FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 55
MACEDONIAN STOCK EXCHANGE
LETTER FROM THE CEO
One of the main achievements of 2002
was the introduction of mandatory listing
for companies that fulfill the MSE’s listing
requirements.
The year 2002 was mostly influenced by the
efforts for stabilization of the political situation
in Macedonia and the negative effects caused
by the overall deterioration of the Macedonian
economy. Although inflation and currency
rates were stable, because of the negative
events of 2001, industrial output and the
overall level of economic activities was
reduced. These circumstances had a negative
impact on the Macedonian capital market and
particularly on the activities of the Macedonian
Stock Exchange (MSE). It was a volatile year,
with a decline in the MSE operations. The
main achievements of the MSE in 2002 were:
ownership consolidation through the MSE;
secondary privatization with the sale of
government residual shares;
strengthening cooperation among exchanges
in the region (a memorandum of
understanding with the Athens Stock
Exchange was signed and bilateral information
links of trading systems between the MSE and
the Ljubljana Stock Exchange were
established);
completion of the microstructure of the
Macedonian securities market (full
dematerialization of all securities was
introduced and the Depository (CSD) began
operations); and
adoption of the Takeover Law and
amendments to the Securities Law.
One of the main achievements of 2002 was
the introduction of mandatory listing for
companies that fulfill the MSE’s listing
requirements. Under 100 companies will be
listed by the end of January 2003, reaching
an expected market capitalization of over US$
250 million (around 7% of the GDP). Although
this measure is administrative, it is expected
that this process will further liberalize the
national economy, improve corporate
governance in listed companies and contribute
to a more transparent and liquid market. As
this legal provision is temporary (companies
may withdraw from listing on the MSE by the
end of 2003), it is expected that the blue-chip
companies (around 30 of them) will remain
listed.
Dr. Evgeni Zografski
Chief Executive Officer
HISTORY AND DEVELOPMENT
The Founding Shareholders Assembly of the
Macedonian Stock Exchange Inc. Skopje took
place in September 1995. Twelve banks, nine
insurance companies and four savings houses
were founders of the MSE, the first stock
exchange in the history of Macedonia. The MSE
commenced trading on 28 March 1996 and was
founded as a joint stock company, operating as
a non-profit organization. In June 2001 the MSE
was transformed into a for-profit company and
became the first stock exchange in the region to
have started the process of dematerialization.
At the present time the MSE has 18 shareholders
(10 brokerage houses, 7 banks and 1 insurance
company). The share capital of the MSE is
US$ 435,700. An important matter in completing the
institutional infrastructure of the capital market
and providing greater security for investors in
2001 was the establishment of the Central
Securities Depository, as well as the introduction
of full dematerialization of all securities in the
Republic of Macedonia.
more closely monitor compliance on disclosure
of information by newly listed companies; strengthen regional cooperation among the
Ljubljana, Athens and Zagreb stock exchanges,
with the goal of dual listing and the creation of
facilities for cross border trading and cooperation
among FEAS members.
FUTURE OUTLOOK
Plans for 2003 are to:
work within governmental programs to promote
macroeconomic stability, economic growth, low
inflation, a stable exchange rate of the
Macedonian denar, completion of the
privatization process and stabilization of domestic
security;
list an additional 115 companies by the end of
January 2003 on the official market of the MSE,
which follow new rules and regulations requiring
mandatory listing for certain companies;
promote capital market opportunities of
Macedonia internationally;
list the residual shares held by the government
in MakTelecom;
list 25 million euros in government bonds for
denationalization;
complete the pension reform program through
the further establishment of two private pension
funds; and