FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2006
ZAGREB STOCK EXCHANGE
The ZSE, measured by market size (market
capitalization) is one of the leading non-
European Union markets in the region.
Marinko Papuga
General Manager
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.
HISTORY AND DEVELOPMENT
The ZSE was incorporated in 1991 as a
joint-stock company with 25 commercial
banks and insurance companies. Today, the
ZSE has 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.
In 2004 there were many new developments
on the ZSE.
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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-EU 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.
• 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 ZSE.
• 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.
FUTURE OUTLOOK
In 2005 ZSE plans to:
• focus efforts on further improvement in
technology
• introduce new financial instruments
• continue care for market transparency and
efficiency