FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
BELGRADE STOCK EXCHANGE
The total turnover of the Belgrade Stock
Exchange in 2012 amounted to 219.7
million EUR, while the average daily
turnover was 875.5 thousand EUR.
Gordana Dostanic
Managing Director
Positive market perception by investors
during the second half of 2012 resulted by the
increase in the volume of investment activities
on the Stock Exchange and the growth of
turnover and rise in values of both of indices,
BELEX15 and BELEXline. Value of the BELEX15
as indicator of movements of the most liquid
shares was increased in 2012 year by 4.98
percent, while the growth of the general index
of domestic capital market BELEXline was
2.90 percent. Confirmation of intensifying trade
activities in the second half of the year can
be also found in the increase of the market
capitalization of the Stock Exchange. On the
last trading day in 2012, market capitalization
stood at 6.8 billion EUR, regardless of the large
number of securities excluded from the market
as result of the bankruptcy and liquidation, or
change in organizational form.
HISTORY AND DEVELOPMENT
• The Belgrade Stock Exchange held its
Founding Assembly on 21st November 1894
and has come a long way since the first
trading sessions held in January 1895 in the
hotel „Bosna“ on the bank of the river Sava.
• In its more recent history, significant
improvements of the BELEX trading
system were made in 2003 and 2004,
when continuous and remote trading were
introduced. The first index was published in
late 2004, and up to this day the Exchange
has continued to develop indicators. Since
the beginning of 2008 the Belgrade SE has
been organizing the Roadshows. 2008 was
also the year when the BELEXFIX information
system, was released, followed by the
BELEX FIX API module implemented in early
2010, which allowed members to develop
their own trading apps. The first shares of
public enterprises were listed in 2010. At the
end of 2010 the first Award for the best IR
was awarded.
The key highlights in 2012:
• In March - a Platform for Joint Action by the
Exchanges of SE Europe was signed, aimed
at improving cooperation and attracting
investors to the region.
• In May - new rules and regulation entered
into force.
• In June - BELEX IPO 2012 was held, in
cooperation with the Erste Bank and with the
support of the Association of Serbian Banks;
During the second half of the year corporate
bonds of the Societe Generale Bank Serbia
were admitted on the market and, through
the primary market, bonds of the Erste Bank
Novi Sad. After the primary trading Erste bank
bonds were included on the secondary market
of the Exchange, which contributed to the
enlargement of the assortment on the BELEX
debt market. Primary trading of the Erste Bank
bonds was also the first primary trading with
some financial instrument on the regulated
market since the 2003. This demonstrated the
ability to use the mechanism and technology
of BELEX for organizing primary trading of
securities.
In the total annual turnover of the Exchange
foreign investors participated slightly less than
50 percent, with the increase in the bonds
trading, compared to the previous year.
• In September - BELEX Day of Listed
Companies was held to promote listed
companies;
• In October - first primary trading of corporate
bonds was held;
• In November - the Best IR Award was given
for the best IR in 2012 to NIS a.d Novi Sad.
• In November - 11th International Conference
was held.
FUTURE OUTLOOK
In the second half of November 2012, the
traditional Conference of the Belgrade Stock
Exchange was held. During the Conference
topics were actualized that were previously
discussed on the meetings organized by
the Exchange and which are related to the
possibilities of capital raising for the companies
through the capital market mechanisms - Initial
Public Offerings; about improving of the debt
securities market; improvement of Investor
Relations and Corporate Governance etc.
As a conclusion, we can notice that the
recovery of the domestic market cannot be
expected without significant strategic decisions
oriented to create a more favorable investment
environment and encourage the companies
to use alternative models of financing (IPO
process, financing through the public offerings
of corporate bonds and municipal bonds).
•
•
•
•
In 2013 the BSE will focus on the following
activities:
• Promoting of IPO and listing opportunities for
Serbian non-listed companies;
• Boosting of the market-making function;
• Improvement of educational activities and
programs for citizens and students from
Universities in Serbia;
• Organization of roadshows for domestic and
international investors;
• Further development of the existing indexes
and indicators;
• Exploring the possibilities of introducing new
instruments into the market;
• Broadening the network of international data
vendors;
• Organization of specialized seminars about
IR and corporate government for companies
in Serbia;
• Improvement of media coverage of stock
exchange activities;
• Editing and publishing the new version of
monthly Bulletin as well as the new edition of
•
publication “Introduction to the stock market
operations”;
Improving and widening the base of
companies and institutions that will be
involved in granting the award for the best IR
practice in Serbia;
Survey of market participants about their
needs and proposals for improving of the
performance of the Serbian capital market;
Organization of the 12th International
Conference in November;
Modification of the BelexFIX system
according EU standards (new project,
Luxembourg Government donation);
Work on developing it’s human resources.
2012 COUNTRY OUTLOOK
Though Serbian economy faced numerous
challenges in 2012, this year will be also
remembered for the kick off of mass-production
of FIAT vehicles and South Stream Gas Pipeline
Project.
The year was flavoured by the domestic
political turmoil, particularly during the first
nine months, which led to a setback of overall
economy. Economic activity was additionaly
weakened amid a difficult global environment.
GDP contracted about 2 percent (estimation),
with a modest recovery expected in 2013. The
fiscal deficit widened sharply in 2012 relative
to the original budget and to last year’s level is
unsustainably large. Although during the first
quarter Serbia was approved with the candidate
PAGE 31