Ljubljanska borza, d. d., Ljubljana
Trading in 2011
In 2011 the Ljubljana Stock Exchange again faced low liquidity and falling prices, which resulted in a decreasing market capitalisation. The crisis that had started in 2008 has completely changed the business environment: in spite of the better results reported by companies for 2010 and for the first half-year 2011, investors are still holding back. In 2011 the LJSE witnessed two new listings, hand tool producer Unior and financial group Alta Invest, while the listed insurer Zavarovalnica Triglav switched to the prestigious Prime Market. Four international banks joined membership of the LJSE in 2011, namely: Erste Group Bank AG, KBC Securities NV, Raiffeisen Centrobank AG and WOOD & Company Financial Services, a.s.
Trading in 2011
The LJSE benchmark index SBI TOP was down 30.7% year-to-date, standing at 589.58 points on the last trading day.
The total LJSE turnover in 2011 amounted to EUR 470.1 million and turnover without blocks to EUR 321.9 million, down 9.7% compared to 2010. Equity turnover amounted to EUR 394.5 million. The majority of turnover comprised equity deals (83.9%), while bonds and investment funds contributed a further 12.7% and 3.4% respectively.
The most traded share in 2011 was again Krka (KRKG) from the Prime Market, which generated 43.9% of the total equity turnover. The second largest contributor to overall annual equity turnover was Meractor (MELR), which generated 22.9% of all equity deals, while the third most traded company was Petrol (PETG), which contributed 6.9% of all equity deals.
The total equity market capitalization dropped to EUR 4,872.8 million in 2011, primarily due to price decreases. New listings were mainly bonds, which were issued in the total nominal value of EUR 3.08 billion, while the two new equity listings in 2011 were those of financial group ALTA Skupina (SMPR) and hand tool producer Unior (UKIG). There were seven capital increases in 2011, and the LJSE market also witnessed its listed insurer Zavarovalnica Triglav (ZVTG) switching from Standard to the prestigious Prime Market.
Aligning with international markets
The Ljubljana Stock Exchange believes that the Slovene market can make headway by aligning more closely with the markets in its wider region. This is why it has raised an initiative in 2011 to set up a joint market with the Vienna Stock Exchange. In addition to other long-term measures that need to be adopted in Slovenia, such as launching stimulating long-term saving schemes in the second pillar of the pension system and introducing personal P accounts, LJSE's integration into international markets can give the domestic market a decisive push, offer Slovene companies fresh sources of capital and stimulate public offerings.
2011 was the first year when Slovene stocks were traded on the international trading platform Xetra®, which the Ljubljana Stock Exchange had introduced back in December 2010. Trading was smooth, and the Ljubljana Stock Exchange obtained four new trading members due to Xetra, which operate in the wider region. At year-end 2011 the LJSE thus has 27 trading members, of which five are the international firms ecetra Central European e-Finance AG, Erste Group Bank AG, KBC Securities NV, Raiffeisen Centrobank AG, and WOOD & Company Financial Services, a.s. International members contribute a total of 10.4% to the total LJSE turnover.
The Ljubljana Stock Exchange also worked in 2011 toward increasing the visibility of Slovenia's top listed companies, both at home and abroad. It organised local and international investor conferences as well as two webcasts, which attracted a wide audience. Between September and December it held a series of panel debates discussing the challenges facing the Slovene capital market. With a good turnout they stirred a public debate about the topic and called attention to the role of capital markets and their future development.
Ljubljana Stock Exchange