MOLDOVAN STOCK EXCHANGE
The securities market is an integral part of the
overall financial market and its activity reflects
the state of affairs of the Republic. With the
country’s goal to become integrated into the
European Union as well as a globally
recognized developed stock market, foreign
policy has become the priority.
Dr. Corneliu Dodu
President
With the country’s goal
to become integrated
into the European Union
as well as a globally
recognized developed
stock market, foreign
policy has become the
priority.
A major objective for the coming year is the
reorganization of investment funds. One way to
achieve this goal will be through the
establishment of holdings. Based on the above,
activity on the Exchange in 2004 will be greatly
influenced by programs associated with our
future outlook toward development.
The level of investing activity in December is
generally high, but December 2003 outshone
the indices of the years from 1999 to 2002. The
volume of transactions registered in 2003 was
US$ 36.4 million compared to US$ 19.43
million in 2002. In 2003 transactions in 252
trading sessions with trading in 4.1 million
stocks belonging to 354 joint-stock companies
were achieved. The transaction of the year was
the offering of the stocks of the beer factory
“Efes Vitanta Moldova Brewery”, which brought
to the market a tender offer of 96.5% on a
volume of US$ 12.7 million or 35% of total
market volume.
HISTORY AND DEVELOPMENT
In December 1994, the Moldovan Stock
Exchange (MSE), a closed company, was
established under the law on Securities
Circulation and Stock Exchanges. Originally,
34 securities market professionals participated
in trading. The first transactions were held on
26 June1995, which is considered the date of
the founding of the MSE.
Due to the assistance of the USAID, the
Exchange is equipped with advanced
technology for stock auctions. In 1998 the MSE
established the National Securities Depository
(NSD), a non-commercial joint-stock company.
At the initial stage of the MSE's development,
the authorized capital adequacy standards were
set as an authorized capital of US$ 18,030
(LEI 238,000). In 1998 capital adequacy
increased from US$ 29,697 (LEI 392,000) and is
now US$ 37,879 (LEI 500,000). The equity
capital sufficiency norms of US$ 75,758
(LEI 1.0 million), and guaranty fund adequacy
norms of 30% of the authorized capital as set
by the legislation are currently in practice.
A series of restrictions was implemented in the
legislature. These restrictions changed not only
settlement of transactions, but also their
structure. Buying and selling transactions
amounted to 54% of the total volume; swap
transactions were 2%, repo transactions were
8% of the total volume and the block sale of
Efes Vitanta Moldova Brewery was 35% of the
total volume. The number of registered
companies as of 31 December was 1,078,
including 24 listed companies.
FUTURE OUTLOOK
In April 2000, the MSE received the status of a
self-regulating non-commercial organization.
At the beginning of 2002, the National
Commission introduced the CNVM-32 index.
The world famous index, Dow Jones, serves as
a basis for the calculation of the CNVM-32.
The Dow Jones index is worked out in real time
using the results of the New York Stock
Exchange auctions.
In June 2003, the MSE celebrated its eighth
anniversary. During the period of its
development, the MSE underwent a difficult
evolution. But thorough changes have taken
place, which have had a great influence on the
activities of all participants of the stock market,
including the Exchange itself.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
PAGE 68
Below are the MSE’s plans for the future:
• improve technologies to high-speed
networks that will increase capacity;
• introduce a module for electronic settlement
with banks;
• trade in public securities and introduce
derivative products; and
• introduce a “remote broker” system,
currently underway.