FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
BELGRADE STOCK EXCHANGE
The psychological impact on the domestic
investor was such that his fears could not
be alleviated by the good news and good
financial results.
Gordana Dostanic
Managing Director
The issue of the utmost importance to
businessmen, politicians and analysts in recent
months, in both the global and Serbian
markets, has been the establishment of
efficient measures for overcoming the crisis
spreading throughout the financial world and
heading for the real sector. Let me confine my
focus on the effects of the crisis on the Serbian
capital market. Do the American mortgage
crisis, crash of the Lehman Brothers, financial
giants’ losses and firing of one-time yuppies
have anything to do with our market if we do
not have structured finance, trading in dubious
derivatives with AAA ratings, hidden
„bombshells“ in the investment banks’
balances, not even the investment banks
themselves? Very much so, I dare say,
however hasty it might sound.
HISTORY AND DEVELOPMENT
Belgrade SE, originally founded in 1894, was
closed in 1953, and again refounded in 1989. The
key events in the latest history are:
• In September 2002 Republic of Serbia Bonds
trading began;
• In March 2004, remote trading was launched;
• In October 2004 continuous trading of stocks
has begun;
• In December 2004, BELEXfm index was
launched;
• In October 2005 the BELEX15 index has been
introduced;
• In March 2007, SRX index launched by the
Vienna SE;
• In April 2007, the Belgrade SE launched
BELEXline, successor of the BELEXfm;
• In April 2007, first company listed on Prime
Market – Tigar Corporation from Pirot;
• In June 2007, BELEX 15 Open End - Index
Certificate issued and listed at the Frankfurt SE
and Stuttgart SE;
• In November 2007, Serbian stocks included in
first Balcan Blue-Chip index - DJ STOXX Balkan
50;
• In January 2008, ABN AMRO bought a licence
on BELEX15;
PAGE 48
In previous years share turnover on the
Belgrade Stock Exchange went up with a
significant contribution of foreign investors,
although their participation in turnover was
slightly changed in 2007, with enhanced
appearance of domestic institutional investors.
High exposure to foreign investors and
consequently high exposure to the impact of
global events, even when the „local“ is not
directly linked to the „global“, is one of the
major reasons for decreasing trends on the
Belgrade Stock Exchange in 2008. In the
period January – November 2008 the Belgrade
Stock Exchange recorded the turnover of RSD
67.9 b, i.e., over EUR 837.9 m, which is by
56% lower compared to the same period last
year. The total market capitalization on 30th
November 2008 amounted to EUR 10.3 b,
which is by 35.8% lower as against the same
period last year. The index of the most liquid shares on the Belgrade Stock Exchange
BELEX15 fell over 70% up to November 2008.
• In April 2008, the new trading system BELEXFIX
was launched;
• in September 2008, first closed-end fund
shares admitted to trading;
• In December 2008, first market maker in TIGR
shares. • Work on the project of autonomous filing and
updating of all documents, news, and
announcements for issuers;
• Modify BELEXFIX application and test client
applications;
• Improve BELEX.info and other real-time
applications;
• Broaden network of international data vendors;
• Work on promotion of importance of corporate
governance among issuers;
• Continue educational activities with the existing
and new training programs;
• Improve media coverage of stock exchange
activities;
• Edit and publish new editions and publications;
• Continue work on developing human resources;
• Take active part in international meetings and
events;
• Organize the 8th International Annual
Conference in November.
FUTURE OUTLOOK
In the 2009 the BSE will:
• Upgrade all operations, rules and procedures to
provide state-of-art service;
• Organize first Regional Roadshow in Belgrade in
May;
• Continue promotion of stock exchange
operations through roadshows outside the country,
• Further develop the existing indexes and
indicators;
• Further motivate the best Serbian companies to
apply for Official Listing;
• Further develop market segmentation by
building new and improving the existing ones;
• Develop sector classification in line with the
leading global standards;
• Develop new market making functionalities;
• Explore possibilities for introducing new
instruments to the market;
• Promote news on listed companies through
direct cooperation with media and news agencies;
General characteristics of the Serbian capital
market (level of capitalization, quality and
range of products, unharmonized legislation
not designed to prompt the capital market
growth, etc. and frequent political tensions
raising the investment risk, additionally
contributed to the scarcity of mechanisms for
slowing down the fall of the index BELEX15.
The psychological impact on the domestic
investor was such that his fears could not be
alleviated by the good news and good
financial results of the companies, not even by
the fact that the companies traded on the
Belgrade Stock Exchange in most cases have
no connections whatsoever with the causes of
the world crisis.