The average daily turnover in 2000 was SIT 1.08 billion, staying at the level of the 1999 figure. The daily average number of transactions was 1,586 and was below the average of 1,760 in 1999. The average value of a single transaction in 2000 was SIT 680 thousand.
In 2000 the highest share in the structure of the total turnover was reached by shares (53.9%) followed by shares of investment funds with 23.3% and bonds with 20.9%. Short-term securities made up 1.2% and pension coupons made up 0.7% of the total turnover. The share of the official market in the total turnover was 54.2%. Shares of the official market made up 72.0% of the total turnover of shares. The most traded securities in 250 trading days in 2000 were shares of investment funds. The average number of transactions with shares of investment funds was 985 per day or 62.1% of the total number of transactions, for shares the figures were 500 or 31.5% and for bonds 29 or 1.8%.
Block trading
Year 2000 was a record year also in the number of block trades concluded by the Exchange members. In 2000 the highest number of such transactions was reported since 1.8.1997 when the Exchange had enabled its members to trade with larger quantities of securities. In the year 2000 1,318 block trades were reported by the Exchange members, with a total value of SIT 155.56 billion .The value of block trades represented 57.69% of the total yearly turnover and was above its 1999 average level of 49 % and its average level of 37% in 1998.
The average value of a single block transaction in 2000 was SIT 118 million. Half of block trades was in the value of between SIT 18 and 65 million and they represented 18.1%of the value of all block trades. 200 block trades reached the value above SIT 180 million and represented 51.5% of the value of all block trades. As much as 21.24 % of block trades were reported by the Exchange members in December, which was a record month for the third year running in block trading.
Most Traded Shares and Turnover by Members
The most traded shares on the Exchange market (block trades are excluded) were Krka, Lek, Mercator, Sava and Petrol. These five issuers represented 41.58%of the turnover of shares on the Exchange. The most traded bonds in 2000 were bonds of 2nd issue of Slovenska odškodninska druzba, which represented 43.59% of the turnover of bonds on the Exchange. Five most traded shares of PIDs (Infond Zlat, NFD 2,Triglav steber 1,Kmecka druzba and NFD 1) represented 72.02% of the turnover of shares of PIDs on the Exchange.
In 2000 ten most active Exchange members concluded 53.7% of the total turnover. The most active members were Publikum, Nova Ljubljanska banka, Perspektiva, Ilirika and Slovenska zadruzna kmetijska banka.
Indices
On 1 July a number of new indices were introduced by the Exchange: six indices for six industry sectors (pharmaceuticals, food and beverages, oil and gas, retailers, chemicals, and transport). The index of the shares on the free market of the Exchange was composed - it consists of the fifteen most traded shares on the free market. The maxim m weights of particular issues in the index SBI were reduced from 20% to 10%, the inclusion requirements have been changed and the index was given a new name - SBI20.
The Slovenian Stock Exchange Index - SBI 20
The leading index of the Ljubljana Stock Exchange SBI 20 recorded two significant changes of its movement in 2000. SBI 20 started the year 2000 at 1,794.66 points (on 4 January) and by 24 January reached its peak of the year -1,903.66 points. During the next four months SBI 20 recorded a significant downward trend, which finished on 25 May, when the index dropped to the lowest value of the year, 1,584.23 points. In this four months' period SBI 20 fell by 11.7%.
After May its value continued to grow for the rest of the year with two exceptions in June and in a period between the middle of August to the end of September, when SBI 20 recorded a slightly more distinctive drop. During the last three months of the year the index continued to move upwards and reached a significant return,10.76%. The index ended the year at 1,807.94 points, which, compared to the end of 1999, meant a 0.1 % yield.
The Non-weighed Slovenian Stock Exchange Index - SBI 20NT
During the whole year the performance of the Non-weighed Slovenian Stock Exchange Index - SBI 20NT was similar in movement to the index SBI 20.The index ended the year at 1,769.15 points, hence SBI 20NT recorded a 0.7% decrease in value in 2000.
The Free Market Index - IPT
The index IPT recorded the biggest negative yield among non-sector indices in 2000. At the end of December the value of IPT was 1,627.44 points, hence it recorded a 9.9% drop compared to the value at the end of 1999, when it was 1,806.98 points. The performance of IPT was similar in movement to the index SBI 20 by the middle of August, but after that the index recorded longer and considerable downward movements, which turned upwards in November.
Index of Authorised Investment Funds - PIX
Also the performance of the index PIX was similar in movement to the index SBI 20 d ring the whole year. In 2000 the value of the index PIX increased by 2.5% from 1,483.53 points to 1,520.79 points.
The Stock Exchange Bond Index - BIO
During the whole year the value of the Bond Index BIO oscillated in a narrow range and the spread between the minim m and maximum value was the lowest compared to other indices, 4,5 points. The value of BIO at the end of 2000 was 109.03 points, thus exceeding its value at the end of 1999 by 0.5%.
Industrial Sector Indices
In 2000 the value of two industrial sector indices increased. The highest increase (also among all the Exchange indices) was recorded by the index Pharmaceuticals (15.4%) due to the growth in prices of both shares included in the index, Krka and Lek. Shares of the company Lek recorded a considerable growth in 2000.
The Index Transport increased by 1.2% in 2000. In the other four sectors the indices declined in 2000. The highest decrease was recorded by the index Oil and gas, by 14.9%, due to the drop in prices of both shares included in the index, Istra-benz and specially Petrol. The index Trade dropped by 11.0%, mostly due to decrease in prices of shares Merkur and Emona Obala. The index Food and beverages fell by 5.6% and the index Chemicals by 5.5%.
Short review of events and news in 2000
- Trading on the Exchange in the year 2000 was mostly characterised by takeovers and acquisitions, which resulted in consolidation of the ownership of companies. The takeover activities were the most active in the retailers and chemical sectors, food and beverages sector and in banking. The takeovers in industrial sectors were successfully concluded, but all the mergers, which had been announced in banking, didn't take place. At the end of the year the first 3 authorised investment funds merged. All authorised investment funds will have to change into regular company or investment fund by July 2002.
- Trading on the Exchange in 2000 could be related to the expectations about the beginning of privatisation of the state banks and Telekom, as well as the filling up of the privatisation gap and further opening up of the Slovenian capital market. The feeling of insecurity, unfulfilled expectations and forming of a new government in May have probably triggered the negative events on the Exchange, particularly in the periods from February to May and from August to the end of September.
- The appointment of a new government (from December 2000) is expected to bring about the beginning of privatisation of the state banks, insurance companies and Telekom in 2001 as well as the filling up of the privatisation gap, amendments to the tax legislation and the beginning of the operation of pension funds. In December the Bank of Slovenia forecast additional relaxation of restrictions relating to custody accounts. The Bank of Slovenia resolved to shorted the time period during which a non-resident is prohibited to sell the acquired securities and is consequently not required to pay a fee, from one year to half a year. The change entered into force on 1 January 2001. High expectations about these changes are likely to have prompted the growing trends on the Exchange, which were particularly strong in December.
- The inflation rate (the cost of living index) in 2000 was 8.9%. The year on year inflation rate in 1999 was 8.0%.
- On 31 December the Bank of Slovenia exchange rate reached SIT 211.5062 for 1 EUR (vs.SIT 197.3215 on 31 December 1999). On 31 December, the Slovenian tolar exchange rate for USD was SIT 227.3771 for 1 USD (vs.SIT 196.7705 on 31 December 1999).
In one year period, from 31 December 1999 to 31 December 2000 the value of fourteen shares of those listed on the official market increased -among them SKB banka with the highest rise of 31.85%. Ordinary and preferred shares of the company Lek also recorded about 25% growth in the year 2000. The value of eighteen shares fell - shares of Radenska (46.83%) Kovinotehna (ordinary and preferred ), Nika, Teh-nounion and Petrol were the most affected. The price of these shares fell in one year's time from between 40%and 20%.
Among the five biggest companies, whose shares are trading on the free market, the prices of three shares increased, among them Cinkarna had the highest growth of 36.8%. A positive return was also recorded by shares of the companies Fructal (30%) and Cetis (10%). The price of shares of companies Helios and Color fell in one year 's time by about 10%.
Foreign investments
In 2000 a net inflow of SI 8.75 billion of foreign investments was recorded. The off-the-exchange market contributed an inflow of SIT 8.54 billion and the exchange market a net inflow of SIT 208.1 million. The net inflow of foreign investments grew significantly in the year 2000 compared to the 1999, but mostly because of the net inflow on the off-the-exchange market.
Total net inflow of foreign investments amounted SIT 4.3 billion, which represented 1.6% of the total turnover. It increased by 35.8%compared to 1999, still failing to reach the 1998 level of SIT 14 billion or the 1997 level of SIT 24 billion. The share of foreign ownership in the market capitalisation of shares on the Exchange was 7.77% at the end of December. Foreign ownership reached its highest level in May 1998 -12.23%.
Capitalisation
On 31 December 2000 the total market capitalization of securities traded on the Exchange (including shares of investment companies - SIT 171.62 billion) amounted to SIT 1,138.43 billion, which was SIT 218.7 billion or 23.8 % higher than one year ago. An increased market capitalisation occurred on all market segments of the Exchange, except market capitalisation of shares and pension coupons of the free market. Market capitalisation of shares of the official market grew the most - by SIT 146.7 billion or 33.9%. The second biggest growth (by SIT 46.3 billion or 36.9%) was recorded by market capitalisation of investment funds.
Market capitalisation of shares listed on the official market represented 50.9% of the total market capitalisation of securities and 82.2% of the total market capitalisation of equities. On 31 December 2000, market capitalisation of all shares traded on the Exchange (SIT 705.09 billion) made up 19.39% of GDP in the year 1999 - SIT 3,637 billion at current prices.(Source: Statistical Office of the Republic of Slovenia).
