Serbia's capital market "in worst situation so far"

The Serbian capital market could be in the worst situation in recent history, indicated in the drop in activity and enthusiasm from the market participants.

Izvor: Tanjug

Thursday, 22.11.2012.

15:17

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BELGRADE The Serbian capital market could be in the worst situation in recent history, indicated in the drop in activity and enthusiasm from the market participants. This was heard from the head of the Belgrade Stock Exchage (BSE), Gordana Dostanic, on Wednesday. Serbia's capital market "in worst situation so far" Although the Belgrade Exchange has won trust from its clients and works to improve transparency and create new products, it is still not enough of an incentive to develop the capital market, whose role was minimized in the strategic approach to the economic reforms in the country, she said at the opening of the stock market's 11th international conference. "The result is a market that is shallow and lacks liquidity, and there is insecurity and reluctance from investors to get involve in serious investments," Dostanic stated. Head of the commission on securities Zoran Cirovic shares Dostanic's opinion that the capital market in Serbia is in a crisis, adding that the situation is similar throughout the region. He pointed out the new capital market law that entered into force last year, stressing it was a modern and quality legal document that helped protect investors and ensure an efficient and transparent market. "We have a law that is good, but the market is dead. Market participants are barely able to survive and many options of the law cannot be taken advantage of because the level of service is very limited," he explained. Serbia has an underdeveloped market with few securities, he stated, adding that there had been improvement regarding corporate and municipal bonds. National Bank of Serbia Vice Governor Veselin Pjescic said that issues of municipal bonds and long-term securities were the first steps towards a more serious development of the capital market and provided momentum to further market deveelopment. An investor conference is held parallel with the Belgrade Exchange conference, where 12 listed companies and professional investors are set to meet. The Belgrade Stock Exchange celebrated its patron saint's day on Wednesday, which also marks the day when in 1894 the first assembly of the exchange was help to elect its management and stock brokers. Tanjug

Serbia's capital market "in worst situation so far"

Although the Belgrade Exchange has won trust from its clients and works to improve transparency and create new products, it is still not enough of an incentive to develop the capital market, whose role was minimized in the strategic approach to the economic reforms in the country, she said at the opening of the stock market's 11th international conference.

"The result is a market that is shallow and lacks liquidity, and there is insecurity and reluctance from investors to get involve in serious investments," Dostanić stated.

Head of the commission on securities Zoran Ćirović shares Dostanić's opinion that the capital market in Serbia is in a crisis, adding that the situation is similar throughout the region.

He pointed out the new capital market law that entered into force last year, stressing it was a modern and quality legal document that helped protect investors and ensure an efficient and transparent market.

"We have a law that is good, but the market is dead. Market participants are barely able to survive and many options of the law cannot be taken advantage of because the level of service is very limited," he explained.

Serbia has an underdeveloped market with few securities, he stated, adding that there had been improvement regarding corporate and municipal bonds.

National Bank of Serbia Vice Governor Veselin Pješčić said that issues of municipal bonds and long-term securities were the first steps towards a more serious development of the capital market and provided momentum to further market deveelopment.

An investor conference is held parallel with the Belgrade Exchange conference, where 12 listed companies and professional investors are set to meet.

The Belgrade Stock Exchange celebrated its patron saint's day on Wednesday, which also marks the day when in 1894 the first assembly of the exchange was help to elect its management and stock brokers.

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