May 28 2013

elb2 A feast of news yesterday (US/UK readers we published Monday too!) followed by some rather intriguing stories today. Hellenic Exchanges numbers are frankly impressive. The national economy shrank 5.7% in the same period. Just maintaining a profit is quite a feat! – I advise a look under the ‘hood of this bourse, it has potential…

The Philippines SE incidentally updated yesterday’s story to say they expect to hold 65% of the Bond exchange with private investor sales on top of the SGX stake etc.

Elsewhere India’s exchange industry is again stifled by regulatory fiat on stakeholders while those looking for a new job should keep reading!

The Czech President meanwhile is confused…

Public Markets

Hellenic Exchanges Q1 Results

The consolidated net after tax profits of HELEX in Q1 2013 amounted to €4m vs. €4.8m in Q1 2012, reduced by 16.5%. Profits per share including bond valuation differences amounted to €0.06 vs. €0.09..

Group operating revenue increased 1.7% to €8.85m in Q1 2013 vs. €8.7m in Q1 2012. while revenue dropped by 17.3% (€8.6m vs. €10.4m). (In Q1 2012 the company booked €2m in non-recurring revenue).

PLY: Hellenic Exchanges have once again pulled off a profit while living through the ultimate turbulence in their domestic economy. What can they do when there is a recovery?

Czech Republic sows CEE confusion (subscription)

Financial Times

PLY: An excellent summary from Mr Cienski who recalls the hubris of Ludwik Sobolewski and the failure of the previous Prague-Vienna talks when government control of WSE was cited by the Czech government for excluding Warsaw from the negotiations. (NB not that this control has changed with a floatation of WSE).

The unfairly maligned Petr Koblic is rightly indignant given that the Czech government for years has neglected the stock exchange while Poland has brilliantly nurtured the market to its current level of excellence. As I said yesterday, Prague and Vienna would make an interesting mix but the other parts make much less sense when the unfortunate truth of the “New Europe” is a trail of exchanges which have yet to live up to the potential of the region…

Private Markets

Financial Technologies Plans IEX Stake Reduction

DealCurry

Financial Technologies is in talks with PE investors to sell 6% stake in Indian Energy Exchange to pare its stake down to 25% to comply with the whim of the electricity regulator CERC which restricts exchange promoters to 25% and trading members to 5%.

PLY: It is frankly dispiriting to see arbitrary shareholding restrictions on exchanges in any asset class as the investment market and therefore the economy suffers at all times…

Nigeria: US$1 Trillion Capitalisation By 2016?

AllAfrica.com

PLY: Apparently 1 trillion: if all multinationals in Nigeria were listed on the Exchange…

Behind the headline, this is another sound cry for sustained reform to build trust in markets with government privatization favouring the bourse.

Going from 75 billion to a trillion in 3 years sounds like a tough assignment. Then again, I always like an exchange management with ambition.

ISE India Advances Broking Subsidiary Sale

Business Standard

The Inter-connected Stock Exchange of India (ISE) has postponed a board decision on the sale of its brokerage subsidiary to June 7. Due Diligence is ongoing and bidders have requested a 20 day extension.

Crowdfunding

Moulton Hails Crowd-funding As He Supports New Venture

Telegraph.co.uk

InvestingZone will launch this week. Mr Moulton, founder of Better Capital, said he believed the market was “ripe” for crowd-sourcing funding for new businesses given the difficulty many entrepreneurs were having securing loans from established high street banks.

PLY: Interesting that PE veteran Moulton is now backing a crowdfunding site having recently become Chairman of the Channel Islands exchange CISX…

Other stories

Hunt for Zimbabwe Stock Exchange CEO Intensifies

NewsDay

THE hunt for a new Zimbabwe Stock Exchange (ZSE) chief executive officer has intensified in search of a new boss to replace Emmanuel Munyukwi.

PLY: Other open exchange CEO positions include the Bucharest SE where recently the Chairman apparently flew to Poland to try to convince former Warsaw SE CEO Ludwik Sobolewski to take the job…

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