ANNUAL REPORT OF THE MACEDONIAN STOCK EXCHANGE J.S.C. SKOPJE FOR 1999
In 1999, macroeconomic stability in the Republic of Macedonia was maintained through low inflation and stable
exchange rate of the denar, which had a positive impact on the stock exchange operations. However, the activities
of the stock exchange were under a very strong negative influence from non-economic factors: transfer of power in
the 1998 elections (social phenomenon which is known to discourage investors from investing anywhere in the
world) as well as the uncertainty surrounding the crisis events in the neighbourhood. This in the first four months
significantly slowed down the developments on the stock exchange and the volume growth. Notwithstanding the
improvements made throughout the year, especially in the last quarter, low turnover in the beginning of the year
had negative consequences.
Under these conditions, securities trading on the stock exchange was marked with a high level of volatility and
lower volume compared to 1998.
Because of the fact that no new companies got listed on the official markets and because of low liquidity levels in
securities trading of the 2 existing listed companies, the Stock exchange was totally irrelevant for trading
companies as an institution through which they may raise additional capital to finance their needs and
development. Under these conditions, the Stock exchange gained more importance for the stockholders who
through the exchange wanted to provide liquidity for their own shares acquired during the privatisation process.
Hence the basic feature of the trading conducted on the SE in 1999 was transfer of ownership of privatised trading
companies. Through stock exchange transactions, the number of stockholders was reduced by over 3100.
The development of the Macedonia Stock Exchange J.S.C. as a secondary capital market is determined by the
overall environment and the completion of the process of market and structural reforms of the national economy.
BASIC CHARACTERISTICS OF THE OPER