ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
MACEDONIAN STOCK EXCHANGE
Ivan Steriev
CEO
The repercussions of the world economic
crisis continued to affect the Macedonian
economy and subsequently the Macedonian
capital market in 2009.
The conditions of the Macedonian capital
market in 2009 were very complex. The total
turnover in 2009 was reduced for 45%
comparing with 2008. Even the main MSE
index MBI10 registered annual growth of 31%
the stock prices were at the level of June
2006. The average daily turnover in the BEST
system in December 2009 was around
273,000 euros and was at the same level as
on June 2005 and the market capitalization of
the listed companies has fallen more than 72%
compared to record levels in 2007. The
participation of foreigners in the purchase side
of the turnover in 2009 was about 15%.
Considering these numbers, we can stress
several main characteristics of the events of
the Macedonian Stock Exchange in 2009 such
HISTORY AND DEVELOPMENT
The Macedonian Stock Exchange 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. Its mission is to
provide attractive, efficient, transparent and
secure functioning of the organized secondary
securities market in the Republic of
Macedonia. For its 13 year history, the
Macedonian Stock Exchange has managed to
establish a sound market and information
infrastructure and a cohesive legal and
regulatory framework, as well as solid expertise
upon which the functioning of the Macedonian
securities market is based.
The MSE was founded as a not-for-profit joint
stock company with founding capital of
500,000 Euros. According to the legislation that
was in force in 1996 the only eligible founders
of the MSE were banks and other financial
institutions (saving houses and insurance
companies). MSE initially had 19 members:
13 banks, 3 saving houses and 3 insurance
companies. Starting from June 20, 2001 (with
the amendments of the Securities Law), MSE
started to operate on a for-profit basis, with a
founding capital of 500,000 EUROs. MSE
shareholders may be any legal and private
domestic and foreign entity. Shareholdings per
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In 2009 the MSE continued to upgrade its
operations and rules and procedures to
provide improved service to market
participants, exchange members and
investors.
as reduced liquidity in the market, withdrawal
or passivity of foreign portfolio investors,
change of the market structure in terms of
types of investors, making the stock market
with a pronounced domination of the local
retail investors.
In 2009 the MSE continued to upgrade its
operations and rules and procedures to
provide improved service to market
participants, exchange members and
investors. MSE implemented changes in the
Listing Rules by which new higher standards
for disclosure for the companies on the
Exchange Listings were introduced
(appointment and publishing an investor’s
relations person; more précised obligations for
announcing the buying/selling of shares by the
members of the Management and Supervisory
board; the issuers are obliged to publish the
Semi Annual Balance, the Annual report and
the financial plan for the ongoing period). MSE
established a new version of the trading
entity are limited up to 10% of the MSE
outstanding shares. All MSE members must be
licensed for trading in securities by the
Macedonian SEC. Only brokers, authorized by
the MSE members may trade in securities at
MSE. MSE currently has 25 members - 18
brokerage houses and 7 banks. Currently MSE
has 35 shareholders (brokerage houses,
banks, legal entities and private investors).
FUTURE OUTLOOK
In the forthcoming period, the MSE focus will
be on the further development of the
Macedonian Secondary Market to the extent
that it will be comparable to the modern and
well organized markets worldwide, as well as
on increasing of its attractiveness, by creating
mechanisms, procedures and projects that will
enhance the quality and the competitiveness of
MSE services.
The MSE plans for 2010:
• Modernizing the Trading System -
introduction of FIX Protocol;
• Attraction of new listings on the Official
Market;
• To increase visibility of the Macedonian Stock
Exchange by providing more data-feeds to
more data vendors;
• Either alone or through various forms of
cooperation with other regional exchanges
system based on the new technologies. The
new version will support FIX Protocol.
Within the framework of the Memorandum of
Partnership signed between the exchanges in
Southeast Europe during the 2009 two road
shows took place (in Belgrade and in Vienna)
where the top issuers and the capital markets
from the region were promoted in order to
increase the visibility of the regional capital
markets and to attract international investors.
In the forthcoming period, the MSE focus
will be on the further development of the
Macedonian Secondary Market to the extent
that it will be comparable to the modern and
well organized markets worldwide, as well as
on increasing of its attractiveness, by creating
mechanisms, procedures and projects that will
enhance the quality and the competitiveness
of MSE services.
MSE will be involved in the processes of
promotion of its market and issuers and
products in order to attract international as well
as regional investors.
• Development and promotion of a new
Internet Services for investors, financial
analysts and financial intermediaries, called
BESTNET ANALITICS which contains three
modules: Technical Analysis, Fundamental
Analysis and My Portfolio;
• MSE will continue to increase the knowledge
of capital market participants, institutional
as well as retail investors, issuers and media
for exchange traded products, trading,
transparency, investor protection and corporate
governance – creating a special training center.