FEAS Yearbook FEAS Yearbook 2013 | Page 30

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013 BANJA LUKA STOCK EXCHANGE The BLSE market in 2012 was marked by the further shift of investors’ interest towards bonds. Milan Bozic CEO Markets The BLSE market in 2012 was marked by the further shift of investors’ interest towards bonds. The total turnover of 261 million BAM was lower by 38.67% compared to the previous year as a result of decrease in the primary bond market. On the other hand, it was recorded the increase in regular turnover (+10.42%) and the number of transactions (+4.16%). The movement of the general index (BIRS: -7.89%) was mainly influenced by the fall in prices of the shares of 10 companies from electricity sector (ERS10: -14.7%), that participate in the index with 50%, and an increase in shares of Telekom Srpske (+5.48%) that represents 25% of the index. HISTORY AND DEVELOPMENT • 15.07.1998 The adoption of the Law on Securities provided the necessary legal framework to establish the capital market of the Republic of Srpska. • 09.05.2001 Eight banks and one company trading in securities signed the Contract that established the Banja Luka Stock Exchange. • 14.03.2002 The first trading session took place. • 20.08.2003 The first auction for state owned capital took a place on the BLSE. • 03.05.2004 BIRS - The Stock Exchange Index of Republic of Srpska established. • 01.08.2004 FIRS - The Investment Fund Index of Republic of Srpska established. • 17.09.2004 Full membership to FEAS. • 20.03.2006 Introduction of continuous trading in shares which fulfill the liquidity criteria. Closed-end investment funds shares have increased on average by 3.56% as a result of price increase of four largest funds, whereas the price of the remaining 10 funds recorded a significant decrease. Bonds participated with 46.6% in ordinary turnover. This market had a significant increase in prices, particularly bonds that are issued on the basis of war damage which increased on average by 30%. The first trades with the Republic of Srpska T-Bills took place on the secondary market participating with 16.9% in ordinary turnover. • 18-19.05.2006 First International Conference of the BLSE. • 29.01.2007 Correspondent membership to WFE. • 22.11.2007 Correspondent membership to FESE. • 07.03.2008 The first governement bonds were listed on the BLSE • 24.06.2008 The BLSE real-time data started to be distributed by the Bloomberg. • 19.12.2008 First IPO in the history of BIH. • 09.3.2009 New trading system (BST 2.4) that supports FIX protocol was implemented. • 11.05.2011 The first auction for the Republic of Srpska T-Bills took place on the BLSE. • 16.11.2011 Auction for the first public issue of the Republic of Srpska bonds on the BLSE Development Projects The most important development activities were: • adoption of the new Stock Exchange Rules, • implementation of the new trading system, • further development of the BLSE’s software for brokerage houses and its implementation at the brokerage houses in Montenegro, • development of the money market trading platform, • development of the multilateral offsetting system, • educational programs for the high schools, • investments in the IT and telecommunication equipments. FUTURE OUTLOOK In 2013 the BLSE plans to: • Organize money market • Attract first companies to list on the highest market segment - List A • Work with the stock exchanges from the region on enabling cross-border trading based on technical solution that enables linkages between brokerage houses • Promote good practices in corporate governance • Provide assistance in changing high school curriculum in order to introduce personal finance course in all high schools in the Republic of Srpska • Increase international visibility of the BLSE by broadening the number of the international data vendors. CONTACT INFORMATION Contact Name Mr. Nebojsa Vukovic E-mail [email protected], [email protected] Website www.blberza.com * Please refer to page 77 for the Bosnia and Herzegovina country report. PAGE 28