FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
MACEDONIAN STOCK EXCHANGE
In 2012, market capitalization of the 32
listed companies was around 421 million
euros.
Ivan Steriev
CEO
The performance of the Macedonian Stock
Exchange in 2013 should be analyzed
from two aspects - the whole year and the
December’s developments. On a yearly basis
2013 was statistically not better than 2012.
The total turnover executed by trading in BEST
system (MSE electronic trading system),
block transactions, public auctions and public
offering was around 52,6 million Euros which
represents a decrease of more than 40%
compared to 2012. In 2013 13.585 transactions
were executed compared to 14,951 in 2012.
The turnover through the BEST system which is
the most relevant indicator of market activity, is
around 22% lower compared with the turnover
in 2012. On the other hand, the December’s
developments could be considered as a new
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 18 years 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. 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 13 members - 9 brokerage houses and
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positive trend - the main MSE index MBI10
increased monthly by 10% which lead to the
annual increase of the index of 0.44%, the first
growth after three years in a row of negative
index performance. Also, the market dynamics
in December showed once again that attaining
corporate control through the securities market
and increased acquisition expectations may
significantly move the investments wheel in the
future.
At the beginning of 2013 a mandatory listing
was introduced at the Macedonian Stock
Exchange which resulted the number of listed
companies to increase up to 116 (from 32 at
the beginning of the year). Market capitalization
of all listed companies was around 1,6 billion
4 banks. Currently MSE has 38 shareholders
(brokerage houses, banks, legal entities and
private investors).
FUTURE OUTLOOK
The main objectives of the Macedonian Stock
Exchanges for 2014 will be:
1. Maintenance and improvement of the MSE
position as a source of transparency in
the operation of all Macedonian joint stock
companies, especially after completion of
the mandatory listing program carried out in
2013;
2. Pro-activeness in returning the interest of
foreign portfolio investors and increasing the
interest of domestic investors for investing
in securities at MSE (via participating to
international road-shows by the Exchange
and listed companies and innovations and
improvements in the disclosure rules and
practices);
3. New Corporate Governance Code to be
introduced in order to further improve the
corporate governance;
4. Support of the companies who will show
interest in conducting a public offering via
MSE;
5. Improving the market infrastructure through
technical and normative developments;
6. Analyzing the need and possibilities for
shortening the settlement period to T+2;
7. Calculation and publication of sectorial
indices (primarily the index of listed banks);
8. Redesigning and combining existing IT
Euros or 21,24% of GDP. As of December 2013,
foreign investors accounted 8,6% of the total
turnover on the buying side, and 14,7% on the
selling side. These data are calculated with
excluding two large block trades.
We still expect that the operation of the
Macedonian Stock Exchange in 2014 will be
again performed in a quite complex economic
environment. However, considering the fact
that 2014 will begin from starting position even
lower than previous years (in terms of turnover
and price levels), despite the number of risk
factors, some positive developments could be
expected.
products for investors developed by MSE
in order to increase their attractiveness and
usage;
9. Continuing with the activities for facilitating
the cross-border trading in the SEE region;
10. Active participation in regular activities of
the Federation of Eurasian Stock Exchanges
(FEAS).
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