Cyprus Stock Exchange: Review Of Developments For September 2005

On the last trading session of September 2005 the General Price Index of the Main and Parallel Market reached 1.443,52 points, representing a relative increase of 11,29 %. The value of shares traded also exhibited an increase of 116,31 % compared to the previous month.

It is worth mentioning however, that the highest level the index reached for the month was 1.479,34 points. The other Market Indices reached the following levels: Main Market reached 1.458,47 , Parallel Market 1.052,57 , Alternative Market 982,64 , Investment Companies 1.144,93 points. On a sectoral level, sub-indices reached the following levels: Banking sector 1.535,85 , Hotels 1.122,74 , FTSE/CySE20 487,89 and finally the FTSE Med 100 reached 8.483,32 points.

The market capitalisation of shares (excluding Investment Companies Market) reached £2,74 billion. According to this month’s results, the Main Market accounted for 38,23 % of the total market capitalisation, the Parallel Market 2,40 %, the Alternative Market 7,36 %, the Investment Companies Market 2,38 % and the Bond Market 49,44 %. Moreover the total market capitalisation, including the Investment Companies Market, Warrants and the Bond Market reached £5,703 billion compared to £5,504 billion the previous month, registering an increase of 3,61 %.

The total value of transactions during the month in review reached £28,89 million, with an average of £1,3 million per trading session. The Financials sector contributed 81,29% to the total value traded, which was the highest, whereas the Government Bonds sector had the lowest contribution with 0,04% . Investors primarily focused their interest on the shares of “ Bank Of Cyprus Public Company Ltd ” and “ Cyprus Popular Bank Public Company Ltd ” with 37,43 % and 22,20 % respectively.

Listed Companies news

On the 1st of September 2005, the CSE Council in agreement with the SEC examined – after the Company’s request – the dispersion of its share capital after the successful public offer by “Guedo Holdings Ltd” and since the basic listing requirement of regulation 61(1)(g) on the dispersion to the public, was no longer fulfilled, it decided to delist its titles from the CSE on Monday, September 5, 2005.

On the 2nd of September 2005, the CSE Council decided to transfer the titles of “Efremico Holdings Ltd” and “Knossos Investment Public Ltd” to the “Special Trading Category” since the Companies failed to release their six-month results for the period ended 30/6/2005, pursuant to Paragraph 23(1) Part IV Appendix F (Regulation 81(1) of the CSE Regulations). Their trading in the above category started on Monday, September 5, 2005. The above decision was taken within the framework of the CSE Council’s policy for companies that fall under the criteria of the special trading category (announced on 25/7/2004) in relation to the delay on behalf of the issuers to issue their six-month report. The following companies “Suphire Holdings Public Ltd”, “Transoccer Holdings Ltd” and “Worldmax Investment Company Ltd”, which have not issued their six-month results for the period ended June 30, 2005 yet, will remain in the “Special Trading Category”.

On the 5th of September 2005, the CSE Council announced that the company “Global Consolidator Ltd” has changed its name to “Global Consolidator Public Ltd”. The above change has been effective since Friday, September 9, 2005.

On the 5th of September 2005, the CSE Council announced that the issued share capital of “Global Consolidator Public Ltd”, which amounted to £6,453,149 divided into 129,062,976 shares of nominal value £0.05 estimated at £6,453,149 divided into 25,812,595 shares of nominal value £0.25 following the reverse split on September 1, 2005.

On the 12th of September 2005, the CSE Council announced that the issued share capital of “Palinex Trading Ltd”, which amounted to £1,953,642 divided into 19,536,420 shares of nominal value £0.10 has been reduced based on a court decision to £586.092 divided into 19,536,420 shares of nominal value £0.03. The above change has been effective since, September 16, 2005.

On the 12th of September 2005, the CSE Council announced that the issued share capital of “Ellinas Finance Public Company Ltd”, which amounted to £8,000,000 divided into 16,000,000 shares of nominal value £0.50 has been reduced based on a court decision to £5,760,000 divided into 16,000,000 shares of nominal value £0.36. The above change has been effective since Friday, September 16, 2005.

On the 20th of September 2005, the CSE Council decided to extend the deadline for “D & M Telemarketing Ltd” until December 8, 2005 in order to comply with Regulation 61(1)(g) of the CSE Regulations on the sufficient dispersion of the share capital of the listed companies to the public. If the Company fails to comply with the Regulation within the deadline and given that the period of compliance expires on December 8, 2005 (12 months is the maximum period of compliance given by the CSE), the trading of titles will be automatically suspended from December 9, 2005 and until the Company’s compliance with the Regulation. The CSE Council reserves its right to delist the Company’s titles from the CSE.

On the 26th of September 2005, the CSE Council announced that the company “Cyprus Airways Ltd” has changed its name to “Cyprus Airways Public Ltd”. This change has been effective from Monday, September 26, 2005.

On the 28th of September 2005, the CSE Council announced the transfer of titles of “Global Consolidator Public Ltd” from the Parallel Market to the Alternative Market due to its compliance with the procedures for the voluntary transfer to a market with less strict criteria. The trading of its titles in the Alternative Market started on Friday, September 30, 2005.

Members News

CSE Events

On the 7th of September 2005, the CSE organised at the Cyprus Hilton a press conference, concerning the actions and planning of its Council with regard to the Organization’s activities that fall under its Strategic Plan. The CSE Chairman, Mr. Akis Cleanthous emphasised that the effort for the reorganisation of the CSE and the full restructuring of the stock market will be completed by the end of 2005, in order to improve the CSE’s economic development based on competitiveness, flexibility and reliability.

At the first part of the conference, the CSE Council proceeded to a review of the initiatives that have been already implemented (e.g. Corporate Governance Code, Remote Trading, new markets, FTSE classification system, new indices, new fee policy, reduction of transaction tax etc), followed by the initiatives that are currently under process, such as the regulation of the Mutual Fund taxation, the improvement of the Governments Bonds primary and secondary market, the provision of custodians’ services in the market, the development of new specialised markets (shipping etc). The press conference also focused on the new legislative framework that governs the market’s operation within the framework of the reformation of the stock exchange legislation based on the bill approved by Parliament on 6/9/2005. In general, the CSE will be more flexible in the establishment and differentiation of its markets, will be compatible with the international trends and practices and will facilitate the introduction of specialised products and markets.

During this conference, CSE’s Chairman made also reference to the progress concerning the introduction of the Common Trading Platform with the Athens Stock Exchange and it was stated that the procedures fall within the predetermined time limits. With the new common platform, investors of both countries will have a wider range of investment choices, while Cyprus will have the opportunity to use new tools and products in the market, which are demanded by the institutional investors. The most important innovation for Cyprus will be the use of the Euro as soon as the Common Platform becomes effective. These efforts are carried out within the framework of a satisfactory growth of the economy, the European Union decision to include the Cyprus in the Exchange Rate Mechanism II (ERM II) and the preparation of the country’s entry in the euro zone. The improved results of the CSE-listed companies, the gradual interest rate reduction and the flexible and secure CSE environment create new prospects that must be evaluated accordingly.

On the 13th of September 2005, the CSE Council decided to suspend the operation and publication of the CSE General Index, which was launched on March 29, 1996. The Index will continue to exist until the end of 2005 for statistical purposes, in order to maintain the historical continuity for comparability and reference purposes. The issuing of the Index will, therefore, be terminated on January 2, 2006.

On September 16th 2005, at the offices of the CSE in Nicosia Cyprus, the Chairmen of the Athens Exchange (ATHEX) and the Cyprus Stock Exchange (CSE) Messrs Spyros Kapralos and Akis Cleanthous signed an agreement, which provides for the development of a Common Platform between the ATHEX and CSE. The ceremony was attended amongst others, by Mr Dimitrios Rallis, the Ambassador of Greece in Cyprus, as well as by representatives of the relevant associations in the capital market.

The signing of this agreement signals the foundation of the collaboration between the two Exchanges and accelerates the relevant procedures for its completion.

Within this framework, a presentation of the model of the operation of the common platform and the subsequent services, which will be provided through this project to the CSE members, was also organised on 15/9/2005. The CSE has also organised educational seminars/events in order to inform the representatives of the Securities and Exchange Commission, the Central Bank officers, local custodians and data vendors for this project.

In order to inform and familiarise all capital market participants with the new environment that will be created through the operation of the Common Platform, the Chairmen of the two exchanges provided further information on the issue and the benefits which are expected to arise from the Common Platform, during a round table discussion that was organised at the CSE’s premises, following the signing of the agreement.

Companies’ Business Plan Presentations

On the 23rd of September 2005, the Cyprus Stock Exchange announced that the corporate presentations plan for 2005 has been revised. The plan is presented below:

It is noted that the presentation of the “Cyprus Popular Bank Public Company Ltd”, which was scheduled for 13/10/2005, has been postponed. Also, the presentation of “Cyprus Forest Industries Ltd”, which was scheduled for 27/10/2005 has been, postponed for the first half of 2006.

The presentations address financial analysts– EPEY, institutional and private investors, Media and other interested parties. The presentation of the strategic plans is deemed necessary, given the new competitive environment after the island’s accession in the European Union, which stresses the need for the adoption of competitive models of development and viability of the companies. The corporate presentations will be held at the CSE (Assembly Room) at 3.30 pm.