The Macedonian Stock Change (MSE) is not in effect successfully fap turbo review. True, some of the parameters which we use to measure the achiever of a stock replace have lately improved in the MSE. For example, the annual money volume has accumulated together with the number of minutes. But this is a far cry from success fap turbo review.
Who is to blame? Is the current management of the MSE incompetent?
I do not think so. In Reality, I think the MSE has an greatest management team, doing their best to incorporated new dealing techniques and to list new firms fap turbo review. The jobs lie elsewhere.
A stock change is a very serious financial commercialize. It is a extremely efficient and visible official document of financing. In the West, it is used to finance most of the wants of corporations, style above financing available from banks. Individuals and firms save some of their income and invest it. The stock shift is meeting grounds for savers wishing to invest their rescues - and firms looking for investing.
Another function of stock exchanges is to assist governments in financing their internal adoption requirements. Governments trade obligations (called bonds) to investors through the stock exchanges in their countries. A stock convert is, therefore, an indispensable tool for re-financing national debt.
But a few conditions must persist before a weak exchange functions the right way.
The most essential check is the macrocosm of a significant, growing economy in the stock exchange’s country. Investors flock to robust economies and shy away from sickly ones.
On the face of it, the Macedonian economy belongs to to the latter category. High unemployment, low savings, retarded development, a gaping trade and payments deficits. But this is an optical illusion. The economic system is in much better circumstances that most Macedonians would care to admit. The unemployment figures are leaning. They reflect efforts to evade paying social taxes - not real unemployment. The economy is growing, even by official estimates. The black economy is developing even faster. The deficits are covered by enormous capital extracts from donor countries. Macedonia is taking more world quotations per capita than Russia. It is perpetually convenient to blame the exasperating economic climate - but the cold, objective forms do not bear this out.
When an economy is developing - the nets of companies (including those listed in the MSE) will grow with it. This makes the shares of these companies an interesting buy.
Since no one is buying - we must look for the problem elsewhere.
A prospering stock exchange is linked to the universe of the right micro and macro economic management. Macedonia has more than its share of troubles in this respect.
The process of transmutation of businesses with social capital had four basic flaws:
first, it brought out no new management, ideas or particular to the beleaguered firms which were “transformed”. The market simply does not think that they were translated. The same somebodies run the same shows under a otherwise hat.
Second, such transformation violates the construct of Hierarchy, a chain of command.
It blurs the differentiation between labour (workers) and capital (owners). What is wrong with that is that a ship must have a captain - and only one. Someone must have the potency and the responsibility. Collective management is no management at all.
Moreover, innovation transfer and revitalization are all prevented. What change could come from the same set of worn out managers? How can thousands of proprietors decide to worsen the terms of the workforce - if possessors and labourers are one and the same? So, management is impure by irrelevant, non-economic considerations: power battles amongst groups of workers, social considerations and political ones.
We known one villain. The other one is high (real) interest rates. When pursuit rates are high, three effects prevent the resuscitation of the stock exchange:
First, firms have high financing expenses (interest payments) - which contracts their benefits. Second, it is not worthwhile to take over money and to invest in shares.
Third, it is more tempting to invest money in bank deposits, yielding high interest rates - than in shares. High interest rates are the poison of stock exchanges.
The same is true for low savings rates. If people and firms do not save - there is no capital available for investing in stocks.
This, exactly, is the current berth in Macedonia : impossibly high interest rates coupled with passing low savings. There is basic misgiving between clients and their banks. They choose other ways of keeping their money.
But all the above is far from taking the list of pre-conditions for the proper functioning of a stock convert.
Investors must have apropos, accurate and full information about the firms that they invest in. This will appropriate them to react in real time to developing in the company and to prevent losses. This will also make it difficult to cheat them - which is were we come to the question of accounting standards. Only lately have the accounting rules in Macedonia been revised to conform to the Western schemes of accounting. Even now, the similarity is very slight. Macedonian firms maintain a double accounting system. One set of books is tax-driven. It is intended to show losses or benefits at the whim of the management. An elaborate scheme of hidden reservations lies at the heart of the typical financial program lines of the Macedonian firm. Another set of books - if they are kept at all - reflects reality. This is an enormous barrier to foreign investment - and foreign investors are the driving force in every modern stock substitute.
The trust of investors in the stock substitute is based on legislation to protect their place rights against the firm’s management’ against the authorities and against other investors who might wish to rig the market or manipulate the prices of strains.
But legislation without an capable judicial and law enforcement systems is like a stock exchange without money. To enforce place rights in Macedonia takes ages and even then the outcome is not certain. Laws, regulations are in their embryonic stage and some of them seem to have had an abortion: they were hastily and unwisely copied perfect from legal codices of other countries (Germany, Britain).
Last - but definitely not least - is the existence of a fair, plain and non-corrupt marketplace. The stock exchange, the banks, the regulatory authorities, the police and the courts have to be above suspicion. For the market to be utterly effective - it must be utterly free of any ulterior considerations and motives. Corruption distorts the market’s allocative mechanics and powers. It is easy discernible in dealings in the stock exchange for all to see. A stock exchange is, after all, the showcase of the local economy.
But there is a problem which towers above all other troubles and it is almost endemic to Macedonia. It helps to explain much of the predicament of the stock exchange in Skopje. It is the fact that the market is missing its most essential player: the Government.
Investors - both foreign and domestic - look for the Government to be live in the local stock exchange. Governments throughout the world use their stock exchanges to sell shares of state-owned endeavors to their public. The stock exchange becomes a mechanism for the distribution of the national wealth - as embodied by the state owned enterprises - to all the citizens. As we said before, governments also use the stock substitute to borrow money from their citizens.
The Government of Macedonia does neither. It totally ignores the MSE. Not one company was privatise through the MSE. Not one Denar was borrowed from a Macedonian citizen through it. A government’s activity in the stock exchange is proof that the government believes in it. Therefore, if it does not operate in the stock exchange - it proves that it does not trust in it. If the government does not trust in the stock exchange in its personalized country - why should the investors trust in it?
There are a few additional structural characteristics which are considered to be the assay-mark of a healthy stock substitute. But those are the by-products of all the above mentioned conditions.
A stock exchange must be liquid so that investors would be able to convert their shares into cash easily and inadvisably. It must include many investing options - professionally put, it must be broadened. This will allow the investors to choose from a variety of investing and also to reduce their risks by dividing their money among a few types of investing.
The management of the stock switch can help it by presenting effective trading techniques, computerized trading and colony systems of rules and so on. The faster investors meet their money when they trade their shares - the more they will be inclined to operate in the stock exchange that allows them that. The easier it is for them to waste their assets by meeting buyers - the more they will choose to work in that stock exchange.
Investing in the stock substitutes in the markets of the emerging economies has been an miserable decision in the last three years. Stock substitutes from Russia to Hungary and from Lithuania to Poland have jeered wildly since the end of 1993.
They resembled a roller coaster in their performance, going up and down by tens of percents annually. There are exceptions to this rule. The Ljubljana Stock exchange, for instance. The trading volume there has gone up 10 times since December 1993 - and the market capitalisation is up 30 times. But this is because of the performance of the common economy in Slovenia. In Croatia, the government is privatise its holdings in state closely-held companies by auctioning shares to the public through the Zagreb Stock Exchange. This has aided it a lot.
Kay Huna | 
07 31st, 2009| 