The turnover on all market segments of the Ljubljana Stock Exchange (LJSE) in 2002 totaled SIT 481.04 billion, which was by SIT 132.4 billion (or 38.0%)more than in 2001 .The best month results were recorded in December (SIT 62.0 billion), while in January the turnover was the lowest (SIT 30.0 billion).On the whole, the turnover was distributed more or less evenly all through the year; the monthly average for the year 2002 was SIT 40.0 billion.
The average daily turnover in 2002 amounted to SIT 1.95 billion, and exceeded that of 2001 by SIT 536 million. During the 247 trading days in 2002,there were in average 1,833 transactions concluded, which was by 537 transactions, or 41.4%more than a year before. The average value of a single transaction decreased in comparison to the year of 2001,to SIT 1,062,358, or by SIT 26,619.
Shares made for 58.0% in the turnover structure of the year 2002,and were followed by bonds, with 23.0%, and shares of investment funds, with 17.8%. In 2002,the turnover with bonds increased the most; the bonds gained a larger share in the total turnover structure at the expense of shares of listed companies and of investment funds. Pension coupons contributed 1.1%, while treasury bills contributed further 0.1% to the total.
In 2002,the official market turnover represented 67.1% of the total market turnover on LJSE and was comparable to that of 2001.
Most transactions were concluded with shares of listed companies (40.7%), and with hares of investment funds (40.6%) in 2002.Pension coupons made up 15.2% of all transactions on LJSE, which was the highest increase in the structure of individual transactions. Such results were recorded mostly due to the reduction of the share of the investment funds, which had lost 9.7 percentage points.
Block trading
In 2002,the Exchange members reported the record 1,555 block trades, or 43 more than a year before, in total value of SIT 219.0 billion, which added up to 44.8% of overall LJSE turnover (55.3% in 2001). The average value of a single block trade in 2002 was SIT 141 million, which was 7.8% more than in 2001, while the average single transaction without block trades amounted to SIT 580,657 (exceeding the 2001 results by 22.4%.
Most traded securities and members' volume of trading
In 2002,the most traded securities, together with their block trades were those of Krka, Lek, Petrol, Gorenje and Pivovarna Laško.Altoghether seven shares crossed the level of SIT 10 billion. The shares of the two pharmaceutical companies were especially prominent, and jointly contributed SIT 88.8 billion, or 37%, of the total yearly turnover of shares on the official market of LJSE. The most traded share on the free market was that of the Helios company, which amounted SIT 4.4 billion. Once again, among the most traded bonds those of Slovenska odškodninska družba -the 2nd issue -attracted the attention in 2002,by contributing SIT 23.4 billion worth in transactions. There were only the Republic of Slovenia bonds of the 38 th issue which managed to exceed the SIT 10 billion (at SIT 11.3 billion). In the category of shares of the investment funds, only Triglav steber 1 managed to create more than SIT 10 billion in transactions. Zlata moneta 1, Infond zlat and Maksima 1 followed next.
In 2002, ten most active Exhange members realized 60.9% of the total turnover.Abanka, Nova Ljubljanska banka, Perspektiva, Cogito and Probanka ranged as the best five.
Indices
In 2002, all three leading LJSE indices reached their record values and ended the year with an increase of approximately 50%, while the PIX Index grew even by 70%.
The SBI 20 Index rose by 55.24% in 2002,which was its historical best result. On 8 November, the index climbed to 3,547.64 points, and recorded its highest value ever since the Exchange had began the calculation. The highest daily rise was registered on 26 August, when its value increased by 8.7% in only one day. In average, its value was ordinarily alternated by a mere 0.8% per day. The SBI 20 experienced the lowest results on the fir t trading day in 2002 (2,140.80 points).
The value of the IPT Index -index of the free market -totaled 1,765.6 points at the end of 2001.In 2002,the index soon exceeded the 2,000 points mark (on 11 March), and finished the year by 49.26% higher than in the beginning of the year. Its historical high was reached on 4 December, at 2,699.16 points.
The PIX Index -(Authorized) Investment Funds Index gained the most in the year 2002 -71.9%. The index beat two points marks: the 2,000 points level (on 18 April), and then the 3,000 points level (on 27 November), when it reached its highest value in history at 3,013.05 points. Nevertheless, the PIX failed to keep above 3,000 points and ended the year at 2,729.73 points. The index was thus characterized by a higher level of volatility if compared to the other two indices; its value would alter by 0.87% per day, in average.
Out of the total of six industrial sector indices that started the year, five of them grew in their values by the end of 2002, while the Pharmaceuticals Index ceased to be calculated. Chemicals were the most successful (+81%), while Oil and Gas that qualified as the index with the highest yield in 2001, came second (+68.9%).The other three indices ended the year with an increase of just over one third in their values: Trade (+37.1%), Food and Beverages (+35.8%), and Tran port (+33.1%).
Price movements of selected shares
In 2002, the value of thirty-two shares on the official market rose; five of them more than doubled their prices. The shares of Žito (+115.4%), Geodet ki zavod Slovenije (+112.0%), and preferred shares of Lek (+107%)gained the most. Prices of four shares fell -Banka Koper lost the most (46.3%) of its value in 2002,Emona obala Koper, Delo prodaja and Kompas MTS traded at a loss as well.
On the free market, the prices of ninety-two shares increased, and more than doubled with nineteen of them. The shares of KD group rose by 361%; also the results of the shares of Juteks (+275%), Helios (+160%)and Melamin Kocevje (+147%) were well worth mentioning. Among the bonds,Slovenska odškodninska družba -2nd issue, increased the most in 2002, its price grew by 28.3%, with a considerable turnover of SIT 23 billion.
Among the shares of investment funds, however, the highest growth was recorded by Mercata 1 (+164.7%). On a yearly level, also Zlata moneta 1 (+141.3%), and Krona Senior (+117.5%) registered exceptional yield results.
Capital market in 2002 -most important factors
In the year 2002,there were several events that had significant influence on the prices of securities at the Ljubljana Stock Exchange: The majority of companies listed on the official market published most favourable year end results for 2001 (in a year, the companies increased their net profits by 37%).
Ownership concentration activities were under way all through the year. The takeover of Lek met with the widest response, there were further negotiations and competition between Pivovarna Laško and the Belgian Interbrew for the potential takeover of Pivovarna Union. Moreover, ownership concentration was on the increase within the former PIDs, which had reorganized into holding companies. On the free market, several more takeovers attracted public attention of Marina Portorož, by Terme Catež;of Valkarton,by the Croatian Belišce,and of Cementarna Trbovlje, which was taken over by the French company Lafarge Perlmooser. The first four PIDs had been reorganised into closed-end funds (IDs).In November, the Slovenian parliament passed the new Law on Investment Funds and Management Companies (ZISDU), and thus released the investments of domestic funds abroad and those of foreign-owned funds in Slovenia.
In 2002,the long-predicted privatization process of the largest Slovenian national bank was instigated. A one-third part in the shareholding of NLB was thus purchased by KBC, a Belgian banking and insurance corporation, and one tenth was acquired by the EBRD.
As of 1 July, short-term deposits are no longer subject to the indexation by the base interest rate. In addition, bank interest rates were on the decrease during the whole year, which resulted in record inflows into the mutual funds (SIT 26.3 billion).
27 December was the last trading day for the pension coupons. One out of every 6.6th transaction at the Ljubljana Stock Exchange in 2002 involved pension coupons.
The inflation rate in 2002 was 7.5%, which was by 0.9 percentage points less than in 2001.
The official middle exchange rate of the Bank of Slovenia for EUR 1 was SIT 230.2673 on 31 December 2002 (SIT 221.4095 on 31 December 2001), while its official USD rate -on the same date -was SIT 221.0708 (and SIT 250.9458 on 31 December 2001).
Market capitalization
On 31 December 2002,the sum market capitalization of all securities traded on the Exchange (together with shares of investment funds -SIT 243.8 billion) amounted to SIT 2,174 billion, and grew by SIT 794.2 billion, or by 57.6%, in a year. High prices of listed companies and of investment funds were reflected also in the increase of the capitalization of the relevant market segments. The capitalization of the former climbed by 45%, whereas the capitalization of the latter increased by 50.2%. An increase in bond capitalization was to be attributed to admission of new bonds (government bonds, in particular)to trading. Altogether 28 new bonds were listed on the Exchange, 19 of which were issued by the Republic of Slovenia. In one-year period, market capitalization of shares listed on the official market rose by SIT 313.3 billion (44.9%), to SIT 1,010.6 billion; on the free market, the capitalization level went up by 45.7%, to SIT 222.5 billion. In 2002, three shares were delisted from the official market (SKB, BTC and Koloniale). Three issuers increased their share capital by additional issues in 2002 -Intereuropa, Pivovarna Laško and Terme Catež.On 31 December 2002,market capitalization of all shares traded on LJSE was equal to SIT 1,010.5 billion and corresponded to 27.0%of GDP in 2001 -SIT 4,566 billion (at current prices data provided by the Statistical Office of the Republic of Slovenia). At the end of 2001, the capitalization of shares represented 20.7%of GDP.
Foreign investments
Total net inflow of foreign investments in 2002 amounted to SIT 325.2 billion, which was by 378% more than the previous year. On the whole, the off-exchange market acquisitions contributed the most, especially with the takeovers and mergers of NLB, Lek and Banka Koper.
In 2002, non-residents participated with SIT 39.4 billion on the organized market (which equaled 14.13%of the total turnover of LJSE). The total non-residents turnover on the Exchange was registered as the record historical yield, and exceeded the 1997 turnover (SIT 24 billion).
Foreign ownership in Slovenian companies totaled 19.7% at the end of December 2002 (market capitalization of the last December day); the record result in the history of the Exchange, and mostly due to the 99% ownership shareholding of Lek by the Swiss Novartis corporation.
In brief
Admission of long-term securities
In 2002,22 new issues of bonds were admitted to trading on the official
market.On the free market,there were 13 new issues of joint-stock companies
and 6 new issues of bonds admitted to trading.
Exclusion of long-term securities
On the official market, 3 shares were delisted;on the free market 29 shares of
companies were excluded. On the first trading day in 2003, pension coupons
were excluded from trading on the free market.
Reorganisation of PIDs
Due to reorganisation process, ten PID hares were excluded from trading on
the free market.On the other hand, there were four new PIDs 'shares and one
new ID share admitted to the Exchange (without the PIDs which were completely reorganised as IDs).
Exchange membership
In 2002, four brokerage firms terminated their memberships at the Ljubljana
Stock Exchange.
Alterations of LJSE Rules and Regulations
In December 2002, the Rules and Regulations of the Ljubljana Stock Exchange,
Inc.were altered and completed so as to start the gradual transition to quarterly
publications of interim operating statements for listed companies on the official market, and to define new dimensions of publications of financial statements.
Co-operation with other Exchanges
In 2002,the Ljubljana Stock Exchange continuted its activities in setting up of
new Exchanges in the region of the former Yugoslavia. On 2 December 2002,
the Varaždin Stock Exchange launched its trading on the new BTS trading
system, based on the know-how and the technology of LJSE, following the
four previous completed projects in Macedonia, Montenegro, in the Republic
of Srpska and in Bosnia and Herzegovina.
