Capital Market in the FB&H is in upward Trend

Capital Market SASE avaz.baSpeaking of the traffic on the capital market in the FB&H in the past five years, we can way that we are recording constant growth of total turnover which ranged from 244 million BAM in 2011 to 1.2 billion BAM in 2015. Of the total turnover, the primary trade ranged from 90 million BAM in 2011 to 615 million BAM in the last business year, while the regular stock exchange trade in the past four years on average amounted to around 105 million BAM until last year, when it amounted to 364 million BAM, said the director of Sarajevo Stock Exchange (SASE) Tarik Kurbegović.

All these data, Kurbegović said, show that we cannot speak of downward trend in the capital market in any sense.

In the past year, the main activities of SASE reflected in the creation of the new web site of SASE with new and extended volume of information on trade, issuers, financial reports, indicators, etc. besides that, a completely new platform for publishing information about issuers – public disclosure platform – was also developed.

When asked how to attract foreign investors, Kurbegović said that, regardless of whether it is a domestic of foreign investor, each investor who invests in securities makes his investment decision based on two main parameters: expected return on investment and investment risk.

“In order for the investors to estimate these parameters in one company in the first place, they must dispose with timely and accurate information about its operations, including periodical financial reports and price-sensitive information. Thereby, the first step towards attracting investors is strict implementation of regulations which regulate the reporting. The second very important factor is the protection of shareholders, regardless of whether it is about major or minor shareholders. This requires from the state to prescribe strict minimum standards of management that all joint-stock companies must comply with. A very important factor for foreign investors is also the market liquidity. Currently the most optimal way to increase the liquidity is regional connection of stock exchanges that would internally increase regional liquidity and result in attracting foreign investors who would, in turn, additionally increase the liquidity,” Kurbegović said.

Kurbegović pointed out that SASE constantly insists on and works on educating the public about capital market.

(Source: photo avaz)

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