ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SARAJEVO STOCK EXCHANGE
Zlatan Dedic
General Manager
In its eight year of operation the Sarajevo
Stock Exchange (SASE) has accomplished
lower trading results than in previous year. The
most illustrative example is the total turnover in
2009 with the amount of 112 million Euros was
54% lower than in 2008.
However in 2009, we have analyzed all
investor’s obstacles and started removing
them. Above all we wanted to adequately
show investors that our capital market is
worthy for them and offers substation returns
on their investments. The access to the greater
number of information was enabled with new
data available on new Capital Market of
HISTORY AND DEVELOPMENT
The Sarajevo Stock Exchange (SASE) was
founded in September of 2001 by eight
brokerage houses and commenced trading on
April 12 of 2002. The SASE is a central
marketplace for securities trading in the
Federation of Bosnia and Herzegovina. The
SASE is a joint-stock company which originally
had eight founding members.
The SASE currently has 17 members, whose
headquarters are spread around the
Federation of Bosnia and Herzegovina, the
majority being in the capital, Sarajevo. All
members of SASE must be licensed for trading
in securities by the Securities Commission of
the Federation of Bosnia and Herzegovina.
Trading on the SASE is performed
electronically through an order driven electronic
trading system BTS (Stock Exchange System).
BTS is a computer assisted information and
trading system, which enables remote entry,
modification, halt and removal of orders,
automated matching of orders and concluding
trades, supervision of orders and trades, as
well as survey of information on trading and on
listed securities.
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In 2009, we have analyzed all investor’s
obstacles and started removing them.
Above all we wanted to adequately show
investors that our capital market is worthy
for them and offers substation returns on
their investments.
Federation of Bosnia and Herzegovina web
portal, joint project of SASE, Securities
Commission and Central Registry. Our
openness to investors drew their attention and
gave incite and confidence to the capital
market in the Federation of Bosnia and
Herzegovina.
We had three more IPO done on SASE where
it was collected more than 1.82 million Euros.
There was one more mutual fund founded in
2009, with several others currently in
preparation. Also we expect the pension
reform to bring additional demand to the
market. We hope that the adoption of the new
At the beginning of 2004, trading at the SASE
Official Market started and all 11 Privatization
Investment Funds were listed there. The Official
Market is a higher level market where only
securities that meet special conditions and are
approved by the Securities Commission and
SASE’s addition board can be listed there. Also
in 2004, after two years of trading with only call
auction trading system, continuous trading has
been introduced at the SASE under the name
Multi Fixing Trading Schedule (MFTS). Only the
most liquid securities on the SASE have been
transferred to MFTS. In 2006 another
significant milestone was achieved with listings
of the first three companies on the SASE
Official Market. From the 500 issuers which are
listed on the Sarajevo Stock Exchange,
currently 14 are on the Official Market. Turnover
on SASE has risen substantially, which can be
illustrated by the fact that in 2007 it rose up to
961.5 million US$ - more than in 2005 and
2006 combined. There were 4 mutual funds
founded in 2007, and more are currently in
preparation. In 2009 as a result of global
financial crisis sharp decrease in turnover
affected SASE where we finished the year with
153.7 million US$.
Security Market Law will give the market more
options for further expansion. One more
reason for greater investor’s interest in capital
market in the Federation of Bosnia and
Herzegovina is the announcement for
infrastructure projects especially in energy,
telecommunication and road construction
sectors, and announcement for privatization of
companies who are pillars of Bosnian
economy. All these factors will ensure past
success to continue into 2010 where SASE will
again exceed all expectation.
FUTURE OUTLOOK
In 2009 global financial crisis affected the
Sarajevo Stock Exchange where we finished
the year with decrease in turnover from 2008.
However 2010 promises better results together
with accomplishment of greater efficiency and
transparency of the Capital Market in the
Federation of Bosnia and Herzegovina. SASE
future outlook for 2010 includes following
activities:
• Issuance of first municipal bonds which
would increase trading on the bond market.
• Continue to list strategic companies currently
on SASE Free Market to SASE Official Market.
• In cooperation with regional stock exchanges
development of South-eastern European Index
• Continuation of privatization of the State
owned capital through the Sarajevo Stock
Exchange.
• Attract new issuers through Initial Public
Offers.
• Increase public and investor relations
together with new educational projects.