Macedonians can invest in shares of companies in the Croatian and Bulgarian Stock Exchange and more funds from investors from these countries will be poured on the Macedonian market, Goran Markovski, director of "KB Publikum Invest", company for management of investment funds said in an interview with Telegraf.mk.
After the establishment of the common trading platform SEE-link on the Macedonian, Bulgarian and Zagreb Stock Exchange, where shares will be listed of nearly 400 companies, Markovski claims that this move is sure to increase the visibility and attractiveness of these markets for the institutional investors.
"The platform is expected to encourage other stock exchanges in the region to join this project to increase the supply within an integrated market which by its characteristics will be able to attract the attention of investors seeking investment opportunities with adequate dispersion of the risk and liquidity of securities", Markovski pointed out.
As he explained, the enlargement of the market will mean greater potential for work of all brokerage houses whose stock markets are included on this platform and create the opportunity for more profitable operation. That, in turn, will lead to improvement of services and strengthening the capacity of brokerage houses. Also, as Markovski says, as announced by the representatives of stock exchanges that are involved in the project, it is expected an establishment of regional indexes, which would additionally increase the interest of investing in shares that will be an integral part of these indexes.
Better access to capital
T: What are the new opportunities open to domestic investors and individuals and legal entities, and what benefit would domestic companies which will be listed on the platform have?
In terms of domestic investors, in the context of existing legislation on foreign exchange transactions, linking the Macedonian Stock Exchange with regional exchanges will allow investment in securities that until now have not been directly available to physical and legal entities. In this way, domestic investors will be allowed to disperse risk, which should further increase and return the interest of domestic investors to invest in securities.
With the realization of this idea, it is realistic to expect that the regional institutional investors to focus part of the funds on the Macedonian capital market, which in any case will influence positively on liquidity and on realistic valuation of Macedonian companies. It will also increase the potential for more detailed knowledge of the operation of Macedonian companies and their monitoring by a growing number of institutional investors, which would facilitate access to equity through new issues of securities of Macedonian companies.
Steps forward
T: Will the networking mean a step towards joining of the regional market and what would it bring to all individually?
"If we extend the platform with the inclusion of most of the stock markets in the region, one of the likely scenarios certainly is their takeover by the major regional or global exchange that would have an interest to include this part of the world within the supply of its investors.
This project will actually be a test for the region's potential to attract institutional investors. If the project revives,and shows that the investors’ interests is growing as the region is offered as an integrated market, I believe that this increases the probability of ownership merger of stock exchanges in the region".
T: Macedonian Stock Exchange marks 20 years of its existence. What are your expectations for the next period, and what capital market is needed for this country at all?
"I see the future of the Macedonian market in its integration with regional stock markets and therefore I think this platform is a step in the right direction. Macedonia needs an efficient, liquid and transparent capital market as a true reflection of the value of the Macedonian economy. In this regard, we should continue to work on the education of investors, the financial intermediaries and the companies.
Further, it should be encouraged a protection of the interests of shareholders through their organization in respective associations for articulating their rights in the joint stock companies. Joint stock companies also should work to improve the corporate control and compliance of management of companies with interests of all shareholders, primarily in terms of policies for the allocation of profits and the future development of the company".