Besimi: Activities underway aimed at capital market reform

17th December 2020, Skopje - “Ministry of Finance plans to implement the largest reform in the field of capital market next year. Existing Securities Law will be replaced with two new laws:  Law on Financial Instruments and Law on Securities Prospectus and Issuers’ Transparency Requirements. Under the reform, conditions will be created for development of new products and services on the financial market in the Republic of North Macedonia, higher level of market stability will be ensured, authorizations of supervision authorities will be strengthened, investors and market participants’ protection will be improved, Minister of Finance pointed out at “Stock Exchanges in 2020 - Review and Outlook of Local and Global Markets” Roundtable, organized by the Macedonian Stock Exchange.

As regards securities supply in 2021, the Minister said that 19th and 20th issue of denationalization bonds is expected to be realized, and issuance of continuous bonds to be continued.

Under technical assistance from the World Bank, preparation of Law on Alternative Investment Fund Managers has commenced. The Law, which will be fully harmonized with the Directive on Alternative Investment Fund Managers and the Regulation of Venture Capital Funds, will provide for strengthening the rules and the procedures for the operations of private investments funds, regulating the procedure for licensing managers of private investment funds, the Securities and Exchange Commission being in charge of supervising them.

Despite the adverse indicators in the real sector, Macedonian Stock Exchange experienced considerably increased volume of trading in securities this year.  Such trend on the Stock Exchange, as the Minister explained, is a result of the COVID-19-induced uncertainty, leading to redistribution of equity ownership from investors not prone to risks to the investors prepared to assume large risk, all to the end of generating higher yields in future.

In the period January - November 2020, volume of trading on the Stock Exchange increased by 11.0%, mostly as a result of trading in shares, which surged by 58.4% compared to the same period in 2019. Increased volume of trading is also visible from the average number of transaction, increasing by 25.3%, as well as the value of average daily turnover, surging by 50.9%.