Download - FEAS xxx.fh9
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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005<br />
ZAGREB STOCK EXCHANGE<br />
Marinko Papuga<br />
General Manager<br />
The year 2004 was extremely successful for<br />
the Zagreb Stock Exchange (ZSE). Turnover<br />
in equities rose 75%, the number of new<br />
shares listed in the Official Market doubled<br />
and market capitalization is up 66.3%. Value<br />
of new corporate bond issues listed exceeds<br />
US$ 502.5 million (HRK 2.8 billion). Four new<br />
government bonds issues together with<br />
previously listed issues created a US$ 3.5<br />
million (HRK 19.6 billion) large government<br />
debt market on the ZSE. The number of<br />
transactions increased 47%, and last but not<br />
least the official equity index CROBEX hit a<br />
record high of more than twenty times its<br />
starting value in 2004, and finally set at new<br />
30% higher level.<br />
HISTORY AND DEVELOPMENT<br />
The ZSE was incorporated in 1991 as a<br />
joint-stock company with 25 commercial<br />
banks and insurance companies. Today, the<br />
ZSE has 46 shareholders and 38 members.<br />
Prerequisites for ZSE membership include:<br />
compliance with the Securities Law,<br />
licensing with CROSEC and acceptance of<br />
the ZSE rules. A seat on the ZSE currently<br />
costs approximately US$ 13,000. Members<br />
are required to comply with the rules and<br />
regulations of the ZSE and must register at<br />
least one licensed broker.<br />
PAGE 136<br />
The ZSE, measured by market size (market<br />
capitalization) is one of the leading non-<br />
European Union markets in the region.<br />
All of these statistics combined with<br />
increased retail investor’s interest for equities<br />
is a solid platform for further capital market<br />
development. The ZSE, measured by market<br />
size (market capitalization) is one of the<br />
leading non-European Union markets in the<br />
region. In year 2005 we will focus our efforts<br />
on further improvement on technology side,<br />
introduction of a new financial instruments<br />
and continuous care for market transparency<br />
and efficiency.<br />
In 2004 there were many new developments<br />
on the Zagreb Stock Exchange.<br />
• The number of bonds listed almost<br />
doubled as compared to 2003 and for the<br />
first time two new municipal bond issues<br />
“City of Koprivnica” and “City of Zadar” were<br />
listed on the Zagreb Stock Exchange.<br />
• In 2004 four new (additional) government<br />
bond issues were listed on the ZSE, thus<br />
creating a US$ 3.5 million (HRK 19.6 billion)<br />
large government debt market.<br />
• Four new corporate bond issues were<br />
listed on the ZSE. The total amount of new<br />
corporate bonds issues issued by the<br />
largest Croatian companies PLIVA, Agrokor,<br />
Podravka & Atlantic exceeds US$ 0.5 million<br />
(HRK 2.8 billion) (total corporate bonds<br />
market capitalization is US$ 0.9 million<br />
(HRK 4.7 billion)).<br />
• Turnover in shares rose 75%.<br />
• In 2004, the official equity index<br />
CROBEX’s value increased twenty times to<br />
set a new all time high level.<br />
FUTURE OUTLOOK<br />
In 2005 ZSE plans to:<br />
• focus efforts on further improvement in<br />
technology<br />
• introduce new financial instruments<br />
• continue care for market transparency and<br />
efficiency