FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
MACEDONIAN STOCK EXCHANGE
In 2010, MSE was very active in
international promotion of the Macedonian
capital market and listed companies.
Ivan Steriev
CEO
The 2010 was year in which the investors on
the Macedonian Stock Exchange accepted the
fact that the period of stock market boom will
not be easily repeated. In other words, it was a
year characterized by slow dynamics of the
market movements and low intensity of
significant events.
Through the angle of numbers in 2010 the
total turnover reached 95 million Euros
(385.000 Euros average daily turnover) and
compared with 2009 it was reduced by 13%
and the main MSE index MBI10 was
decreased by 17%. The MSE average daily
turnover in 2010 was about through the
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 13 year 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
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electronic trading system (BEST) in 2010 was
around 215,201 euros and the market
capitalization of the listed companies was
declined for more than 21% compared to
2009. In 2010 the participation of foreign
investors on the buying side of the turnover
was about 26% and 28% on the selling side. In
general, considering these numbers 2010 is
statistically slightly behind the 2009 and in
terms of executed turnover in 2010 the market
probably touched the bottom.
introduction of new software technology which
facilitates access to the Macedonian securities
market for the investors and global data
vendors; innovations in the Listing and Trading
Rules; several new products designed for
investors and media were launched; MSE
signed several new agreements for real time
data distribution; cooperation with regional
stock exchanges were additionally enhanced
and MSE was very active in international
promotion of the Macedonian capital market
and listed companies.
The Macedonian Stock Exchange used this
period of slow market dynamics for further
improvement of the market infrastructure –
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. Shareholdings per
entity are limited up to 10% of the MSE
outstanding shares. 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 25 members - 18
brokerage houses and 7 banks. Currently MSE
has 35 shareholders (brokerage houses,
banks, legal entities and private investors). influence the faster or slower animation of the
capital market developments and,
fundamentally, we could devise them into two
main groups, on the one hand, those that are
specifically linked to the Republic of
Macedonia (such as the intensity and duration
of the positive effect related to the NATO and
EU integrations process, as well as eventual
fiscal or other regulatory stimulations for the
new listed securities and securities
investments, privatization through the securities
market etc.) and on the other hand, those
referring to the global or regional economic
conditions.
FUTURE OUTLOOK Furthermore, the events in 2011 will be
determined by combination of several factors
that will defer in the level of importance and
impact, but nevertheless, the final effect of the
securities trading at the MSE in 2011, will be
influenced by the macroeconomic situation in
the country and the performances of the
companies listed and traded on the MSE, i.e.
investor’s preparedness to direct their
investments in securities of the Macedonian
companies.
In crisis and post-crisis period, the primary
strength that could pool any stock exchange
forwards could not be expected to take effect
straight off, same as the economy which is
unable to return on the same path as before
the crisis period overnight.
Therefore, it is reasonable to consider that
2011 won’t bring any strong deviation in
respect to the conditions in 2010. Certainly,
there are numberless factors that could