FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
SARAJEVO STOCK EXCHANGE
Zlatan Dedic
General Manager
In its seventh year of operation the Sarajevo
Stock Exchange (SASE) has accomplished
lower trading results than in the previous
year. The most illustrative example is the
total turnover in 2008 with the amount of
EUR 244 million which was 62% lower than
in 2007.
However in 2008, 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 substantial returns
on their investments. The access to the
greater number of information outlets was
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 20 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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However in 2008, 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 substantial
returns on their investments.
enabled with new data available on new the
Capital Market of Federation of Bosnia and
Herzegovina web portal, a 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 the first IPO done on SASE where
more than EUR 51 million was generated.
There was one more mutual fund founded in
2008, with several others currently in
preparation. Also we expect the pension
reform to bring additional demand to the
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 US$ 961.5
million - more than in 2005 and 2006
combined. There were 4 mutual funds
founded in 2007, and more are currently in
preparation. In 2008 as a result of global
financial crisis sharp decrease in turnover
affected SASE where we finished the year
with 376.8 million US$ (decrease of 60.8%).
market. We hope that the adoption of the
new Security Market Law will give the market
more options for further expansion. One
more reason for greater investor’s interest in
the capital market in the Federation of
Bosnia and Herzegovina is the
announcement for infrastructure projects
especially in energy, telecommunication and
road construction sectors, and an
announcement for the privatization of
companies who are pillars of the Bosnian
economy. All these factors will ensure the
past success to continue into 2009 where
SASE will again exceed all expectations.
FUTURE OUTLOOK
In 2008 global financial crisis affected the
Sarajevo Stock Exchange where we finished
the year with a decrease in turnover from
2007. However 2009 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 2009
includes following activities:
• Creation of the joint index of the Sarajevo
Stock Exchange and Banja Luka Stock
Exchange.
• Creation of SASE Free Market Index.
• Issuance of first municipal and state
bonds which would increase bond trading.
• Creation and adoption of Corporate
Governance Code in the Federation of B&H.
• Continue to list strategic companies
currently on SASE Free Market to SASE
Official Market.
• Adjustment of internal acts based on new
Securities Law which would bring new
investors
• Cooperation with regional stock
exchanges to develop a 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.