FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
BANJA LUKA STOCK EXCHANGE
In 2007 total market capitalization
amounted to EUR 4 billion, which is an
increase of 3.86% compared to the end of
2006.
Milan Bozic
CEO
The capital markets of the Republic of Srpska
(RS) were very dynamic in 2007. The strong
growth in the first four months was followed by
the significant decrease of prices in the
second part of 2007. It should be noted that
this downward trend occurred after the six-
year of consecutive growth. The turnover
amounted to EUR 380 million, which is almost
double as compared to the previous year. For
the first time, the BLSE index (BIRS) recorded
a decrease of 11.1%, ending at 2,564 points.
Total market capitalization amounted to EUR 4
billion, which is an increase of 3.86% as
compared to the end of 2006.
The general understanding about the strong
relationship between the capital market and
the real economy performance has been
considerably improved. At the same time,
FUTURE OUTLOOK
In 2008 the BLSE plans to:
• foster implementation of national corporate
governance standards;
• introduce new market instruments on the
trading, such as long term government and
municipal bonds;
• encourage listings of successful limited
liability companies on the stock exchange
market;
• further develop relations with the issuers
listed on the stock exchange and promote
significant improvements in the development
of the official market have been achieved
resulting in an increase in number of
companies and funds being listed on this
market segment (40). For the first time two
bank bonds were listed on the official market.
2007 saw the transformation of 13 privatization
investment funds into close-ended investment
funds. The total market capitalization of these
funds reached EUR 240 million. Furthermore,
the first open ended fund has been
established in the RS, signaling a plausible
turning point in the development of the fund
industry. Corporate disclosure has been
significantly improved and for all companies
listed on the Banja Luka Stock Exchange
(BLSE) markets, semi-annual financial reports
are available on the BLSE web page and for
companies listed on the official market quarterly reports are disseminated as well.
In 2008, the first municipal and significant
issues of government bonds should be listed
on the BLSE markets. The launch of pension
system reforms will have a strong positive
impact on the RS capital market development.
Announced adoption of the Law on Reserve
Pension Fund and the Law on Third Pillar
Pension Funds should contribute to the
strengthening of domestic institutional demand
on the Exchange. Through active participation
in various regional projects the BLSE will strive
to increase visibility of the RS capital markets.
The planed introduction of FIX protocol in the
second part of 2008 will improve accessibility
of the domestic markets to foreign investors.
Finally, 2008 will see the first limited liability
companies to raise capital on the Exchange.
benefits of listing on higher market segments;
• support to the development of open ended
funds through education and promotion of their
roles on the capital market
• increase visibility of the BLSE market by
providing data-feed to the world known
Vendors;
• promote cooperation with the stock
exchanges from the region and other part of the
World;
• continue with educational and promotional
activities (International Conference of the Banja
Luka Stock Exchange); • introduce upgraded version of trading system
which will further improve flexibility of trading
and
• launch fix protocol.
CONTACT INFORMATION
Contact Name Ms. Slavisa Riscovic
E-mail [email protected]
Website www.blberza.com
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