SeeNews TOP 100 SEE 2012 - SEE Top 100 - SeeNews

SEE listed
companies
Blue-chip indices of major SEE bourses in 2011
(in points)
649
January
December
499
2,274
1,975
363 322
10 times bigger. Seven indices track companies
listed on the BVB, compared to fi ve on
BSE.
The signing of the linking agreement could
boost liquidity, BSE’s other CEO, Ivan Takev
told SeeNews.
In his view, however, the development of the
BSE in the short and medium term will largely
depend on individual investors.
“The factors [that will set the stock exchange’s
course] are both local and regional
but it all comes down to the individual investors,
I think they will determine the development
of the market,” Takev said.
Takev said one reason for the absence of individual
investors from the local bourse compared
to the pre-crisis years is high interest
rates on relatively risk-free bank deposits.
“Although Bulgaria’s economy has been growing
for several consecutive quarters, on micro
level individual companies still feel uncertain
about the environment,” he said, adding that
individual investors will return to the bourse
as soon as they see clear improvement.
In his view, the much anticipated privatisation
of a majority stake in the operator of
the BSE and the Central Depository too could
help spur investor activity without, however,
providing a remedy to the problem. “What
is more important is to have a vision for
the long-term development of the stock exchange
rather than adopt short-term measures
that will boost the market for a brief
period of time only.”
The state can play a key role in such a longterm
strategy by privatising state-owned
companies through the bourse, Takev added.
The Bulgarian Energy Holding (BEH), for one,
is of particular interest to all market players
because of its size, he said. It incorpo-
2,293
1,740
rates assets of Bulgaria’s sole nuclear power
plant Kozloduy, gas monopoly Bulgargaz, gas
transmission system operator Bulgartransgaz,
telecommunications operator Bulgartel,
National Electricity Company and its whollyowned
system operator Electricity System
Operator, coal-fi red power plant Maritsa East
2 and the Maritsa East coal mines.
The government has said it is considering
putting up for sale a stake in BEH but according
to Takev so far no details have been
discussed with representatives of the stock
What is more important is to have a vision
for the long-term development of the stock
exchange rather than adopt short-term
measures that will boost the market for a
brief period of time only.
exchange.
In neighbouring Romania, several new fl otations
of state-held stakes planned for this
year are expected to bring a breath of fresh
air, boosting liquidity and trading volumes on
the market.
“The planned initial public off erings will
probably be the most important events on
the Romanian bourse this year. They will increase
the liquidity and the trading volumes,
and boost visibility,” the head the Bucharest
bourse management board Lucian Anghel
told SeeNews.
Romania plans to list minority stakes in key
energy and transport companies in 2012, as
part of its commitments under a two-year
precautionary stand-by deal signed with the
IMF last year.
44
5,366
BELEX15 MBI10 SOFIX CROBEX BET SBI TOP
4,337
849
590
The planned initial public off erings (IPOs)
include a 10% stake in power producer Nuclearelectrica
and a 20% stake in fl ag carrier
Tarom.
Romania also plans a secondary public off ering
(SPO) by the end of 2012, in which it will
put up for sale a 15% stake in gas transmission
company Transgaz after successfully completing
an SPO of a 15% stake in power grid
operator Transelectrica earlier this year.
Transelectrica’s SPO, held in March, was
58.8% oversubscribed, signalling strong investor
interest.
“I think the chances for successful SPOs in
the future increased dramatically, because
Transelectrica’s stake listing was the fi rst
SPO in more than three years. Now I am sure
that the next one will be even better,” Anghel
said.
The only public off ering held on the BVB last
year was the SPO of a 9.84% stake in Romania’s
top oil and gas group, OMV Petrom. The
off ering failed as the subscription rate was
lower than 80%.
The development of the Bucharest bourse
also depends on external factors which infl uence
investors’ sentiment towards the stock
markets in the region, Anghel said. “But we
can’t infl uence [external factors], for that
reason we need to have very good connection
with the other bourses in the region.”
Hit by low liquidity, the operator of the Belgrade
stock exchange too turns a hopeful eye
to the sale of state-held stakes.
“Despite the existing interest of the listed
companies and market infrastructure that
could support further development, the
main problem in terms of future development
of the Serbian capital market still is
the defi ciency of the liquid securities and