ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
MOLDOVA STOCK EXCHANGE
In 2009 the total exchange volume
amounted to 13.0 million US$.
Dr. Corneliu Dodu
President
The past year has been difficult not only for
our country, but for the entire world
community. Financial and economic crisis,
as well as the unstable political situation in
the country significantly affected both the
real and the financial sector. The stock
market is no exception and although last
year according to the horoscope was the
year of the ox, still on the securities market
more “bearish atmosphere” prevailed. The
stagnation in the market, lack of liquidity,
there are more sellers than buyers on the
market, and investors waiting better times –
these are characteristics of the pass year.
HISTORY AND DEVELOPMENT
In 1993 the Law on securities circulation and
stock exchanges was enacted and from this
point in time the institutional infrastructure of
stock market in Moldova began to develop.
In December 1994 the non-profit institution,
Moldova Stock Exchange was established as
joint-stock close company. 34 promoters – the
securities market professional participants
took part in its establishment. The first
transactions were made on June 26, 1995,
and this date is accepted as the birthday of
the Moldova Stock Exchange.
In June 1998 the Moldova Stock Exchange
established the National Securities Depositary
and a new trading system were integrated
with the depositary system which allows
transactions to be carried out. According to
the changes made in the law «On Securities
market» which came into effect on January 1,
2008, Moldova Stock Exchange has the right
to own up to 75% shares of National Securities
Depositary.
PAGE 116
At the end of the year on the Stock
Exchange registered 1,019 issuers, of which
in Listing - 13 and in non-listing - 1006. There
are 22 accredited members of the stock
exchange.
In 2009 the total exchange volume amounted
to 13.0 million US$ and, on the background
of the past years’ indicators, it decreased.
Reducing of the stock exchange indicators
related to:
- Changing of the price conjuncture (the
tendency of prices has declined).
In April 2000 Moldova Stock Exchange
received the status of a self-regulating non-
commercial organization. In July 2000 new
Moldova Stock Exchange’s Regulations were
introduced which qualitatively changed the
mechanism of transactions.
In July 2007 the Mega regulator – National
Commission of Financial Market was created.
According to the legislation the Mega regulator
regulates and determines state policy of the
nonbank financial market.
According to the new requirement of the law
«On Securities market» from January 1, 2009,
Moldova Stock Exchange is a public company,
a for profit organization.
At the present Moldova Stock Exchange is a
developing stock market, which continues to
cooperate with other stock exchanges and
financial organizations. Besides the fact
that MSE is a member of FEAS from 1995,
in 2008 became the member of International
Association of the CIS Exchanges, which
has the aim to coordinate the effort on
development of organized financial markets in
accordance with international standards.
- Reducing of the volume of public offerings,
which in 2009 were consequence of the
purchase of important packages in previous
years.
- Lack of sales of government securities,
which in 2008 amounted to almost 50% of
exchange volume.
At year-end, the Government approved the
Program of stabilization and economic
regeneration of the Republic of Moldova for
2009-2011, which presented measures to
regenerate the national economy, and
respectively the capital market in Moldova.
FUTURE OUTLOOK
The priority directions of the Moldova Stock
Exchange for 2010 are:
• Increase the quality and quantity of the
services and products (consulting services,
diversification the products, introducing new
trading instruments).
• Attraction of more companies in listing.
• Development of the IT infrastructure.
• Modernizing the website of the Moldova
Stock Exchange.
• Modernizing trading system of the stock
exchange.
• Development a new database of issuers
registered on the Moldova Stock Exchange.
• Cooperation with regional and international
organizations.