 241 0708 goldencapital@mail.com 

Aziz Fidahusein & Co. (Pvt.) Ltd. 21 241 0091 241 5042 

B&B Securities (Pvt.) Ltd. 21 241 0857 

Bawa Securities (Pvt.) Ltd. 21 241 8253 241 0313 mhbawa@cyber.net.pk 

Bilquis Saleem Gazipura 21 241 8903 242 2893 bsgkse@sat.net.pk 

BMA Capital Management Ltd. 21 111 2622 243 7094 

Capital One Equities Ltd. 21 241 2295 241 0470 

Cliktrade Ltd. 21 537 9611 537 9669 info@cliktrade.com 

Concordia Securities (Pvt.) Ltd. 21 242 4526 243 4832 

Continental Capital Management (Pvt.) Ltd. 21 244 6723 

D.J.M. Securities (Pvt.) Ltd. 21 244 1193 244 3541 

Dalal Securities (Pvt.) Ltd. 21 241 9601 243 6565 msdalal@cyber.net.pk 

Darson Securities (Pvt.) Ltd. 21 636 6655 631 4293 

Dawood Mohammed 21 241 3931 

Eastern Capital Ltd. 21 244 6265 244 6267 info@easterncapital.com 

Elixir Securities Pakistan (Pvt.) Ltd. 21 240 1021 info@elixirsec.com 

Escorts Investment Bank Ltd. 21 mailmanager@escorts.bank.net 

Fawad Yusuf Securities (Pvt.) Ltd. 21 244 4554 242 8464 fysec@yahoo.com 

FDM Capital Securities (Pvt.) Ltd. 21 242 7174 243 0302 

Finex Securities Ltd. 21 242 9601 242 9607 fsl@finexsecurities.com 

Firozuddin A. Cassim 21 241 5459 

First Capital Equities Ltd. 21 242 5698 242 5329 

First Equity Modaraba 21 567 2815 568 6116 

First National Equities Ltd. 21 587 2697 583 5955 mticek@yahoo.com 

Fortune Securities Ltd. 21 244 4228 244 4229 

Friendly Securities (Pvt.) Ltd. 21 244 2174 244 2189 fsl@sat.net.pk 

Ghulam Mohammed Ismail 21 241 7628 243 7135 gmismail-131@yahoo.com 

Global Securities Pakistan Ltd. 21 244 3880 244 3889 

H. M. Idrees H. Adam 21 242 5001 

H. M. Younus Janmohammed 21 241 9885 

H.H.K. Securities (Pvt.) Ltd. 21 111 6336 

Haji Abdul Latif Suleman 21 243 1957 243 3767 

Haji Anis Pardesi 21 242 8973 241 6450 

Haji Ghani Haji Usman 21 247 0220 247 0090 

Haroon Suleman 21 241 2622 

Hussain Ebrahim (LATE) 21 241 7601 ahrt@cyber.net.pk 

I.G.M. Securities (Pvt.) Ltd. 21 231 3850 

I.I. Kodvavi Securities (Pvt.) Ltd. 21 244 6651 244 6655 uk143@hotmail.com 

Intermarket Securities (Pvt.) Ltd. 21 242 8765 242 7388 

Invest and Finance Securities (Pvt.) Ltd. 21 521 5091 520 0077 

Invest Capital & Securities (Pvt.) Ltd. 21 521 5226 521 5200 research@investcapital.com 

Investec Securities Ltd., (Suspended) 21 244 4428 244 4432 

Iqbal Usman Kodvavi Securities (Pvt.) Ltd. 21 242 4144 242 9802 iuksec@hotmail.com 

Irfan Mazhar Securities (Pvt.) Ltd. 21 244 6155 244 6157 

Ismail Abdul Shakoor 21 242 4057 242 4043 

Ismail Iqbal Securities (Pvt.) Ltd. 21 247 0998 247 0126 info@ismailiqbal.com 

J.P. Morgan Pakistan Broking (Pvt.) Ltd. 21 242 6203 

Jahangir Siddiqui & Co. Ltd. 21 243 1181 243 1178 info@jahangirsiddiqui.com 

Jahangir Siddiqui Capital Markets (Pvt.) Ltd. 21 243 1181 243 1178 info@jahangirsiddiqui.com 

Jan Mohammed A. Latif Nini & Sons (Pvt.) Ltd. 21 241 1284 242 0277 tufaily@cyber.net.pk 

Javed Gulzar 21 630 7680 

Javed Omer Vohra & Co. Ltd. 21 241 0849 241 5709 javcoltd.@hotmail.com 

Javed Zakaria Gulabi 21 241 1492 

KASB Securities (Pvt.) Ltd. 21 263 0202 kasbho@kasb.com 

Kausar Abbas Bhayani 21 242 9774 242 1755 kabsec@cyber.net.pk 

PAGE 153




Khawaja Amir Ishaq 21 244 6581 244 6585 

Lakhani Securities (Pvt.) Ltd. 21 241 3741 242 3467 chairman@kse.com.pk 

Live Securities (Pvt.) Ltd. 21 241 9649 live@kalpoint.com 

M. Nisar M. Usman (Ashrafi) 21 241 1617 

M.A.N. Securities (Pvt.) Ltd. 21 241 0240 

M.B.J. Securities (Pvt.) Ltd. 21 241 2265 

M.M.S. Capital Securities (Pvt.) Ltd. 21 241 4829 242 7354 

M.R.A. Securities (Pvt.) Ltd. 21 241 9138 241 7729 

M.S. Securities (Pvt.) Ltd. 21 244 1777 243 8735 

MAC Securities (Pvt.) Ltd. 21 244 6550 244 6559 mac_securities@yahoo.com 

Mahboob Haji Hussain Shakoor 21 242 7740 

Malik Khan Awan 21 241 5263 

MARS Securities (Pvt.) Ltd. 21 244 6441 244 6441 

MAS Capital Securities (Pvt.) Ltd. 21 

Mazhar Hussain Securities (Pvt.) Ltd. 21 241 0456 241 7414 khisales@mzhsecurities.com 

Memon Securities (Pvt.) Ltd. 21 241 7511 242 7841 amin_memon@hotmail.com 

Mohammed Anis Ismail 21 242 9277 

Mohammed Farooque Haji Abdullah 21 242 5147 242 9825 

Mohammed Husain Ismail 21 241 7326 

Mohammed Hussain Adhi 21 242 9042 242 8552 

Mohammed Hussain Dawood 21 568 6001 barkat@dawoodgroup.com 

Mohammed Saad Maniar 21 242 7414 243 7050 

Mohammed Salim Kasmani 21 241 1460 

Mohammed Siddiq Akbani 21 

Mohammed Tariq Moti 21 241 3024 

Mohammed Tariq Vohra 21 242 3278 

Mohammed Yahya Godil 21 241 9438 

Mohammed Yakoob A. Latif Nini 21 241 1284 

Mohammed Younus Haji Ali Dangra 21 242 0990 

Mohammed Yunus Tayub Patel 21 241 6647 

Moosa, Noor Mohammed, Shahzada & Co. (Pvt.) Ltd. 21 244 1991 244 4115 

Moosani Securities (Pvt.) Ltd. 21 240 0871 241 6004 info@moosani.com 

Motiwala Securities (Pvt.) Ltd. 21 240 1933 242 9375 themotiwala.com 

Muhammad Anaf Kapadia 21 111 6336 

Muhammad Anas Kapadia 21 243 2368 anas@kapadia.com.pk 

Muhammad Ayub Younus Adhi 21 241 2161 

Muhammad Bashir Kasmani 21 241 1460 

Muhammad Hussain Abdul Karim 21 

Muhammad Javed Surmawala 21 241 3346 

Muhammad Junaid Memon 21 243 6948 243 3748 ikbalg@cyber.net.pk 

Muhammad Munir Muhammad Ahmed Khanani 21 244 3434 244 3434 

Muhammad Nadeem Abdul Ghaffar 21 244 6131 244 6130 nadysf@cyber.net.pk 

Muhammed Ashfaq Hussain 21 242 7814 mahussain@cyber.net.pk 

Muhammed Salim Patel 21 241 7682 

Muhammed Siddiq Suleman 21 244 3330 241 8791 

Multiline Securities (Pvt.) Ltd. 21 244 0192 244 0191 

Munaf Sattar Securities (Pvt.) Ltd. 21 242 2306 242 9078 ms-hoff@hotmail.com 

Munir Khalid 21 244 3758 240 0997 

Naveed H.M. Idrees 21 243 3830 

Noman Abid & Company Ltd. 21 569 3580 568 0206 nomanabid.org.pk 

ORIX Investment Bank Pakistan Ltd. 21 586 8862 asif@orixbank.com 

Oriental Securities (Pvt.) Ltd. 21 244 6741 244 6750 

Pak Meezan Securities (Pvt.) Ltd. 21 242 2226 241 5274 

Prime Securities (Pvt.) Ltd. 21 243 7334 243 7336 

Prudential Securities Ltd. 21 240 1660 242 8192 

R.S. Securities (Pvt.) Ltd. 21 241 2266 

R.T. Securities (Pvt.) Ltd. 21 111 2671 583 5958 

Rafi Securities (Pvt.) Ltd. 21 242 4559 nrafi@cyber.net.pk 

Roshan D/o. Abdul Shakoor 21 438 0742 

S. Nasir Hussain 21 

S.C. Securities (Pvt.) Ltd. 21 243 2367 242 1639 scs@cyber.net.pk 

Sakarwala Capital Securities (Pvt.) Ltd. 21 241 1998 242 8303 rsebrok@pk.netsolir.com 

Salim Chamdia Securities (Pvt.) Ltd. 21 243 8061 242 9078 sc-hoff@cyber.net.pk 

Salim M. Sozer 21 241 1564 241 7306 salimsozer@hotmail.com 

Salim N. Mukaty 21 763 4375 256 1050 smukaty@cyber.net.pk 

Salman Services (Pvt.) Ltd. 21 242 5570 

Sattar Chinoy Securities (Pvt.) Ltd. 21 242 9715 chinoy@gerrys.net 

SAZ Capital Securities (Pvt.) Ltd. 21 243 7195 243 7194 

Schon Capital Markets Ltd. 21 263 6000 263 6325 

Security Investment Bank Ltd. 21 241 8410 241 8414 

Sherman Securities (Pvt.) Ltd. 21 242 6002 241 7472 

PAGE 154




Siddiq Moti 21 241 5484 244 6536 siddiqmoti@hotmail.com 

Sirajuddin Cassim (Pvt.) Ltd. 21 241 5459 

Sohail Raza Moosani 21 240 0871 241 6004 sohail@moosani.com 

Sultan Gulamhusein Dattoo 21 241 9713 243 9236 sajjad_d@cyber.net.pk 

Tahir Shafique 21 242 9124 241 2337 tshafiq@cyber.net.pk 

Tanveer Alam Mannoo 21 241 93936 

Taurus Securities Ltd. 21 242 3772 

Tewfiq Mohammed Amin Fikree 21 242 3113 

Time Securities (Pvt.) Ltd. 21 timekse@hotmail.com 

VSL Securities (Pvt.) Ltd. 21 217 398 

Westminster & Eastern Financial Services Ltd. 21 242 9288 242 9292 wefs@fascom.com 

Worldwide Securities (Pvt.) Ltd. 21 247 2067 247 2071 

Yaqoob Habib 21 244 6100 

Yusuf Ebrahim 21 244 1888 241 7660 

Zafar Moti Capital Securities (Pvt.) Ltd. 21 241 0307 244 6536 

Zahoor Abdul Ghaffar 21 241 9326 

Zaitoon M. A. Shakoor 21 241 6629 

Zane Rayomund Byramji 21 

Zillion Capital Securities (Pvt.) Ltd. 21 242 9878 242 9073 member047@yahoo.com 

Zohra w/o M. Siddiq Mayari 21 241 6665 

Zubaida w/o. Esmail Ahmed Bagasrawala 21 242 9708 242 9709 bagasra@web.net.com.pk 

Zubeda Abdul Sattar 21 242 2306 

Kazakhstan Stock Exchange 

Address: 67 Aiteke bi, 050000, Almaty, Republic of Kazakhstan Phone: (3272) 729 898 Fax: (3272) 720 925 E-mail: info@kase.kz, kase@kase.kz 

Web Address: www.kase.kz Country Code: 7 


ABN Amro Asset Management 3272 581 505 643 878 aabk@kz.com 

ABN Amro Bank Kazakhstan 3272 581 505 581 506 aabk@kz.com 

Accumulative Pension Fund of Halyk Bank of Kazakhstan 3272 590 449 587 970 npfnbk00@halykbank.kz 

AIM 3272 952 635 952 632 aim@aim.kz 

Alash-Bank 3272 926 008 920 144 alashbnk@online.ru 

Alfa-Bank 3272 920 012 507 803 inbox@alfabank.kz 

Alliance Bank 3272 585 000 506 899 almt@alb.kz 

Alliance Capital 3272 952 188 582 415 alc@alc.kz 

ATFbank 3272 583 000 501 995 info@atfbank.kz 

Bailyk Asset Management 3272 507 381 507 382 support@bailyk.kz 

Bank Centrecredit 3272 588 955 692 624 info@centercredit.kz 

Bank KASPIYSKIY 3272 501 820 509 596 office@bankcaspian.kz 

Bank of China in Kazakhstan 3272 585 510 585 514 boc@itte.kz 

Bank Turanalem 3272 505 101 505 110 post@turanalem.almaty.kz 

CAIFC Company 3272 725 566 935 885 caifc@caifc.itte.kz 

Central-Asian Trust Company 3272 736 051 731 398 catc@catc.nursat.kz 

Centras Securities 3272 598.877 598 887 mail@centrascapital.com 

Citibank Kazakhstan 3272 980 391 980 399 citybank.kazakhstan@citicorp.com 

DB Securities (Kazakhstan) 3272 581 623 581 642 temirlan.omarzhanov@db.com 

Demir Kazakhstan Bank 3272 508 550 508 525 demirbank@demirbank.kz 

Development Bank Of Kazakhstan 3172 580 844 580 269 info@kdb.kz 

Eurasian Bank 3272 508 606 508 650 info@eurasian-bank.kz 

Eximbank Kazakhstan 3272 614 300 507 549 postmail@eximbank.kz 

Fondovy Service 3272 587 079 582 936 fs@alar.kz 

General Asset Management 3272 918 709 938 483 gam@gam.kz 

Global Securities (Kazakhstan) 3272 582 888 581 661 postmaster@global.almaty.kz 

Greenwich Capital Management 3272 739 820 581 293 greenwich@tenir.com 

Halyk Saving Bank of Kazakhstan 3272 590 000 590 467 halykbank@halykbank.kz 

Halyk Securities 3272 501 042 

HSBC Bank Kazakhstan 3272 596 909 596 902 info@hsbc.kz 

Informational-Discount Centre of the Property and 

Privatization Committee of the Ministry of Finance 3272 676 410 509 002 iacentre@kazmail.asdc.kz 

International Bank Alma-Ata 3272 507 231 503 749 iba-bank@banknet.kz 

Kazakhstan Finance Company 3272 662 144 662 143 kfk@kaznet.kz 

Kazakhstan-Ziraat International Bank 3272 506 080 506 082 kzibank@kzibank.com 

Kazkommerts Invest 3272 596 200 596 726 general@kki.kz 

Kazkommerts Securities 3272 596 708 596 727 enquiry@kazks.kz 

Kazkommertsbank 3272 585 185 585 229 service@kkb.kz 

Kazpost 3272 627 366 627 527 kazpost@kazpost.kz 

KG Securities 3212 414 150 414 150 kgsecurities@nursat.kz 

KIB Asset Management 3272 922 343 929 094 kibam@kibam.kz 

Lariba-Bank 3272 491 432 496 421 lariba@asdc.kz 

PAGE 155


Kazakhstan Stock Exchanges (con’t) 


Money Experts 3272 503 577 582 421 rdaukenov@nurbank.kz 

National Bank of Kazakhstan 3272 504 701 506 090 hq@nationalbank.kz 

Nauryz Bank Kazakhstan 3272 590 101 590 170 office@nauryzbank.kz 

Nauryz Securities Kazakhstan 3272 590 199 590 199 nscorp@nauryzbank.kz 

Neftebank 3292 436 161 436 145 neftebank@nursat.kz 

Nurbank 3272 500 000 507 603 nurbankalm@asdc.kz 

Premier Asset Management 3272 503 310 503 341 office@kupa.resmi.kz 

RBNT Securities 3272 581 116 582 675 rbnt@nursat.kz 

REAL-INVEST.Kz 3272 952 106 952 108 postmaster@realinvest.kz 

RG Securities 3272 743 337 507 243 rgs@resmi.kz 

Senim-Bank 3272 681 051 681 856 senimbank@itte.kz 

State Accumulating Pension Fund 3272 432 411 509 135 gnpf@gnpf.kz 

Tau Securities 3272 507 253 507 252 tausec@nursat.kz 

Tcesnabank 3172 318 192 318 258 treasury@tsesnabank.kz 

Temirbank 3272 587 888 506 241 board@temirbank.kz 

Texakabank 3272 500 060 500 063 post@texakabank.kz 

Turanalem Securities 3272 505 515 505 515 admintas@turanalem.almaty.kz 

Valyut-Tranzit-Bank 3212 414 142 414 143 bank@valut-transit.kz 

Visor Investment Solutions 3272 598 844 598 833 visor@visor.kz 

Zhetusy 3272 670 312 500 898 zhetysu@mail.online.kz 

Kyrgyz Stock Exchange 

Address: 172 Moskovskaya St., 720010 Bishkek, Kyrgyz Republic Phone: (312) 665 059 Fax: (312) 661 595 E-mail: kse@kse.kg 

Web Address: www.kse.kg Country Code: 996 


Aalam 312 284 530 284 610 aalam@imfiko.bishkek.su 

Asko & Co. 312 544 242 544 216 anara@kse.kg 

BNC Capital Management 312 663 660 667 211 bnc@transfer.kg 

Capital 312 663 660 663 543 capital@elcat.kg 

Chuiinvest 313 333 747 333 747 aip46@yandex.ru 

JS Halyk Bank Kyrgyzstan 312 218 932 218 955 kairat@kairatbank.kg 

Niet-Araket 312 428 893 548 760 naraket@infotel.kg 

Senti 312 219 946 610 025 senti@infotel.kg 

Lahore Stock Exchange 

Address: 19, Khayaban-e-Aiwan-e-Iqbal, Lahore-54000, Pakistan Phone: (42) 636 8000 Fax: (42) 636 8485 E-mail: samir@lahorestock.com 

Web Address: www.lahorestock.com Country Code: 92 


Abbasi & Company (Pvt.) Ltd. 42 723 6021 735 4538 abbasses@hotmail.com 

Abdul Rasheed Janmuhammad 21 241 0427 241 6791 shakoo@khi.compol.com 

Abdul Saeed 42 631 4551 631 4558 

ABM Securities (Pvt.) Ltd. 42 631 0555 631 0557 

Adam Securities (Pvt.) Ltd. 21 241 3580 243 7380 

Adeel & Nadeem Securities 42 0300 8448 631 1409 

Adeel Zafar 42 636 8222 630 8973 

AFIC Securities (Pvt.) Ltd. 42 630 0101 630 0104 sajid717@hotmail.com 

Aglam Global Links (Pvt.) Ltd. 42 5750808 575 8860 rahatzia2002@hotmail.com 

Ahmad Khuli Khan Khattak 21 256 3138 256 4458 

Ahmed Hasnain 42 575 8507 576 3950 ampl@nexlinx.net.pk 

Ahsan Imtiaz Bhatty 51 227 8405 227 7307 bhatty@comsats.net.com.pk 

Akram S. Mahmood 42 636 8909 636 7942 

Al.Hamd Investment & Securities 42 630 956 636 8323 

Allied Bank of Pakistan Ltd. 42 631 1426 631 1418 

Al-Nakhal Securities (Pvt.) Ltd. 42 631 6719 631 6723 099@lahorestock.com 

Altaf Adam 21 242 9541 242 9540 altafadam001@hotmail.com 

Amer Securities (Pvt.) Ltd. 42 630 9687 630 9690 shahidmalikus@hotmail.com 

Ammar-ul-Haq 42 636 2010 636 8782 ammarhaq@hotmail.com 

Aqeel Karim Dhedhi 42 631 0526 636 8526 akd@lse 

Arif Habib Securities Ltd. 21 241 5213 242 9653 ahsl@arifhabib.com.pk 

Arif Latif 42 631 1611 636 0613 

Arif Majid Chaudhry 42 631 1388 631 0401 safina20@hotmail.com 

Asif Maqbool Sukhera 42 630 5663 6313803 ise002@hotmail.com 

Atlas Investment Bank Ltd. 42 637 2110 631 1380 

Ayaz Mahmood 42 799 2284 799 2233 ayazmahmood@fortricemills.com 

Capital Vision Securities (Pvt.) Ltd. 42 637 2456 636 8466 cvsl@eudramail.com 

Crescent Standard Brokerage & Investment Services Ltd. 42 630 8781 631 5728 cbisl@hotmail.com 

Darson Securities (Pvt.) Ltd. 42 636 6655 631 4293 darson50@yahoo.com 

PAGE 156


Lahore Stock Exchanges (con’t) 


Dooslani's Securities (Pvt.) Ltd. 42 637 5046 636 7999 dsbrokerage@hotmail.com 

Dr. Arslan Razaque 42 588 4071 583 8683 arslanr@yahoo.com 

Dr. Yasir Mahmood 42 631 4141 636 8908 info@dryasirmahmood.com 

Engr. Mian Sajid Masood 42 631 3981 631 3985 msmasoo@ibm.net 

ENGR Naveed Usman 42 627 9191 627 9050 naveedusman@hotmail.com 

Escorts Investment Bank Ltd. 42 630 0757 630 0816 mailmanager@escortsbank.net 

Farooq Ismail 21 111 0740 242 4043 

Fidelity Leasing Modaraba 42 631 5768 630 4156 

First Capital Equities Ltd. 42 111 2262 575 8656 

First Equity Modaraba 21 244 6020 244 6024 

First International Investment Bank (Pvt.) Ltd. 42 111 2342 111 5675 

First Pakistan Securities (Pvt.) Ltd. 42 584 3721 586 0497 info@fpsl.com.pk 

Gul Abdullah Dhami 42 636 8401 guldhami@hotmail.com 

Gulrez Rashid 42 630 9851 630 9855 gulrezrashid@hotmail.com 

H.Hatim H.Karim 21 921 7084 921 2374 

H.S.Z. Securities (Pvt.) Ltd. 42 630 9438 630 9438 hameedghani@hotmail.com 

Habib Ullah Sheikh 42 631 1383 636 8220 habib_ullah_sheikh@hotmail.com 

Haji Abdul Sattar 42 636 8963 636 8829 

Haji Ghani Haji Usman 21 247 0220 247 0209 sugar@cyber.net.pk 

Hameed Mukhtar Chaudhry 42 637 5470 636 9088 

Harvest Smartrend Securities (Pvt.) Ltd. 42 111 8000 631 4193 hss101@nexlinx.net.pk 

Humayun Saeed Sheikh 42 630 4904 636 8679 

Humayun Shahzada 42 631 0715 766 2939 

Iftikhar Ahmad Malik 42 571 6134 571 1530 hisvil@brain.net.pk 

Ilyas M. Chaudhry 42 111 1351 759 0376 info@cdl.com.pk 

Invest & Finance Securities (Pvt.) Ltd. 42 631 6454 631 5598 ifs99pk@yahoo.com 

Iqbal Y. Shajani 21 567 7105 568 1296 

Jamshaid & Hassan Securities (Pvt.) Ltd. 42 637 1901 631 0154 

Javed Ahmed 42 575 9621 571 0312 

Javed Iqbal Securities (Pvt.) Ltd. 42 636 9112 636 9117 javediqbal@jis_lse.com 

K.H.S. Securities (Pvt.) Ltd. 42 636 8436 636 8919 kevan-saleem@hotmail.com 

Kamran Gulzar 42 111 5487 636 8552 kamran_lse@yahoo.com 

Khalid Javed Securities (Pvt.) Ltd. 42 630 7680 636 9143 

Khawaja Imtiaz Ahmad 42 575 6953 571 0604 

Khawaja Sami Rashid 42 631 6611 631 6615 ksr608@hotmail.com 

Khawaja Usman Arif 42 630 3213 630 9489 usmankhawaja11@hotmail.com 

Maan Securities (Pvt.) Ltd. 42 630 8000 631 5558 maansecirities@hotmail.com 

Malik Hamid Ali Noon 42 630 1804 630 1803 noonhan@hotmail.com 

Maximus Securities (Pvt.) Ltd. 42 631 5772 630 9216 khangovernment@hotmail.com 

Mazhar Hussain Securities (Pvt.) Ltd. 42 627 8787 631 7329 mudassar61@hotmail.com 

Mazhar Rafiq (Engr.) 42 631 2222 636 8303 

Mehdi Securities (Pvt.) Ltd. 42 627 8886 631 2198 mehdisecurities@hotmail.com 

MGM Securities (Pvt.) Ltd. 42 627 9181 637 2475 mgmsecurities@yahoo.com 

Mian Abdul Rauf 42 517 1313 517 6575 

Mian Faisal Mahmood 42 637 6091 636 4745 lot3812@yahoo.com 

Mian Khalid Bashir 42 631 2569 631 2567 

Mian Nusrat-ud-Din 42 631 3995 627 9204 rabbana@brain.net.pk 

Mian Tajammal Hussain 42 724 4181 724 2839 mthlhr@brain.net.pk 

Mirza Yasin Mahmood 21 586 9398 

Money Line Securities 42 627 9141 627 9144 moneyline_of_lse@hotmail.com 

Moosani Securities (Pvt.) Ltd. 42 630 8848 637 2205 info@moosani.com 

MRA Securities (Pvt.) Ltd. 21 243 3090 241 7729 owais_ra@hotmail.com 

MTM Securities (Pvt.) Ltd. 42 636 9991 627 9101 mtmsecurities@hotmail.com 

Muhammad Amer Riaz 42 631 0441 631 0719 

Muhammad Ashraf Hussain Adhi 42 630 9432 636 8526 ashraf@ashrafadhitrade.com 

Muhammad Ayub Chaudhry 42 636 8114 636 9096 mayub7862000@hotmail.com 

Muhammad Hussain Adhi 42 636 9729 636 9728 hussainadhilse@hotmail.com 

Muhammad Ilyaas Sethi 42 636 5756 636 8113 

Muhammad Iqbal Khawaja 42 637 6808 631 5803 

Muhammad Javed 21 111 5540 263 1021 javedkhanani@hotmail.com 

Muhammad Saleem Adam 21 241 8903 242 2893 saleem@adamfamily.com.uk 

Muhammad Sarfraz Ghumman 42 637 5501 637 5584 

Muhammad Shabbir Malik 42 766 8188 763 6124 newmalik_traders@hotmail.com 

Muhammad Shakeel 21 231 0153 

Muhammad Tauqir Malik 42 631 1401 636 0438 malik_tauqir@hotmail.com 

Muhammad Younus 42 631 5300 637 5599 

Muhammad Yousaf Rao 42 630 8281 630 8973 

Mumtaz Enterprises (Pvt.) Ltd. 21 241 2145 241 6104 

Munir Khalid 42 636 8974 636 8976 

N.H. Securities (Pvt.) Ltd. 42 723 5084 723 5083 hcc@pol.com.pk 

Nadeem B.J. Sheikh 42 571 3625 571 3624 bjsheikh@cclpharma.com.pk 

PAGE 157


Lahore Stock Exchanges (con’t) 


Naeem Anwar 42 630 8000 

Najam Riaz Ghauri 42 637 1138 636 7976 najamriazghauri@hotmail.com 

Naseer-ud-Din 42 631 5997 631 5998 

Nasir Ali Shah Bukhari 42 111 2220 587 2640 nasb@kasb.com 

Nayyar Sheikh Securities (Pvt.) Ltd. 42 631 6116 631 6448 nayyarssbh@hotmail.com 

Networth Securities Ltd. 42 630 7701 630 7705 info@networth.com.pk 

Pervez Ahmad 42 575 9621 571 0312 

Pervez Iqbal 42 636 8155 636 9117 javediqbal@jis-lse.com 

Plus Securities (Pvt.) Ltd. 42 630 9688 630 9687 dzm049@hotmail.com 

Progressive Securities (Pvt.) Ltd. 42 630 8778 6317048 pspl056@hotmail.com 

Prudential Securities Ltd. 42 637 5466 637 5980 pslpakistan@hotmail.com 

Qasim Mahmood 42 637 2747 627 8999 qasim_m01@hotmail.com 

Rahat Securities Ltd. 42 630 3876 631 4253 rahat_sec@hotmail.com 

Ravi Securities (Pvt.) Ltd. 42 542 3378 542 3378 

S. D. Mirza Securities (Pvt.) Ltd. 42 636 8975 636 9108 sdmirza@hotmail.com 

S. Z. Securities (Pvt.) Ltd. 42 636 8973 631 5969 szsecurities@hotmail.com 

Saliha Haroon 42 631 1372 631 0245 

SAT Securities (Pvt.) Ltd. 42 637 5445 637 5450 sat@nak312.com 

Seema Mubashir 42 765 5578 

Shaffi Securities (Pvt.) Ltd. 42 631 1458 631 4730 shaffisec201@hotmail.com 

Shahid Hassan Awan (Suspended) 42 631 6383 631 6389 

Shahid Iqbal 42 636 8636 

Shahid Mahmood 42 637 2747 627 8909 128@lahorestock.com 

Shaukat Shafi 21 568 4901 568 3662 shzukatsharfi@fascom.com 

Sheikh Abid Hussain 42 575 6161 575 3399 

Sheikh Irshad Ahmad 42 636 8967 637 5484 englease@hotmail.com 

Sheikh Muhammad Iqbal 42 586 2168 

Shewani Securities (Pvt.) Ltd. 030 0946 0701 

Shuaib Ullah Cheema 42 111 4448 571 0526 shuaib@siiag.com 

Shukat Shaffi 21 568 4901 568 3662 shaukatshafi@fascom.com 

Sohail Raza Moosani 42 630 8848 637 2205 sohail@moosani.com 

Stock Master Securities (Pvt.) Ltd. 42 636 8030 636 7502 stockmasterlhr@hotmail.com 

Switch Securities (Pvt.) Ltd. 42 584 3721 584 3730 switch.research@switch.com.pk 

Syed Liaquat Ali Shah Naqvi 42 583 1644 

Tariq Majid Chaudhry 42 637 5442 631 0401 safina20@hotmail.com 

Techno Fundamental Securities (Pvt.) Ltd. 42 631 7351 631 7350 moatsimdm@hotmail.com 

Trust Securities & Brokerage Ltd. 42 637 3041 637 3040 tsbl_lhr@hotmail.com 

Usman Khalid 42 583 5345 

Wasi Ullah Khan 42 636 7935 636 0067 wwasikhan@hotmail.com 

Y.S. Securities & Services (Pvt.) Ltd. 42 636 8772 631 0186 yssecurities@shoa.net.pk 

Zafar Iqbal Cheema 42 631 5555 630 4687 

Zafar Moti 21 241 0307 244 6536 zafarmoti@hotmail.com 

Zafar Securities (Pvt.) Ltd. 42 637 2470 636 8195 asim@zafarstocks.com 

Zahid Ali Habib 42 242 9664 241 3822 aahkse162@yahoo.com 

Senti 312 219 946 610 025 senti@infotel.kg 

Macedonian Stock Exchange 

Address: Mito Hadzivasilev Jasmin 20, 1000 Skopje, Republic of Macedonia Phone: (2) 312 2055 Fax: (2) 312 2069 E-mail: mse@mse.org.mk 

Web Address: www.mse.com.mk Country Code: 389 


Bitolabroker 47 258 830 258 840 bbbroker@mt.net.mk 

BRO-DIL 2 329 8850 311 8670 eli@bro-deal.com.mk 

Broker-SB 2 329 5420 329 5551 broker@stb.com.mk 

Eurobroker 2 321 5198 322 3397 eurobroker@mt.net.mk 

Fersped-Broker 2 321 9333 221 9478 broker@fersped.com.mk 

Investbroker 2 311 0280 311 0290 investbroker@investbroker.com.mk 

Komercijalna Banka 2 321 8217 321 8222 tatjana.grncarova@kbnet.com.mk 

MAK Broker 2 321 6310 311 6213 makbroker@mt.net.mk 

Ohridska Banka 2 321 6250 322 2920 atanasovm@ob.com.mk 

Postel Broker 2 322 4300 322 4300 palevski@postbank.com.mk 

Sileks Banka 2 311 2297 322 4844 silbank@unet.com.mk 

Teteks Kreditna Banka 47 203 691 203 692 tkbbroker@mt.net.mk 

Tutunskabroker 2 313 3305 313 3464 tutbrok@mt.net.mk 

Univerzalna Investiciona Banka 2 321 0911 321 0950 zvonko.stankovski@unibank.com.mk 

PAGE 158


Moldovan Stock Exchange 

Address: 73 Stefan cel Mare Blvd., Chisinau 2001, Moldova Phone: (22) 277 594 Fax: (22) 277 356 E-mail: silvia@moldse.md 

Web Address: www.moldse.md Country Code: 373 


Asito-Broker 22 270 552 270 552 

Banca de Economi 22 241 103 244 731 bem@cni.md 

Banca de Finante si Comert 22 220 080 221 660 fincom@scb.mldnet.com 

Banca Sociala 22 225 185 220 070 oficce@socbank.md 

Bonseron 22 537 121 537 121 bugaalex@mcc.md 

Broker-Service 22 508 629 508 631 brokserv@moldtelecom.md 

Brokwest 22 277 250 277 250 tervinwest@md.net 

Businessbank 22 205 654 222 370 bank@businessbank.md 

Daac Prom 22 755 932 746 397 nadea.ganya@daac-prom.com 

Daac-Invest 22 713 419 746 397 invest@daac.md 

Defend 22 537 128 537 121 

Energbank 22 276 033 253 409 martino@energbank.com 

Eurocreditbank 22 500 128 500 153 olegb@ecb.md 

Eximbank 22 549 828 546 240 info@eximbank.com 

Exiton-Sprad 22 531 761 531 761 

Fincom 22 541 917 541 960 avmoldova@yahoo.com 

Investprivatbank 22 279 523 540 555 ipb@ipb.md 

Iuventus-DS 22 271 337 270 035 ghenadie@inteligent.org 

Mabrok 22 541 942 541 942 

M-Invest 22 280 334 280 332 

Mobiasbanca 22 256 325 541 974 vm@mbm.mobias.com 

Moldindconbank 22 576 835 279 195 info@moldinconbank.com 

Moldova-Agroinbank 22 220 671 226 162 lungu@maib.md 

Oldex 22 270 024 542 966 

Passim-Managerul Fondului 22 555 579 522 049 

Proajioc 22 507 085 507 085 

Proremiz 22 537 116 537 121 

Real-Manager 231 61 279 60 2389 

Unibank 22 226 631 220 530 iovu@unibank.md 

Universalbank 22 295 786 212 056 ub@mail.universalbank.md 

Val-Invest 22 449 113 449 180 

Victoriabank 22 576 350 233 089 ispoiala@victoriabank.md 

Mongolian Stock Exchange 

Address: Sukhbaatar Sq.-2, Ulaanbaatar, Mongolia Phone: (11) 310 501 Fax: (11) 325 170 E-mail: mse@mongol.net 

Web Address: www.mse.mn Country Code: 976 


Ajnai Invest 11 345 757 345 656 ajinve@yahoo.com 

Altan Khoromsog 11 455 822 

Altan San - 9911 8082 

Argai Best - 9911 3297 ganaa3232@yahoo.com 

Bat's Invest 11 320 773 343 477 

Bidisec 11 321 763 321 763 bdsec@yahoo.com 

Bulgan Broker 11 322 708 322 312 gbrsn@yahoo.com 

Bumbat Altai - 9943 1203 

Chandmani Bayan - 9525 3102 

Darkhan Broker 11 328 970 

Delgerkhangai Securities - 9525 2453 315 166 

Erdenest - 9935 6857 

Gendex 11 636 335 632 959 ubmanagement@mongol.net 

Khansh Invest 11 684 596 khansh_invest2004@yahoo.com 

Masdaq - 9525 2076 selbro@yahoo.com 

Mergen Sanaa 11 451 626 

Mongol Securities - 9525 2719 462 130 mirai@magicnet.mn 

Monsec 11 323 090 monsec182004@yahoo.com 

Munkhud - 9525 6869 munkhud@yahoo.com 

Mutsa 11 369 377 300 799 munkhbold_m@yahoo.com 

Nici 11 324 790 324 790 bursa@magicnet.mn 

Sanar 11 462 634 sanar@yahoo.com 

Tavan Bogd 11 35 1210 tavanbogd@mol.mn 

Undurkhaan Invest 11 682 861 

Zerged 11 367 609 tszerged@magicnet.mn 

PAGE 159


Muscat Securities Market 

Address: P.O. Box 3265, Ruwi, Postal Code 112 Oman Phone: 2481-2607 Fax: 2481-7609 E-mail: msm.info.news@msm.gov.om 

Web Address: www.msm.gov.om Country Code: 968 


Al Amin Securities 248 13738 15507 al-amin@omantel.net.om 

Al Madina Financial & Investment Services 248 10859 10772 madinah@omantel.net.om 

Al Shurooq Securities 247 89113 88882 sisco@omantel.net.om 

Bank Muscat 247 80139 98220 aymanj@bankmuscat.com 

Financial Corporation 248 116655 16611 fincorp@fincorp.org 

Financial Services 248 17208 17205 finserv@omantel.net.om 

Global Financial Services 247 00667 00662 gfioman@omantel.net.om 

Gulf Investments Services 247 90614 90612 gisoman@omantel.net.om 

International Financial Services 247 95186 95188 intfn@omantel.net.om 

National Bank of Oman 248 11491 98647 nboinvest@nbo.co.om 

National Securities co. 245 71340 68737 nscoman@omantel.net.om 

Oman Arab Bank 247 97428 93953 bataineh@omantel.net.om 

Q Invest 248 15580 17483 qurumfin@omantel.net.om 

United Securities 247 88647 88671 info@usoman.com 

Vision Investment Services 248 12860 08088 visoman@omantel.net.om 

Palestine Securities Exchange 

Address: Al Qasr Bldg., Rafidia, P.O. Box 128, Nablus, Palestine Phone: (9) 237 6666 Fax: (9) 237 5945 E-mail: pse@p-s-e.com 

Web Address: www.p-s-e.com Country Code: 970 or 972 


Al-Watanieh Securities Company 2 298 0420 298 7277 watanieh@palnet.com 

Global Securities Company 9 238 7880 238 5060 almya_sec@yahoo.com 

Jordan & Palestine Financial Investment Company 2 298 7778 298 7779 jopfico@palnet.com 

Sahem Trading & Investments Company 2 296 5710 296 5713 sahem@sahem-inv.com 

Target Investment & Securities Company 9 238 6111 238 6119 al-hadaf@targetinvest.com 

United Securities Company 2 240 3090 240 3430 united@palnet.com 

Sarajevo Stock Exchange 

Address: Fra Andela Zvizdovica 1A/X, 71000 Sarajevo, Bosnia and Herzegovina Phone: (33) 251 462 Fax: (33) 251 478 E-mail: contact@sase.ba 

Web Address: www.sase.ba Country Code: 387 


AW Broker d.o.o. Sarajevo 33 258 400 258 940 alma.i@aw-broker.ba 

BIFIM - Berzansko Posrednika Kuca d.d. Bihac 37 320 175 328 025 bifim@bih.net.ba 

Bond Invest d.o.o. Mostar 36 333 745 316 612 bond.invest@tel.net.ba 

BS-Broker d.d. Sarajevo 33 715 410 713 920 com@bsbroker.co.ba 

Credos d.o.o. Sarajevo 33 266 460 266 460 info@credos.ba 

Dionica d.o.o. Tuzla 35 315 500 315 501 dionicatuzla@hotmail.com 

Ebrokers d.o.o. Za Brokerske Poslove Sarajevo 33 714 370 714 371 ebrokers@iweb.ba 

Eurohaus d.o.o. Sarajevo 33 720 900 710 611 jasmina.h@eurohaus.ba 

FIMA International d.o.o. Za Promet Vrijednosnih Sarajevo 33 710 840 710 842 info@fima.ba 

Hypo-Alpe-Adria-Vrijednosnice d.o.o. Mostar 36 449 500 449 502 vrijednosnice.bih@hypo-alpe-adria.com 

ICM d.o.o. Sarajevo 33 296 642 296 647 info@icm.ba 

Kapital Brokers Bihac 37 228 308 228 272 

Market Bull d.o.o. Sarajevo 33 266 970 258 070 info@market-bull.co.ba 

NBC d.o.o. Sarajevo 33 550 130 550 142 info@nbc-bih.com 

Palisaen d.o.o.Sarajevo Brokersko Dilerska Kuca 33 776 171 776 173 info@palisaen.ba 

Raiffeisen Brokers d.o.o. Sarajevo 33 296 546 296 553 info@rbr.ba 

VGT - Broker d.d. Visoko 32 730 540 730 541 vgt@vgt-broker.com 

Tehran Stock Exchange 

Address: 228, Hafez Avenue, P.O Box 11355-399, IR-11389 Tehran, Iran Phone: (21) 670 8385 Fax: (21) 671 0111 E-mail: int.dept@tse.ir 

Web Address: www.tse.ir Country Code: 98 


Aban 21 674 0426 671 5666 

Amin Sahm 21 672 6505 670 6487 

Armoun Bourse 21 871 8056 871 8879 

Arya Novin 21 882 9996 884 2470 

Asel 21 871 5847 871 5847 

Atieh 21 671 6285 670 1235 

Atisaz Bazar 21 670 4610 672 4891 

Badreh Saham 21 871 1083 870 1256 

Bahman 21 896 2912 

Bank Eghtessad Novin 21 674 2774 674 2960 

PAGE 160


Tehran Stock Exchanges (con’t) 


Bank Keshavarzi 21 872 0381 872 0382 

Bank Maskan 21 872 0383 872 0384 

Bank Mellat 21 671 4993 671 4995 

Bank Melli Iran 21 870 7324 872 2189 

Bank Refah Kargaran 21 872 6153 855 0108 

Bank Saderat Iran 21 872 6157 872 6158 

Bank Saman 21 877 4669 877 4671 

Bank Sanat va Madan 21 670 3633 670 4198 

Bank Sepah 21 872 6057 872 6058 

Bank Tejarat 21 872 0379 855 5338 

Bank Towse-e Saderat Iran 21 872 7690 870 1161 

Bazare Saham 21 225 4129 225 4165 

Behgozin 21 671 8408 671 8408 

Bourse Bimeh Iran 21 897 3529 896 4040 

Boursiran 21 883 2860 881 0329 

Donyaye Khobreh 21 672 4001 672 4003 

Ebraz 21 672 5132 672 5133 

Etminan Sahm 21 672 8080 672 8081 

Ganjineye Saham 21 672 4916 673 8073 

Golchin 21 672 4809 671 8748 

Hafez 21 875 4916 875 4918 

Imen Bourse 21 674 0877 670 5293 

Iran Sahm 21 871 6433 871 6434 

Jahan Sahm 21 670 7888 672 6650 

Karamad 21 672 4875 676 0586 

Khobregan Saham 21 671 7760 672 4958 

Kimia Sahm 21 672 4997 670 5483 

Mahake Sahame Sanayeh 21 672 5706 672 5708 

Meyar Saham 21 672 4124 672 2502 

Moein Sahm 21 671 6945 672 4978 

Mofid 21 673 0700 672 6499 

Moshaveran Saham 21 870 1365 870 1398 

Nahayat Nagar 21 673 9101 672 4859 

Noandishan Bazar Sarmayeh 21 873 9378 873 9378 

Omran 21 672 4809 671 8901 

Pars Nemoudgar 21 671 4952 671 4955 

Rahbord Sarmayegozari 21 672 4850 672 7702 

Rahnamaye Sarmayegozaran 21 670 2570 672 6011 

Saham Barez 21 673 1315 671 5372 

Saham Pajoohan Shayan 21 671 7751 673 5361 

Saham Pouya 21 671 8062 672 4120 

Sahm Andish 21 672 8273 672 9041 

Sahm Ashena 21 672 4908 671 7217 

Sahm Azin 21 873 1215 874 1331 

Sahm Yar 21 871 0357 871 0357 

Sarmayegozari Melli Iran 21 890 2976 891 9661 

Sarmayeh va Danesh 21 891 5067 890 7228 

Shakhes Saham 21 879 7885 879 7884 

Simabgooun 21 672 4995 670 1411 

Tadbirgar Sarmaye 21 888 2265 888 2290 

Torbati 21 670 5889 

Towse-e Sarmaye Donya 21 672 9121 672 9122 

Tirana Stock Exchange 

Address: Rruga "Kavajes", P.12-katesh, Tirana, Albania Phone: (4) 271 849 Fax: (4) 271 850 E-mail: tseinfo@abcom-al.com 

Web Address: www.tse.com.al Country Code: 355 


Ballkan Group 01 4 272 722 g_ramaj@hotmail.com 

Italo-Albanian Bank (BIA) 4 233 966 225 700 biatia@adanet.com.al 

National Commercial Bank (BKT) 4 222 8743 237 570 info@bkt.com.al 

Triumf Group 4 256 081 256 081 triumfgrupbk@yahoo.com 

PAGE 161


“Toshkent” Republican Stock Exchange 

Address: 10, Bukhoro St., Tashkent 700047, Republic of Uzbekistan Phone: (71) 136 0740 Fax: (71) 133 3231 E-mail: info@uzse.uz 

Web Address: www.uzse.uz Country Code: 998 


Gallabank 71 133 4245 136 1105 

Pakhtabank 71 781 296 1208 818 

Uzjilsberbank 71 133 1122 133 3089 

Uzpromstroybank 71 120 4501 133 3240 

Ukrainian Stock Exchange 

Address:10 Rylsky Provulok, 01025 Kiev, Ukraine Phone: (44) 229 4158 Fax: (44) 228 5140 E-mail: use@ukrse.kiev.ua 

Web Address: www.ukrse.kiev.ua Country Code: 380 


A.I.S.T. Invest 44 244 9758 244 9758 

ABD Trade Co. 44 554 7365 554 7395 

Absolut Investments 0322 97 0989 39 5334 jurist@kubok.com.ua 

Agio Bank 44 244 3309 234 2143 agio@aggio.kiev.ua 

Ajko 522 235 583 236 398 

AlfaBank 44 490 4600 490 4601 mail@alfabank.kiev.ua 

Alter-Brok 44 231 4916 231 4916 

ARMA 44 246 6707 246 6708 info@arma-bank.com.ua 

Autozaz Bank 612 172 966 172 961 nva@avtozazbank.com 

Aval Bank 44 290 8888 490 8938 tshovkun@aval.ua 

Avtomobilnaya Fondovaya Company 57 7140 014 7140 014 konivtsova_ol@ais.com.ua 

Ayaks 572 940 951 943 772 ayax1@ua.fm 

Bank of Regional Development 44 494 4847 494 4847 krv@brr.com.ua 

Brokbusinessbank 44 206 2959 459 6747 bank@bankbb.com 

Brooks 562 341 877 341 271 bod@fargo.com.ua 

Capital Management Group 629 343 093 412 853 roman@adk.ru 

Capital Market 57 7140 014 7140 014 shophul@ais.com.ua 

Corporate Investments Agency 44 248 9186 248 9188 

Demark Bank 4622 164 686 178 055 invest@demark.cn.ua 

Dikom 62 337 0773 332 2595 sekretar@dikom.donetsk.ua 

East-European Bank 44 205 4270 205 4270 tfo@eebank.com.ua 

East-European Investment-Innovation Co. 44 229 4088 229 4088 ceiik@mail.ru 

East-Makler 57(2) 712 1848 219 9761 studik@east.kharkov.ua 

Ekspert 44 455 6853 240 9783 ekspert@zeoz.net 

EnergoProekt 44 456 3479 456 3479 ua_servic@ua.fm 

European 572 282 287 282 006 bank@euro.kharkov.ua 

Fagot 44 451 5698 451 5698 klondik@list.ru 

Finkom Trading 564 260 905 260 905 kulakov@finfox.com.ua 

Finoks 564 262 586 262 586 finox@alba.dp.ua 

Finance Comerz 57 757 8335 757 8336 veb@lintec.net.ua 

Financial Co. Bukva 44 537 5154 537 5154 alice@ukrprombank.kiev.ua 

Finansovyy poserednyk 44 453 3010 453 3010 vocatio@ukr.net 

Finansy ta Credyt Bank 44 490 6870 484 2571 common@fc.kiev.ua 

Flayton 482 250 202 250 202 kiyanitsa@ukr.net 

Fondova Grupa 44 462 0325 462 0319 stockgrp@i.kiev.ua 

Fondova Spilka 44 538 0979 538 0979 fondova_spilka@ukr.net 

Fondovaya Co. Faforit 44 458 0545 458 0545 favorit@visti.com 

Fondovi technologii 44 552 8078 552 8078 michel_2001@mail.ru 

Garantinvest 57 7730 994 7730 994 offert@.vi.kharkov.ua 

Gelikon 4622 710 15 710 15 

General Investment Co. 44 455 6766 464 5961 gic@i.kiev.ua 

General Investments 572 282 264 282 266 globalin@utel.net.ua 

Golden Gate Business 44 201 2020 201 2023 inbox@iukr.com.ua 

Grand Finance 44 241 8741 241 8743 office@smaster.com.ua 

Indexstocks 571 7578 145 7578 146 promeko@list.ru 

Industrialno-exportnyy bank 44 494 1506 494 1506 babich@lindex.com.ua 

Invest Trade 44 416 7113 416 1559 mail@abiter-pro.org 

ITT Invest 44 246 6841 277 2112 office@itt-invest.kiev.ua 

Jerom Securities 44 206 5450 206 5450 

Joint-Stock Commersial Prominvest Bank 44 229 8303 229 1456 piboo@courier.pfts.com 

Komex Securities 44 220 9588 227 7022 natasha@comex.com.ua 

Konfo 44 464 7692 464 7692 confo@petrovka.kiev.ua 

Kredo Invest 612 134 909 134 909 kredo-invest@optima.com.ua 

Krok-MT 3422 40 056 76 261 krok-mt@il.if.ua 

KUB 44 296 5228 296 5228 office@kub.com.ua 

Kupava 44 268 2194 269 9814 kupava@i.kiev.ua 

Laverna 44 466 7312 466 7312 bbp@dobrobut.kiev.ua 

Legbank 44 227 9570 227 9519 vsi@legbank.kiev.ua 

PAGE 162


Ukrainian Stock Exchanges (con’t) 


Lvivski Securities 322 970 668 970 668 safin@utel.net.ua 

MAST 57 7140 643 7140 956 yulia@mast.kharkov.ua 

Mega Invest 44 272 6053 272 6053 mega-invest@ukr.net 

Morskyy Bank 692 458 570 458 570 root@ambank.sebabtopol.ua 

Mortransbank 482 301 300 301 301 office@mtb.com.ua 

Mriya 44 244 6199 216 6543 postmaster@mriya.com 

Mriyafinance 44 265 0841 265 0841 Inna@kcp.kiev.ua 

MTbank 536 796 277 797 277 bank@mt-bank.com 

Nadra 44 238 8477 205 3011 info@nadrabank.kiev.ua 

Narodna Invest Co. 57 7195 074 7195 074 nicom@velfon.kharkov.ua 

Noosfera 44 537 3245 575 1716 bormih@ukr.net 

NPK Invest 57 7005 011 7005 012 npkinvest@vlink.kharkov.ua 

Ometatrust 44 228 4598 228 4563 ometa@jt.com.ua 

Oniks-Iva 3422 311 55 323 20 princom@com.if.ua 

PKTB-Securities 44 496 0115 496 0115 fctb@fctb.com.ua 

Polikombank 462(2) 74 895 101 513 fond@poli.com.ua 

Privatbank 562 390 718 680 514 slava.derishev@pbank.com.ua 

Profesional-Brok 44 455 9419 455 9419 

Renessans Capital Ukraine 44 230 9318 230 9319 custodu@comex.kiev.ua 

Reserv 44 404 1039 404 1039 

Ricabroker 44 416 8352 416 8352 rekabrOO@courier.pfts.com 

Rinkom Invest 44 544 5647 544 5647 sb@rin.com.ua 

Roland 57 715 6622 715 6622 stanchev@dayard.com.ua 

Securities of Ukraine 44 412 8765 412 8765 securities@mail.ru 

Selyanska Investment Co. 44 246 4897 234 6037 sincom00@courier.pfts.com 

Sigma Fund 572 141 180 141 188 office@fsigma.kharkov.ua 

SiriusSecurities 532 508 921 508 921 bk_sirius@mail.ru 

Skhidinvest 44 416 5344 451 5813 ua_vostok@narod.ru 

Sofiya Securities 44 244 2887 244 2996 sofiaoo@mail.ru 

Stanislav D 342 554 222 554 222 

State Oschadny Bank of Ukraine 44 247 8450 247 8515 butko@oschadnybank.com 

Stock 564 260 807 261 561 stock@alba.dp.ua 

Stocks 44 537 4380 566 9374 info@stocks.com.ua 

Stocktrader 342(2) 43 033 785 328 strader@ivfukrpack.net 

Stoik 57 757 4527 712 3386 stoik@vi.kharkov.ua 

Stolichna Fondova Co. 44 249 3697 249 3697 

Stolichnyy capital 44 235 3243 234 8161 broker-stk@skapital.kiev.ua 

Syntez 44 461 7930 228 6400 bmw@syntez.kiev.ua 

TAS Comerzbank 44 238 3883 238 3472 Borisov@tas-combank.com.ua 

Tavrika Bank 692 2055 983 2055 983 turicheva@tavrika.kiev.ua 

Technotern Invest 352 229 086 235 579 invest@tehnotern.com.ua 

Tekt-Brok 44 201 6391 201 6392 office@tekt.com.ua 

TradeInvest 44 290 5150 249 3697 

Transferbutik 44 272 1748 272 1708 boutigue@skif.com.ua 

Trick Ltd. 512 471 991 471 991 

Ukrainian Depository Co. 44 451 4447 451 4447 tamara@urc.kiev.ua 

Ukrainian Financial Group 44 251 8380 251 8353 cb@ufg-bank.com.ua 

Ukrainian Fund of Promissory & Guarantee Notes 44 234 9567 229 8668 

Ukrayinska Konzesiyna Company Ltd. 44 244 3222 244 0715 ucc@ucc.kiev.ua 

Ukrayinski Securities 44 253 6863 206 3022 atucp@atucp.kiev.ua 

Ukrayinsky Komunalny Bank 642 553 529 420 106 layner@ukr.net 

Ukrayinsky Promyslovy Bank 44 537 5154 537 5154 salla@ukrprombank.kiev.ua 

Ukrinbank 44 247 2182 247 2134 chuchko@ukrinbank.com 

Ukrinvest 352 235 366 239 9777 ukrinvest@ua.fm 

Ukrsotsbank 44 238 3243 269 1307 Info@ukrsotsbank.com 

Universal Fondovy 44 268 5696 268 5696 kons_office@.ukr.net 

Vabank 44 490 0662 216 0033 fom@vabank.com.ua 

Vash Vybor 652 546 613 546 613 vibor@ip-ua.com 

Vest Stock 312 612 181 619 277 weststock@utel.net.ua 

Virabroker 44 490 2015 490 2015 

Volodymyrskiy Bank 542 215 400 215 423 balans@vibank.ukrpack.net 

Yuneks 44 462 5053 462 5053 fedorenco@unexbank.kiev.ua 

ZdobutokInvest 44 451 2815 451 2816 dobutok-invest@ukr.net 

PAGE 163


Zagreb Stock Exchange 

Address: Ksaver 200, 10000 Zagreb, Croatia Phone: (1) 468 6800 Fax: (1) 467 7680 E-mail: info@zse.hr 

Web Address: www.zse.hr Country Code: 385 


Antea Brokeri d.o.o. 1 231 9715 232 0110 antea.brokeri@zg.t-com.hr 

Auctor d.o.o. 1 481 4143 481 4143 auctor@auctor.hr 

CBB Vrijednosnice d.o.o. 42 312 255 313 132 cbb@vz.t-com.hr 

Centar Banka d.d. 1 480 3455 480 3441 mstrniscak@centarbanka.hr 

Complete Line d.o.o. 44 523 062 524 116 cl@comlinebrokers.com 

Consult Invent d.o.o. 42 312 404 213 731 zvonka.martincevic@ci.tel.hr 

Credos d.o.o. 1 236 3431 236 4433 suzana@credos.hr 

Croba Vrijednosnice d.o.o. 1 239 1268 239 1170 lidija.zupanek1@crbanka.hinet.hr 

EA Sistem d.o.o. 47 415 341 415 891 ea-sistem@ka.t-com.hr 

ERSTE Vrijednosni Papiri d.o.o. 1 481 2014 481 2015 kajkutz@erstebank.com 

Exportdrvo d.d. 1 456 0222 42 0004 dkobas@exportdrvo.hr 

Fima-Vrijednosnice d.o.o. 42 390 996 390 990 dhorvat@fima.com 

Fintrade d.o.o. 21 341 371 581 933 fintrade@st.t-com.hr 

Hita Vrijednosnice 1 309 4555 309 6679 ivan@hita.hr 

Hrvatska Potanska Banka d.d. 1 480 4659 487 3523 marko.wolfl@hpb.hr 

HVB Splitska Banka d.d. 21 304 621 304 607 

Hypo Alpe Adria Bank d.d. 1 235 8151 235 8199 damir.soic@hypo-alpe-adria.com 

I.C.F d.o.o. 1 611 9393 611 9303 icf@icf.hr 

Ilirika Vrijednosni Papir d.o.o. 1 480 8000 480 8020 ilirika@zg.t-com.hr 

Interfinance d.o.o. 1 460 0800 460 0801 d.fuduric@interfinance.hr 

Interkapital Vrijednosni Papiri d.o.o. 1 488 3772 481 2338 daniel.nevidal@intercapital.hr 

Investco Vrijednosnice d.o.o. 1 481 1777 492 0711 ljiljana.blazev@investco.hr 

Istarska Kreditna Banka d.d. 52 70 2340 70 2388 

Karlovacka Banka d.d. 47 614 315 614 316 davorka.vidakovic@kaba.hr 

Nova Banka d.d. 23 201 500 201 859 

Podravska Banka d.d. 48 655 222 655 141 danijel.labas@poba.hr 

Pozeska Banka d.d. 34 254 200 254 258 pozeska-banka@po.t-com.hr 

Privredna Banka Zagreb d.d. 1 472 3380 472 3065 andreja.barisic@pbz.hr 

Prva Generacija d.o.o. 1 461 2055 461 9761 prva-generacija@zg.t-com.hr 

Raiffeisenbank Austria d.d. 1 489 0808 489 0820 kornelija.spacek@rba-zagreb.raiffeisen.at 

Rast d.o.o. 42 231 605 231 611 

Stedkapital d.o.o. 1 630 6666 618 7531 sted-kapital@stedbanka.hr 

To One Brokeri d.d. 1 482 5885 482 5899 jurica.pevec@to-one.com 

Trcin Vrijednosnice d.o.o. 1 492 0350 492 0351 trcin-vrijednosnice@zg.t-com.hr 

Utilis d.o.o. 40 310 114 312 726 utilis@ck.t-com.hr 

Volksbank d.d. 1 6001 226 6111 953 info@volbank.hr 

Vrijednosnice Osijek d.o.o. 31 201 123 201 126 vrios@os.htnet.hr 

Zagrebacka Banka d.d. 1 610 4770 610 4876 ddoko@zaba.hr 

PAGE 164

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