FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TABLE OF CONTENTS

Federation of Euro-Asian Stock Exchanges 3 Deutsche Boerse 10 Garanti Asset Management 13 Is Investment 14 NASDAQ OMX 16 Tayburn Kurumsal 18 Finans Asset Management 20 Quartal FLife 21

Stock Exchange Profiles Abu Dhabi Securities Market 24 Amman Stock Exchange 28 Armenian Stock Exchange 32 Bahrain Stock Exchange 36 Baku Interbank Currency Exchange 40 Baku Stock Exchange 44 Banja Luka Stock Exchange 46 Belarusian Currency and Stock Exchange 50 Belgrade Stock Exchange 54 Bucharest Stock Exchange 58 Bulgarian Stock Exchange 62 Cairo and Alexandria Stock Exchanges 66 Georgian Stock Exchange 70 Iraq Stock Exchange 74 Istanbul Stock Exchange 78 Karachi Stock Exchange 82 Kazakhstan Stock Exchange 86 Kyrgyz Stock Exchange 90 Lahore Stock Exchange 94 Macedonian Stock Exchange 96 Moldovan Stock Exchange 100 Mongolian Stock Exchange 104 Montenegro Stock Exchange 108 Muscat Securities Market 112 Palestine Securities Exchange 116 Sarajevo Stock Exchange 120 State Commodity & Raw Materials Exchange of Turkmenistan 122 Tehran Stock Exchange 126 Tirana Stock Exchange 130 “Toshkent” Republican Stock Exchange 134 Ukrainian Stock Exchange 138 Zagreb Stock Exchange 142

Affiliate Member Profiles CDA Central Depository of Armenia 147 Central Registry Agency Inc. of Turkey 148 Central Securities Depository of Iran 149 Macedonian Central Securities Depository 150 Misr For Clearing, Settlement & Central Depository 151 Securities Depository Center (SDC) of Jordan 152 Takasbank - ISE Settlement and Custody Bank, Inc. 153 Tehran Securities Exchange Technology Management Company (TSETMC) 154

Member List 155

FEDERATION OF EURO-ASIAN STOCK EXCHANGES (FEAS) The Federation of Euro-Asian Stock Exchanges Semi Annual Report April 2008 is published by the Federation of Euro-Asian Stock I.M.K.B Building, Emirgan 34467 Istanbul, Turkey Exchanges. Tel: (90 212) 298 2160 Fax: (90 212) 298 2209 All editorial material was collated and edited by the Federation of E-mail: [email protected] Euro-Asian Stock Exchanges. The design, production and distribution Web address: www.feas.org was coordinated by the Federation of Euro-Asian Stock Exchanges. Contacts: Mr. Aril Seren, Secretary General Mrs. Susan Gogus, Assistant Secretary General Designed by: Tayburn Kurumsal Ms. Ege Adalioglu, Assistant Secretary General Although every care has been taken to ensure the accuracy of the information contained within the publication, the Secretariat cannot be held liable for any inaccuracies, errors or omissions, nor held liable for any actions taken on the basis of the information provided herein.

© The Federation of Euro-Asian Stock Exchanges

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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

FEDERATION OF EURO-ASIAN STOCK EXCHANGES The FEAS, as a globally recognized regional institution, is growing and maturing together with its members towards its goals.

Huseyin Erkan President of FEAS & Chairman and CEO of the Istanbul Stock Exchange

Throughout 2007, the FEAS region has upgrade and the implementation of the FEAS commissions.Our major target is to attract the persevered with a strong desire for continued Data Center (FDC) to standardize and global investors who will benefit from FEAS growth in world economies as seen in 2006. promote cross market statistics and the services and continiously invest in the Region. (consol?dated stats) The performance of the initiation and upcoming implementation (2008) securities markets in the second half of 2007 of the FEAS Index for better visibility and for Looking at the individual future outlooks of our is displayed in the consolidated regional moving toward cross border trading which will markets, as covered in the member profile statistics on the adjoining pages. The also make it simpler to observe and track the pages, one can see that there continues to be individual statistics of each of our members FEAS Region.There were special activities that work toward the challenges of member are available in the member profile section. promoted the growth of stock exchange markets in providing competitive and viable The Federation, as a globally recognized operations such as bilateral visits, establishing financing options to both the government and regional institution, is growing and maturing the FEAS Training Center and in line with it, private sectors, while enhancing operations together with its members towards its goals. the joint ISE/FEAS development project and through technology and expanding services to Founded 13 years ago by 12 regional international associations with organizations market participants. Their efforts continue to exchanges, FEAS now has a total number of such as the World Bank, World Federation of focus on the areas of increased transparency 32 stock exchange members from 29 different Exchanges (WFE) and the Organization for through expense in infrastructure and countries and 8 affiliate members. Economic Cooperation and Development developing regulations to promote stronger FEAS is growing in membership with (OECD). corporate governance. additional Securities Exchanges and Affiliates. To date, FEAS has jointly hosted 3 meetings I would like to take this opportunity to extend In today’s economic conditions, where the and one conference in 2007; the Working my heartfelt thanks for their contributions to: increasing oil prices led to quickly expanding Committee Meeting held in Kiev, a conference Garanti Asset Management, Deutsche Boerse, savings and sovereign wealth funds’ the long titled Growing Capital Markets, Today for Finans Asset Management, Is Investment, expected failure and fluctuations in the global Tomorrow, in Budva, with the Montenegro NASDAQ OMX, Quartal Flife and Tayburn markets were not realized locally due to the Stock Exchange. The Media Task Force Kurumsal for making this publication possible. strength in regional markets and for this meeting in Istanbul, Turkey and in September We hope that you will take a moment to visit reason regional co-operation will continue to 2007, the 13th General Assembly Meeting in our contributor section in the FEAS website at play an important role in the on-going Belgrade, Serbia together with the second www.feas.org and read their articles in the development of our markets. Two of our Affiliate Member Meeting, in addition to a following pages. members’, Bulgaria and Romania, EU Working Committee Meeting and Executive membership will further develop their Committee Meeting.This year we will hold our FEAS is celebrating its 13th anniversary. Since economic and legal structures to promote Working Committee Meeting in Baku, its beginning in publishing four years ago, organized growth in their financial markets and Azerbaijan which will be hosted by the Baku FEAS SAR has been published as two semi further the perspective of other FEAS Stock Exchane. The General Assembly will be annual reports, in April and October annually. members. When we look at the year end held in the UAE and hosted by the Abu Dhabi As you will remember, the initial and continued results for 2007 we see that market Securities Market. aim of transitioning from an annual to semi capitalization in the region has increased by annual publication is two-fold. First, through 54.3% over 2006. Stock trading volume in FEAS is striving to place greater importance providing two publications rather than just one, dollar terms is up by 21.9%, in volume on regional development over the next 5 years. the market performances of FEAS members increased by 97.0% to 44,847.4 million and the FEAS will hold a President’s Meeting to are reflected in an updated fashion. Second, average daily trading volume increased refocus the ourselves on the future. the environments (both political and 160.9% in 2007. Bonds showed the largest Our continued commitment to our 5-year economic), within which those markets increase in dollar trading volume of 25.7%, strategic plan is designed to achieve the operate, are brought to the attention of the volume increased by 77.9% and average daily objectives specified within the mission of the readers more timely and concisely. Further trading volume increased by 76.7% in bonds Federation and to attain a greater role in the with new format changes to the October trading. Other category showed the largest competitive global market environment. Our edition, readers will receive a sort of reference increase in volume with an increase of 115.2% focus over the previous 5 years has been on guide to our members markets and their over 2006 where as dollar volume and average the area of promoting corporate governance, trading practices and procedures. daily trading volumes increased by 14.8% and facilitating timely disclosure, achieving 109.8% respectively. To put this into effective dissemination of information, attaining In closing, I want to commend the efforts of all perspective in the last 5 years the FEAS region regional convergence in listing requirements, our Task Force members in achieving our has seen a 365% increase in market cap, settlement, trading rules and software, creating regional objectives through their commitment 651% in stock trading volumes, 513% in bonds greater awareness and visibility for the region’s and the Secretariat for its success in trading volume and 195% in other trading stocks and investment opportunities, maintaining our cohesive organization. As we volume. promoting the listing of ‘investment grade’ close our 13th year anniversary, I am happy to companies in the region’s markets and say that our formula for achievement will be As we have now completed our thirteenth year creating linkages among the region’s applied toward our development for the future. of operation, most of you are well aware of our intermediaries, data providers, settlement and accomplishments to date. Those that were custody institutions and stock exchanges,while particularly noteworthy are; the planned encouraging cooperation among securities

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HISTORY 5-YEAR STRATEGIC PLAN DEVELOPMENT AND MARKETING In accordance with the Mission Statement, 5- OF THE REGION The Federation of Euro-Asian Stock Exchanges year Strategic Objectives are set up to (FEAS) was established on 16 May 1995 with systematically approach compliance with the Development the region highlights the activities 12 founding members and has grown to 32 long-term mission of the Federation. These of the Task Forces during the second half of members and 8 affiliate members in 29 objectives are: 2007 and provides a summary of continuing countries as a not-for-profit organization. programs into the first half of 2008. Membership in the Federation is open to Objective I: security exchanges in Europe and Asia and Promote good ‘corporate governance’ for listed BILATERAL INITIATIVES PROGRAM Affiliate Membership is open to the Clearing companies as indicated in the joint FEAS/OECD The Federation initiated in 2002 and fully and Settlement affiliates and Central “Best Practices for the Development of Stock funded a Bilateral Initiatives Program to Depositories of Member Stock Exchanges. Exchanges in Transition Economies” guide. facilitate, on a bilateral basis, the reciprocating Until May, 2009 the position of President and Facilitate timely disclosure of material events to visits of personnel of FEAS members with achieve transparency through effective Vice President will be held by the Istanbul and another for the purpose of exchanging, dissemination of information. Cairo and Alexandria Stock Exchanges, information and experience on specific topics respectively. The Governing Body of FEAS is of interest to both parties. Almost all Federation Objective II: the General Assembly, comprised of all 32 members have now participated in this Achieve convergence among FEAS members members plus 8 affiliate members, which program, which will continue during 2008. in their: meets once annually in a member country to During 2007, 11 new bilateral exchange • listing requirements, discuss major issues for the operations of programs were approved and all of these have • trading rules and software; and FEAS in order to decide upon changes in the been completed by the end of the year. • the settlement cycle. Charter and by laws, its annual budget and to approve its activity and Financial Reports as Objective III: WORKING COMMITTEE well as the Independent Auditors’ Report. Promote mechanisms for reliable, transparent During the Working Committee Meeting that The Executive Committee, made up of 12 and uninterrupted securities trading and was held in Kiev, Ukraine on May 3-4th 2007; members, is responsible for the development settlement. reports were given by all of the task forces of Federation policies, making major including Media, Regional Indices, Market administrative decisions (as mandated by the Objective IV: Principles and Corporate Governance, Affiliate General Assembly) approving the content and Create greater awareness and visibility for the Members and FEAS Data Center. Updates scope of tasks assigned to the Working region’s securities and investment were also provided by the Secretariat on the Committee, and making recommendations to opportunities. status of the Semi Annual Report, Revenue and the General Assembly. Expense Analysis, Bilateral Initiatives, Draft Objective V: Financial Report and the 2007 Calendar of PHILOSOPHY Help promote the listing of ‘investment grade’ Events. Recommendations to the Executive securities in the respective Home markets of Committee included ideas for possible areas of MISSION STATEMENT the Region. cooperation with the World Federation The mission of FEAS is to create fair, efficient of Exchange and outsourcing the and transparent market environments, with little Objective VI: implementation of the FEAS Data Center. or no barriers to trade, within the operating Help create linkages among the region’s: The next working committee meeting will be regions of FEAS members. In order to facilitate • intermediaries, held in May in Baku, Azerbaijan prior to the GA. the objectives of FEAS, members work toward • data providers, the harmonization of rules and regulations and • settlement and custody institutions, Following that meeting, another Working adoption of new technology for trading and • stock exchanges; and also Committee meeting will be held in October in settlement. These actions further promote the • make efforts to initiate cooperation among Abu Dhabi, prior to the General Assembly. development of the member markets and Region’s Securities Commissions. provide cross border trading opportunities for securities issued within FEAS member Objective VII: countries. Promote and encourage research and training for FEAS members and their personnel.

CONTACT INFORMATION

Contact Name Mr. Aril Seren, Secretary General E-mail [email protected] Website www.feas.org

FEAS region

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FEDERATION OF EURO-ASIAN STOCK EXCHANGES

Task Forces The Belgrade Stock Exchange, in partnership Training Center Project In 2005, a decision was taken to combine the with the IFC, published a Corporate In accordance with the decision taken at the two working committees into one and to form, Governance Manual in 2007. last FEAS General Assembly, the FEAS 12 Task Forces to carry out the mandates Training Center in Istanbul has been given by the Executive Committee. Since Task Force 0501 – Affiliate Members (Led established. The primary goal of the FEAS then, some Task Forces have completed the by ISE Settlement and Custody Training Center, with the FEAS Training tasks assigned to them and some new task Bank,Takasbank) Program, is to provide FEAS Members with a forces were formed, the existing Task Forces Affiliate members have designed and are in wide range of educational and training are listed below: the process of implementing both new web options with emphasis on management pages on the FEAS web site and new pages whereby the Exchange Personnel will have the Task Force 0404 – Media (Led by Muscat in the FEAS Semi Annual Report. The third opportunity to receive training in line with their Securities Market) meeting of the Affiliate Task Force was held interests and motives. Following the Media Task Force meeting held on September 6, 2007 in Belgrade. The Task on 3 May 2007 in Kiev, the TF participants Force studied on the action items on the In line with the Media Task force, as one of agreed on the following issues: agenda such as Corporate Governance, the aspects, Media Trainings for the Media 1. The Media Gatherings will continue prior to principals, Code of Conduct and CSDs. Members and for the personnel of the stock General Assembly meetings exchanges will benefit from trainings in 2. It is important to invite journalists of the It has been decided to prepare another leaflet Muscat and in Istanbul. In November 2007, members to be present at the FEAS meetings on corporate e governance, covering the MSM Stock Exchange held a gathering in to cover the events in their media in order to existing international recommendations and Muscat where all topics on Media have been increase the awareness of the Federation and best practices related to Corporate discussed and exhibited .Collective Training the hosting exchange. Governance in securities settlement systems. to multiple FEAS members will be in the 3. A Media Task Force Meeting took place in agenda, as well. July 2007, in Istanbul. Affiliate Members Task Force will continue to 4. The Muscat Securities Market Forum was contribute to the mission of the FEAS for 2008 Mandates: held in Muscat in November 2007. future development and promotion of the • Publication and Distribution of the Semi 5. The Task Force will continue with its work in individual securities market. Annual Report in March/April and accordance with the 2008 Activity Plan which September/October was approved at the General Assembly Task Force 0502 – FDC Implementation • Hold a conference with Issuers, Brokers & Meeting in Belgrade. (Led by Istanbul Stock Exchange) Mutual Fund Managers in conjunction with the The database has been upgraded to allow launching of the FEAS Index Task Force 0406 – Regional Indices (Led more space to add additional FEAS • Completion of the ongoing Revenue by Tehran Stock Exchange) members. The FDC will be instrumental in the Analysis from 2003 through 2007. The Task Force has conducted a survey development of the FEAS Index so this year a • The Baku Stock Exchange will host the 2008 among FEAS members for the creation of the group from FEAS and the Istanbul SE will Spring Working Committee Meeting. index and has finalized the negotiations with travel to member exchanges in order to • The Montenegro Stock Exchange will host a Dow Jones Indices on the Index Agreement. implement the FEAS Data Center at their conference in early June, 2008. The Index Agreement was signed in October, respective exchanges. The changes in FDC • The Abu Dhabi Securities Market will host 2007 and the Index which will be a benchmark format that will become necessary with the the 14th Annual General Assembly Meeting index including a large number of stocks from new requirements for FEAS index, will be and 17th Executive Committee Meeting in Abu the Region, is expected to be launched in addressed during 2008. Dhabi, UAE in November, 2008. 2008. • The Serial Seminars for members of the Task Force 0504 – Research and media will continue. Task Force 0412 – Corporate Governance Development (Led by the Istanbul Stock (Led by Karachi Stock Exchange) Exchange) All members in the FEAS region, place a This task force will bring members together to strong emphasis on good Corporate work on joint research projects of general Governance. A task force was created to interest for FEAS members that will provide a vehicle for members to update the consolidate their experiences and knowledge. information contained in the Corporate This Task Force has recently conducted a Governance section of the Rule Book and to study on Initial Public Offerings, and it was inform all member stock exchanges of presented as a report at FEAS General international regulations and practices Assembly in Belgrade. The study will continue regarding corporate governance which are to investigate the impact of IPO, Privatization gaining importance for a better valuation of Programs and the Investment base of stocks. The issue of good Corporate Member Exchanges. Governance for Stock Exchanges has become important as Stock Exchanges are changing from Mutual Entities into For-profit Companies. The Bucharest Stock Exchange hosted a conference on Corporate Governance in June of 2005 and FEAS jointly hosted roundtable meetings with the OECD on February 15-16, 2006.

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THE ORGANIZATION 13TH GENERAL ASSEMBLY MEETING – PUBLICATIONS & INFORMATION SEPTEMBER 6-8, 2007 – BELGRADE, WORKING COMMITTEE MEETING – 3-4 MAY SERBIA FEAS Library: 2007 – KIEV, UKRAINE The 13th Annual General Assembly of FEAS The Library can be accessed through the The first working committee meeting of 2007 was held in Belgrade, Serbia on September 8th Publications drop down menu on the main was held in Kiev, Ukraine on the 3-4th May, hosted by the Belgrade Stock Exchange. The page at www.feas.org or through this link 2007 at the invitation of the Ukrainian Stock Affiliate Task Force Meeting, the 16th Executive http://www.feas.org/Library.cfm. The FEAS Exchange. The Working Committee focused on Committee meeting and a Working Committee Library is open to experts and organizations issues mandated by the General Assembly in meeting were also held prior to the General with financial market related material. If you 2006 and the Secretariat prepared a report to Assembly. The conference held on the 7th of would like to make a submission to the FEAS participants. September was on technology issues and Library, please send your electronic files and presentations were given by OMX and Quartal links to the FEAS secretariat at Flife. [email protected].

Main decisions and topics of discussion taken FEAS Semi Annual Report: at the General Assembly were; This publication of semi-annual activities of the • adoption of the proposed 2008 mandates for Federation and its members began in 1997 and the Working committee; comprised of; is now available electronically on the website: • Publication and Distribution of the Semi http://www.feas.org/Publications.cfm?Get=Year Annual Report in March/April and book&Top=Pubs. September/October • Hold a conference with Issuers, Brokers & FEAS Website: Mutual Fund Managers in conjunction with the The new FEAS website was launched on 31 July launching of the FEAS Index 2002 and can be found at www.feas.org. The • Revision of the ongoing Revenue Analysis new site now contains a more concentrated FEAS & MONTENEGRO STOCK EXCHANGE Survey. emphasis on FEAS member data with profile CONFERENCE GROWING CAPITAL • The Baku Stock Exchange will host the 2008 pages (including statistics, holidays, market MARKETS, TODAY FOR TOMORROW JUNE Spring Working Committee Meeting. policies and practices and direct links to their 21-23, 2007 BUDVA, MONTENEGRO • The Montenegro Stock Exchange will host a sites), Excel downloads for all statistical data The First International Conference of the conference in early June, 2008. and cross member comparisons on policies, Montenegro Stock Exchange (MNSE) was held • The Abu Dhabi Securities Market will host the practices and statistical data, and a News in Budva, Montenegro on 21-23 June 2007. The 14th Annual General Assembly Meeting and Center with headlines from member markets. joint FEAS/MNSE Conference touched recent 17th Executive Committee Meeting in Abu hot topics in the money markets. 170 persons, Dhabi, UAE in November, 2008. Newsletter: including stock exchange representatives, and • The Serial Seminars for members of the A monthly publication which includes general asset managers and journalists within the FEAS media will continue. secretariat news, statistical stock, bond and region participated in the conference. • extension of the FEAS bilateral exchange other volume comparisons on monthly, year-to- program between members; date and prior period bases, in addition to MEDIA TASK FORCE MEETING – 22-23RD • adoption of the 2008 budget, audited market cap, currency, number of companies JULY 2007 – ISTANBUL, TURKEY statements and the 2007 year-end forecast; traded and index statistics. Quarterly On July 23, the Federation of Euro-Asian Stock • review of the 2007 activities the status of supplemental publications include quarterly Exchanges (FEAS) hosted the participants of special projects with the members, the statistical analysis, press releases of FEAS the Media Task Force meeting. Dr. Murat agreement with Dow Jones and the approval members and headlines of FEAS activities. Kayacan and Mr. Ahmed Al-Hooti from the for FEAS Index. Archived copies of the newsletter can be found Muscat Securities Market opened the meeting • adoption of the dues schedule for 2008. on our website by quickly recounting what was discussed at http://www.feas.org/Publications.cfm?Get=New the last meeting in Kiev, Ukraine. The issues for the next 5 years of FEAS sletter&Top=Pubs. activities will be taken up at the next President’s The members debated and discussed the Meeting in 2009. Collaboration among FEAS SUBSCRIBE following issues: members will continue until the FEAS Region To subscribe for the electronic version of FEAS 1. Adding Marketing to both Information and gets the full recognition it deserves as the most publications, please go to www.feas.org and Awareness to make 3 sub-groups under the dynamic in development and the most click on subscribe. Subscriptions include Media Task Force profitable in investments. The dual targets of monthly notifications of statistics and newsletter 2. Which member should be head up these creation of a common trading platform and updates, as well as advance notice of FEAS sub-groups in order to develop action plans trading of products of joint nature will be the events and activities. and budget focus of FEAS pursuit. 3. Detailed action plan for media for 2008 and 2009.

The Media Task Force convened a successful meeting in Istanbul during the period from 23 – 24 July 2007 to review the activities of the Media Task Force during the year 2007 and allocate the available fund to cover the expenses of these activities and programs. In line with these, the MSM gathering for the Media was scheduled for November and ‘launching of awareness program in Egypt and shifting the experience to other stock markets’ issue was proposed.

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At the end of 2007, FEAS member markets traded companies reached a regional total of 9,498, and market capitalization reached US$ 1,065,357.3 billion by the end of 2007

Aril Seren with a remarkable increase from US$ Secretary General of FEAS and Senior Vice Chairman of the Istanbul Stock Exchange 229,310.4 billion in 2003 or by 365%.

CONTRIBUTORS stock segment continued to grow over the last 5 2008 CALENDAR Please visit our Contributor sites. They can be years with a slight dip in the volume in # terms seen on the FEAS website at: in 2006; the total trading volume in stocks has FEAS Working Committee Meeting Date: May 14-15 http://www.feas.org/Contributors.cfm. increased over the levels in 2006 and prior years Host: Baku Stock Exchange and reached US$ 615,732.9 billion a 21.9% Place: Baku Azerbaijan Garanti Asset Management increase in dollar terms and 97% increase in # www.garantiportfoy.com.tr terms. The Stocks and Other segments showed Montenegro SE Conference Deutsche Boerse the largest growth among the three trading Date: June www.deutsche-boerse.com segments in dollar terms (Stocks, Bonds, Host: Montenegro SE Place: Podgorica, Montenegro Finans Asset Management Other). Whereas, Bonds totaled US$ 478.575 www.djist.com, www.nfist.com billion in 2007 a 25.7% increase in dollar terms 7th BELEX International Conference Is Investment over 2006 and the largest increase of the three Date: September www.isinvestment.com trading instruments in dollar terms; other Host: Belgrade SE NASDAQ OMX turnover reached US$ 2,102,671.9 billion during Place: Belgrade, Serbia www.nasdaqomx.com same period and the other trading in # terms SASE 3rd Annual Conference Quartal Flife increased to 4,131.1 million which is a 115.2% Date: October www.quartalflife.com increase over 2006. The regional figures show a Host: Sarajevo SE Tayburn Kurumsal shift in trading from Other to Bonds even though Place: Sarajevo, Bosnia Herzegovina www.tayburnkrumumsal.com the “other” trading segment continues to be ranked first in most popular trading instrument FEAS Working Committee Date: November 4 2007 YEAR END REGIONAL PERFORMANCE within the region, followed by the stocks and Host: Abu Dhabi Securities Market The FEAS Region is represented by 32 member bonds. Other volume is represented by such Place: Abu Dhabi, UAE exchanges and 8 affiliate members (represented instruments as derivatives, t-bills, currency, by clearing and settlement institutions) in 29 repo/reverse repo, etc. FEAS 17th Executive Committee Meeting countries. Date: November 5 Host: Abu Dhabi Securities Market In addition, the development in the value of Place: Abu Dhabi, UAE At the end of 2007, FEAS member markets FEAS markets can be seen through results in traded companies reached a regional total of the adjusted annualized return on member FEAS 13th Annual General Assembly 9,498, and market capitalization reached indices. Date: November 6 US$ 1,065,357.3 billion by the end of 2007 with Host: Abu Dhabi Securities Market a remarkable increase from US$ 229,310.4 * For individual member statistics, please go to the Member Place: Abu Dhabi, UAE billion in 2003 or by 365%.* The 5-year Profile sections in the following pages. Gathering of Issuers and Brokers in statistical comparison shows that markets are Conjunctions with providing stronger listings with greater FEAS Index Launch transparency, and that market forces continue Date: TBD to push toward share quality versus post- Host: FEAS privatization quantity. The trading volumes in the Place: Istanbul, Turkey

FEAS REGION FEAS REGION FEAS REGION 2007-MARKET CAPITALIZATION 2007-MONTHLY VOLUME 5-YEAR VOLUME COMPARISON VS STOCK VOLUME (US$ millions) (US$ millions) (US$ millions)

1,200,000 80,000 250,000 1,200,000

70,000 1,000,000 1,000,000 200,000 60,000 800,000 800,000 50,000 150,000 600,000 40,000 600,000 30,000 100,000 400,000 400,000 20,000 50,000 200,000 200,000 10,000 0 0 0 0 J FMAMJ J ASON D JFMAMJJ ASON D 2003 2004 2005 2006 2007

Market Cap. Monthly Stock Volume Stocks Bonds Other Stocks Bonds Other

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FEDERATION OF EURO-ASIAN STOCK EXCHANGES

OFFICIAL 2007 STATISTICS

STOCKS BONDS OTHER Average Average Average Average Average Average Total Daily Total Daily Total Daily Total Daily Total Daily Total Daily Market Volume Volume Volume Volume Volume Volume Volume Volume Volume Volume Volume Volume Capitalization (US$ millions) (US$ millions) (# millions) (# millions) (US$ millions) (US$ millions) (# millions) (# millions) (US$ millions) (US$ millions) (# millions) (# millions) (US$ millions)

Jan-07 36,645.49 1,868.02 19,384.08 1,148.64 42,962.98 2,120.01 21,108.17 1,001.80 141,580.62 7,067.08 108.96 5.55 724,187.42 Feb-07 47,544.58 2,421.90 26,978.85 1,572.15 39,545.24 1,974.12 27,884.01 1,362.39 135,445.48 6,775.90 129.57 6.49 753,478.54 Mar-07 39,504.75 1,862.26 29,384.92 1,912.72 38,880.58 1,822.48 34,194.84 1,692.67 164,003.23 7,488.65 185.06 8.80 778,972.82 Apr-07 43,604.65 2,156.12 32,976.55 1,987.10 37,228.85 1,834.96 26,234.90 1,268.74 148,954.18 7,439.79 118.33 6.60 828,415.54 May-07 51,009.90 2,266.60 32,223.36 1,760.19 40,253.12 1,931.04 19,691.66 937.83 164,003.23 7,863.91 627.82 28.92 869,395.25 Jun-07 48,506.99 2,344.75 33,187.80 2,061.80 42,259.16 2,018.22 63,571.94 3,034.66 167,883.17 7,999.15 165.63 8.99 900,592.78 Jul-07 61,559.61 2,807.02 106,589.64 6,740.04 43,601.59 1,984.65 22,114.83 1,005.30 189,949.76 8,635.72 123.76 5.87 929,486.99 Aug-07 49,941.08 2,267.44 33,603.11 1,801.93 39,927.40 1,862.44 22,302.58 1,057.20 184,773.52 8,434.56 147.79 6.75 900,794.96 Sep-07 47,704.06 2,367.67 30,106.19 1,689.82 40,453.85 1,983.60 22,312.58 1,063.90 173,924.05 8,676.71 383.51 18.64 970,846.23 Oct-07 76,115.54 3,727.00 46,921.76 2,892.20 44,227.34 2,079.40 20,957.48 952.68 195,639.88 9,308.82 134.84 6.80 1,050,000.00 Nov-07 68,225.27 3,188.71 31,012.62 1,463.10 41,315.52 1,885.05 17,843.87 821.38 234,461.59 10,668.53 1,223.71 58.62 1,026,868.46 Dec-07 45,370.96 6,147.79 22,478.54 2,050.76 27,861.89 1,512.98 16,057.77 891.64 185,951.92 9,814.64 782.15 41.23 1,065,337.30 Total 615,732.90 2,785.44 444,847.41 2,256.70 478,517.53 1,917.41 314,274.62 1,251.51 2,086,570.63 8,347.79 4,131.14 110.94

STATISTICAL COMPARISON 2003 THRU 2007 FEAS REGION

STATISTICS 2007 % CHANGE OVER 2003 2004 2005 2006 2007 2006 2005 2004 2003 # Companies Traded 7,653.0 8,003.0 8,348.0 9,057.0 9,498.0 4.9% 13.8% 18.7% 24.1% Market Capitalization (US$ millions) 229,310.4 377,279.6 638,040.9 690,454.7 1,026,868.5 48.7% 60.9% 172.2% 347.8% Total Volume (US$ millions-Stocks) 209,328.0 273,616.4 467,902.8 505,163.7 615,732.9 21.9% 31.6% 125.0% 194.1% Total Volume (# Shares millions-Stocks) 59,229.5 69,760.0 309,083.6 225,759.2 444,847.4 97.0% 43.9% 537.7% 651.1% Average Daily Volume (US$ millions-Stocks) 849.5 1,101.6 1,846.2 2,047.4 2,478.0 21.0% 34.2% 124.9% 191.7% Average Daily Volume (# Shares millions-Stocks) 240.8 280.4 1,586.8 915.7 2,389.5 160.9% 50.6% 752.2% 892.4% Total Volume (US$ millions-Bonds) 170,925.0 314,833.5 429,310.8 380,662.4 478,517.5 25.7% 11.5% 52.0% 180.0% Total Volume (# millions-Bonds) 45,351.0 101,093.7 116,592.2 176,705.0 314,274.6 77.9% 169.6% 210.9% 593.0% Average Daily Volume (US$ millions-Bonds) 683.6 1,258.0 1,695.8 1,523.5 1,911.5 25.5% 12.7% 51.9% 179.6% Average Daily Volume (# millions-Bonds) 180.8 401.3 466.2 711.9 1,257.7 76.7% 169.7% 213.4% 595.5% Total Volume (US$ millions-Other) 711,623.3 1,101,717.2 1,403,074.3 1,825,351.1 2,102,671.9 15.2% 49.9% 90.9% 195.5% Total Volume (# millions-Other) 1,894.8 1,981.7 1,835.0 1,919.9 4,131.1 115.2% 125.1% 108.5% 118.0% Average Daily Volume (US$ millions-Other) 2,846.5 4,372.3 5,525.9 7,277.6 8,354.1 14.8% 51.2% 91.1% 193.5% Average Daily Volume (# millions-Other) 8.4 8.0 7.4 8.1 17.0 109.8% 129.1% 111.9% 103.3%

2006-FEAS REGION VOLUME BY TYPE 2007-FEAS REGION VOLUME BY TYPE Stocks Bonds Other Stocks Bonds Other

19% 14% 19% 15%

67% 66%

NUMBER OF COMPANIES TRADED VS MARKET CAPITALIZATION 2007-ANNUALIZED RETURN ON INDEX (US$ millions) Top-20/Mongolia 80.9 B.I./Macedonia 57.5 ISE 100/Istanbul Market Cap Companies Traded 51.0 CROBEX/Zagreb 44.2 GP/Muscat 38.2 MOSTE/Montenegro 37.8 TASIX/Uzbekistan 36.6 10,000 1,200,000 CASE 30/Egypt 35.3 9,000 ADSM/Abu Dhabi 34.0 BSE/Bulgaria 33.4 1,000,000 8,000 Iraq/Iraq 33.1 7,000 Belex15/Serbia 31.0 800,000 KSE 100/Karachi 28.2 6,000 ASE/Amman 26.6 5,000 BET/Romania 25.5 600,000 4,000 Bahrain 17.5 LSE 25/Lahore 10.3 400,000 3,000 Kazakhstan 8.8 2,000 Belarus 5.5 200,000 BIRS/Banja Luka -2.4 1,000 TEPIX/Tehran -3.5 0 0 KSE Index/Kyrgyz -13.4 Al Quds/Palestine -14.7 2003 2004 20052006 2007 BIFX/Sarajevo -44.4

Indices are adjusted for currency fluctuations. (Formula: 1+(return)=((1+%chg. index)/(1+%chg. currency))

PAGE 8

Abu Dhabi Securities Market Amman Stock Exchange Securities Depository Center (SDC) of Jordan Armenian Stock Exchange CDA Central Depository of Armenia Bahrain Stock Exchange Baku Interbank Currency Exchange Baku Stock Exchange Banja Luka Stock Exchange Belarusian Currency and Stock Exchange Belgrade Stock Exchange Bucharest Stock Exchange Bulgarian Stock Exchange Cairo and Alexandria Stock Exchanges Misr For Clearing, Settlement & Central Depository Georgian Stock Exchange Iraq Stock Exchange Istanbul Stock Exchange Takasbank - ISE Settlement and Custody Bank, Inc. Central Registry Agency Inc. of Turkey Karachi Stock Exchange Kazakhstan Stock Exchange Kyrgyz Stock Exchange Lahore Stock Exchange Macedonian Stock Exchange Macedonian Central Securities Depository Moldovan Stock Exchange Mongolian Stock Exchange Montenegro Stock Exchange Muscat Securities Market Palestine Securities Exchange Sarajevo Stock Exchange State Commodity & Raw Materials Exchange of Turkmenistan Tehran Stock Exchange Central Securities Depository of Iran Tehran Securities Exchange Technology Management Company Tirana Stock Exchange “Toshkent” Republican Stock Exchange Ukrainian Stock Exchange Zagreb Stock Exchange FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

GARANTI ASSET MANAGEMENT Where performance, consistency, and world-class service all come together.

Founded in 1997, Garanti Asset Management is In private portfolio management This enables it to apply its investment policies a wholly-owned subsidiary of Garanti Bank, is services… consistently and precisely for different investor Turkey’s first asset management company. As of Garanti Asset Management provides private profiles. December 2007, the total value of all the assets portfolio management services for institutional under the management of Garanti Asset and individual investors. Always mindful of international markets, Management was US$ 4.1 billion. Garanti Asset Management carefully monitors In the last six years, the growth in Garanti Asset developments around the world and works Garanti Asset Management provides services to Management’s market share in portfolio closely with investment companies. its individual and institutional clients for the management services has been accelerating management of their steadily. As of year-end 2007, the company was The decision-making process • Mutual funds, serving 28 institutional investors and 51 high net Garanti Asset Management employs: • Institutional and individual portfolios and; worth individuals with the aggregate value of • A well-defined decision-making process, • Active risk management and; • Pension funds. client assets under the company’s management • Effective auditing functions. in this category at US$ 450 million with a market Widely acknowledged to be one of the best share of 28,82%. service providers in the sector, Garanti Asset The company’s decision-making process Management distinguishes itself by virtue of the consists of two steps: Allocation of the assets Our investment and management philosophy and then selecting the investment instruments. competent human resources it employs and by Garanti Asset Management’s investment means of an advanced technology service philosophy is based on having solid information. delivery platform that has been fully integrated Allocation of the assets is the first step of the Information is processed and the conclusions decision-making process. In this step, scenarios into every aspect of its service processes. that are reached, help to inform investors to are analyzed to determine the returns, expected make correct decisions based on the maturities for each investment instrument. Alternative With an approach to service that focuses on of investments and identified risks of those scenarios are considered and debated in detail what investors want, Garanti Asset Management investments. to decide on the best relative weights for makes sure that their portfolios’ structure fully investment vehicles. In light of the findings of reflects the needs of investors in the fastest and Garanti Asset Management’s management these analyses, the performance expectations of most effective way possible. A corporate style philosophy is based on knowledge, teamwork, different investment instruments are measured that manifests itself in the company’s service and human resources; it seeks to maintain the and investment decisions are shaped approach is one of the cornerstones of the high company’s leading position through an accordingly. esteem that Garanti Asset Management rightfully approach that is focused both on the client and enjoys in the market. on performance. The process of selecting investment instruments is the second step of the decision-making In mutual funds… For a successful investment policy process. This selection is coordinated by equity Managing mutual funds is Garanti Asset The success of Garanti Asset Management’s and fixed-income security selection committees, Management’s principal business line. The investment policy lies in systematically comprised of fund managers and investment company provides management services for a researching different investment instruments and analysts. These committees closely monitor total of fifteen funds owned by Garanti Bank and subjecting all investment decisions to a national and international economic and political three funds owned by Garanti Securities. disciplined and persistent risk management. trends having their investment decisions based Controlling a 14.22% market share as of year- on the risk parameters they identify. end 2007, Garanti Asset Management is one of Garanti Asset Management’s business the biggest mutual fund managers in Turkey. As processes are streamlined and well-defined. of the same date, the aggregate value of all the investors’ assets in mutual funds was US$ 3,193 million. ASSETS UNDER THE MANAGEMENT (USD millions)

This success is the natural outcome of Garanti 4,500 4,148 Asset Management’s proactive business 4,000 strategy and of the synergetic and effective collaboration that the company has developed 3,500 with Garanti Bank and its branches, which act as 2,788 its main delivery channel for trading in mutual 3,000 fund shares. 2,398 2,500 2,233

In pension funds 2,000 1,680 Pension funds are one of the fastest-growing investment products offered in Turkey today. 1,500 Garanti Asset Management works closely with its 701 sister company, Garanti Pension. During 2007 1,000 620 404 Garanti Asset Management provided Garanti 500 279 Pension with management services for ten 87 different types of pension funds. The total 0 volume of assets under management in this 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 segment as of year-end 2007 was US$ 482 million, which corresponds to a market share of * Numerical data are taken from www.spk.gov.tr. The numbers are as of year-end. 12.30%.

CONTACT INFORMATION

Contact Name Ms. Pinar Dumlu Memisoglu E-mail [email protected] Ms. Basak Yergok Ozdemir E-mail [email protected] Ms. Ayse Selda Yavuz E-mail [email protected] Website www.garantiportfoy.com.tr

PAGE 13 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

IS INVESTMENT Is Investment provides a wide array of financial services to local and foreign investors.

Ilhami Koc General Manager

Is Investment provides a wide array of financial With its public offerings, privatization • The highest number of transactions on the services to local and foreign investors, including consultancy, M&As, private equity, restructuring Turkish Derivatives Exchange –TurkDEX with brokerage of equities, fixed income and and strategic planning services offered to 17.18% of market share and YTL 39.9 billion/ derivative products; investment advisory; asset national and international companies, Is US$ 30.4 billion of transaction volume. management; public offerings, M&As, Investment boasts an unparalleled expertise in • The leader in the Excluding ISE International privatizations, restructuring & strategic planning, all corporate finance segments. Bond Markets with 21.7% of market share and and private equity. US$ 11.4 billion of transaction volume. Is Investment, as a company which led 62 IPOs • US$ 38.1 billion of foreign securities Is Investment, which was established as the between 1988–2007, went public itself in May transactions in international capital markets. investment banking arm of Isbank over a 2007 as the only investment banking institution • The public offering of Halkbank, which was decade ago, is the market leader in almost traded on the ISE. Is Investment, as the only the largest public offering in Turkey in terms of every business line. A well diversified client sector representative, entered the ISE with a proceeds, generated US$ 1.8 billion. base gives Is Investment a unique competitive market value of approximately US$ 250 million • The Tekfen Holding IPO, the largest private edge. Is Investment commands to a large retail and is traded on the ISE-100 index four months sector public offering of the year 2007 in and institutional client base in Turkey. after its public offering. Turkey, was solely managed by Is Investment. The value of total demand created in this IPO Is Investment’s large and commanding Fitch Ratings assigned Is Investment’s National was about US$ 3.8 billion with proceeds presence in the Turkish investment market is Long-term rating of ‘AAA (tur)' with Stable totaling US$ 491 million. reflected in its transaction volumes, ranking first Outlook. The rating of Is Investment reflects the • Floated its own shares in 2007 as the only not only in the ISE-Equity Market, but also in the support and close integration with its parent, Is brokerage house listed in Istanbul Stock Turkish Derivatives Markets of which Is bank. Is Investment is the only brokerage house Exchange. Investment is one of the founding members and which has credit rating. • Arranged a floating rate corporate bond third in the ISE-Fixed Income Market in 2007. issuance for C Factoring and three bond Is Investment has been the outright leader in In 2007 issuances in international capital markets; the equity trading since 2002. Assets under Bank Pozitif (Turkey) 7.815% 06/12 management are YTL 6.8 billion mainly through • The leader in the ISE Stock Market with %6.32 Global Yat›r›m (Turkey) 9.25% 07/12 its subsidiary Is Asset Management of market share and YTL 49.1 billion/ US$ 37.4 Ak Bars Bank (Tatarstan) 8.25% 06/10 representing 20% of the fund management billion of transaction volume. business in Turkey. • Third place among brokerage houses in the ISE Fixed Income Market with 11.83% of market share and YTL 14.1 billion/US$ 10.8 billion of transaction volume

Full Range of Investment Banking Services FACTS AND FIGURES Brokerage Investment Advisory Date of Establishment 18 December 1996 Asset Management Paid-in Capital YTL 119,387,000 / US$ 89.8 million Corporate Finance: IPOs, M&As, Strategic Advisory Assets (2007 Q3) YTL 1,165,404,371 / US$ 967.3 million Research Free-Float 29.73% Branches (all in Turkey) Akaretler, Ankara, Izmir, Kalamis, Yenikoy Widest Client Base Representative Office Levent-Istanbul (Turkey), Almaty (Kazakhstan) Largest domestic network – more than 900 Isbank branches are Agents More than 900 Isbank branches in Turkey our agent Ownership Structure 3,500 high-net-worth individuals Isbank 63.79% 300 corporate clients Is Factoring 2.43% 200 foreign institutional clients Is Leasing 2.43% Sisecam 1.45% Largest assets under management Camis Investment Holding 0.17% YTL 6.8 billion mainly through subsidiary Is Asset Management Free Float 29.73% Subsidiaries* Is Investment's Share Volume Leader Maxis Securities Limited 100% #1 in Stock Market Camis Investment 99.8% #3 in Bonds Market Is Asset Management 70% #1 in Derivatives – Turkdex Is Investment Trust 23.6% #1 in Eurobond Transactions Is Private Equity 20.1% Largest Shareholders Equity TurkDEX 6.0% YTL 286 million

Only Listed Broker in ISE Current market capitalization US$ 250 million

Only Brokerage House with Rating * Subsidiaries in which Is Investment has more than 5% shares. Is Investment has also shares National Long-Term AAA (Tur) / Stable Outlook by S&P in Emerging Enterprises Markets, Is REIT and Yatirim Finansman Securities.

PAGE 14 SEMI ANNUAL REPORT APRIL 2008

International Capital Markets problems keeping up with their mortgage markets. Not only, as Is Investment’s Is Investment has been building up its strength payments especially in the sub-prime level. International Capital Department, we have in Turkish financial markets since its With rising default rates concentrated more on direct market access capabilities through the establishment in 1996 by Turkey’s biggest the sub-prime mortgages, trading on major equity exchanges around the World, but bank, Isbank. Not only having a leader securities which are backed by these also have execution facilities to emerging position in both domestic equity, fixed income, mortgages became extremely illiquid that markets like in Middle East and CIS region. In as well as the newly established derivatives created an impossible case for the financial equity markets, our activities are not only market; Is Investment has also been active in companies with exposures to these mortgage limited to secondary market trading as we also international capital markets through which our backed securities to market to market. Even provide means for our customers to clients have a better scope of investment the biggest and most prominent financial firms participate in primary issues all around the products for achieving a diversified portfolio. had disclosed holdings in these securities that World and chance to invest in equity options stunned the World markets as there is no safe rather than directly in cash markets. In fixed The summer of 2007, once again proved us ground among the companies that are a vital income markets, with a volume reaching that even though internal mechanisms of the part of the economic system. Although the almost US$ 15 billion in 2007, Is Investment Turkish economy have kept on improving, we Central Banks around the World tried to take was rated as the top financial firm among the were not completely immune against the measures to lessen the severity of this crisis in other Turkish financial institutions based on economic cycles in the foreign markets; more the financial sector, the feeling of distrust transactions booked outside the exchange. specifically against the effects of the liquidity among the investors has kept the financial Not only, as Is Investment, we concentrate crisis that have pushed the world’s biggest markets in pressure and ultimately highlighted purely on Turkish Eurobonds, but also focus economy towards the doorstep of a possible the importance of diversification. on credits in Kazakhstan, Brazil, and Russia recession. After the burst of internet bubble in as well and interact with more than hundred the United States in the early years of 21st Since our establishment in 1996, Is Investment counterparties around the World. The century, in 2007 the markets have been hit this has been investing heavily on improving our syndication parts that we have taken on the time with a severe downturn in housing sector product mix in order to satisfy the needs and Eurobond issues listed below demonstrate our which has triggered series of events in the spread out the single country risks of our commitment and willingness to be a more financial and nowadays in the consumer customers. As the liquidity crisis put the active player in these markets as a Turkish sectors. As a result of the slump in housing international capital markets to the foreground institution. prices and eventually the decline in wealth of investor’s attentions, Is Investment has effect, more and more consumers had already had an ever increasing activity in these

Eurobond issues that Is Investment was awarded as Co-Manager in the syndication; Company Name Country Coupon Rate Maturity Issue Size Republic of Turkey Turkey 9.500% 01/15/2014 US$ 1,250,000,000 Republic of Turkey Turkey 7.375% 02/05/2025 US$ 2,000,000,000 Republic of Turkey Turkey 6.875% 03/17/2036 US$ 1,500,000,000 PO Oil Financing Turkey 9.750% 07/22/2009 US$ 175,000,000 Bank Pozitif Turkey 7.815% 06/27/2012 US$ 150,000,000 Global Yat›r›m Holding Turkey 9.250% 07/31/2012 US$ 100,000,000 Intergas Finance BV Kazakhstan 6.875% 11/04/2011 US$ 250,000,000 Alliance Bank Kazakhstan 9.000% 11/22/2010 US$ 200,000,000 Finans Moscow Russia 7.900% 12/12/2008 US$ 250,000,000 Ak Bars Bank Tatarstan 8.250% 06/28/2010 US$ 250,000,000

As the financial crisis have created roller- beginning of 2008. This newly created Rating ourselves by far as the top Turkish coaster rides in the world markets, adding to platform, Trade Master International, is giving institution in international capital markets, the ways of diversification; the opportunities execution capabilities to our investors for not only Is Investment will work on improving that keep on knocking, increased the needs investing on their own in major equity markets its abilities in organized exchanges around the for exchange-listed derivative instruments. In and more importantly in futures markets like World, but also will pursue to provide access order to facilitate our clients’ needs for these CBOT and CME. to opportunities in emerging economies to leveraged instruments, through 2007 Is its clients whom Is Investment made believe Investment had been preparing its electronic the importance of diversification with a little platform that was recently launched in the kick in it.

CONTACT INFORMATION

For International Capital Markets Contact Name Mr. Ilkay Dalkilic E-mail [email protected] For Turkish Capital Markets Contact Name Ms. Ozlem Tumer E-mail [email protected] For Almaty/Kazakhstan Rep. Office Contact Name Mr. Samad Azimov E-mail [email protected] Website www.isinvestment.com

PAGE 15 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

NASDAQ OMX "NASDAQ OMX leverages its expertise to develop solutions that are in sync with today's fast evolving financial markets and changing techology standards"

Markus Gerdien Executive Vice President, Market Technology, The NASDAQ OMX Group

Creating powerful partnerships • Becoming the leader in regional integration, activities, technical and legal procedures were Rapid developments in technology tied with facilitating growth for emerging markets - simplified, making it easier for remote market deregulation have lead to increasing Smaller exchanges will have the opportunity members to access all exchanges consolidation as well as increased to leverage both infrastructure and market by simultaneously. Only one technical competition in financial markets across the partnering up with the exchange hub in the connection was needed to access all markets globe. In order to sustain or build an attractive region. and although separate memberships were market position, exchanges have begun • Creating benefits for local members and needed for trading on each and every partnering with each other in order to create issuers - Pooled liquidity attracts more exchange, the application process was scale, reduce cost, simplify member liquidity, as does one access point and a streamlined. Rules and regulations for trading processes and last but not least, increase greater distribution of shares. were harmonized as well as the process for liquidity. All categories of parties involved are • Reduce cost to entry for remote members - receiving trader authorization. currently considering this partnership Regionalized and standardized market strategy, and in particular for small and offering will help attracting remote investors, NOREX proved itself as a successful medium size exchanges, this strategy can as it will harmonize member applications and business model, and NASDAQ OMX has also prove the difference between a fading and a surveillance rules. helped other exchanges to develop similar flourishing future business. • Revitalize the market through regionalized partnerships. The process of reaching product and service offerings cooperation agreements between equals is The partnership alliance should not be a goal • Positioning the region for future by definition very complex, and focusing on itself, but should be set up to increase market consolidation - A region with a well the right sequential points is the key to attractiveness. Typically, an alliance should functioning infrastructure in place will be a progress: strive at turning the region into a globally stronger and more attractive partner. attractive marketplace by increasing the 1. Preparation phase – the strategic choice of market size, offering attractive products to As can be seen in the diagram below, the partner local, regional and international investors and different models can be chosen when 2. Project phase – building the alliance and issuers while offering easy access to all positioning an exchange in the market in crafting the business model, the roadmap markets in regulatory, technological and relation to its peers, depending on its and governance model, operational model trading models and by increasing cost prerequisites. National interests such as and the signature of cooperation agreements. efficiency and operating quality. In order for culture, historic heritage, religion and politics 3. Partnership phase – implementing and the alliance to be successful, the participants can have huge impact on how disposed an operating the alliance; starts when all need to combine strengths and assets, whilst organization is at successfully partnering up signatures are in place. still allowing the local freedom to act. with another exchange. The success and the ease of which an alliance can be set up and During the initial stages of the process, the It is not only external benefits that can be run further, depends on financial criteria such preparation phase focuses on internal needs achieved through an alliance but also internal as currencies used, settlement principles, and capabilities. Often the question at hand benefits that are of great importance. By governance structure, legacy and the mere is: How do we build an attractive sharing technology, infrastructure, operations cooperation spirit among the alliance marketplace? Depending on internal and and other processes, costs can be reduced participants, including goal alignment. external prerequisites, the characteristics of and revenues be increased. Advantages the other players in the region, and the long which can be gained from a partnership A practical example of one of these market term business vision, a partnership might strategy are potentially numerous, and models is NOREX, an example of a stand out as the most promising alternative to include the opportunities to: partnership strategy. NASDAQ OMX pursued pursue. Discussions with potential parties a strategy to become the number 1 exchange then need to be initiated. • Secure an efficient market and technology in the Nordic and Baltic region and to reach operation - Offer a market structure and this goal, the NOREX alliance was launched Once the parties have a common technology solution that can comply with the in 1997, comprising the stock exchanges of understanding that a partnership is an requirements of international standards and Sweden and Denmark. In the following years, attractive route to follow, phase 2 can be new products and services. Flexibility and the stock exchanges of Norway, Finland, pursued; the Project. The first step is to cost efficiency are crucial, and sharing Iceland, Latvia, Estonia and Lithuania also establish the partnership foundation: create a decisions and costs with partners are of joined this alliance. Through technological common vision of what to achieve, determine bilateral gain. cooperation, harmonization of rules and the scope of cooperation and integration, as regulations as well as joint marketing well as any high level sequencing.

PAGE 16 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

The alliance scope and degree of integration The operating model, including market and No.1 in marketplace solutions can vary, and NASDAQ OMX uses the system models, operating responsibilities, Widely known for our electronic trading following model to determine the basis for technical contributions, integration and platforms, NASDAQ OMX provides world further investigation. development cornerstones should not be leading technology solutions across the assessed until the foundation of the transaction chain. Our systems and services Once the alliance scope and degree of partnership has been agreed. In parallel, the are designed to help exchanges, clearing business integration has been set, goals, contractual suite can be drafted. To facilitate organizations and central securities business model, milestones, deliverables, the work and emphasize commitment, a depositories meet the extreme demands of project governance and partnership Letter of Intent is recommended early in the the securities industry with efficiency and governance should be defined. The process. The signing of the cooperation flexibility. governance model can then be adjusted to agreement marks the end of phase 2. reflect the alliance phase. It is important to NASDAQ OMX leverages its expertise to remember that a potential key to success is to The final phase, Partnership, starts with develop solutions that are in sync with today’s ensure that an efficient governance model is launching the implementation efforts needed fast evolving financial markets and changing in place. to reach the early goals of the alliance, hence technology standards. We offer systems, realizing the partnership vision. In due course, systems support, operational services, and Some of the other factors influencing the most this phase will transfer from implementation advisory services that promote efficient appropriate governance model are; the into daily operations. securities transactions. relative size, the perceived significance of the entities entering the alliance, and the number About NASDAQ OMX Through advisory services NASDAQ OMX of parties in the alliance. As the number of The NASDAQ OMX Group is the world’s offers business insight gathered by people in participants within the alliance increases, the largest exchange company. It delivers trading, the exchange industry, delivered by people complexity increases, and the governance exchange technology and public company within the exchange industry. The advisory model must be dynamic and robust enough services across every major continent and it is team brings together: to handle this. NASDAQ OMX has number one in worldwide listings, among the • Exchange and securities industry experienced that however successful, the major markets, with over 3,900 companies. professionals alliance concept becomes insufficient as the NASDAQ OMX offers multiple capital raising • Industry technology experts partnership expands beyond a certain level, solutions to companies around the globe, • Management consulting professionals and to capture the final synergies and expand including its U.S. listings market, the Nordic cooperation further, 7 out of the 8 alliance Exchange including First North and 144A NASDAQ OMX is working world-wide, members eventually merge. PORTAL Market. The company offers trading advising clients from the entire value chain. across multiple asset classes including Projects are run in both mature markets and It is of uttermost importance to understand equities, derivatives, debt, commodities, emerging markets. that a fruitful partnership between equals is structured products and ETFs. NASDAQ OMX based on the common will to achieve certain technology supports the operations of over 60 common goals. As soon as one party is not exchanges, clearing organizations and central aligned with these goals or with the process securities depositories in more 50 countries. leading to them, the partnership will find it For more information about NASDAQ OMX, difficult to succeed. visit www.nasdaqomx.com.

CONTACT INFORMATION

Contact Name Mr. Adam Kostyal E-mail [email protected] Website www.nasdaqomx.com

PAGE 17 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TAYBURN KURUMSAL The privilege of serving our clients is what shapes our mission…

Ediz Usman Partner & Client Relations Director

Tayburn Kurumsal (Tayburn Corporate) and Branding: High-profile corporate and Kurumsal offers clients in Turkey all the products Tayburn Tasarim (Tayburn Design) provide a consumer brands… and services that they need in the area of complete line of creative, integrated corporate In the areas of: investor relations. communication products and services tailored • Creating according to its clients’ needs. • Developing Compliance with national regulatory • Defining and maintaining standards agencies Tayburn Group for our clients’ corporate and consumer brands, Tayburn keeps a close watch on any changes With 29 years of experience in international as our brand-related activities that may be made by the Banking Regulation well as European markets, Tayburn is the consist of: and Supervision Agency or the Capital Markets biggest corporate communication company in • Designing logos and emblems Board in the legal framework in the rules Scotland and the tenth biggest in the United • Developing corporate identities from A to Z governing corporate reporting and investor Kingdom. It has been 14 years since we began • Launching and relaunching brands relations and immediately incorporates them blending Tayburn's know-how with our own • Consultancy services. into its products and services. Tayburn does knowledge of the local market and putting them this in order to ensure that its reporting and to work in the service of clients. For more than a Reporting and investor relations: Printed and investor relations products and services are decade we have developed and offered online corporate reporting and always in full compliance with the current productive, high-quality, and creative solutions communicating with investors… requirements of regulatory bodies. We also for some of Turkey's leading companies in the Our activities in the area of reporting and investor provide clients with consultancy services on areas of annual reports, branding, design, new relations consist of the turnkey design and fundamental and related issues as well. media, advertising, and marketing. delivery of: • Printed annual reports Marketing: Satisfying marketing needs in the Thanks to our expert team, to the knowledge • Electronic (CD) annual reports product/service-consumer cycle… and experience acquired on our own and • Web-based annual reports Our activities under the heading of marketing through Tayburn, to our customer focus, and to • Corporate websites consist of a providing all the advertising, our innovative and creative approach to service, • Investor relations websites promotional, and corporate communication we are today Turkey's most sought-after service • Foreign language copywriting and editing products and services that our clients may provider in the corporate communication services need such as: segment. Our service area as Tayburn Kurumsal • Road show presentations • Advertising campaigns and Tayburn Tasarim is not limited to Turkey. as well as similar products and services that • Corporate information films Because of our world-class know-how and enable our clients to establish and maintain • Advertising films quality of service, we are also called upon by timely, precise, uninterrupted, and transparent • Announcements (national and international) clients operating in Europe and in neighboring communication with: • Web-based solutions countries. Our own technological infrastructure • Investors • Brochures makes it easy for us to provide such clients with • Shareholders • Information kits fast, comprehensive service too. • Creditors • Electronic presentations • Business partners • Calendars and date books. Professional approach to business • Customers One notion defines the reason for our existence • Employees Copywriting and editing services: Conveying and our mission: Enable our clients to establish • Society at large. your message clearly and to the right and maintain accurate, sustainable, and high- audience… yield communication with their target audiences High added value services in Tayburn prepares and edits text in Turkish by means of our high added value products and investor relations and other languages to ensure that its clients’ services. Underlying all investor relations is the need to messages are conveyed to their target audiences communicate corporate information accurately clearly and effectively. We provide high added With our professional approach to business, and clearly to investors, shareholders, creditors, value corporate communication services in the our national and international market employees, business partners, and society at following languages: knowledge, and our global experience in large. Speed and transparency are of the • Turkish corporate communication we transform this utmost importance in investor relations today. • English mission into reality for our clients. It is vitally important for publicly-held companies • French to keep abreast and quickly comply with the • German Since the day we commenced operations, we requirements of national and international • Italian have been doing business and taking pride in regulations (Capital Markets Board, Sarbanes • Spanish the knowledge that we have been consistently Oxley, NYSE, LSE, etc). Providing truthful • Russian successful in the face of Turkey’s rapidly information at the right time and in a format that • Chinese changing and developing market conditions is easy to understand and to access heads the (Other languages are available on request.) and, what’s even more important, that we have list of the objectives of everyone involved in been providing solutions that precisely serve our investor relations in today’s world. Tayburn clients’ needs.

CONTACT INFORMATION

Contact Name Mr. Ediz Usman E-mail [email protected] Website www.tayburnkurumsal.com

PAGE 18

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

FINANS ASSET MANAGEMENT Exchange Traded Funds are liquid, easy to invest in and priced continuously. They are also cost-efficient and transparent.

Exchange Traded Funds and a The global economic and investment Other Key Issues to Consider Regional Approach environment is evolving and this may create An exchange traded fund based on a FEAS Exchange Traded Funds (ETF) offer many opportunities for Federation of Euro-Asian index will be a very easy-to-use and efficient advantages to investors. Investors can invest in Stock Exchanges members. An index based product for investors. However, the project has various assets with a single transaction. ETFs on stocks listed on the FEAS member a significant and complicated infrastructure. are liquid, easy to invest in and priced exchanges would create a well-diversified and Considering the fact that the ETF should be continuously. Exchange Traded Funds are also attractive investment product. Participation of listed on various member exchanges, efficient cost-efficient and transparent. international investors would also increase settlement and custody system should be through financial products based on the index. developed. Furthermore, access between Exchange Traded Funds have been developing markets in terms of trading, pricing and rapidly since the beginning of the millennium. What Should the Index Look Like? settlement will result in an effective pricing for The number of exchange traded funds grew A FEAS Index should include members which the ETF. Effective pricing and liquidity will help from 92 in 2000 to 1,171 as of end of 2007. can provide continuous data. Correct data investors trade without any mispricing risk. In terms of listings, the numbers are even more plays a pivotal role and allows issuers to Legal infrastructure should also be enacted in impressive thanks to dual listings. Furthermore, develop financial products with high order to protect investor and issuer rights and total assets under management reached US$ international standards. Companies to be eliminate risks for the members. 797 billion as of end of 2007, representing a included in the index should be selected ten-fold increase during the same period. carefully. A rule-based index would be more Advantages offered by exchange traded funds transparent. Furthermore, a rule-based based on a FEAS index will attract investors. It Rapidly growing ETFs both in number and approach would pave the way for effective will also fuel dynamism of cooperation and AUM bring significant investment opportunities index adjustments. Free float market trading among FEAS members. and investor activity into exchanges. As ETFs capitalization and liquidity of stocks included in allow investors to capture the performance of the index should be sufficient enough to the underlying assets and offer exposure to develop a financial product. various regions, countries, sectors, asset classes, they are heavily used by international An Exchange Traded Fund investors as well. This paves the way for Approach exchanges to attract investors from different An exchange traded fund based on a FEAS parts of the world. index would create value for many participants. Members participating in the index will be Increasing investor demand for various offering a very attractive product to investors of investment strategies forced ETF issuers to their respective markets. An ETF will also help launch ETFs with alternative investment members expand the investment opportunities strategies. Investment strategies offering offered through their exchanges. Members of international exposure, regional diversification the exchanges will effectively gain access to a and country based allocations are becoming diversified, attractive investment product and more popular due to increasing needs for will be able to attract more retail and diversification. Along with expectations of a institutional investors. Investors will be able to global slowdown and varying economic reach new investment products in a very performance of countries, it becomes more efficient and cost effective way. With a single important for investors to diversify. Index transaction, they will get exposure to various providers are also working on different indices countries and companies. Fast execution will which use many countries and exchanges as be one of the key features of the ETF. underlying assets.

CONTACT INFORMATION

Contact Name Mr. C. Ozgur Guneri E-mail [email protected] Website www.finansportfoy.com

PAGE 20 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

QUARTAL FLIFE Today the internet itself is known and accepted as the best Investor Relations Tool.

It is the essential multiplicator for

Claudia Breitenberger-Cerny professional Investor Relations work. CEO

Quartal Flife is the leading Specialist of Online Quartal’s services allow you to take full Management Reporting – not only for the Investor Relations and Management Reporting advantage of the Internet as your primary management in Europe serving listed companies in 19 channel to investors as well as enhance your • SMS Push – releases and quotes direct countries. Successful companies work today traditional IR processes. The importance of pushed to your mobile in a global environment and the most open corporate governance and accurate • WAP – releases and quotes by surfing successful companies need help in creating communication help you achieve your goals: mobile their national and international capital market • Attract new investors through open, reliable • ValueSimulator – how to calculate your communication, which is easy with the Quartal and accessible information company value and the value drivers Flife way. • Meet the increasing demand for timely and reliable financial information - with reduced We have a long track record in working with costs hundreds of global customers and more than • Enhance your internal reporting ten years’ experience as a provider of online IR • Provide individual investors with easy-to- services. understand and well-presented information • Allow analysts and investors to gather in- depth information from you directly – not from a third party • Promote reliability through thoroughness and transparency of information • Reduce expenses and workload

Quartal Flife Services in Brief

Share Tracking – everything about your share • Share Ticker, Share Tables, Share Graphs or Share XML file • ShareMonitor – the interactive stock charting tool As a solid and experienced provider, we have • HistoricalPrice Lookup – Excel download of a long-term focus and a strong emphasis on historical share data continuous product development, and with our • SMS Push – pushes your share active to services second to none, we are a The Source your subscribers for all your online IR needs. In practice it means we have the skills and sustainability to Financial Reporting – how to present your remain and keep our customers on the leading facts and figures edge of the market. • Dynamic eReport – your annual report online • Interactive FactSheet – contains all your Our main goal is to have satisfied customers. latest figures and facts A growing number of Customers rely on our • CorporateChat – how to communicate online high-class Investor Relations services and with in a closed user group continuous product development, customers • eMailBroadcast – create your own stay on top of the market, and are recognized. shareholder group Yearly our customers receive over 200 IR Online awards. Transparency – when you want to know more • InsiderRegister – up to date insider information • ShareHolder Register – up to date shareholder information • MarketEstimates – consensus estimates direct on your screen

CONTACT INFORMATION

Contact Name Mr. Sami Kalliola E-mail [email protected] Website www.quartalflife.com

PAGE 21

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

STOCK EXCHANGE PROFILES

Abu Dhabi Securities Market 24 UAE Economy 26

Amman Stock Exchange 28 Jordan Economy 30

Armenian Stock Exchange 32 Armenian Economy 34

Bahrain Stock Exchange 36 Bahrain Economy 38

Baku Interbank Currency Exchange 40 Azerbaijan Economy 42

Baku Stock Exchange 44

Banja Luka Stock Exchange 46 Bosnia and Herzegovina Economy 48

Belarusian Currency and Stock Exchange 50 Belarus Economy 52

Belgrade Stock Exchange 54 Serbian Economy 56

Bucharest Stock Exchange 58 Romanian Economy 60

Bulgarian Stock Exchange 62 Bulgarian Economy 64

Cairo and Alexandria Stock Exchanges 66 Egyptian Economy 68

Georgian Stock Exchange 70 Georgian Economy 72

Iraq Stock Exchange 74 Iraq Economy 76

Istanbul Stock Exchange 78 Turkish Economy 80

Karachi Stock Exchange 82 Pakistan Economy 84

Kazakhstan Stock Exchange 86 Kazakhstan Economy 88

Kyrgyz Stock Exchange 90 Kyrgyz Economy 92

Lahore Stock Exchange 94

Macedonian Stock Exchange 96 Macedonian Economy 98

Moldovan Stock Exchange 100 Moldovan Economy 102

Mongolian Stock Exchange 104 Mongolian Economy 106

Montenegro Stock Exchange 108 Montenegro Economy 110

Muscat Securities Market 112 Oman Economy 114

Palestine Securities Exchange 116 Palestine Economy 118

Sarajevo Stock Exchange 120

State Commodity & Raw Materials Exchange of Turkmenistan 122 Turkmenistan Economy 123

Tehran Stock Exchange 126 Iran Economy 128

Tirana Stock Exchange 130 Albanian Economy 132

“Toshkent” Republican Stock Exchange 134 Uzbekistan Economy 136

Ukrainian Stock Exchange 138 Ukrainian Economy 140

Zagreb Stock Exchange 142 Croatian Economy 144

PAGE 23 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ABU DHABI SECURITIES MARKET The market capitalization of companies listed at the ADSM at the end of 2007 was US$ 121 billion AED 444.9 billion with an increase of 50%.

Rashid Al Bloushi Acting Director General

At the end of 2007 the Abu Dhabi Securities 695 million) compared to US$ 68 million The number of executed trades which rose Market (ADSM) had 64 companies listed, (AED 250 million) in 2006. In 2007 there to 1,102,658 trades compared to 715,742 whereas, the number of listed companies at were 252 trading days compared to 282 trades in 2006, an increase of 54%. the end of 2006 was 60. The index days in the previous year. increased from 2,999.66 in 2006 to 4,551.80 The market capitalization of companies in 2007. The number of shares traded in 2007 listed at the ADSM at the end of 2007 was increased to 52 billion shares compared to US$ 121 billion (AED 444.9 billion), The value of trading increased from 11 billion shares traded over the previous compared to US$ 80 billion (AED 296.5 US$ 19.2 billion (AED 70.6 billion) in 2006 year 2006, an increase of 360%. Moreover, billion) at the end of 2006 an increase compared to US$ 47.7 billion (AED 175.3 the daily average of traded shares also rose of 50%. billion) in 2006, a decline of 26.26%. to around 206 million shares compared with Moreover, the daily average value of trading 40 million shares in 2006. in 2007 increased to US$ 189 million (AED

HISTORY AND DEVELOPMENT Having taken the above facts into FUTURE OUTLOOK consideration as the issue of regulating the • Continue activities to support growth in Securities trading in the United Arab securities market is, undoubtedly, of listings, turnover and liquidity: Emirates dates back to the early 1960s significant importance with view to its crucial • Encourage listing of family companies when public shareholding companies began role in the domestic economy. Plans have and foreign companies to come into existence in the country. It was been set up for organizing this market to • Increase system capacity to cope with generally a generic and haphazard era ensure the integrity and smoothness of growing market volumes where the securities market had been trading in securities and establish investors’ • Enhance IT processes and information created and operated by the mediation of protection. The aforementioned items must, distribution brokerage firms. of course be subject to the power of supply • Enhance market standards in the and demand in compliance with the areas of: Moreover, securities trading in such an ill- principle of information transparency and • Corporate Governance ordered environment had created flaws and disclosure with respect to the companies • Capital adequacy and surveillance of imbalances in the market, and particularly in engaged in the business of securities brokers the absence of a proper mechanism to trading. Within this framework, intensive • Broker education and qualification conclusively determining the value of efforts exerted with the promulgation of Law • Further enhance registry and CSD securities, supervision and control of No. (4) of 2000 concerning the services brokerage firms as well as a lack of establishment of the UAE Securities & • Expand the Bond Market transparency and disclosure by the Commodities Authority and subsequently • Link trading with other international companies whose shares constitute a part the establishment of the Securities Market. Securities Markets of the market trading business. • Strengthen regulations and rules including: This tremulous situation has had an adverse • Commercial and capital market law impact in establishing a biased and unfair • Securities Regulation policy for evaluating securities fairly, and • ADSM rules for listing, brokers and subsequently resulted in severe fluctuations trading in the market. In view of this chaos, the shares value had been at times overstated which led to heavy consequences and losses on the part of investors.

PAGE 24 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ABU DHABI SECURITIES MARKET

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 3,466.33 150.71 4,559.56 198.24 Aug-07 2,575.60 117.07 3,640.41 165.47 Sep-07 1,950.03 92.86 1,934.77 92.13 Oct-07 8,822.90 420.14 8,795.98 418.86 Nov-07 9,527.26 453.68 9,331.79 444.37 Dec-07 7,376.76 433.93 1,505.78 88.58 TOTAL 33,718.88 278.06 29,768.29 234.61

Bonds Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0740 0.0034 0.2720 0.0124 Sep-07 0.4581 0.0218 1.6551 0.0788 Oct-07 0.1354 0.0064 0.4555 0.0217 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.67 0.01 2.38 0.02

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 99,256.70 3,480.00 10,000 5,000 140,000 Aug-07 92,767.97 3,437.00 9,000 4,500 120,000 Sep-07 95,638.89 3,557.74 8,000 4,000 Oct-07 113,316.94 4,272.00 7,000 3,500 100,000 Nov-07 110,912.30 4,163.00 6,000 3,000 80,000 Dec-07 121,114.31 4,551.80 5,000 2,500 4,000 2,000 60,000 3,000 1,500 40,000 2,000 1,000 20,000 1,000 500 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Saeed Khaouri E-mail [email protected] Website www.adsm.co.ae

PAGE 25 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ABU DHABI SECURITIES MARKET

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment strategy is to promote sustainable economic Expected that international oil prices will Political stability is expected to be maintained growth, but there was a particular emphasis remain high at US$ 69.5/barrel in 2008, as the throughout the future activities. Sheikh Khalifa on reform of the education sector and a imbalance between global demand and has the backing of the ruling families in the comprehensive population and labor policy supply is expected to persist. other six emirates, including the assertive ruler to bring more Emiratis into the labor force. of Dubai and the UAE's prime minister, Sheikh Sheikh Mohammed bin Rashid also Annual inflation is expected to ease in 2008- Mohammed bin Rashid al-Maktoum. His announced his intention to reform the public 09, as some of the bottlenecks in the property launch in April 2007 of the UAE's strategic plan sector in a bid to raise productivity levels and market are resolved and government efforts to for the next three years suggests that he is to transfer more power and oversight to the contain price rises take effect, but it will remain becoming more active at the federal and federal ministries. The focus of policy will be relatively high at an annual average of 8.5%. international levels. on economic liberalization, diversification and Preliminary data from the Central Bank show enhancing the role of the private sector. that the current-account surplus soared to US$ The UAE's pro-Western orientation will not 35.9 billion in 2006, primarily because of high change over the future events, although the Economic Performance export earnings and a widening trade surplus. government remains concerned over some Economic growth has dipped slightly to 8.5% Although oil export revenue was substantial as aspects of US policy in the region, particularly in 2007, down from 9.4% in 2006, owing to oil a result of high global prices, non-oil its involvement in Iraq and the current production cuts enacted by OPEC at the end exports–particularly from the free zones–also tensions, and risk of military conflict, between of 2006 and to a planned maintenance grew strongly. The growth in imports (on a CIF the US and Iran. This latter development could program involving the closure of a number of basis) slowed in 2006, but from a high base, have particularly harmful consequences for Abu Dhabi's oilfields in November. However, having expanded by 38.4% and 26.5% both the political and the economic future of oil production is expected to pick up again in respectively in 2004 and 2005. Estimated that the UAE, especially for Dubai, the region's 2008, which partly accounts for the projected growth in export earnings will have eased in services hub. Although the economy has increase in real GDP growth to 8.9% next year. 2007 as oil export volumes have been ridden out regional conflict in recent years, the The oil sector contributes just under 40% of constrained by OPEC quota cuts and the UAE's geographical proximity to Iran makes it total output, though, and growth forecast is closure of some fields for maintenance. Higher more likely that it will experience negative also premised on robust expansion in the oil output (and export volumes) and stable repercussions from any conflict there. For the non-oil sector. Industrial growth will be the international oil prices will mean that export time being, however, the UAE, and particularly mainstay of the overall expansion, as receipts will rise again in 2008, supported by Dubai, is benefiting economically from Iran's investment in manufacturing and heavier still buoyant growth in non-oil export earnings. relative economic isolation by providing the industrial projects (focused mainly on energy- However, growth in export earnings will fall Iranian government and private sector with intensive sectors such as petrochemicals and back again in 2009 in tandem with lower both goods and services, particularly financial metals) brings new capacity on stream and international oil prices. Import spending will services. the competitiveness of the UAE's non-oil continue to expand strongly, at an annual exports is bolstered by the weakness of the average of 7.5% a year in 2008-09, but the In April, Sheikh Mohammed bin Rashid dollar. Forecast of slightly lower growth in trade account will still record massive average launched the UAE's first national strategy, an 2009, at 8.2%, is largely the result of slower annual surpluses of US$ 56.6 billion in 2008.* ambitious three-year plan to turn the UAE into expansion in government spending in that year what he described as "the most successful in response to lower oil-related revenue (as oil * The Economic Intelligence Unit Ltd., October 2007 country in the world". The overall aim of the prices fall).

Key Information Contacts Abu Dhabi Chamber of Commerce and Industry www.abudhabichamber.ae Central Bank of UAE www.uaecb.gov.ae Ministry of Finance and Industry www.uae.gov.ae/mofi Ministry of Planning www.uae.gov.ae/mop Ministry of Economy and Commerce www.uae.gov.ae/moec

2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Industry Services Private consumption Fixed investment Government consumption Agriculture Change in stocks Exports of goods & services Imports of goods & services

100 90.7 46.5 80 60 44.1 40 21.3 20 11.1 50.6 1.2 0 2.9 -20 -40 -60 -80 -74.5

PAGE 26 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ABU DHABI SECURITIES MARKET

UAE ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)

GDP at market prices (Dh billions) 272.9 321.8 386.5 485.5 599.0 GDP (US$ billions) 74.3 87.6 105.2 132.2 163.1 Real GDP growth (%) 2.6 11.9 9.7 8.2 8.9 Consumer price inflation (av; %) 2.9 3.1 7.0 12.5 (b) 13.5 Population (millions) 3.8 (b) 4.0 (b) 4.3 (b) 4.6 (b) 4.9 Exports of goods (FOB) (US$ billions) 52.2 67.1 91.0 117.2 137.2 Imports of goods (FOB) (US$ billions) 37.6 45.8 63.4 74.5 81.0 Current-account balance (US$ billions) 3.4 7.6 10.6 24.4 34.9 Foreign-exchange reserves excl gold (US$ billions) 15.2 15.1 18.5 21.0 27.6 (a) Total external debt (US$ billions) 20.5 (b) 24.0 (b) 30.6 (b) 34.9 (b) 36.9 Debt-service ratio, paid (%) 2.1 (b) 1.6 (b) 1.4 (b) 1.6 (b) 1.8 Exchange rate (av) Dh:US$ 3.67 3.67 3.67 3.67 3.67 (a)

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 8.5 8.9 8.2 7.4 7.2 6.8 Consumer price inflation (av; %) 12.0 9.5 7.5 6.0 5.0 5.0 Budget balance (% of GDP) 10.3 8.8 6.9 5.7 5.1 5.1 Current-account balance (% of GDP) 18.6 14.8 13.5 12.8 13.7 13.8 Exchange rate Dh:US$ (av) 3.67 3.67 3.67 3.67 3.67 3.67 Exchange rate Dh:[euro] (av) 5.00 5.31 4.88 4.69 4.63 4.59

2005-PRINCIPAL EXPORTS (FOB) 2005-PRINCIPAL IMPORTS (CIF)

(US$ millions) (US$ millions)

Crude oil 43.5 Machinery & electrical equipment 15.6 Re-exports 39.8 Precious stones & precious metals 13.8 Vehicles & other transport equipment 8.3

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Japan South Korea USA China Thailand India Other India Other

11.0 10.3 11.4 9.8 5.9 25.9 4.5

67.8

53.4

The Economic Intelligence Unit Ltd., August 2007

PAGE 27 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

AMMAN STOCK EXCHANGE The ASE joined the WFE as a full member.

Jalil Tarif Chief Executive Officer

The Amman Stock Exchange (ASE) has abiding by transparency and disclosure Index weighted by Free-Float Shares closed accomplished many projects in the year 2007 principles. at the end of November 2007 with 3444 points aiming at enhancing market efficiency and compared at the year 2006, closing at 3014 upgrading the services provided to the market To enhance the international exposure, the points with an increase by 14.3%. Trading participants. ASE in cooperation with The Bank of New York, value reached at end of November 2007 Mellon and Auerbach Grayson Company US$ 16.1 billion with a decrease by 15.7% The ASE started a new project to build the organized in October a Jordan Capital Market compared to the same period of the year Jordan National Financial Center. His Majesty Conference in New York. The conference 2006. The number of shares traded increased King Abdullah II laid the foundation stone for aimed at achieving interconnection with by 7.5% compared with the same period of the this project. This center will contain: the ASE, International Capital Markets and International year 2006, reaching 4.2 billion shares, and the Securities Depositary Center, Financial Studies investors. Also the ASE held Jordan Capital number of transactions decreased by 0.23%, Institute, Brokers’ Offices, Investors’ Gallery Market Day in February in London in reaching 3.2 million transactions. The ASE and many other facilities. The cost for this cooperation with London Stock Exchange. market capitalization reached US$ 38.2 billion project is expected to reach US$ 100 million. This day was a great opportunity for Jordanian at the end of November 2007, with an increase companies to raise funds and attract foreign of 28.5% over the end of 2006, representing The World Federation of Exchanges (WFE) has investments. 268% of the GDP. By the end of the November accepted the full membership of the ASE of 2007, the net investment of non-Jordanian during its annual meeting in October, which As for the ASE performance, the ASE Price investors increased by US$ 661 million. As a was held in Shanghai/China. This is attributed Index weighted by Market Capitalization result, non-Jordanian investors ownership in to the developments of Jordan capital market closed at 6984 points at the end of November the ASE market capitalization increased to in general and the technical, legislative 2007 compared with 5518 points at the end of 48.2% at the end of the November of 2007. developments of the ASE in particular, besides 2006 by a 26.6% increase. The ASE Price

HISTORY AND DEVELOPMENT • Providing modern and effective facilities and • Upgrade the ASE Trading System. In this equipment for trading, the recoding of trades regard a contract was signed with AtosEuronext The ASE was established in March 1999 as a and dissemination of prices, Market Solutions and GL Trade for EUR 2.5 non-profit, private institution with administrative • Monitoring and regulating trading, coordination million. The new trading system is V900 and is a and financial autonomy. It is authorized to with the JSC as necessary, to ensure fully Linux environment. It should be mentioned function as an exchange for the trading of compliance with the law, a fair market and that this system is applied in major stock securities. The Exchange is governed by a investor protection, exchanges. This system will be more flexible to seven-member board of directors. A Chief • Setting out and enforcing a professional code implement market rules and will highly improve Executive Officer oversees day-to-day of ethics among its member directors and staff, system capacity and lower latency. responsibilities and reports to the board. The • Ensuring the provision of timely and accurate • Demutualization of the ASE. The ASE is ASE membership is comprised of Jordan’s 66 information of issuers to the market and negotiating with alliances to support brokerage firms. disseminating market information to the public. demutualization process. The ASE shall become Shareholding Company totally owned by the The history of securities trading in Jordan traces In 26 March 2000, the ASE launched an Government as a first step. In the second step its origins back to the 1930s. In 1976, the automated order-driven Electronic Trading the Government will sell stakes to financial Amman Financial Market was established to System. The new system is in compliance with institutions, brokerage firms, international create a regulated trading market. More recently, international standards and takes into account institutions, public, and other parties. as part of Jordan’s move to upgrade its capital the G-30 recommendations. This system also • Introduce Internet trading. The legal and market, a Securities Law was enacted in 1997 offers brokers, immediate access to stock prices technical structure for this project has been separating the supervisory and legislative roles and orders and enables members to trade completed. from those of exchange operations. As a result, remotely. • Improve on-line trading information the Jordan Securities Commission (JSC) was dissemination by introducing new products such created in the year 1997, the ASE and the In May 2006, the ASE activated the new version as launching the ASE Market Watch application Securities Depository Center (SDC) were of the electronic trading system (NSC V2+), for investors as a corporate and retail product established in 1999. The JSC supervises the which comes as part of the efforts to meet the through Internet. issuance of and trading in securities and increasing needs of the Jordanian Capital Market • Adopt new marketing strategy. The ASE has monitors and regulates the market. The SDC and in order to raise the capacity of the current adopted a marketing and promotion strategy oversees clearing and settlement and also electronic trading system to accommodate the based on three main fields: Awareness, maintains ownership records. increase in the daily trading volume. Marketing and Media. The implementation of this strategy started in the 2007 and will continue in To provide a transparent and efficient market, the FUTURE OUTLOOK the coming years. ASE implemented internationally recognized • Implement, for the first time, Code of directives regarding market divisions and listing The ASE will embark on a number of key Corporate Governance for the companies listed criteria. It also adopted procedures for improving projects that will ensure maintaining the lead that at the ASE. The introduction of this code is regulatory effectiveness. the ASE has amongst Arabic and regional stock considered as an important step forward in the exchanges: field of monitoring and transparency over the The ASE is charged with: • Establish Jordan National Financial Center. public companies and in preserving the rights • Providing companies with the means of raising This center will contain: the ASE, the SDC, of all stakeholders in these companies. capital by listing on the ASE, Financial Studies Center, Brokers’ Offices, • Introduce new financial instruments such as • Encouraging an active market in listed Investors’ Gallery, and many other facilities. derivatives. securities based on the effective determination of prices and fair and transparent trading,

PAGE 28 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

AMMAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 1,709.15 77.688.6 430.9337 19.5879 Aug-07 1,036.64 47.120.2 342.9479 15.5885 Sep-07 1,281.55 61.026.4 355.3654 16.9222 Oct-07 1,789.02 85.191.6 469.3585 22.3504 Nov-07 1,631.26 81.563.1 480.6610 24.0331 Dec-07 1,307.32 76.901.4 314.4866 18.4992 TOTAL 8,754.96 71.58 2,393.75 19.50

Bonds Jul-07 0.9626 0.0438 0.0007 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.279 0.0133 0.0001 0.0001 Oct-07 0.0068 0.0003 0.0 0.0 Nov-07 0.7050 0.0353 0.0001 0.0 Dec-07 0.1340 0.0079 0.0 0.0 TOTAL 2.09 0.06 0.001 0.000017

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 31,184.53 5,684.20 1,800 8,000 45,000 Aug-07 30,816.43 5,609.60 1,600 7,000 40,000 Sep-07 31,478.77 5,727.60 1,400 35,000 Oct-07 36,415.14 6,688.17 6,000 1,200 30,000 Nov-07 38,204.31 6,984.10 5,000 1,000 25,000 Dec-07 41,204.80 7,519.25 4,000 800 20,000 3,000 600 15,000 400 2,000 10,000 200 1,000 5,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Sami Hattab E-mail [email protected] Website www.exchange.jo

PAGE 29 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

AMMAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance by 10.5%, and imports increased by 14.0%. King Abdullah II upon ascending to the The real GDP growth is expected to be 6.0% Foreign direct investment (FDI) has been throne following his father's death in 1999, by end of 2007 compared to 6.3% for 2006. increased steadily in recent years; at the end has provided refreshed economic This growth was driven by the surge in the of September of 2007, it reached US$2.6 leadership. King Abdullah, II bin Al-Hussein activity of the banking sector and by the billion compared to US$ 7.4 billion for the has proven to be a steadfast proponent of noticeable growth in the real estate sector. year 2006. Jordan's gross international an invigorated program of economic reforms As of October 2007, exports reached reserves have been rising steadily over the that includes privatization, structural and US$4.69 billion and imports reached US$ past several years; at the end of November procedural changes that attract foreign 10.9 billion. Jordan conducts its monetary 2007, these reserves stood at more than investment and enable foreign debt policy with a fixed peg to the U.S. dollar and US$ 7.0 billion, equivalent to the value of restructuring and reduction. He also believes believes that its trade performance indicating seven months' merchandise imports. that efforts should be continued to build a that policy still provides for good modern Jordan who provides its men and international competitiveness of its exports. Privatization has moved along quite well. The women with opportunities for a decent life In the past few years, it has also resulted in centerpiece of the program was the sale of a and ensures that the gains of development virtual stability in the price level with inflation large minority ownership in Jordan Telecom are distributed equally among people. as measured by both the GDP deflator and to France Telecom, Social Security the CPI. Meanwhile, the inflation rate at the Corporation and to some institutional King Abdullah belongs to a new generation end of the November of 2007 was 5.35%. investors. Recently, the government sold of Western-educated Arab leaders. The As for the fiscal policy performance, re- 70% of its stake in Royal Jordanian through king's political agenda has been focused on estimated figures indicate an increase of an IPO to public and to some institutional economic revival, greater political openness, 15.0% in total revenues and grants for the investors. Also the government sold 37% of social justice and equality, in order to place year as compared to the year 2006. There is its stake in the Jordan Phosphate Mines and Jordan actively on the regional and a rise of 17.7% in total expenditures, which sold 80% of the Royal Jordanian Investment. international map. While keeping warm ties puts the fiscal deficit at 5.4% of the GDP. Many projects are in the pipeline such as with the West nurtured by his father, he has Jordan Post Company, Jordan Mills succeeded in improving relationships with Jordan's main export commodities are Company, and Jordan Agricultural Marketing Syria and the Palestinians while cementing phosphates, fertilizers, potash, agricultural and Processing Company. Furthermore, links with Saudi Arabia and Kuwait. products and textiles. Its main imports many privatization actions are taking place in include crude oil, machinery, transport the field of aviation, power, transportation, equipment, food, live animals and and mining.* manufactured goods. By end of October 2007, exports (exports and re-exports) grew * Information as provided by the Amman Stock Exchange

Key Information Contacts Jordan Securities Commission www.jsc.gov.jo Securities Depository Center www.sdc.com.jo Jordan Investment Board www.jordaninvestment.com Arab Monetary Fund www.amf.org.ae Ministry of Finance www.mof.gov.jo Central Bank of Jordan (CBJ) www.cbj.gov.jo National Information Center www.nic.gov.jo Department of Statistics www.dos.gov.jo

2007-CONTRIBUTION OF MAJOR SECTORS IN THE GDP* (%) GROWTH OF INVESTMENT AND GDP (%)

Finance and insurance services Manufacturing Transport, storage & communications Producers of government services GDI GDP Net taxes on products Wholesale & retail trade, restaurants & hotels Construction Community, social and personal services Others 50

17.6 40

30 19.1 15.7 20

10

3.7 0 3.7 13.0 -10 5.0 -20 97 98 99 00 01 02 03 04 05 06 07 10.2 12.0 * as of Q3 2007

PAGE 30 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

AMMAN STOCK EXCHANGE

JORDAN MONEY SUPPLY, INTEREST RATES AND FOREIGN EXCHANGE RESERVES

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Money Supply M1 (dinars-billions) 1,613.9 1,777.1 2,026.7 2,119.7 2,316.2 2,919.8 3,192.9 4,061.3 4,566.5 4,829.8 Money Supply M2 (dinars-billions) 6,026.3 6,747.6 7,434.7 7,866.1 8,419.1 9,465.7 10,571.4 12,364 14,109.7 15,598.5

Growth Rate M1 -1.7% 10.1% 14.0% 4.6% 9.3% 26.1% 9.4% 27.2% 12.4% 5.8% Growth Rate M2 8.1% 12.0% 10.2% 5.8% 7.0% 12.4% 11.7% 17.0% 14.1% 10.6%

Interest Rates deposit rates 8.3% 7.9% 6.6% 5.2% 4.0% 2.8% 2.5% 3.5% 5.1% 5.6% lending rate 12.9% 12.7% 11.4% 10.5% 9.9% 8.9% 7.6% 8.1% 8.6% 8.9%

Foreign Exchange Reserves (US$ millions) 1,750 2,629 2,763 2,578 3,495 4,739.5 4,824.1 4,743.9 6,101.7 6,870.8

Exchange Rate Period Average (dinars/US$) 0.709 0.709 0.709 0.709 0.709 0.709 0.709 0.709 0.709 0.709 Annual % Growth 0 0 0 0 0 0 0 0 0 0

GROWTH OF EXPORTS AND IMPORTS (%) INFLATION (%)

Exports Imports GDP deflator CPI

50 7 40 6 30 5 20 4 10 3 2 0 1 -10 97 98 99 00 01 02 03 04 05 06 07 0 -1 9798 99 00 01 02 03 0405 06 07

EXPORT AND IMPORT LEVELS (US$ millions) CURRENT ACCOUNT BALANCE TO GDP (%)

Exports Imports

14,000 15 12,000 10 10,000 5 8,000 0 6,000 -5 4,000 -10 2,000 -15 0 -20 9798 99 00 01 02 03 0504 06 07 9798 99 00 01 02 03 04 05 06 07 Amman Stock Exchange data. Note: Some of the figures are based on IMF estimates published in August 2007

PAGE 31 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ARMENIAN STOCK EXCHANGE The year of 2007 was marked by one of the most important events in the history of Armex: OMX Group, the leading expert in the European stock markets, came into

Armen Melikyan Armenia. Chief Executive Officer

The year of 2007 was marked by one of the FX market at present is the most dynamically great potential for its capital market most important events in the history of the developing segment of Armenian capital development and Armex has a crucial role in Armenian Stock Exchange (Armex): OMX market. In 2007 FX value traded showed this process. Group, the leading expert in the European excellent results: value equal to US$ 763.7 stock markets, came into Armenia. The million and EUR 5.5 million was traded, which Armex sees the introduction of the secondary process of our cooperation took about two means double growth of US$ trading and trading in Government securities as one of its years and after long and thorough analysis of twelve times growth of EUR trading as primary goals for 2008. Collaboration with the the market, the decision of acquiring Armex by compared to 2006 data. Corporate bonds stakeholders of the process, including banks OMX was taken. On 27 April 2007 the Letter of market marked by a considerable revival–6 and dealers, is currently underway, and the Intent was signed by the OMX, RA bonds of 3 issuers were listed in 2007, which task is scheduled for completion by January, Government and the Central Bank of Armenia. lead to 72% growth of value traded, that 2008. Later on, according to newly registered RA amounted to US$ 2.27 million, against US$ Law “On Securities Market”, Armex and the 1.32 million in 2006. Corporate bonds market Armex in cooperation with OMX Group will CDA were reorganized into OJSC, and on proved to be in demand and we do believe in carry on with its efforts aimed at facilitating 21 November 2007 the Share Purchase its further expansion. Unlike other markets, this further development of the exchange market. Agreement was signed between OMX and the year equities trading at Armex had a certain We intend to do our best to get local capital CBA. The transaction was registered on decrease of 16.2% over the previous year. markets to play an efficient and sustainable 7 January 2008. This data once more proves that Armenia has role in the future development of the country.

HISTORY AND DEVELOPMENT commitments of both the Government and FUTURE OUTLOOK OMX to make attempts in order to create Armex is the successor of the Association of favorable conditions for the development of In 2008, Armex plans to: Securities Market Participants, which was capital markets in Armenia in accordance with • finish the integration process with OMX established in Armenia in 1997. Armex is the the recommendations of the study. OMX Group and undertake further steps for only stock exchange registered in Armenia. In committed itself to operate Armex and CDA in subsequent development of Armex and December 2000, it was renamed as the accordance with international standards and its Armenian stock market; Armenian Stock Exchange, and on 13 February best practices. • introduce trading in government bonds; 2001 officially registered by the Securities • develop and introduce FX market trading and Commission of the RA as a self-regulatory In H2 2007 the new “Law on Securities Market” new clearing mechanisms; organization. was adopted by the Armenian National • expand regional and international Assembly, according to which Armex and the cooperation; Since 15 November 2005, foreign currency CDA could be reorganized into open joint • facilitate the launch of trading in securities on trading was introduced on Armex, which stock companies. The members of CDA and a non-covered basis; proved to be in demand: volumes of FX trading Armex transferred their shares to the CBA, and • establish a Guarantee Fund to increase to date greatly exceed those of other OMX Group acquired 100% thereof. The Share investor protection; instruments. On 14 December 2005, the first Purchase Agreement was signed on 21 • enhance the activities of the Armex Training publicly traded corporate bonds were listed at November 2007, the closing date is 1 March Center to conduct educational seminars for Armex. In 2007 with the purpose of increasing 2008. The transaction was registered on 7 trade participants, broker/dealer community, market liquidity, the market-maker institution January 2008. reporting companies and general public; was introduced at Armex. • undertake steps to increase public Until 1 January 2006, Securities Commission of awareness of the Armenian securities market. The year of 2007 appeared to be a turning RA was the competent state authority to point in the history of Armex. Initially, OMX was regulate the activities of capital market commissioned by the Central Bank of Armenia including the stock exchange in Armenia. to produce the Capital Market Review and However, after that the regulatory and Design study. Following this study, the supervisory powers of the Commission were agreement was signed between OMX and the transferred to the CBA. CBA on the cooperation arrangements and

PAGE 32 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ARMENIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 0.0079 0.0004 0.0140 0.0007 Aug-07 0.0011 0.0 0.0111 0.0005 Sep-07 1.6422 0.0864 0.1177 0.0062 Oct-07 0.4023 0.0175 0.0376 0.0016 Nov-07 0.3083 0.0140 0.0529 0.0024 Dec-07 1.3403 0.0638 0.0844 0.0040 TOTAL 3.70 0.030 0.32 0.003

Bonds Jul-07 0.0958 0.0046 0.0032 0.0002 Aug-07 0.0432 0.0019 0.0015 0.0001 Sep-07 0.3159 0.0166 0.0107 0.0006 Oct-07 0.0660 0.0029 0.0019 0.0001 Nov-07 0.1545 0.0070 0.0023 0.0001 Dec-07 1.2703 0.0605 0.0370 0.0018 TOTAL 1.95 0.016 0.06 0.0005

Other Jul-07 76.7579 3.6551 0.0 0.0 Aug-07 38.6429 1.6801 0.0 0.0 Sep-07 31.8079 1.6741 0.0 0.0 Oct-07 73.8138 3.2093 0.0 0.0 Nov-07 192.9211 8.7691 0.0 0.0 Dec-07 107.4790 5.1180 0.0 0.0 TOTAL 521.42 4.02 n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index

Jul-07 116.82 n/a 1.8 120 Aug-07 75.63 n/a 1.6 100 Sep-07 76.66 n/a 1.4 Oct-07 83.91 n/a 1.2 80 Nov-07 103.69 n/a 1.0 Dec-07 105.48 n/a 60 0.8 0.6 40 0.4 20 0.2 0.0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Armen Melikyan E-mail [email protected] Website www.armex.am

PAGE 33 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ARMENIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Political and Economic Performance Economic Performance Revisions to Armenia's current-account The Republican Party of Armenia (RPA), the Armenia's economy has continued to expand data–including a more accurate assessment of main party in the previous government, at a double-digit rate in 2007, posting year-on- remittance inflows-have pushed the deficit for secured the largest share of the vote in year real GDP growth of 11.2% in January- 2006 downwards to just US$ 87 million (1.4% Armenia's May general election, winning just June. Construction continues to fuel growth, of GDP), by far the smallest since under one-half of the 131 seats in the National owing to new investment in industrial sub independence. Remittances inflows, reflected Assembly (parliament). The former defense sectors such as mining and energy, a boom in in surpluses in the current transfers and minister Serzh Sarkisian was appointed prime residential and office development in the income accounts, will continue partly to offset minister, and the RPA has formed a coalition capital, Yerevan, and improvements to the effect that the widening trade deficit has government with Prosperous Armenia. The two infrastructure such as the road network. on the current account. The government will parties have also signed a co-operation Growth is nevertheless becoming more continue with its efforts to develop new export agreement with the nationalist Armenian broadly based, with services sectors such as industries–for example, the metallurgy, Revolutionary Federation (ARF). Attention is trade, transport and communications making machine-building and mineral products sub now turning to the presidential election, due in strong contributions. Further development of sectors-but Armenia will remain heavily early 2008. these sectors is likely to support the economy, dependent on food imports. A widening of the and real GDP growth of 10.5% realized in current-account deficit in US dollar terms to Armenia's new government has adopted a 2007, decelerating to around 8% in 2008, US$ 275 million this year‘s forecasted and five-year policy program that aims to improve owing to base-period effects. US$ 360 million in 2008.* governance, ensure annual economic growth of at least 8% and reduce poverty from 30% of Consumer price inflation has picked up in mid- * The Economic Intelligence Unit Ltd., August 2007. the population to 12% by 2012. 2007, owing to rising food and fuel prices, which pushed the year-on-year rate to 4.8% in June, compared with 2.6% a year earlier.

Key Information Contacts OMX Group www.omxgroup.com The Central Bank of Armenia www.cba.am The Central Depository of Armenia www.cda.am

2006-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Construction Agriculture Industry Private consumption Government consumption Gross fixed investment Trade & catering Transport & communications Other Change in stocks Net exports of goods & services Statistical discrepancy

17.9 80 71.7 70 18.1 11.4 60 50 40 33.3 6.3 30 20 11.3 10 0.3 0 24.5 21.8 -10 -2.3 -20 -14.4

PAGE 34 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ARMENIAN STOCK EXCHANGE

ARMENIAN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (Dram billions) 1,624.6 1,907.9 2,242.9 2,657.1 3,173.7 GDP (US$ billions) 2.8 3.6 4.9 6.4 9.2 Real GDP growth (%) 14.0 10.5 14.0 13.3 12.0 Consumer price inflation (av; %) 4.8 7.0 0.6 2.9 2.9 Population (millions) 3.0 3.0 3.0 3.0 3.0 Exports of goods (FOB) (US$ millions) 696.1 738.3 1,004.9 1,018.6 1,044.0 Imports of goods (FOB) (US$ millions) 1,130.2 1,196.3 1,592.8 1,921.3 2,382.5 Current-account balance (US$ millions) -189.5 -161.6 -193.3 -87.3 -234.4 Foreign-exchange reserves excl gold (US$ millions) 502.0 547.8 669.5 1,071.9 1,386.7 Exchange rate (av) Dram:US$ 578.8 533.5 457.7 416.0 344.1 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates

ECONOMIC FORECAST SUMMARY

2005 (a) 2006 (a) 2007 (b) 2008 (b)

Real GDP growth 14.0 13.3 10.5 8.0 Gross agricultural production growth 11.2 0.4 (c) 4.5 4.5 Consumer price inflation (av) 0.6 2.9 4.5 3.6 Short-term interbank rate 18.0 16.5 17.5 16.9 Consolidated budget balance (% of GDP) -2.0 -1.5 -1.6 -1.9 Exports of goods (FOB) (US$ millions) 1,004.9 1,018.6 1,089.9 1,210.3 Imports of goods (FOB) (US$ millions) 1,592.8 1,921.3 2,478.2 2,968.3 Current-account balance (US$ millions) -193.3 -87.3 -275.1 -360.3 Current-account balance (% of GDP) -3.9 -1.4 -3.0 -3.1 Exchange rate Dram:US$ (av) 457.7 416.0 344.1 309.4 Exchange rate Dram:[euro] (av) 570.2 522.4 464.1 426.2 Exchange rate Dram:Rb (av) 16.2 15.3 13.4 12.2

(a) Actual. (b) The Economic Intelligence Unit Ltd. forecasts. (c) The Economic Intelligence Unit Ltd. estimates.

2006-PRINCIPAL EXPORTS (FOB) (%) 2006-PRINCIPAL IMPORTS (CIF) (%)

Precious or semi-precious stones & metals Base metals Mineral products Precious or semi-precious stones & metals Mineral products Prepared foodstuffs Other Machinery & equipment Transport equipment Other

28.0 14.2 13.6 13.9

9.0 16.7 9.5

31.9 17.0 46.2

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Germany The Netherlands Russia Russia Turkmenistan Belgium Other Ukraine Germany Other

12.6 13.9 12.1 7.7 64.3 14.7 7.5 10.8

6.6

49.8

The Economic Intelligence Unit Ltd., October 2007

PAGE 35 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAHRAIN STOCK EXCHANGE The Central Bank and Financial Institution Law, which came into effect in 2007 provides a new legal and regulatory foundation stone for Bahrain’s capital

Rasheed Mohammed Al-Maraj markets. Chairman

2006 was a difficult year for most regional separation of the BSE’s regulatory and to use the Exchange, including remotely; (ii) stock markets, as the excesses of previous business functions, a separation which was improving the clearing, settlement and years were followed by sharp falls, in some initiated back in 2002. The BSE will be depositary infrastructure that underpins cases reaching 50%. These corrections were focusing exclusively on its business role of activity on the BSE, with the objective of inevitable, but a positive development in as providing a listing and trading platform, enhancing its competitiveness; (iii) much as they placed these markets on more whilst the regulation of the Exchange now developing the emerging role of the BSE as sustainable valuation levels. firmly rests with the Central Bank. The new the region’s leading platform for the listing of law also provides new statutory offences of funds, bonds and other non-equity products. Bahrain’s experience, in the meantime, market abuse and insider dealing, powers continued to reflect its relatively greater which will be fully used to ensure clean and On this note, I should like to close by taking longevity and maturity. Having previously thus attractive markets to investors and this opportunity to thank His Majesty King escaped the exuberant excesses of some of issuers alike. Hamad bin Isa bin Salman Al Khalifa, King of its younger regional neighbors, it also the Kingdom of Bahrain; His Highness escaped the sharp corrections which The Board’s decision to relocate the BSE to Shaikh Khalifa bin Salman Al Khalifa, the followed. In 2006, the Bahrain All Share Index new premises at the recently opened Bahrain Prime Minister, and His Highness Shaikh managed to end the year with a 1% gain, a Financial Harbor promises also to be a Salman bin Hamad Al Khalifa, the Crown reasonable performance given the backwash significant milestone. This move, it is Prince and Commander in Chief of the from major falls elsewhere. believed, will provide modern infrastructure Bahrain Defence Force for their valuable and a prominent location for the Exchange, support and guidance as regards the BSE. Leaving the market context to one side, 2006 supporting its efforts to further develop and was also a year of progress in terms of expand its operations. My thanks also go to the members of the developing the infrastructure underpinning BSE’s Board of Directors, as well as to the the Bahrain Stock Exchange (BSE). The most With a new law now passed and new management and staff of the BSE, for their significant development was the passage of premises in hand, the focus going forward efforts during the past year. I know I can the Central Bank and Financial Institution will be shifting to implementing various count on their support during the time to Law, which came into effect in September measures aimed at strengthening the come, as we collectively strive to develop last year. position of the Exchange. further the Exchange. Finally, I should like to thank all those issuers who are listed on the This law provides a new legal and regulatory Efforts will focus on three key areas, namely Exchange for their cooperation and support foundation stone for Bahrain’s capital (i) facilitating trading on the Exchange to with respect to the BSE’s various projects. markets. It enshrines in formal terms the improve ease of trading by investors wishing

HISTORY AND DEVELOPMENT As a result, the Government, in cooperation FUTURE OUTLOOK with the International Finance Corporation It was back in 1920 that the first branch of a (IFC), prepared a feasibility study In the year 2008, the BSE is planning to take commercial bank, Standard Chartered Bank, highlighting the importance of establishing several initiatives in order to promote trading formerly known as Eastern Bank, opened its an official stock market in Bahrain. In 1987, at the exchange both on the regulatory and doors in Bahrain, the first to do so in the the Bahrain Stock Exchange was technical levels. Within these initiatives, the region in order to facilitate the business established following the issuance of Amiri BSE will introduce online trading and short- community at that time. By 1957, Bahrain Decree No. 4, and officially commenced selling and will also develop its clearing, had its first public shareholding company, operations on 17 June 1989. settlement and depositary systems in an the National Bank of Bahrain. However, it effort to enhance trading procedures at the was not until the late 1970s and early 1980s exchange. The BSE will also seek to attract that Bahrain realized there was a growing more local and GCC companies to list on need for an organized stock market, due to the Exchange as well as Islamic and the growth provided by the oil price boom in conventional debt instruments and mutual the region. funds.

PAGE 36 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAHRAIN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 107.9025 0.0 83.0919 0.0 Aug-07 54.0928 2.4588 52.0939 2.3679 Sep-07 90.2118 4.2958 78.0653 3.7174 Oct-07 60.0865 2.8613 52.8133 2.5149 Nov-07 122.1697 5.8176 156.3410 7.4448 Dec-07 155.5174 8.6399 141.6055 7.8670 TOTAL 589.98 4.01 564.01 3.99

Bonds Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 24,520.85 2,570.07 160 3,000 30,000 Aug-07 24,195.36 2,528.61 140 Sep-07 24,353.84 2,543.92 2,500 25,000 Oct-07 25,849.87 2,648.50 120 2,000 20,000 Nov-07 25,392.41 2,611.00 100 Dec-07 27,088.13 2,755.27 80 1,500 15,000 60 1,000 10,000 40 500 5,000 20 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Ali Mansoor E-mail [email protected] Website www.bahrainstock.com

PAGE 37 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAHRAIN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment order to achieve peace and stability in the Following the parliamentary elections that region. It will also seek to strengthen its took place in 2006, the Kingdom of Bahrain, relations with its allies, America and the under the rule of Shaikh Hamad bin Isa Al European Nations benefiting from mutual Khalifa, King of Bahrain, is continuing its way political, economic, and social developments through democracy. Implementing reform in the country in an effort to encourage programs in all various sectors – from economic integration and cooperation. education, to employment, to healthcare will seek to improve government services and Striving for economic progress and success, stimulate national growth of the country. the Kingdom of Bahrain is focusing its efforts to remain the leading banking centre in the Along with other GCC countries, the Middle East. Some of the country’s ongoing Kingdom of Bahrain will continue to seek initiatives are the creation of more job economic integration in the region and opportunities for Bahrainis and the efforts to support a mechanism for defense be taken to raise the living standards of cooperation. On the global level, the citizens.* Kingdom will carry on the implementation of its foreign policy of diplomatic moderation in * Information provided by the Bahrain Stock Exchanges.

Key Information Contacts Central Bank of Bahrain http://www.cbb.gov.bh/cmsrule/bmaindex.jsp Ministry of Finance http://www.mofne.gov.bh/English/eindex.asp Bahrain Government http://www.bahrain.gov.bh Economic Development Board http://www.bahrainedb.com

2005-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a) 2005-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (b)

Finance & real estate Crude oil & natural gas Manufacturing Private consumption Public consumption Gross fixed capital formation Public administration Trade, restaurants & hotels Exports of goods & services Imports of goods & services Stocks Transport & communications

90 87.3 13.0 80 25.2 70 64.9 60 12.5 50 43.5 40 30 12.1 20 15.4 17.8 32.0 10 5.2 0.9 0

PAGE 38 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAHRAIN STOCK EXCHANGE

BAHRAIN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (b) 2007 (b)

GDP at market prices (BD billions) 3.6 4.2 5.0 5.9 6.8 GDP (US$ billions) 9.7 11.2 13.4 15.6 18.0 Real GDP growth (%) 6.8 6.4 7.8 7.1 6.6 Consumer price inflation (av; %) 1.6 2.3 2.6 2.1 (a) 3.5 Population (millions) 0.7 0.7 0.7 0.7 0.8 Exports of goods (FOB) (US$ millions) 6,720.9 7,620.7 10,131.1 11,702.6 (a) 13,065.3 Imports of goods (FOB) (US$ millions) 5,319.1 6,135.4 7,606.0 8,565.2 (a) 9,732.6 Current-account balance (US$ millions) 201.0 415.3 1,575.1 1,918.4 1,975.0 Foreign-exchange reserves excl gold (US$ millions) (c) 1,778.4 1,940.5 1,993.1 2,811.7 (a) 3,466.9 Total external debt (US$ billions) 4.6 (b) 6.1 (b) 6.7 (b) 7.2 7.7 Debt-service ratio, paid (%) 5.4 (b) 5.6 (b) 5.5 (b) 5.4 5.5 Exchange rate (av) BD:US$ 0.376 0.376 0.376 0.376 (a) 0.376 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) Break in series 2005 (The IMF stopped publishing reserves data for Bahrain in February 2005).

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012 Real GDP growth (%) 6.6 6.2 5.9 5.1 5.1 4.6 Consumer price inflation (av; %) 3.5 3.6 3.3 3.0 2.8 2.7 Budget balance (% of GDP) 5.3 2.7 1.4 0.9 1.2 1.2 Current-account balance (% of GDP) 11.1 8.9 6.0 3.3 2.1 0.6 Exchange rate BD:US$ (av) 0.4 0.4 0.4 0.4 0.4 0.4 Exchange rate BD:[euro] (av) 0.5 0.5 0.5 0.5 0.5 0.5

2006-PRINCIPAL EXPORTS (a) 2005-PRINCIPAL IMPORTS (CIF) (c)

(US$ millions) (US$ millions)

Petroleum 9,218 Crude oil 4,899 Aluminum & products 1,509 Machinery & appliances 820 Chemical products 281 Transport equipment 680

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Saudi Arabia USA UAE Saudi Arabia Japan South Korea Japan Other Germany USA UK Other

3.2 3.0 6.8 2.3 2.3 37.3 6.2 1.7 6.2

87.5 5.0

38.5

(a) Central Bank of Bahrain. (b) IMF, International Financial Statistics. (c) IMF, Direction of Trade Statistics. PAGE 39 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU INTERBANK CURRENCY EXCHANGE One more important mission is demanding long preparation, which is a gradual transformation of Baku into the financial center of region.

Farkhad Amirbekov General Manager

The work of the BBVB was made purposeful trade for the money market needs. The One more important mission, which has had due to the fact that it was directed towards BBVB aspires to increase the number of a long preparation period, is the gradual developing the market economy and in companies participating in trading and transformation of Baku into the financial particular, focused on the development of number of trade finance instruments, while center of the region. Creation of a uniform the financial market of Azerbaijan. Today, the trying to develop the technical opportunities Caucasian Universal Exchange will enable BBVB focused on the development of all in trading and clearing systems. the banks in Georgia and Azerbaijan to have international links aiming at the acceleration greater access to international capital of the development of the Azerbaijani It is especially important to realize the markets and to develop risk management financial market. complex strategy of corporate management processes. In my opinion, we have set up all under the condition of impressive economic the required preconditions and we are ready One of the perspective directions of the growth of Azerbaijan and to further increase to accomplish this goal. development is the organization of electronic the demand for financial services.

HISTORY AND DEVELOPMENT 31 March 1995 First credit auction of the 8 July 2002 Creation of the commission on National Bank at the BBVB trading limits The Central Bank of Azerbaijan and the four biggest state banks of the country founded the 20 September 1996 First T-bill auction 9 July 2002 Start of Bourse E-System of Baku Interbank Currency Exchange (Baki Trades (BEST) Banklarasi Valyuta Birjasi-BBVB) on 26 July 22 January 1997 First exchange trading in the 1993 and this year it marks a decade from the BBVB Stock Department 24 November 2003 Signing in Almaty an initialization of activities in the country’s agreement on mutual cooperation of BBVB with financial market. One of the central financial 5 May 1997 Beginning of preparation of the KASE (Kazakhstan Stock Exchange) institutions of the country since its inception, first rating estimations of banks the BBVB is today an original symbol of 16 June 2004 Signing in Baku agreement on economic reforms for the business community 1 July 1997 Creation of the first exchange site mutual cooperation of BBVB with BSE of Azerbaijan. Thanks to its vast experience in (Bulgarian Stock Exchange) creation of universal trading platforms and to its 30 August 1997 Beginning of trading in the usage of advanced information technologies, Organized Interbank Currency Market (OICM) 31 August 2004 Registration of index AzeriREI BBVB has become the largest exchange developed by experts of the BBVB institution in the Caucasian region in terms of 25 September 1997 First trading in the OICM trading volumes and number of financial tools. by means of universal trading e-network of the 16 June 2005 Start of the tool-currency swap BBVB in Bourse E–System of Trades (BEST) The purposes of the BBVB are as follows: • to set up regular exchange trading to carry 17 December 1997 Corresponding emerging 1 January 2006 Technical transition of BEST out currency operations; market membership status in WFE system for using denominated manat • to determine the market exchange rate of the Azerbaijan currency (manat) to foreign 6 March 1998 Signing in Baku Protocol on 14 August 2007 Signing in Baku an agreement currencies; cooperation of BBVB with Istanbul Stock on mutual cooperation of BBVB with TICEX • to create a mechanism for inter-state Exchange (Tbilisi Interbank Currency Exchange) settlements; • to maintain management and information 2 October 1998 Full membership in FEAS FUTURE OUTLOOK services for currency operations; (Istanbul) • to settle transactions made at the BBVB both • Modernization and reorganization of the in national and foreign currencies; 24 February 1999 Membership in the BBVB web-site; • to organize and carry out exchange trading Azerbaijan Commercial Chamber (Baku) • Development of settlement and clearing and auctions with interbank credits; services, in particular software for management • to conduct exchange trading with futures. 14 December 1999 of banks’ trading limits on credit and currency Membership in the Azerbaijan Commercial markets; Banks Association (Baku) • Improvement of the risk management system MAJOR HISTORICAL DATES in realization of clearing operations; 20 April 2000 Co-founder and membership in • Further increasing professional skills of the 18 October 1991 Declaration of Independence the International Association of CIS Exchanges Exchange’s personnel; of the Azerbaijan Republic (Moscow) • Development of modern corporate governance principles; 15 August 1992 Putting in circulation national 3 July 2001 Signing in Moscow Arrangement • Introduction of the international system in the currency, manat on strategic cooperation of BBVB with MICEX field of GAAP (General Accepted Accounting (Moscow Interbank Currency Exchange) Principles); 21 June 1993 Establishment of the BBVB • Implementation of a new trading system; 27 March 2002 Start of e-system of trades on • Development of Internet technologies and e- 26 August 1994 Beginning of regular exchange Interbank credits–the Organized Interbank commerce; trading in the currency market Credit Market • Intensification of activity in the organized interbank money market; • Expansion of external contacts with international and regional organizations.

PAGE 40 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU INTERBANK CURRENCY EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 317.0748 14.4125 0.3171 0.0144 Aug-07 179.9736 7.8249 0.1800 0.0078 Sep-07 122.1242 6.1062 0.1221 0.0061 Oct-07 97.8841 4.6611 0.0979 0.0047 Nov-07 193.9033 8.8138 0.1939 0.0088 Dec-07 263.5872 13.1794 0.2636 0.0132 TOTAL 1,174.55 9.17 1.17 0.01

Market MONTHLY OTHER VOLUME 7-YEAR STOCK VOLUME (US$ millions) Capitalization (US$ millions) (US$ millions) Index

Jul-07 n/a n/a 350 2,000 Aug-07 n/a n/a 300 Sep-07 n/a n/a 1,600 Oct-07 n/a n/a 250 1,200 Nov-07 n/a n/a 200 Dec-07 n/a n/a 150 800 100 400 50 0 0 Jul Aug Sep Oct Now Dec 01 02 03 04 05 06 07

CONTACT INFORMATION

Contact Name Ms. Aynur Bayramli E-mail [email protected] Website www.bbvb.org

PAGE 41 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU INTERBANK CURRENCY EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Expected annual average inflation is expected strongly. A looser fiscal policy will drive growth Mr Aliyev is expected to retain control over the to decelerate from an estimated 15.6% in 2007 in government consumption and investment political scene in 2008-09. Azerbaijan's to around 9% by 2009. Therefore, a slowdown and private consumption will benefit from growing oil wealth will enable him to increase in money supply growth and nominal currency rising incomes. expenditure on wages and infrastructure. appreciation will be the main causes of this disinflation. Year-on-year inflation will A fourfold rise in oil export volumes between The government's principal policy challenge is nevertheless remain in double digits until at 2005 and 2009, in conjunction with high oil to maintain macroeconomic stability as the least early 2009, as a result of rapid growth in prices, will ensure that the current account booming oil sector drives economic growth. budget expenditures, continued strong continues to run surpluses equivalent to well Rising budget expenditures and a large foreign-exchange inflows associated with the over 20% of GDP. Growth in spending on increase in foreign-currency inflows from oil oil and gas sector and higher fuel and utility imports of capital goods will slow, as the initial exports are leading to rapid growth in prices. phase of hydrocarbons investment nears monetary aggregates. However, the authorities completion. However, an appreciating lack effective policy tools and will struggle to Foreign-currency inflows from oil exports will currency and rising wages will boost contain the resultant inflationary pressures. strengthen the manat in both nominal and real expenditure on imported consumer goods. The issuance of domestic debt will increase as effective terms in 2008-09. The National Bank Services debits for the oil and gas sector, on a way of reducing excess liquidity linked to of Azerbaijan (NBA) will attempt to sterilize activities such as consultancy and geological foreign-currency inflows. Once the government inflows through the sale of Treasury bills and services, will remain high, and the increased has secured an investment-grade credit rating, the use of Azerbaijan's overseas oil fund, payment of dividends by foreign investors in it intends to tap the international capital SOFAZ. However, the amount of short-term the sector will swell the income deficit. markets by issuing its first Eurobond, probably paper involved will be small. Azerbaijan's rate Banking sector risk is negative. Rapid credit towards the end of 2007. of inflation will remain high compared with its growth poses a risk to the stability of the trading partners, producing a real effective commercial banking sector, particularly given The government's draft 2008 state budget appreciation of the manat of around 40% the recent turmoil in global credit markets. targets revenue of Manat 7.4 billion (US$ 8.85 between the end-2006 and end-2009. State-owned banks will continue to dominate billion) and expenditure of Manat 8.5 billion, up the sector; together with strong economic by 28% and 35%, respectively, on the 2007 Surging oil output and export volumes will growth, this should ensure that the risk of a targets. The 2008 targets are higher than continue to drive economic growth, although banking collapse is low.* envisaged in plans presented in 2006. base-period effects will result in a steady deceleration in real GDP growth from an * The Economic Intelligence Unit Ltd., October 2007 Economic Performance estimated 30% in 2007 to close to 11% in On the basis of second-quarter balance-of- 2009. Development of the hydrocarbons payments data current-account surplus in industry will spill over into sectors such as 2007 changed, from US$ 8.3 billion to US$ 7.5 telecoms, transport and construction. The billion (24.2% of GDP). The forecast for the rehabilitation of infrastructure will also boost surplus in 2008 remains broadly unchanged, overall growth. On the expenditure side, at US$ 12.5 billion (29.5% of GDP). domestic demand will continue to rise

Key Information Contacts National Bank www.nba.az State Committee for Securities www.scs.gov.az Ministry of Finance www.maliyye.gov.az National Depository Center www.mdm.az Ministry of Economic Development www.economy.gov.az

2004-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Industry Services Public consumption Private consumption Agriculture Gross fixed investment Net exports of goods & services

40 32.3 35.9 35 31.7 30 26.4 55.4 25 20 15 12.3 10 8.0 5 0

PAGE 42 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU INTERBANK CURRENCY EXCHANGE

AZERBAIJAN ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (Manat billions) 6.1 7.1 8.5 12.5 17.7 GDP (US$ billions) 6.2 7.3 8.7 13.2 19.9 Real GDP growth (%) 10.6 11.2 10.2 26.4 34.5 Consumer price inflation (av; %) 2.8 2.1 6.7 9.6 8.3 Population (millions) 8.2 8.3 8.3 8.4 8.5 Exports of goods (FOB) (US$ millions) 2,304.9 2,624.6 3,743.0 7,649.0 13,014.6 Imports of goods (FOB) (US$ millions) 1,823.3 2,723.1 3,581.7 4,349.9 5,269.3 Current-account balance (US$ millions) -768.4 -2,020.9 -2,589.2 167.4 3,707.5 Foreign-exchange reserves excl gold (US$ millions) 720.5 802.8 1,075.1 1,177.7 2,500.4 Total external debt (US$ billions) 1.5 1.7 2.0 1.9 2.0 (b) Debt-service ratio, paid (%) 6.3 7.0 5.9 3.1 2.2 (b) Exchange rate (av) Manat:US$ 0.97 0.98 0.98 0.95 0.89 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY 2007 2008 2009 2010 2011 2012

Real GDP growth (%) 30.0 17.4 10.5 8.4 5.6 5.7 Consumer price inflation (av; %) 15.6 10.6 9.0 6.9 6.6 5.2 General government balance (% of GDP) -5.2 -2.5 -1.9 -2.4 -1.3 -1.5 Current-account balance (% of GDP) 26.7 29.3 23.2 13.5 12.5 10.8 Exchange rate Manat:US$ (av) 0.86 0.82 0.79 0.76 0.73 0.70 Exchange rate Manat:[euro] (av) 1.16 1.13 1.05 0.97 0.92 0.88

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Oil products Food products Machinery & equipment Transport equipment Chemicals Metals Plastics Other Oil products Metals Food products Other

11.6 84.6 16.7

11.6 5.1 3.0 2.3 29.4 1.6 10.6 3.4

20.1

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy Czech Republic Iran Russia Turkey UK Turkmenistan UK Other Germany Singapore Other

44.7 22.4 8.6 5.5 7.7 4.6 4.5 7.3 1.3 6.0

39.4 48.0

The Economic Intelligence Unit Ltd., August 2006

PAGE 43 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU STOCK EXCHANGE 2007 was a fruitful and successful year for the BSE since in that year our trading volume grew 4 times and reached US$ 6.5 billion for the first time in its

Khayal Abdinov history. Chairman

2007 was a fruitful and successful year for rules and documents and this process will In 2007, the BSE also focused on the Baku Stock Exchange (BSE). Since 2006 continue in 2008, too. development of foreign relations. The BSE our trading volume grew 4 times and sent staff to visit foreign exchanges. At the reached US$ 6.5 billion for the first time in The BSE has almost completed negotiations FEAS General Assembly held in Belgrade, the BSE’s history against US$ 1.6 billion. regarding purchasing of a new trading- Serbia, the BSE agreed with FEAS to hold settlement system which is intended to be the next Working Committee meeting in The BSE is developing from year to year. installed this year. The new trading system Baku. The exchange has recently completed the will create new opportunities for the local negotiations on the purchase of a new market participants and will introduce new trading system. The exchange also continues financial instruments. the process of modernization of its internal

HISTORY AND DEVELOPMENT FUTURE OUTLOOK Recently some new banks have been established in Azerbaijan, and generally, the The establishment of a stock exchange was The BSE plans to purchase a new trading banking sector in the country is rapidly a necessary step in the creation of a system. The new trading system is expected developing. This factor is a positive modern stock market in Azerbaijan. Due to to be presented for use by the market influence on the stock market of the country. its geopolitical location, Azerbaijan is an participants in 2008. Money supply in the economy of the country important regional center of business grows and the banks are involved more and activity. In this respect the availability of a This year the BSE will adopt new listing more actively in the stock market; as a stable and developed securities market rules, which are in the process of being result, the Exchange expects continued plays a substantial role in raising investors' prepared. In addition, the BSE attaches growth of money supply in the stock market. confidence for the economy of Azerbaijan great attention to the modification of other and the region. internal rules. Adopted in 2000, those rules do not meet the requirements of the market, The shareholders of the BSE are leading and therefore, in 2008 they are expected to Azeri and foreign banks and investment be modified. companies. The supreme decision-making authority of the BSE is the General In 2008 the BSE will continue to work on Shareholders Meeting. development of the corporate securities market. The state securities market will also The trading floor of the BSE is equipped with be the focus of attention, since it is planned 30 computerized trading stations, 18 of to continue the process of investors in order which belong to the shareholders of the to attract their attention to this segment of Exchange. The other 12 are available for the market. new members.

Legal bodies (banks, investment funds, broker firms) involved in professional activities in the securities market with special license from the State Committee for Securities under the auspices of the President of the Azerbaijan Republic can become members of the BSE.

PAGE 44 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BAKU STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 8.1530 0.4077 59.9266 2.9963 Aug-07 16.7141 1.2857 91.5015 7.0386 Sep-07 7.5383 0.8376 1.8885 0.2098 Oct-07 38.5872 2.5725 12.2157 0.8144 Nov-07 12.6759 1.1524 0.2704 0.0246 Dec-07 21.3595 1.2564 7.6371 0.4492 TOTAL 105.03 1.25 173.44 1.92

Bonds Jul-07 270.3006 12.2864 0.3553 0.0162 Aug-07 286.0439 16.8261 1.2009 0.0706 Sep-07 205.3560 10.2678 1.0111 0.0506 Oct-07 326.7157 16.3358 1.3756 0.0688 Nov-07 242.3862 12.1193 1.0256 0.0513 Dec-07 411.8914 25.7432 1.7196 0.1075 TOTAL 1,742.69 15.60 6.69 0.06

Other Jul-07 329.0734 15.6702 1.4129 0.0673 Aug-07 382.6612 16.6374 1.6393 0.0713 Sep-07 279.6681 13.9834 1.1953 0.0598 Oct-07 453.5158 21.5960 1.9334 0.0921 Nov-07 800.9398 36.4064 3.4081 0.1549 Dec-07 475.7747 25.0408 2.0258 0.1066 TOTAL 2,721.63 129.33 11.61 0.55

Market MONTHLY STOCK VOLUME VOLUME BY TYPE Capitalization (US$ millions) (%) (US$ millions) Index Stocks Bonds Other

Jul-07 n/a n/a 40 2 Aug-07 n/a n/a 35 Sep-07 n/a n/a 30 60 Oct-07 n/a n/a 25 Nov-07 n/a n/a 38 Dec-07 n/a n/a 20 15 10 5 0 Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Kamran Aliyev E-mail [email protected] Website www.bse.az

* Please refer to page 42 for the Azerbaijan country report.

PAGE 45 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BANJA LUKA STOCK EXCHANGE In 2007 total market capitalization amounted to EUR 4 billion, which is an increase of 3.86% compared to the end of 2006.

Milan Bozic CEO

The capital markets of the Republic of Srpska significant improvements in the development of In 2008, the first municipal and significant issues (RS) were very dynamic in 2007. The strong the official market have been achieved resulting in of government bonds should be listed on the growth in the first four months was followed by an increase in number of companies and funds BLSE markets. The launch of pension system the significant decrease of prices in the second being listed on this market segment (40). For the reforms will have a strong positive impact on the part of 2007. It should be noted that this first time two bank bonds were listed on the RS capital market development. Announced downward trend occurred after the six-year of official market. 2007 saw the transformation of 13 adoption of the Law on Reserve Pension Fund consecutive growth. The turnover amounted to privatization investment funds into close-ended and the Law on Third Pillar Pension Funds should EUR 380 million, which is almost double as investment funds. The total market capitalization contribute to the strengthening of domestic compared to the previous year. For the first time, of these funds reached EUR 240 million. institutional demand on the Exchange. Through the BLSE index (BIRS) recorded a decrease of Furthermore, the first open ended fund has been active participation in various regional projects the 11.1%, ending at 2,564 points. Total market established in the RS, signaling a plausible BLSE will strive to increase visibility of the RS capitalization amounted to EUR 4 billion, which is turning point in the development of the fund capital markets. The planed introduction of FIX an increase of 3.86% as compared to the end of industry. Corporate disclosure has been protocol in the second part of 2008 will improve 2006. significantly improved and for all companies listed accessibility of the domestic markets to foreign on the Banja Luka Stock Exchange (BLSE) investors. Finally, 2008 will see the first limited The general understanding about the strong markets, semi-annual financial reports are liability companies to raise capital on the relationship between the capital market and available on the BLSE web page and for Exchange. the real economy performance has been companies listed on the official market quarterly considerably improved. At the same time, reports are disseminated as well.

HISTORY AND DEVELOPMENT 14 October 2003 Shares of VB bank a.d. Banja 17 May 2007 The second International Conference Luka were listed on the official market of the BLSE. of the BLSE took place on 17-18 May 2007. 15 July 1998 The adoption of the Law on 03 May 2004 Stock Exchange Index of Republic 06 June 2007 The first trading with bonds listed Securities provided the necessary legal framework of Srpska established. on the official market (Balkan Investment Bank). to establish the capital market of the Republic of 11 May 2004 Shares of Telekom Srpske were 18 June 2007 Memorandum of Understanding Srpska. listed on the official market of the BLSE. was signed between Hellenic Exchange and the 04 May 2000 The National Assembly of the 01 August 2004 The Investment Fund Index of BLSE in Thessaloniki. Republic of Srpska appointed the first members of Republic of Srpska (FIRS) established, including 22 November 2007 The BLSE was granted Republic of Srpska Securities Commission. the shares of 13 PIFs from the Republic of Srpska. Corresponding Membership status with the 26 February 2001 Established Central Registry of 18 October 2004 The BLSE became full member Federation of European Securities Exchanges Securities. of the FEAS. (FESE). 09 May 2001 Eight banks and one company 14 June 2005 Beginning of the process of listing trading in securities signed the contract that shares from Power Utility System of the Republic FUTURE OUTLOOK established the BLSE. of Srpska on the Free Market. 09 August 2001 Republic of Srpska Securities 03 October 2005 Introduction of continuous In 2008 the BLSE plans to: Commission issued working permit to the BLSE. trading in securities on the Official Market (13 • foster implementation of national corporate 29 November 2001 The first equity from the PIFs, Rafinerija ulja Modrica, Telekom Srpske i governance standards; privatization program was registered in the Central LHB banka). • introduce new market instruments on the Registry of Securities (CRHOV). 01 January 2006 Index of ten companies from trading, such as long term government and 05 March 2002 Signed contract on transfer of Electric Power System of Republic of Srpska - municipal bonds; license between the Directorate for Privatization ERS10 established. • encourage listings of successful limited liability and the BLSE that provided BLSE with electronic 17 May 2006 Information portal of the RS Capital companies on the stock exchange market; trading system (BTS) developed by the Ljubljana Market was established, created jointly by the • further develop relations with the issuers listed Stock Exchange. BLSE, Securities Commission and Central Registry on the stock exchange and promote benefits of 14 March 2002 The first BLSE trading session of Securities. listing on higher market segments; took place, involving six members that traded 20 18-19 May 2006 First International Conference of • support to the development of open ended listed securities. the BLSE was held, to observe BLSE fifth funds through education and promotion of their 12 September 2002 The Law on Takeover came anniversary. roles on the capital market into force. 30 June 2006 The BLSE and Wiener Borse • increase visibility of the BLSE market by 24 January 2003 The first session of The Listing signed Cooperation Agreement in Vienna. providing data-feed to the world known Commission took place and stocks of 10 08 August 2006 For the first time, sale of shares Vendors; privatization investment funds admitted to the from Pension & Disability Insurance Fund's • promote cooperation with the stock official market of the BLSE. portfolio. exchanges from the region and other part of the 11 February 2003 The first transactions 21 August 2006 Mr. Milan Bozic was re-elected World; concluded with shares of PIFs. as a Director of the BLSE to a new four-year term. • continue with educational and promotional 20 August 2003 The first auction for state owned 05 December 2006 Government of Republic of activities (International Conference of the Banja capital took a place on the BLSE. Srpska had accepted Telekom Srbija bid for Luka Stock Exchange); 23 September 2003 Shares of Rafinerija ulja a.d. purchase of state-owned capital (65%) of Telekom • introduce upgraded version of trading system Modrica were listed on the official market of the Srpska for EUR 646 million. which will further improve flexibility of trading BLSE as the first company listed on official market 29 January 2007 The BLSE became a and in BiH. correspondent member of the World Federation • launch fix protocol. of Exchanges.

PAGE 46 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BANJA LUKA STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 19.5328 0.8879 37.0720 1.6851 Aug-07 24.4076 1.0612 24.3871 1.0603 Sep-07 22.1894 1.1095 23.5628 1.1781 Oct-07 21.0599 0.9156 61.3266 2.6664 Nov-07 20.8099 0.9909 61.2903 2.9186 Dec-07 18.4648 0.9232 30.5582 1.5279 TOTAL 126.46 0.98 238.20 1.84

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 7,838.11 2,436.93 25 2,500 8,000 Aug-07 7,531.07 2,411.35 7,000 Sep-07 7,224.82 2,293.60 20 2,000 Oct-07 6,312.66 1,901.59 6,000 Nov-07 6,387.48 1,877.20 15 1,500 5,000 Dec-07 6,196.83 1,902.31 4,000 10 1,000 3,000 2,000 5 500 1,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. Slavisa Riscovic E-mail [email protected] Website www.blberza.com

PAGE 47 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BANJA LUKA STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance It is estimated that BiH's current-account In late July 2007 political parties in Bosnia Real GDP growth in 2007 is estimated at a deficit rose to more than 14% of GDP in and Herzegovina (BiH) approved a central relatively buoyant 5.5%. This reflects a 2007, from 10.3% in 2006. This was largely state-level law on higher education, the first generally favorable external environment and the result of a strong base-period effect important reform to be passed in more than strong private consumption, the latter driven related to the introduction of VAT, which a year. Nevertheless, the political situation by fast growth in consumer borrowing. The caused the merchandise trade deficit to remained tense until the beginning of rapid increase in capital goods imports in the contract in 2006. The external imbalance December 2007 when the main political first half of 2007 supports the common belief seems to remain large in 2008-09. Strong parties reached consensus on the future that investment will continue to grow strongly growth in private consumption and reforms. This was enough for the EU to initial in 2008-09. Large infrastructure projects will investment demand will drive up import the Stabilisation and Association Agreement boost construction, and further investment in costs, and will be only partly offset by slower (SAA) with BiH, since the technical the corporate sector (some of it from abroad) wage growth. Export expansion will be negotiations on an SAA between BiH and the will support solid growth in foreign sales. supported by reasonably strong external EU were concluded in December 2006, and With private consumption growth also demand, and by productivity gains stemming the text of an agreement has largely been staying strong, reflecting continued growth in from recent investment in heavy industry. finalized. The currency board arrangement bank lending and real wages, expected However, BiH's export base will remain will stay in place. annual real GDP growth of 6% in 2008-09. relatively narrow and vulnerable to swings in The potential for political instability, and for a international commodity prices. Large annual In its most recent Article IV consultation with slowdown in institutional and structural current-account deficit in 2008-09 equivalent BiH earlier in 2007, the IMF reiterated several reform, presents some risk to this forecast. to more than 13% of GDP is forecasted.* of its long-standing economic policy concerns. The Fund is urging the local Inflation slowed significantly in both entities * The Economic Intelligence Unit Ltd., October 2007 authorities to maintain a prudent fiscal policy, in 2007, owing to the strong base-period -edits by the Banja Luka Stock Exchange. strengthen policy co-ordination between effect caused by the introduction of VAT at governments, and bolster financial stability the start of 2006. Although high international by tightening supervision of the banking oil prices will exert some inflationary sector. pressure, it is anticipated that price growth across BiH will remain well below that of 2006.

Key Information Contacts Ministers Council of Bosnia and Herzegovina www.vijeceministara.gov.ba Ministry of Foreign Affairs of Bosnia and Herzegovina www.mvp.gov.ba Republic of Srpska Government www.vladars.net Central Bank of Bosnia and Herzegovina www.cbbh.ba Republic of Srpska Securities Commission www.sec.rs.ba Central Registry of Securities of Republic of Srpska www.fipa.gov.ba Foreign Investment Promotion Agency of Bosnia and Herzegovina www.fipa.gov.ba Directorate of European Integration www.dei.gov.ba

2005-SHARE IN GROSS VALUE ADDED (%) (a) 2003-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (b)

Services Industry (c) Private consumption General government consumption Manufacturing Agriculture Exports of goods & services Import of goods & services

100 19.3 91.7 90 59.5 80 70 10.9 60 59.1 50 40 10.3 30 22.3 25.1 20 10 0

PAGE 48 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BANJA LUKA STOCK EXCHANGE

BOSNIA ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (KM billions) 11.6 14.5 15.8 16.9 19.1 (b) GDP at market prices (US$ billions) 5.6 7.1 9.3 10.0 12.3 (b) Real GDP growth (%) 5.0 3.5 6.1 5.0 6.2 (b) Retail price inflation (av; %) 0.4 0.6 0.4 3.7 7.5 Population (millions) 3.9 3.9 3.9 3.9 3.9 (b) Exports of goods (FOB) (US$ millions) 1,110 1,478 2,087 2,590 3,373 Imports of goods (FOB) (US$ millions) -4,449 -5,637 -6,656 -7,545 -7,649 Current-account balance (US$ millions) -1,191 -1,631 -1,794 -2,116 -1,310 International reserves (US$ millions) 1,321 1,796 2,408 2,531 3,372 Total external debt (US$ billions) 3.1 4.5 5.2 5.6 6.5 (b) Exchange rate (av) KM:US$ 2.08 1.73 1.58 1.57 1.56 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

FACTS AND FORECASTS

2006 (a) 2007 (b) 2008 (c) 2009 (c)

Real GDP growth 6.2 (b) 5.5 6.0 6.0 Industrial production growth 11.5 (b) 8.0 10.0 10.0 Average lending rate (%) (d) 8.0 7.3 6.5 6.0 Federation retail price inflation (av) 6.9 2.0 2.5 2.5 Republika Srpska retail price inflation (av) 8.4 1.3 2.0 2.0 Exports of goods (FOB) (US$ billions) 3.4 3.9 4.5 5.0 Imports of goods (FOB) (US$ billions) -7.6 -9.3 -10.2 -10.8 Current-account balance (US$ billions) -1.3 -2.0 -2.1 -2.2 Current-account balance (% of GDP) -10.3 (b) -14.2 -13.6 -13.3 External debt (year-end; US$ billions) 6.6 (b) 7.1 7.7 8.2 Exchange rate KM:US$ (av) 1.56 1.44 1.42 1.48 Exchange rate KM:US$ (end-period) 1.48 1.41 1.45 1.51

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts. (d) Period average.

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Base metals Machinery & mechanical appliances Mineral products Machinery Mineral products Wood & wood products Other Base metals Foodstuffs Other

10.0 12.2 11.6 15.2 9.6 8.8

26.4 15.8 49.4 41.0

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Croatia Italy Serbia and Montenegro Croatia Germany Serbia and Montenegro Germany Other Italy Other

13.8 12.3 13.2 9.7 16.7 18.7

12.9 8.9

41.4 52.4

(a) In real terms. (b) The Economic Intelligence Unit Ltd. estimate. (c) Not including construction.

PAGE 49 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELARUSIAN CURRENCY AND STOCK EXCHANGE Being the unique centre of exchange trading in the Republic of Belarus, the BCSE is empowered to trade different financial instruments, such as currency

Pavel Tsekhanovich values and all types of securities. Chairman of the Board

Being the unique centre of exchange trading Functions of the BCSE We render such Information service as in the Republic of Belarus, the Belarusian • Organization of exchange trading in foreign • On-line information products providing Currency and Stock Exchange (BCSE) is currencies, futures and securities current information about trading sessions on empowered to trade different financial • Clearing Center in Belarusian settlement different exchange market sectors instruments, such as currency values and all clearing system • Periodical information products on the base types of securities. • Settlement Depository for corporate of primary stock exchange information data on securities and municipal loan bonds separate financial market sectors The constantly increasing trade turnover at the • Registration of OTC transactions with • Information products based on Internet BCSE demonstrate the possibility of the BCSE corporate securities and Private Housing technology (Web-site www.bcse.by is a key to perform in the near future its main task; to Checks “Zhilje” element of the system of information form a powerful and stable infrastructure in the disclosure of the BCSE activity results in the organized market focused on the ultimate currency, stock and futures markets; and investor. Information System «Stock Market» www.stock.bcse.by).

HISTORY AND DEVELOPMENT trades in the Russian ruble were held in the FUTURE OUTLOOK electronic trading system. In 1995, the National The BCSE was established on the basis of the Bank of Belarus granted the Interbank Currency The BCSE will continue developing its main state-run Interbank Currency Exchange in Exchange the right to organize the purchase segments such as futures, stock and currency December 29, 1998 as a non-profit, public and sale of futures on foreign currency and market. company with administrative and financial other financial assets. autonomy. Having obtained the license to The BCSE tasks can be summarized as follows: pursue exchange activities and the depository On 24 September 1996 the Interbank Currency • to raise competitive capacity, quality and license, the exchange began to organize trading Exchange was made a subdivision of the quantity of services rendered by the BCSE; in the main segments of the financial market of National Bank, in which capacity it organized • to increase the efficiency of exchange Belarus (the currency market, the government trading in foreign currencies for 2 years. In 1997, currency, stock and futures market functioning; securities market, the market of the National the Interbank Currency Exchange was granted • to contribute to the effective settlement and Bank’s bonds, the corporate securities market, the right to organize the secondary market of clearing system formation, that service main the market of bonds of local loans and the government securities (except for registered segments of the organized financial market; market of bills of exchange). privatization vouchers) and the securities of the • to provide Belarusian financial market with National Bank. information transparency; In 1999, the BCSE developed the first listing • to assist in the realization of state investment criteria to provide a transparent and efficient First electronic government securities trades programs and other projects aimed at financial market. The Exchange is governed by a five- were carried out at the Interbank Currency markets development; member board of directors. The highest body Exchange on 16 January 1998. • to promote the integration processes between is the General Meeting of Stockholders, the Russian and Belarusian financial systems; managerial body is the Supervisory Board The BCSE aims to: • to create the program and technical (8 members). • minimize risks and transaction charges from infrastructure for electronic documents capital formation in the organized market; circulation in the organized market; The BCSE membership is comprised of 29 • provide transparency of transactions; • to develop its own program and technical banks, 64 brokerage and dealer firms and 5 • protect investors’ legal rights and their base, in order to implement modern computer individuals. interests; technologies. • implement programs on financial resources The Interbank Currency Exchange was formation necessary for their development; established 4 March 1993 by 18 leading • develop state monetary and credit policy business banks as a closed-type joint-stock market mechanisms; company. Its main task was organizing trading • create necessary conditions for effective in foreign currencies. On 24 March 1993, first controlling functioning of the State

PAGE 50 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELARUSIAN CURRENCY AND STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 0.0327 0.0016 0.0510 0.0024 Aug-07 0.1425 0.0062 0.0032 0.0001 Sep-07 0.7957 0.0398 0.0175 0.0009 Oct-07 0.5673 0.0247 0.0524 0.0023 Nov-07 0.5861 0.0279 0.0642 0.0031 Dec-07 0.8026 0.0401 0.0440 0.0022 TOTAL 2.927 0.02338 0.232 0.0018

Bonds Jul-07 392.5317 18.6920 8.8275 0.4204 Aug-07 387.9274 16.8664 8.6190 0.3747 Sep-07 545.2272 27.2614 12.3105 0.6155 Oct-07 483.1565 21.0068 11.2245 0.4880 Nov-07 669.4448 31.8783 15.6013 0.7429 Dec-07 858.6836 42.9342 19.3194 0.9660 TOTAL 3,336.97 26.43985 75.90 0.60

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY BOND VOLUME MONTHLY INDEX Capitalization (US$ millions) (US$ millions) Index

Jul-07 n/a n/a 0.9 900 Aug-07 n/a n/a 0.8 800 Sep-07 n/a n/a 0.7 700 Oct-07 n/a n/a 0.6 600 Nov-07 n/a n/a 500 Dec-07 n/a n/a 0.5 0.4 400 0.3 300 0.2 200 0.1 100 0.0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. Olga Blusson E-mail [email protected] Website www.bcse.by

PAGE 51 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELARUSIAN CURRENCY AND STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance The current-account deficit is forecast to Although the unfavorable energy trade As a result of easing oil prices and changes expand significantly, to around 9.8% of GDP arrangement that was agreed with Russia at to the oil trade regime with Russia, Belarus in 2008 and 11% of GDP by 2009. the start of 2007 it has increased the will no longer benefit from the surging Expenditure on imports will continue to rise pressure on the president, Alyaksandar volumes of oil exports and the related oil rapidly, as demand for consumer and Lukashenka,who is still expected to profits that helped to boost the economy in investment goods will remain strong, and the dominate the political scene in 2008-09. He the past. Belarus will also no longer benefit government's import suppression measures retains tight control over the from the cheap Russian gas inputs that will be only partly effective. Moreover, the bureaucracy–including regional sustained its unreformed manufacturing rising price paid for Russian gas will push administrators and military, security and law- sector. With government and enterprise import costs up. On the export side, Belarus enforcement bodies–and will use this to sector liquidity now under greater pressure, will still benefit from high world prices for its prevent the emergence of alternative centers wages will rise less rapidly. This will reduce exports of oil products, but it is unlikely to of power and to discourage potential rivals household consumption growth, particularly see any more sharp increases in these from seriously considering an attempt to as a small portion of the higher energy prices prices. Moreover, as seen in the first half of dislodge him. is being passed on to consumers. After 2007, oil export volumes will fall in the light of several years of strong economic expansion, the less favorable circumstances created by The Lukashenka administration will remain therefore, Belarus will see real GDP growth the bilateral agreement reached with Russia closely tied to Russia, but will try somewhat decelerate to 5% in 2008 and 4% in 2009. in January 2007.* harder than in the past to build a relationship with the West, if only as a bargaining chip to Although the 7.2% year-on-year consumer * The Economic Intelligence Unit Ltd., October 2007 use with Russia. price inflation recorded in July was still near the record low achieved at the end of 2006, The government's static economic model will inflation is expected to accelerate again to come under significant strain in 2008-09 as a reach around 20% by end-2009 result of the sharply higher prices now being paid for Russian oil and gas. The government has thus already hinted at a shift away from its traditional static and populist policies, specifically by acknowledging the need for more privatization and less extensive subsidies to producers and consumers.

Key Information Contacts President of Belarus www.president.gov.by/en/ Council of Ministers www.government.by/en/eng_news.html Ministry of Foreign Affairs www.mfa.gov.by/eng/index.php?id=2&d=contacts/links Belarusian Telegraph Agency (National Source of Information) www.belta.by/en/

2006-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Industry Trade & catering Transport & communications Private consumption Public consumption Gross fixed investment Construction Agriculture Other Increase in stocks Net exports of goods & services

10.3 60 9.2 52.4 50 7.9 27.6 40

7.5 30 28.3 19.9 20 10 2.1 37.5 0 -10 -4.3

PAGE 52 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELARUSIAN CURRENCY AND STOCK EXCHANGE

BELARUS ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (BRb billions) 36,565 49,992 65,067 79,231 86,848 GDP at market exchange rate (US$ billions) 17.8 23.1 30.2 36.9 40.5 Real GDP growth (%) 7.0 11.5 9.4 9.9 7.8 Consumer price inflation (av; %) 28.4 18.1 10.3 7.0 8.3 Population (mid-year; millions) 9.8 9.8 9.8 9.7 9.7 Exports of goods (FOB) (US$ millions) 10,076 13,942 16,109 19,838 22,911 Imports of goods (FOB) (US$ millions) -11,324 -16,126 -16,610 -22,237 -27,053 Current-account balance (US$ millions) -434 -1,194 434 -1,512 -3,056 Reserves excl gold (US$ millions) 595 749 1,137 1,099 1,474 Exchange rate (official; av; BRb:US$) 2,051.3 2,160.3 2,153.8 2,144.6 2,145.0

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (b) 2008 (c) 2009 (c)

GDP at market prices (BRb billions) 79,231 86,848 98,592 115,528 GDP at market exchange rate (US$ billions) 36.9 40.5 42.9 46.2 GDP at purchasing power parity (US$ billions) 87.7 96.9 104.6 111.6 Real GDP growth (%) 9.9 7.8 5.0 4.0 Consumer price inflation (av; %) 7.0 8.3 15.0 19.0 Population (mid-year; millions) 9.7 9.7 9.6 9.6 Exports of goods (FOB) (US$ millions) 19,838 22,911 25,599 27,462 Imports of goods (FOB) (US$ millions) -22,237 -27,053 -31,132 -34,369 Current-account balance (US$ millions) -1,512 -3,056 -4,200 -5,120 Current-account balance (% of GDP) -4.1 -7.5 -9.8 -11.1 State budget balance (% of GDP) -1.4 (b) -3.5 -3.7 -3.9 Reserves excl gold (US$ millions) 1,098.9 1,473.8 1,577.4 1,666.3 Exchange rate: BRb:US$ (av) 2,144.6 2,145.0 2,300.0 2,500.0

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts.

2006-PRINCIPAL EXPORTS (FOB) (%) 2006-PRINCIPAL IMPORTS (CIF) (%)

Mineral products Transport vehicles Mineral products Machinery & equipment Machinery & equipment Chemicals & rubber Other Base metals Food & agricultural raw material Other

10.4 16.2 38.6 11.8 8.7 33.5 9.4 8.0

29.1 34.3

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Russia The Netherlands UK Russia Germany Ukraine Ukraine Other Poland Other

7.5 17.7 58.8 34.7 5.5 3.4 7.5

6.3 24.8

33.8

(a) Including statistical discrepancy

PAGE 53 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELGRADE STOCK EXCHANGE In the first half of 2007 total turnover rocketed and stood at RSD 97,361 billion, only 3,222 billion less than the total of last year’s turnover.

Gordana Dostanic Managing Director

The year 2007 saw the highest ever annual RSD 1,440 billion, 78% rise in comparison to launched various courses and seminars during turnover. Following the last trading session in December-end 2006. Though, the delisting of 2007, meant for the general and professional 2007, the total turnover amounted to nearly the State Bonds Series 2007 and the public. Intensive international activities were RSD 165 billion. The total trading turnover in summertime break did bring some ease, this undertaken through organization of several 2006 was exceeded by 64%. If the currency significant market increase is mostly due to the events, like the FEAS General Assembly, changes are taken into account this increase is new admissions to the market in the first Sports Tournament, 6th International Belgrade even a few percent higher. The number of quarter. SE Conference, bilateral and multilateral transactions crossed the barrier of 300,000 cooperation and contact with the exchanges single transactions to settle at 301,210 on the The year behind us will be remembered also from the region. last trading day in 2007, posting more than a for the first company listed on the Prime double increase as compared to the 2006. Market, Tigar Corporation a.d. Pirot, which In the course of stimulating market The year 2007 was a record for indices, as opened the way for the additional listings of development, attracting new funds and making well. On 31 December 2007, BELEX15, index two more companies: Energoprojekt holding the Serbian market more competitive the BSE of the most liquid shares, stood at 2.318,37, a.d. Beograd and Soja Protein a.d. Becej, who has revised its tariff policy and reduced the fee 36% rise in comparison to the start of the year, have come to the official listing, too. charged for trading of shares. in spite of the global turmoil and the correction our region has been experiencing since April As the year was approaching to its end, the A perfect end for 2007 came in the form of the 2007. The BELEXline saw 3,830.84 points at Project of the new trading system based on prestigious international award Discobolos the year end, 43% increase in value from the FIX Protocol entered into its final stage with the given to the BSE for its efforts and results first trading day in 2007. Throughout the year implementation phase in progress. accomplished in applying new technologies in new history highs were set by the both indices. finance industry. Market capitalization rose significantly in 2007 The Belgrade Stock Exchange (BSE) focused and on 31st December it totaled over immense efforts in educational activities and

HISTORY AND DEVELOPMENT • In October 2005, the BELEX15 index was FUTURE OUTLOOK introduced; The BSE was originally founded in 1894, on • In November 2005, the Fourth International In the 2008 the BSE will: November 21st, but the first transactions were Conference “Preserving Integrity and Efficiency • At the year start, launch a new trading realized in January 1895. The last meeting was of the Capital Market” was held; platform, complying with the FIX Protocol; held on 4 April 1941. The Exchange was closed • In January 2006, a new website was launched; • Upgrade all operations and procedures to in 1953, and again refounded in 1989, as the • In April 2006, various training courses started; provide state-of-art service to market “Yugoslav Capital Market”. In 1992, the BSE • In April 2006, MoU signed with the IFC; participants; officially got its name back, continuing the • In September 2006, BELEX RSS Feed service • Further upgrade BELEX.info station for end- tradition of the old stock exchange, which was was launched; users with market depth and more securities on one of the biggest South European stock • In November 2006, the Fifth International the screen; exchanges. The key events in the recent history Conference “Where Are the Exchanges • Upgrade the BELEX RSS service with are: Heading?” was held; additional content; • In September 2002, Republic of Serbia Bonds • In March 2007, SRX index (Serbian Traded • Monitor the BELEX Rules of Conduct and their trading began; Index) launched by the Vienna SE; application, to eliminate possible problems and • In December 2002, the First Belgrade SE • In April 2007, the BSE launched its new provide transparent, effective and liquid market; International Conference was held; general equity index BELEXline, successor of the • Attract new companies to list their shares on • In September 2003, expositions in honor of BELEXfm; the Official Market (A or B) 110 years of the BSE were held. • In April 2007, the first company listed on the • Explore possibilities for introducing new • In September 2003, the Second International premium Listing A, Tigar Corporation from Pirot; instruments to the market; Conference was held and the project of • In June 2007, BELEX 15 Open End - Index • Sign contracts with additional data vendors; Informational Platform of the SEE Stock Certificate issued by Bayerische Hypo- und • Continue its educational activities with the Exchanges introduced; Vereinsbank AG and listed at the Frankfurt SE existing and new training programs and • In March 2004, remote trading was launched; and Stuttgart SE; seminars for general and professional public and • In September 2004, the BSE achieved full • In November 2007, Serbian stocks included in media; membership in FEAS; the first Balcan Blue-Chip index - DJ STOXX • Enhance communication with the BSE • In October 2004, continuous trading of stocks Balkan 50; members, and activities in presenting the began; • In November 2007, VI International Conference Exchange to the general public in Serbia and • In November 2004, the Third International "Upgrade in Belgrade“ was held; abroad; Conference was held. The 110 anniversary of the • In December 2007, "Discobolos“ was awarded • Improve media coverage of stock exchange BSE celebrated; to the BSE for applying new technologies; activities; • In December 2004, BELEXfm index was • In December 2007, the BSE signed the • Edit and publish new editions and launched; Memorandum of Partnership with exchanges publications; • In February 2005, the BSE became an from the region. • Continue work on developing human associate member of FESE; resources; • In March 2005, BELEX.info service was • Take active part in international meetings and lunched; events organized by FEAS, FESE and other • In May 2005, the data distribution via Data international organizations and organize several Feed has begun; international and regional meetings and events, • Organize the 7th International Annual Conference in mid November 2008.

PAGE 54 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELGRADE STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 171.1343 7.7788 2.5617 0.1164 Aug-07 176.4858 7.6733 3.1613 0.1374 Sep-07 132.3999 6.6200 2.5098 0.1255 Oct-07 292.0323 12.6971 2.3447 0.1019 Nov-07 144.5662 6.5712 1.7480 0.0795 Dec-07 177.6055 8.4574 2.4735 0.1178 TOTAL 1,094.22 8.30 14.80 0.11

Bonds Jul-07 22.5557 1.0253 16.5101 0.7505 Aug-07 31.2783 1.3599 22.9815 0.9992 Sep-07 16.5054 0.8253 11.8067 0.5903 Oct-07 14.4701 0.6291 10.1655 0.4420 Nov-07 13.4322 0.6106 9.1780 0.4172 Dec-07 9.5085 0.4528 65.1370 3.1018 TOTAL 107.8 0.82 135.8 1.05

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 22,994.26 2,917.29 300 3,000 30,000 Aug-07 23,883.95 2,869.00 Sep-07 25,068.06 2,814.25 250 2,500 25,000 Oct-07 25,455.06 2,513.31 200 2,000 20,000 Nov-07 22,362.95 2,226.45 Dec-07 24,056.45 2,318.37 150 1,500 15,000

100 1,000 10,000

50 500 5,000

0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. Svetlana Cerovic E-mail [email protected] Website www.belex.co.yu

PAGE 55 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELGRADE STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance prices, has remained within the central bank's Soon after it was formed in May 2007 Serbia's Real GDP increased by 8% year on year in the informal target range for 2007 of 4-8% and will new ruling coalition received a boost from the first half of 2007, slightly ahead of the probably end the year at the lower end of the EU's decision in mid-June to restart talks projected figure for the year as a whole. After range. towards an SAA, as well as from the prospect accelerating sharply in the first quarter of of further delays in determining the future 2007, to a faster than expected 8.4% year on Despite the mild winter and consequent lower status of Kosovo. However, the government year, from 4.8% year on year in the final than expected energy bill, the merchandise suffers from sharp internal divisions and is quarter of 2006, growth slowed slightly to trade deficit increased by 34%, year on year in being held together largely by fears that a 7.7% year on year in the second quarter. The January-August 2007, to US$ 5.6 billion. fresh election would result in further gains for buoyant first-half performance reflected strong The US dollar trade gap is to increase, and the extreme nationalist SRS, which emerged growth in domestic demand, driven by the annual current-account deficit will be as the single largest party in parliament in the increased bank lending and pre-election wage forecast to rise above 13% of GDP in 2007. January 2007 election. The text of the SAA rises. Services remain the fastest-growing Enterprise restructuring, privatization and was finalized on September 10th after the two sector, with retail trade, financial services, and supply-side reforms should help to make sides reached agreement on trade transport and communications all making exporters more competitive in 2008-09, liberalization schedules. Serbian officials hope strong contributions. However, growth was despite the strength of the dinar. However, that an SAA will be signed by end-2007, broad-based, with manufacturing and strong consumer demand, increased public enabling Serbia to apply for EU membership construction also expanding rapidly. After investment and higher international oil prices and be granted candidate status in 2008. increasing by an estimated 7% in 2007, than previously expected in 2008-09 will put The long delay in forming a government growth is forecast to average more than 5.5% upward pressure on import bills, even though following the parliamentary election led to per year in 2008-09. This reflects continued monetary policy will remain fairly tight. Only a hold-ups in structural reforms and in the larger strong fixed investment growth–driven by an small downward adjustment in the size of the privatizations. Since the government was increase in public investment under the NIP current-account deficit is expected as a formed in May the privatization process has and investment in recently privatized percentage of GDP in 2008-09.* restarted and almost 80 companies have companies–and relatively robust consumer been sold off. The government aims to demand, in turn boosted by the continued * The Economic Intelligence Unit Ltd., October 2007 complete the privatization process by 2009. fast-paced growth of real wages and credit core inflation, which excludes regulated

Key Information Contacts National Bank of Serbia: www.nbs.yu/export/internet/english/ Securities and Exchange Commission: www.sec.sr.gov.yu Central Securities Depository and Clearing House: www.crhov.co.yu Ministry of Economy and Regional Development: www.mpriv.sr.gov.yu

2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a) 2004-COMPONENTS OF SOCIAL PRODUCT (%) (ab)

Services Industry Agriculture Private consumption Public consumption Gross fixed investment Increase in stocks Exports of goods & services Imports of goods & services

79.2 61.9 13.5 80 60

40 20.5 20 14.2 13.8 24.6 0 -0.6 -20 -27.0 -40

PAGE 56 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BELGRADE STOCK EXCHANGE

BELGRADE ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (RSD billions) (b) 1,020.1 1,171.6 1,431.3 1,750.0 (c) 2,085.0 (c) GDP at market prices (US$ billions) 15.9 20.4 24.4 26.0 (c) 31.2 (c) Real GDP growth (%) 4.2 (c) 2.5 (c) 8.4 (c) 6.2 (c) 5.7 (c) Retail price inflation (av; %) 21.4 11.7 9.8 17.3 12.7 Population (millions) (b) 7.5 7.5 7.5 7.4 (c) 7.4 (c) Exports of goods (FOB) (US$ millions) 2,412.0 2,477.0 3,897.0 4,647.0 6,487.0 Imports of goods (FOB) (US$ millions) 6,320.0 7,324.0 10,944.0 10,210.0 12,715.0 Current-account balance (US$ millions) -1,731.0 -1,928.0 -2,922.0 -2,088.0 -3,653.9 Foreign-exchange reserves excl gold (US$ millions) 2,165.0 3,410.4 4,095.8 5,597.7 11,638.9 Total external debt (US$ billions) 11.2 13.6 14.1 15.5 19.6 Debt-service ratio, paid (%) 7.2 (c) 12.0 (c) 16.9 (c) 18.9 (c) 34.6 (c) Exchange rate (av) RSD:US$ 64.19 57.44 58.69 67.21 66.88 (a) Actual. (b) Excludes Kosovo. (c) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 7.0 6.0 5.5 5.0 4.7 4.5 Retail price inflation (av; %) 6.2 7.0 5.6 4.9 4.3 3.8 Budget balance (% of GDP) -0.5 -1.0 -0.5 0.0 0.5 0.5 Current-account balance (% of GDP) -13.7 -12.2 -11.5 -10.8 -10.2 -9.4 Exchange rate RSD:US$ (av) 58.73 56.15 60.00 62.00 63.29 63.32 Exchange rate RSD:[euro] (av) 79.96 81.14 79.65 79.21 79.74 79.15

2006-PRINCIPAL EXPORTS (FOB) (%) (a) 2006-PRINCIPAL IMPORTS (%) (a)

Manufactured goods Food Machinery, apparatus & transport articles Manufactured goods Miscellaneous manufactured articles Other Mineral fuels & lubricants Other

16.6 14.4 20.8 19.7

37.6 31.4 25.6 33.9

2006-MAIN DESTINATION OF EXPORTS (%) (a) 2006-MAIN ORIGINS OF IMPORTS (%) (a)

Italy Bosnia & Herzegovina Russia Germany Germany Russia Other Italy China Other

14.4 9.5 16.3 11.7 8.4

5.9 9.9

59.2 4.8 59.9

Note. Data exclude Kosovo. Social product (SP) differs from GDP in that it excludes government services.

PAGE 57 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BUCHAREST STOCK EXCHANGE The BSE went through a very special year in 2007, by opening its derivative market in September.

Stere Farmache General Manager & CEO

The Bucharest Stock Exchange (BSE) went Although the number of listed companies products listed, better services and IT for our through a very special year in 2007, by remained almost the same, the market clients–the intermediaries, and offer a very opening its derivative market in September. capitalization saw an increase of 15% at the secure market place in terms of legislation The trading instruments for this market are end of 2007, representing 25% of GDP. implemented for our investors. the contracts on BET Index and BET-FI At the same time, the BET Index–our main Index. index–saw an increase of almost 20% as Recognized with its achievements as a stock compared to the last trading session of market and accomplishments in the Last year reflected also both quantitative and 2006. international relations field, in January 2007 qualitative achievements of our stock market. the BSE became an affiliate member of We launched a new site in April, through A very important feature of this year was the World Federation of Exchanges and in which we offered access equally to our increased liquidity; the average daily turnover September hosted the Management regulated market and to the Rasdaq market, in 2007 doubled compared to 2005 and rose Committee of the Federation of European our former OTC market. In June, the by almost 50% against the previous year Exchanges. European Investment Bank listed its first (EUR 16.6 million versus EUR 11.3 million). bond issue in Romania, with a worth of RON This represented a real sign for our market 300 million (approximately EUR 86 million) that the EU entry of our country exposed the and with a maturity of three years. This was market to a wider range of investors. the second bond issue of an international Therefore, all our efforts will be focused on financial institution, after the last year’s World the year that has just begun, to improve the Bank issue with a worth of EUR 125 million. market offer, through new companies and

HISTORY AND DEVELOPMENT BSE went in 2005 through a process of The BVB strategic development plan went demutualization, and the 67 intermediaries, through the implementation stage, with the The BSE celebrated in 2007 its 125th members of the BVB, became the new BVB Code, which includes the legal anniversary since its first opening in 1882. shareholders of a newly set-up joint stock framework for the introduction of derivatives, At that time, the market was dominated by company. Also, as the new law required, the short selling and margin purchases. Some of stocks of companies from fields like banking, function of clearing and settlement was the targets for 2008 are: oil, mining, insurance and transport. In 1935 externalized. The new Central Securities • Implementing short selling, margin there were 56 shares listed and 77 fixed Depository was set up at the beginning of purchases and securities borrowing, income securities. After a peak in 1938, the 2007. • Listing new instruments like government Exchange was closed in 1948, when the securities, warrants, ETFs, mortgage-backed communist regime nationalized all public FUTURE OUTLOOK securities, companies. • Implementing the “nominee” account, The BSE continued in 2007 its hard work in • Listing of the major utility companies, some In 1994, the Romanian Parliament passed the improving the market offering and the of them still state-owned (from transport and first capital market law, setting up the legal legislation in order to become a more communication fields: Romtelecom, “Henri framework for the creation of the new and accessible, transparent and fair market. The Coanda” International Airport etc), modern capital market. The National results were seen at the end of the year, • Listing of the “Property Fund”, a major fund Securities Commission, the BSE, brokerage when the market capitalization represented created to compensate the damages of the companies, and the National Association of almost 34% of GDP and an increase of 60% nationalization process, the Brokerage Houses have been set up compared to 2005 (and 14% versus 2006). • Building the technical connections with based on the provisions of this law. other market operators in Europe; and It could also be noticed as the liquidity • Playing a more active role in the region. The BSE was re-established in April 1995, increased in the market; the value of the daily and the first trading day took place on turnover almost doubled as compared to November 20th. The entire trading process 2005 (EUR 16 million versus EUR 8.7 million took place from the beginning in a in 2005) and an increase of 40% as dematerialized environment. The most recent compared to 2006. We also expect that the law, Capital Market Law 297/2004, upward trend will continue in 2008, and hope harmonizes the local legislation with the latest that the liquidity will reach EUR 80-100 million EU Directives regarding capital markets. in 2010. Hence, we expect that 2008 will see a twofold increase in daily turnover. Institutional changes took place also during the 11 years of operation. Set up in the beginning as a public interest institution, the

PAGE 58 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BUCHAREST STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 687.1203 32.7200 2,294.0800 109.2421 Aug-07 519.8322 22.6014 1,521.6200 66.1576 Sep-07 300.8982 15.0449 755.6018 37.7801 Oct-07 434.2940 20.6807 1,031.1900 49.1041 Nov-07 459.1058 20.8684 1,319.6200 59.9829 Dec-07 355.0420 23.6695 633.6682 42.2445 TOTAL 2,756.29 22.60 7,555.79 60.75

Bonds Jul-07 3.0343 0.1445 0.0236 0.0011 Aug-07 1.3677 1.3677 0.0250 0.0250 Sep-07 0.0053 0.0027 0.0001 0.0001 Oct-07 10.7052 10.7052 0.0299 0.0299 Nov-07 2.7857 0.4643 0.0230 0.0038 Dec-07 134.3552 14.9284 3.0941 0.3438 TOTAL 152.25 4.60 3.20 0.07

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.1300 0.0 0.0 0.0 Oct-07 0.0541 0.0541 0.0 0.0 Nov-07 0.0160 0.0032 0.0 0.0 Dec-07 0.0016 0.0016 0.0 0.0 TOTAL 0.20 0.06 0.0 0.0

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 37,848.38 3,138.60 700 3,500 40,000 Aug-07 38,612.74 3,236.74 35,000 Sep-07 36,859.58 3,072.87 600 3,000 30,000 Oct-07 37,151.03 3,252.26 500 2,500 25,000 Nov-07 33,767.91 2,834.81 400 2,000 Dec-07 35,326.04 3,047.87 20,000 300 1,500 15,000 200 1,000 10,000 100 500 5,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. Adriana Tanasoiu E-mail [email protected] Website www.bvb.ro

PAGE 59 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BUCHAREST STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance A further rise above 14% of GDP is forecast Bitter inter- and intra-party feuding has Real GDP growth expectations in 2007 went in 2008, when the balance of payments will recommenced since parliament returned in down from 6.2% to 6%, following the release feel the full impact of the government's fiscal September and the opposition Social of first-half GDP data showing that growth policy loosening of 2006-08, before a more Democratic Party (SDP) decided to proceed slowed to 5.6% year on year in the second prudent fiscal stance leads to a small with a vote of no confidence against the quarter from 6% in the first. First-half real reduction in the deficit in 2009. Financing the government on October 3rd. Although the GDP growth of 5.8% year on year implies external deficit has not been a problem so no-confidence motion failed, the minority that activity will have to accelerate to 6.2% in far, as foreign-exchange reserves have been government–led by the Prime Minister, Calin the second half to reach the full-year growing rapidly and FDI inflows have been Popescu Tariceanu, and comprising the estimate of 6%. A further, moderate growth large. However, FDI inflows fell by 13% year National Liberal Party (NLP) and the slowdown to an average annual rate of 5.3% on year in January-July 2007 and covered Hungarian Democratic Union in Romania is forecast in 2008-09. Strong domestic just 39% of the seven-month current-account (HDUR)– will remain under pressure to make demand growth is expected to persist into deficit, compared with almost 90% of the full- concessions to the SDP in return for the 2008, driven by political concerns as well as year 2006 deficit, and an even sharper fall is latter's support in parliament. The a pro-cyclical fiscal policy, rapid real wage anticipated in 2008-09. As privatization government is expected to serve out its term growth, surging credit expansion and rising receipts decline markedly, Romania will have until the parliamentary election scheduled for employment. Government spending will to attract substantially higher inflows of late 2008, but its weak parliamentary position continue to be expansive in 2008, as the Greenfield investment in order to avoid will mean that reforms are stymied. Another approach of the next parliamentary election becoming overly dependent on debt-creating coalition government is likely after 2008, in 2008 will probably delay any significant instruments to finance its current-account probably led by the DP. tightening of fiscal or wages policies. These deficit.* two factors will sustain rapid growth of Both the EU and the World Bank have been private consumption and investment activity * The Economic Intelligence Unit Ltd., October 2007. critical of the slow pace of judicial reform in 2008, although demand growth will slow and measures to counter corruption since significantly in 2009 once the election is out Romania became an EU member in January of the way. 2007. Average inflation may rise slightly in 2008-09, Partly because of the government's minority but is forecast to decline to 3.7% by status, and partly because of a general December 2009. The merchandise trade "reform fatigue" following the intensive efforts deficit increased by 74% year on year in euro required to prepare for EU membership, the terms in January-July 2007, to EUR 9.35 momentum for reform in Romania has billion (US$ 12.5 billion). The seven-month slowed. Furthermore, macroeconomic current-account deficit, at EUR 8.96 billion, stability and growth are threatened by the was almost double the level of a year earlier. authorities' failure to address the risks posed Following a rise to the equivalent of 10.5% of by an overheating economy and the GDP in 2006, the current-account deficit is burgeoning current-account deficit forecast to exceed 13% of GDP in 2007.

Key Information Contacts National Securities Commission www.cnvmr.ro Ministry of Public Finance www.mfinante.ro National Bank of Romania www.bnro.ro UNOPC www.unopc.ro National Institute of Statistics www.insse.ro Romanian capital market www.kmarket.ro

2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Agriculture & forestry Private consumption Public consumption Gross fixed investment Change in stocks Exports of goods & services Imports of goods & services

78.8 56.0 34.9 80 60

40 32.4 24.2 20 9.1 0.5 0 9.1 -20 -40 -44.5 -60

PAGE 60 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BUCHAREST STOCK EXCHANGE

ROMANIA ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (Lei billions) 197.6 246.5 288.0 342.4 395.8 GDP (US$ billions) 59.5 75.5 98.9 121.9 161.5 Real GDP growth (%) 5.2 8.4 4.1 7.7 6.0 Consumer price inflation (av; %) 15.3 11.9 9.0 6.6 4.6 Population (millions) 21.7 21.7 21.6 21.6 21.6 Exports of goods (FOB) (US$ millions) 17,618 23,485 27,730 32,336 39,617 Imports of goods (FOB) (US$ millions) -22,155 -30,150 -37,348 -47,172 -63,155 Current-account balance (US$ millions) -3,456 -6,382 -8,556 -12,839 -20,952 Foreign-exchange reserves excl gold (US$ millions) 8,040 14,616 19,872 28,066 34,556 Total external debt (US$ billions) 22.6 30.1 38.7 60.2 (b) 85.9 Debt-service ratio, paid (%) 16.9 17.1 20.1 20.1 (b) 22.4 Exchange rate (av) Lei:US$ (c) 3.32 3.26 2.91 2.81 2.45 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The redenomination of the Romanian leu on July 1st 2005 entailed the dropping of four zeroes: one new leu (RON) = 10,000 old lei (ROL).

ECONOMIC FORECAST SUMMARY 2007 2008 2009 2010 2011 2012

Real GDP growth (%) 6.0 5.5 5.0 4.8 4.0 3.3 Consumer price inflation (av; %) 4.6 4.8 4.0 3.3 3.0 2.6 General government budget balance (% of GDP) -2.4 -3.1 -3.1 -2.3 -1.8 -1.6 Current-account balance (% of GDP) -13.0 -14.6 -14.0 -12.7 -12.0 -11.3 Commercial bank lending rate (end-period; %) 15.0 12.6 11.0 9.0 8.0 7.0 Exchange rate Lei:US$ (av) 2.45 2.40 2.50 2.55 2.57 2.58 Exchange rate Lei:[euro] (av) 3.34 3.47 3.32 3.26 3.24 3.23

2006-PRINCIPAL EXPORTS (FOB) (%) 2006-PRINCIPAL IMPORTS (CIF) (%)

Machinery & transport equipment Textiles & products Machinery & transport equipment Textiles, clothing & footwear Base metals & products Minerals & fuels Other Minerals fuels, lubricants, etc Chemicals, plastics & rubber Other

16.2 14.9 24.4 15.1

20.4 8.3

10.5 7.7

37.8 44.7

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy Germany Germany Italy France EU27 China EU27

17.9 15.2 15.7 14.6

7.5 7.9

67.7 62.3

The Economic Intelligence Unit Ltd., October 2007

PAGE 61 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BULGARIAN STOCK EXCHANGE In 2007, the BSE registered a 90% increase in its market capitalization.

Bistra Ilkova CEO

The Bulgarian Stock Exchange (BSE) We have fixed our priorities for 2008 as to in this direction was the signing of an achieved significant results in 2007 and there increase the number of listings, to propose agreement between the BSE and Deutsche are good reasons to believe that 2008 will new services and products and to introduce Boerse, according to which our current also be beneficial to all participants on the technological innovations. As of today, 50-60 trading platform will be replaced by the local capital market. Last year we registered private companies have declared their German system XETRA. This will give a lot a 90% increase in the market capitalization of intention to finance their business projects more opportunities to the Bulgarian investors our exchange, which accounts for more than through the capital market. This proves that and brokers to gain access to the developed 50% of the GDP. The turnover in 2007 went the Bulgarian stock market has gained a lot European markets and vice-versa; foreign up 193%. Our official index SOFIX grew by of popularity and is seen as a real alternative investors will have a better chance to invest 45% in one year. The total amount of money to bank lending, which was not the case 2-3 in Bulgarian stocks. that was raised through the stock years ago. market–IPOs, secondary listings, increase of In 2008, we will continue our efforts to capital and bond issues–reached a record With Bulgaria’s entry into the European develop regional cooperation on a bilateral EUR 750 million. Union on 1 January 2007 our Exchange is and multilateral level. We believe FEAS plays getting more and more involved in the a very important role in this respect and has Although we are very pleased with these process of integration and consolidation of done a lot for the promotion of our capital results, we see new challenges in front of us. the capital markets in Europe. A major step markets on a global scale.

HISTORY AND DEVELOPMENT The Securities & Stock Exchange Commission Through the popularization of the stock was first renamed the National Securities market we observe an increasing number of The first Stock Exchange Act was adopted in Commission, but in March 2003 it was smaller players investing on the stock market. 1907 and regulated the structure and replaced by a new supervisory body–the We hope that this trend will continue in 2008 operations of stock and commodities Financial Supervision Commission (FSC). with the aim of increasing the liquidity. Thanks exchanges. The Securities, Stock Exchanges More than just a name change, the move to our COBOS online trading system the & Investment Intermediaries Act was adopted pulled together the regulation of a number of number of individual investors that trade from in July 1995, which led to a process of stock financial (non-banking) sectors under one their homes have increased drastically. exchange consolidation. In July 1997, the body. The regulatory changes during the year present Bulgarian Stock Exchange-Sofia was directly improved conditions for investors One of the major changes in the development established. In accordance with the and issuers, as well as underlined the of the BSE in 2008 will be the connection to requirements of the new law, a Securities & government’s commitment to encourage Deutsche Boerse’s XETRA trading platform. Stock Exchange Commission was set up. wider overall development of the capital The aim is to start the system by June of next markets. year. This will bring new benefits for the local On 9 October 1997 the Commission officially traders, but will also give the foreign players licensed the BSE-Sofia. The first trading FUTURE OUTLOOK access to the Bulgarian capital market. It is session on the regulated market took place expected that the BSE’s partnership with on 21 October 1997. By the end of 1999 there The priorities for the BSE in 2008 will be to Deutsche Boerse will increase the visibility were 32 companies listed on the Official attract new listings, increase the liquidity, and the interest towards our market. Market and about 1,000 companies admitted introduce new products and technological for trading on the Free (OTC) Market as a innovations. result of the mass privatization program. On 6 December 2001 the Commission officially As a result of the BSE’s efforts to popularize licensed the BSE-Sofia to organize an the stock market among as many local private Unofficial Market, which replaced the Free companies as possible, including the help Market and set clear rules for the regulation of of road-shows and regional roundtable all companies traded on the Exchange. discussions, about 60 medium and large sized companies have publicly declared their In December 1999 a new Public Offering of intention to raise capital and finance their Securities Act was adopted by the Parliament. future projects through the Exchange. In 2007 The law is aimed at providing protection for we had a record number of IPO’s and we investors and creating prerequisites for the expect next year to reach even higher development of a transparent capital market number. in Bulgaria with criteria similar to those of the European Union.

PAGE 62 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BULGARIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 340.3916 15.4723 49.7328 2.2606 Aug-07 2,571.0600 111.7853 294.4125 12.8005 Sep-07 207.4718 10.9196 35.4395 1.8652 Oct-07 332.4896 14.4561 46.2650 2.0115 Nov-07 292.8403 13.3109 36.8593 1.6754 Dec-07 1,037.4800 64.8425 136.2061 8.5129 TOTAL 4,781.74 38.46 598.92 4.85

Bonds Jul-07 42.8186 1.9463 0.0513 0.0023 Aug-07 18.0649 0.7854 0.0181 0.0008 Sep-07 8.6122 0.4533 0.0061 0.0003 Oct-07 16.4917 0.7170 0.0153 0.0007 Nov-07 71.3578 3.2435 0.0521 0.0024 Dec-07 7.7271 0.4829 0.0065 0.0004 TOTAL 165.07 1.27 0.15 0.0012

Other Jul-07 1.8670 0.0849 5.4115 0.2460 Aug-07 3.6509 0.1587 9.3932 0.4084 Sep-07 21.9739 1.1565 50.5140 2.6586 Oct-07 4.1450 0.1802 10.6986 0.4652 Nov-07 21.6988 0.9863 17.5712 0.7987 Dec-07 3.0008 0.1876 7.5960 0.4747 TOTAL 56.34 0.46 101.18 0.84

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 15,847.73 1,569.70 3,000 2,000 25,000 Aug-07 17,114.76 1,606.46 Sep-07 20,210.88 1,849.69 2,500 1,600 20,000 Oct-07 21,454.68 1,934.45 2,000 Nov-07 21,025.98 1,764.49 1,200 15,000 Dec-07 21,266.33 1,767.88 1,500 800 10,000 1,000

500 400 5,000

0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Panteley Karassimeonov E-mail [email protected] Website www.bse-sofia.bg

PAGE 63 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BULGARIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment If this should prove politically impossible and In 2006 exports of goods amounted to US$ Bulgaria joined the EU in January 2007, but the the current-account deficit increases further, 15.1 billion and imports of goods to US$ 21.9 European Commission is taking a tough line by doubts could arise about the sustainability of billion. The current-account deficit was US$ 5 monitoring Bulgaria's progress in reforming the the currency board. billion (15.9% of GDP) in 2006, even higher judiciary and fighting corruption under a post- than the US$ 3.3 billion (12.4% of GDP) deficit accession "benchmarking" procedure. Although Although the intensity of preparations for EU recorded in 2007. available safeguard provisions have not been membership helped to preserve unity within the invoked so far, there is an increasing risk that ruling coalition, there are stronger signs of With fiscal accounts for January-August the EU could withhold potential funding to internal division now that EU entry has been showing a strong surplus, expected that the Bulgaria unless judicial reform and anti- secured. government is likely to exceed comfortably its corruption policy show greater improvements. IMF-agreed budget surplus target of 2% of Economic Performance GDP in 2007. The government, formed by the Bulgarian Growth in domestic demand will ease over the Socialist Party (BSP), the National Movement forecast period. This, together with the strength Persistent inflation and capacity constraints will for Stability and Progress (NMSP, formerly the of the Euro, will cause real GDP growth to slow probably keep inflation too high in 2008-09 to Simeon II National Movement) and the mainly from 6.2% in 2007 to an annual average of allow Bulgaria to join the Euro zone until 2012.* ethnic Turkish Movement for Rights and almost 6% in 2008-09. Real GDP growth is Freedoms (MRF), has held together mainly forecast to slow to just below 5% by the end of * The Economic Intelligence Unit Ltd., October 2007 because of pressure from the EU to maintain the forecast period, as Bulgaria's poor the pace of reform in order to qualify for EU demographic situation prevents faster membership. The lack of policy cohesion economic expansion. between the BSP and the NMSP, other than on EU issues, raises the prospect of an early Increases in excise duties pushed up prices in parliamentary election (the government's four- 2006, and high food prices in the second half year term in office expires in mid-2009). of 2007 should also keep average inflation There is little scope for discretionary monetary high, although it is likely moderate to 4.2% by policy under the currency board. Excessive 2009, as disinflationary momentum builds. growth in domestic demand is the main Bulgaria will not probably adopt the Euro earlier economic risk. The BSP's desire to avoid a than 2012. The current-account deficit is repeat of the 1996-97 economic crises should expected to rise to 18% of GDP in 2007. It is ensure that fiscal policy remains cautious, forecast to decline from 2008, as more although the size of the budget surplus is set moderate growth in domestic demand and to fall. However, if domestic demand were to lower oil prices lead to a slowdown in import grow more strongly than expected, an even growth. more restrictive fiscal policy might be required.

Key Information Contacts Financial Supervision Commission www.fsc.bg Central Depository www.csd-bg.bg Bulgarian National Bank www.bnb.bg Invest Bulgaria Agency www.investbg.government.bg National Statistical Institute www.nsi.bg

2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Agriculture & forestry Private consumption Public consumption Gross fixed investment Change in stocks Exports of goods & services Imports of goods & services

8.5 90 83.0 80 77.2 60.0 31.5 70 64.0 60 50 40 30 26.2 20 9.4 10 5.7 0

PAGE 64 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

BULGARIAN STOCK EXCHANGE

BULGARIA ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (a)

GDP at market prices (Lv billions) 34.5 38.3 41.9 49.1 57.1 GDP (US$ millions) 19,974.3 24,331.3 26,718.6 31,516.7 39,607.8 Real GDP growth (%) 5.0 6.6 6.2 6.1 6.3 Consumer price inflation (av; %) (c) 2.3 6.1 5.0 7.3 7.4 Population (millions) 7.8 7.7 7.7 7.6 (b) 7.6 Exports of goods (FOB) (US$ millions) 7,081.4 9,931.2 11,776.4 15,064.1 19,709.4 Imports of goods (FOB) (US$ millions) 9,657.3 13,619.1 17,267.2 21,873.5 28,779.2 Current-account balance (US$ millions) -1,022.2 -1,671.1 -3,304.7 -5,009.8 -7,272.6 Foreign-exchange reserves excl gold (US$ millions) 6,291.0 8,776.0 8,040.5 10,965.0 12,949.9 Total external debt (US$ billions) 13.0 15.0 16.8 26.1 (b) 33.9 Debt-service ratio, paid (%) 9.8 14.0 30.8 16.8 (b) 19.1 Exchange rate (av) Lv:US$ 1.730 1.573 1.570 1.558 1.442 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) Non-seasonally adjusted.

ECONOMIC FORECAST SUMMARY 2007 2008 2009 2010 2011 2012

Real GDP growth (%) 6.2 6.1 5.6 5.7 5.5 4.7 Consumer price inflation (av; %) 7.8 6.2 4.2 3.5 2.5 2.4 Budget balance (% of GDP) 3.6 3.3 2.8 2.6 2.3 2.2 Current-account balance (% of GDP) -18.0 -16.3 -16.9 -14.1 -11.9 -9.6 Short-term central interest rate (av; %) 3.8 4.0 4.0 4.0 4.0 4.0 Exchange rate Lv:US$ (av) 1.44 1.35 1.47 1.53 1.55 1.56 Exchange rate Lv:[euro] (av) 1.96 1.96 1.96 1.96 1.96 1.96

2006-PRINCIPAL EXPORTS (FOB) 2006-PRINCIPAL IMPORTS (CIF)

(US$ millions) (US$ millions)

Other metals 2,178 Crude oil & natural gas 4,078 Clothing & footwear 2,060 Machinery & equipment 2,080 Iron & steel 1,132 Textiles 1,806 Chemicals, plastics & rubber 790 Chemicals, plastics & rubber 1,489

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Turkey Italy Germany Germany Russia Greece Other Italy Turkey Other

10.1 9.9 12.5 17.4 8.8 10.8 8.1 6.1

61.1 55.2

PAGE 65 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CAIRO & ALEXANDRIA STOCK EXCHANGES The CASE is on the right path to achieve its vision of being a world-class Egypt-based Exchange: the premier capital market in the Middle East & North Africa Region.

Maged Shawky Sourial Chairman

The Cairo and Alexandria Stock Exchanges investment decisions, by tracking the different Additionally, the CASE has finalized the rules (CASE) was able to maintain a robust sectors of the Egyptian market. governing the Exchange Traded Funds (ETFs) performance during the second half of 2007, and is contemplating the issuance of the first with the CASE 30 index surging 35% and Furthermore, we have added to our leadership ETF on its CASE 30 index. breaking through the 10,000 points threshold in technology by choosing the OMX Group, to for the first time since inception. This has deliver our Next Generation Trading system, From a global standpoint, the CASE continues reflected well on the market activity and depth, which is expected to be implemented in the to reinforce its international ties and whereby the CASE was able to secure an first half of 2008. The new system will provide strengthening its role in the region. During average daily trading value of LE 1.5 billion, the CASE with an updated trading platform that 2007, the CASE hosted the first round table executed over 50 thousand transactions (up deals in cash and derivative markets, meeting of the Chief Executives of Stock from 30 thousand a year ago), together with a facilitating the introduction of new products Exchanges in the COMESA region, signed two market capitalization approaching the LE 800 such as structured products, futures, options MOUs with Shanghai Stock Exchange and billion (US$ 140 billion), representing around etc. Korea Stock Exchange. The CASE was also re- 105% of Egypt's GDP. elected for a second consecutive term as the Being a regional leader, the CASE has President of the African Securities Exchanges In its continuous efforts to upgrade its services launched its new market for medium and small Association (ASEA) and is still the only Arab to market participants as well as harmonize enterprises (NILEX), which is the first mid and Exchange that is a member of the World with international standards, the CASE has small cap market in the MENA region providing Federation of Exchanges. reclassified all listed companies into 17 new medium and small companies with a long term sectors, based on the companies' economic access to capital, that helps them grow their With these constant developments in the activities and main business revenues, instead businesses and increase their competitiveness market place, I trust the CASE is on the right of the previous 22 sectors. In parallel, the as well as raise their contribution to the path to achieve its vision of being a world-class CASE has launched its twelve sector indices, economic growth. Egypt-based Exchange: the premier capital which helped investors make better-informed market in the Middle East & North Africa Region.

HISTORY AND DEVELOPMENT serve as the main gateway for investments in the trading platform that deals in cash and derivative MENA region and to be on par with international markets. The new system is expected to be The Egyptian Stock Exchange is comprised of two standards. implemented in the first half of 2008. exchanges: the Cairo and the Alexandria Stock Exchanges (CASE), which are managed by the The second half of 2007 followed the success Additionally, the rules of Exchange Traded Funds same Chairman and Board of Directors sharing steps of the first half adding to the achievements (ETFs) were finalized and introduced to the market. the same trading, clearing and settlement of the whole year, where the CASE has reclassified the CASE is contemplating the issuance of the first systems. The Alexandria Stock Exchange was all listed companies into 17 new sectors, based on ETF on its the CASE30 index. officially established in 1888 followed by Cairo in the companies' economic activities and main 1903 with 97 listed companies. The two business revenues, instead of the previous 22 On the regional front, the Chairman of the CASE Exchanges were outperforming throughout the sectors. In parallel, the CASE has launched its was re-elected for a second consecutive term as 1940s and 1950s, when the Egyptian Stock twelve sector indices, which helped investors make the President of the African Securities Exchanges Exchange ranked fifth in the world. Nevertheless, better-informed investment decisions, by tracking Association (ASEA). Moreover, the CASE had the socialist regime and the nationalization policy the different sectors of the Egyptian market. hosted the first round table meeting of the Chief adopted by the government in the early 1960s, Executives of Stock Exchanges in the COMESA have diminished the role of Egypt’s private sector Enhancing corporate governance practices in the region. and likewise the activities of the Exchanges, which Egyptian market was always on top of the agenda, remained dormant for 3 decades. whereby new corporate governance rules have The second half of 2007 has also witnessed some been formulated for non-listed brokerage firms, achievements on the international frontier, whereby In consistency with Egypt’s new era of economic aiming at enhancing their efficiency and lowering the CASE has signed two MOUs with both; reform undertaken in 1991, the role of the CASE the trading risk. New listing rules were also Shanghai Stock Exchange and Korea Stock was re-activated in 1992, with 656 listed finalized including a separate chapter about Exchange. companies on the trading system that was corporate governance for listed companies. automated in 1994 linking both Exchanges. These developments are expected to promote the A number of IPOs of the state-owned companies In October 2007, the CASE has established the activity of the Egyptian market, which has been were executed under the umbrella of the first SMEs Exchange in the Region. The new perceived as one of the most developed emerging privatization program that had started in the same market for medium and small enterprises (NILEX) markets during the past 3 years. year leading to another push in the revival of the offers an appropriate, secure, yet flexible Egyptian Stock Market. regulatory framework, for both companies & FUTURE OUTLOOK investors, together with a streamlined admission Starting 1997, as the importance of the CASE was process. • Continuous development of the regulatory assured–as a proper regulated platform for infrastructure to increase the quality of services companies to raise capital and for investors to NILEX provides medium and small fast growing and to ensure investor protection. share in companies’ profits–the number of issued businesses, including family-owned businesses, • CASE, in collaboration with MCDR, will shortly from any country and any industry sector, a clear and listed shares kept on increasing, which implement a Securities Lending and Borrowing access to capital and the benefits of being traded. attracted both retail and institutional investors to System. the market, leading to higher trading activities. Capitalizing on the CASE leadership in technology, • The launching of a number of new markets, such During 2007, the Egyptian government gave as markets for Derivatives, Short Selling and ETFs. special attention to the development and OMX Group was chosen to deliver our Next modernization of the Egyptian capital market to Generation Trading system providing an updated

PAGE 66 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CAIRO & ALEXANDRIA STOCK EXCHANGES

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 3,855.39 183.5899 775.01730 36.9056 Aug-07 4,064.34 184.7429 1,126.4300 51.2014 Sep-07 4,525.74 215.5116 817.8394 38.9447 Oct-07 7,274.16 363.7081 1,040.4000 52.0202 Nov-07 6,813.34 324.4446 1,682.6600 80.1267 Dec-07 4,931.14 259.5335 1,031.2500 54.2764 TOTAL 31,464.11 255.26 6,473.60 52.25

Bonds Jul-07 319.1078 15.1956 1.8225 0.0868 Aug-07 519.2978 23.6044 2.7828 0.1265 Sep-07 697.3752 33.2083 3.7009 0.1762 Oct-07 167.1755 8.3588 0.9451 0.0473 Nov-07 160.2874 7.6327 0.8493 0.0404 Dec-07 50.9949 2.6839 0.2589 0.0136 TOTAL 1,914.24 15.11 10.36 0.08

Other Jul-07 352.7285 16.7966 110.8085 5.2766 Aug-07 166.4031 7.5638 121.7888 5.5359 Sep-07 574.9256 27.3774 325.1982 15.4856 Oct-07 472.1263 23.6063 114.2333 5.7117 Nov-07 2,722.3100 129.6338 1,182.9100 56.3292 Dec-07 7,689.9800 404.7359 766.9386 40.3652 TOTAL 11,978.48 101.62 2,621.88 21.45

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 109,852.73 8,244.25 8,000 12,000 140,000 Aug-07 108,581.15 7,748.97 7,000 120,000 Sep-07 115,048.25 8,687.82 10,000 Oct-07 126,592.31 9,390.86 6,000 100,000 8,000 5,000 Nov-07 131,841.28 9,721.68 80,000 Dec-07 139,194.85 10,549.74 4,000 6,000 60,000 3,000 4,000 40,000 2,000 2,000 1,000 20,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. Nevine Mansour E-mail [email protected] Website www.egyptse.com

PAGE 67 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CAIRO & ALEXANDRIA STOCK EXCHANGES

ECONOMIC AND POLITICAL DEVELOPMENTS

Within the framework of the economic and As a result, IMF commended Egypt's sound Moreover, foreign reserves surpassed political reform program undertaken by the macroeconomic management and bold US$ 31 billion at the end of November 2007 government since 2004, the Egyptian economic reforms which increased market (the highest-ever), resulting in strengthening economy has continued its acceleration during confidence, boosted investments and helped the local currency position and maintaining the the first quarter of FY 2007/2008 realizing a to sustain high economic growth. exchange rate of LE 5.5/US$. real GDP growth rate of 6.85%, compared to a target growth rate of 8% during the next five- On the monetary front, the Central Bank of In this respect, Fitch Ratings raised Egypt's year plan ending in 2012. Egypt has reported a remarkable increase in foreign currency rating from stable to positive, its total deposits and loans during Q1 of FY affirming a "BB+" foreign currency rating and a Meanwhile, the inflation rate recorded 8.6% 2007/2008 despite the bank’s policy of "BBB" local currency rating, with a stable during Q1 of FY 2007/2008 down from 10.1% reducing the interest rates. The total deposits outlook. In addition, Fitch assigned a "B" short during the same period of last year, and held at the CBE during September 2007 rose term foreign currency rating, maintaining a retreated further more to reach 6.9% in to reach LE 676.5 billion (US$ 121 billion); an country ceiling rating of "BB+".* November 2007. Likewise, the unemployment increase of 14.5% compared to the same rate went down to reach 9% in November quarter of last FY. While, total loans surged by * Information provided by the Cairo and Alexandria Stock 2007 as opposed to 9.5% same month last 10.5% reaching LE 362.5 billion (US$ 64 Exchanges. year. billion) during Q1, of which the private sector occupied the largest share. Foreign investments inflows to Egypt have reached an amount of US$ 13.1 billion over Q1 of the FY 2007/2008.

Key Information Contacts Ministry of Finance www.mof.gov.eg Ministry of Investment www.investment.gov.eg Central Bank of Egypt www.cbe.org.eg Capital Market Authority www.cma.gov.eg Misr for Clearing, Depository and Central Registry www.mcsd.com.eg SMEs Market (NILEX) http://nilex.egyptse.com/ar

2005/06-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2005/06-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Manufacturing Mining (incl. oil & gas) Agriculture Other Private consumption Government consumption Gross fixed investment Trade General government Transportation & communications Exports of goods & services Imports of goods & services Changes in stocks

14.1 80 71.4 15.5 60 10.9 40 31.3 17.0 18.7 20 12.3 9.8 0

4.2 -20

28.5 -40 -33.7

PAGE 68 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CAIRO & ALEXANDRIA STOCK EXCHANGES

EGYPT ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (E£ billions) 378.9 417.5 485.3 538.5 617.7 GDP (US$ billions) (b) 84.2 71.5 78.3 93.2 107.9 Real GDP growth (%) 3.0(c) 3.2 4.1 4.5 6.8 Consumer price inflation (av; %) 2.7 4.5 11.3 4.9 7.7 Population (millions) 69.0 70.3 71.6 72.9 74.2 Exports of goods (FOB) (US$ millions) 7,250 8,987 12,274 16,073 20,546 Imports of goods (FOB) (US$ millions) -14,709 -15,156 -21,586 -27,200 -33,104 Current-account balance (US$ millions) 849 3,723 3,237 2,207 2,731 Foreign-exchange reserves excl gold (US$ millions) 13,242 13,589 14,273 20,609 24,462 Total external debt (US$ billions) 30.0 31.4 30.3 34.1 31.2 (c) Debt-service ratio, paid (%) 10.3 11.7 7.8 6.8 10.0 (c) Exchange rate (av) E£:US$ 4.50 5.84 6.20 5.78 5.73

(a) Actual. (b) Fiscal year data ending June 30th. (c) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 7.0 7.3 6.4 5.8 5.4 5.3 Consumer price inflation (av; %) 8.8 6.5 5.2 4.7 4.4 4.2 Budget balance (% of GDP) -5.5 -7.3 -6.3 -5.7 -5.2 -4.8 Current-account balance (% of GDP) 2.3 2.3 2.6 3.0 3.1 3.0 Commercial banks' lending rate (av; %) 12.8 13.1 13.2 12.7 12.0 12.0 Exchange rate E£:US$ (av) 5.67 5.68 5.71 5.73 5.75 5.75

2005/06-PRINCIPAL EXPORTS (FOB) 2005/06-PRINCIPAL IMPORTS (CIF)

(US$ millions) (US$ millions)

Petroleum products (incl natural gas) 7,009 Intermediate (semi-processed) goods 8,416 Crude oil 3,214 Investment (capital) goods 7,888 Aluminum, iron & steel articles 603 Consumer goods 3,531 Ready-made clothes & cotton textiles 577 Crude oil 2,844 Aluminum, unalloyed 197 Non-durable goods 2,547

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy USA Spain USA China Germany UK Other Italy Other

12.2 21.8 11.4

8.6 8.2 5.6 6.4 62.2 60.3 3.3

The Economic Intelligence Unit Ltd., August 2007

PAGE 69 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

GEORGIAN STOCK EXCHANGE The year 2007 was a year of significant changes for the GSE that were mainly related to the essential amendments to securities market legislation in Georgia.

George Loladze Chairman of the Supervisory Board

The year 2007 was a year of significant worth mentioning that that there are very few central depository services (implementation of changes for the Georgian Stock Exchange really liquid securities in Georgia. remote trading, remote access to central (GSE). These changes were mainly related to depository, etc) we will attract new circles of essential amendments to securities market All the above-mentioned has significantly investors and soon see the next boom in GSE legislation in Georgia enacted at the end of reduced GSE turnover. However, we look with volumes. March 2007. Liberalized legislation effectively optimism into the future, since investors’ shifted much of security trading from the stock interest towards Georgian securities market, in 2008 is the year of Presidential and exchange and brokerage companies to the general, and GSE, in particular, is constantly Parliamentary elections in Georgia and we unregulated market. As for the stock exchange increasing. We hope that through the policy of hope that the post-election stability period will transactions–the main focus here was on aggressive reduction of tariffs and fees, bring further investor confidence to the market. several relatively attractive stocks, though it’s improving quality of the stock exchange and

HISTORY AND DEVELOPMENT RTS–as an excellent informational- FUTURE OUTLOOK communication system–was significantly 1. Significant changes will take place at the Equity securities first appeared in Georgia in modified to ensure those requirements outlined Georgian capital market in 2008. In particular, 1991 after the declaration of independence that under the GSE trading rules reflected the the Georgian legislation, GSE Charter and signaled the beginning of market-oriented peculiarities of Georgian securities market. Rules will be amended to ensure: reforms. A vast majority of the newly • Demutualization of the GSE; established joint-stock companies were owned Official trading at the GSE began in March • Direct participation of various financial by a rather small number of private 2000. The number of companies admitted for institutions in GSE trading; shareholders and trading in these shares was trading at the GSE trading system increased • Remote GSE membership (for foreign relatively inactive. With the launching of the gradually and by the end of 2004 reached 277. institutions); Mass Privatization Program in 1994, Practically all of these companies are former 2. Based on the significant interest of a leading approximately 1,300 state-owned enterprises state owned and operated companies European stock exchange operator, as well as were organized as joint-stock companies, transformed into joint-stock companies and of the various financial investors, significant creating about half a million individual private then privatized. The growing but still low trade changes in GSE ownership structure is shareholders. However, during a five-year volumes reflect the nascent stage of the anticipated, entailing, among other, attraction period (1994-1999), the lack of an appropriate Georgian capital market and the level of of required investments for further development legal framework and organized market development of the Georgian economy. of the GSE. infrastructure seriously impeded the secondary 3. Also, in 2008 the GSE plans to: trading of these shares and any over-the- In 2002, as a result of active cooperation with • Make important changes in its trading counter market activity was nearly nonexistent. the National Securities Commission and the system and trading rules so as to increase the Ministry of State Property Management, the efficiency of trading and increase the liquidity The GSE was founded in 1999 by a group of Special Privatization Auctions commenced at of the market: Georgian securities market professionals, the GSE. In 2003 the GSE started trading • Intensify the trading process. In particular, leading banks, investment and insurance government securities. the trading sessions will be conducted on daily companies. Today it is the only organized basis and/or time period of the trading securities market in Georgia. Designed and 2004, was a landmark year for the GSE, due to sessions will be extended; established with the assistance of the United the unprecedented increase in basic trading • Further improve remote trading system for States Agency for International Development figures compared with previous years, brokerage companies; (USAID) and operating within the legal reflecting the overall revitalization of the • Establish electronic links between securities framework of corporate and securities laws economy in the wake of the “Rose Revolution” market participants (stock exchange, central drafted with the assistance of American and of 2003. depository, brokerage companies, banks, German experts, the GSE can assert that it is securities registrars) designed and operated to comply with “global In the end of November, 2006 Bank of Georgia • Increase the efficiency of the government best practices” and offers an attractive (GSE:BOG), the company listed at the GSE securities trading on the stock exchange; investment environment to foreign investors. since 2001, concluded a successful IPO at the • Introduce partially guaranteed trading of London Stock Exchange Main Market and securities; To promote the concept of self-regulation, the through issuance of GDRs raised circa US$ • Introduce price quotation both in local and GSE membership adopted new rules. After 160 million. The bank is the first Georgian foreign currencies. approval of these rules by the National company ever and the second bank from the • Launch a new web-site for the GSE, which Securities Commission of Georgia, the GSE CIS since 1999 listed on the London Stock along with traditional statistics will provide was officially recognized as a self-regulatory Exchange. corporate reports database for the companies organization (SRO) and received a stock who are admitted to the trading system. In exchange license in January 2000. In 2007 the remote trading system was addition, the creation and publication of a implemented at the GSE and number of company database will allow companies to The GSE utilizes an automated trading facility. brokerage companies started remote trading publish their annual, semi-annual and current Thousands of securities can be traded by its operations from their offices via internet and reports which are required by law and thus members from the workstations at the GSE VPN technology. The number of trading days improve disclosure standards and corporate floor or remotely from their offices. The GSE increased from two to three days a week. transparency. adopted the platform employed by the Russian trading system (RTS) in Moscow. However,

PAGE 70 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

GEORGIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 0.9819 0.0491 0.3331 0.0167 Aug-07 0.0953 0.0068 1.0577 0.0755 Sep-07 3.2486 0.2707 2.4057 0.2005 Oct-07 8.5118 0.6080 7.4937 0.5353 Nov-07 2.2186 0.1849 2.7474 0.2290 Dec-07 3.9455 0.3288 4.2560 0.3547 TOTAL 19.00 0.24 18.29 0.24

Bonds Jul-07 0.0370 0.0019 0.0006 0.0 Aug-07 0.0001 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.04 0.0 0.0 0.0

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index

Jul-07 2,909.05 n/a 9 3,000 Aug-07 1,638.61 n/a 8 2,500 Sep-07 1,642.49 n/a 7 Oct-07 1,637.57 n/a 6 2,000 Nov-07 1,423.53 n/a 5 Dec-07 1,388.61 n/a 1,500 4 3 1,000 2 500 1 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mrs. Ekaterine Katamadze E-mail [email protected] Website www.gse.ge

PAGE 71 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

GEORGIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Political and Economic Background agricultural production, including a range of The Georgian economy is expected to have Georgia is a lower middle income country with fruits and vegetables, livestock, dairy products, weathered the impact of the blockade imposed a population of approximately four and a half nuts, and tea. The country has a long history of by Russia in 2006 relatively well, as very large million people and a gross national income per viticulture, and some 500 varieties of grapes are inflows of foreign direct investment (FDI) have capita of US$ 1,764 in 2006 (GNI, Atlas cultivated. Recent investments in oil exploration largely offset the shutting down of Georgia's method). During Soviet times, Georgia exported have indicated significant oil and gas potential. main export market, and are expected to agricultural and energy-intensive industrial Other physical resources include manganese, underpin the economy again in 2007. Some products to the Soviet Union and was a popular iron, coal, copper, gold, granite, limestone, indicators raise the spectra of overheating, tourist destination for the region. After marble, and mineral waters. Dense forests although the banking system looks sufficiently independence in 1991, the economy collapsed cover one third of the country, and numerous well regulated to weather such a risk. During due to civil war and the loss of both the fast-flowing rivers offer good hydropower the last years, interest of large foreign banks preferential access to former Soviet Union potential. toward Georgian banking market increased markets and large budget transfers from significantly. In 2006 the share of foreign Moscow. Output fell by 70% and exports by In November 2003, many Georgians took part investments in the total capital of commercial 90%, the worst decline suffered by any in a peaceful and democratic uprising known as banks equaled 58% (10 out of 17 commercial transition economy. the "Rose Revolution," spurred by rampant banks have foreign investors). corruption and a failing state. The new The conflicts in Abkhazia and South Ossetia, government under leadership of President The construction of an oil pipeline from the regions within Georgia seeking independence, Saakashvili focused on restructuring power, Caspian Sea to a Black Sea terminal at Supsa took a significant toll, with about 300,000 uprooting corruption, stabilizing the economy, (in Georgia) is bringing in substantial foreign people displaced, much physical capital and bringing order to the budget. In the 3 years investment. Construction of two new pipelines destroyed, important trade routes disrupted, since, Georgia has made rapid strides in across Georgia increased its role as a strategic and the new government's authority in large fighting corruption, public sector reform and in crossroad for hydrocarbon transit in the segments of its territory undermined to this day. providing an enabling environment for private Caspian region. As for the industrial sector, it is In addition, the spillover from the conflict in sector development. less developed and mainly includes Chechnya has weakened Georgia's control of manufacturing of transport equipment, electric the Pankisi Gorge and surrounding territory, The president, Mikheil Saakashvili, will continue motors, iron & steel, airplanes, chemicals and where there has been rampant smuggling, to exercise his authority after extraordinary textiles. The industrial and mining sectors extortion, and kidnapping. Georgia's economy presidential elections won by minimum majority together contribute around 27% to the GDP. has been buffeted ever since by internal in January 2008, however, facing pressure from The most dynamic sector is the services fragmentation, droughts, and the 1998 financial the opposition gradually gaining the power. His industry (particularly hotels, restaurants, crisis in Russia. party is expected to win a majority at the transport and telecommunications) and parliamentary elections to be held in 2008, contributes more than 55% to the GDP. Georgia is resource rich. Its location on the "Silk though opposition will be represented Road" between Europe and Asia has made it a significantly in the parliament as well. In 2007 the Fitch Rating increased the transit conduit for goods being shipped through sovereign rating of Georgia to BB-. Fitch gave the Caucasus. Georgia's Black Sea coast, Building on these accomplishments, the this high rating to Georgia due to successful mountains, and rich cultural history offer strong government is now focusing on deeper structural reforms, reduction of corruption, high tourist potential. Other attributes include an institutional reform as well as more fundamental rate of economic growth, growth of direct and educated labor force, widespread land infrastructure improvements designed to pull foreign investments, reduction of foreign debt ownership, and a long tradition of Georgia into the 21st century through and strong support of international community. entrepreneurship. accelerated economic growth, substantial job It is worth noting that despite Russian embargo creation, and a full-scale assault on poverty and in 2006 and increased potential risk Georgia still Georgia has a natural resource base that offers corruption. This year Georgia was named the maintained B+ rating with S&P.* strong economic growth potential. Fertile land year's number one reformer in the World Bank's and a favorable climate enable diverse 2007 "Doing Business Survey”. *Information provided by the Georgian Stock Exchange.

Key Information Contacts Financial Monitoring Service of Georgia www.fms.gov.ge (under construction) National Bank of Georgia www.nbg.gov.ge Ministry of Finance of Georgia www.mof.ge Georgian Central Securities Depository www.gcsd.ge (under construction) Georgian Securities Industry Association www.gsia.ge (under construction) Georgian Corporate Directors Association www.gcda.ge

2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Private consumption Public consumption Agriculture Gross fixed investment Net exports of goods & services

80 78.4

22.8 60 65.9 40 26.7 20 15.4 11.3 0

-20 -24.2 -40

PAGE 72 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

GEORGIAN STOCK EXCHANGE

GEORGIA ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (Lari billions) 8.6 9.8 11.6 13.8 14.9 GDP (US$ billions) 4.0 5.1 6.4 7.7 8.8 Real GDP growth (%) 11.1 5.9 9.3 9.4 10.0 Consumer price inflation (av; %) 4.8 5.7 8.2 9.2 8.0 Population (millions) 4.6 4.5 4.5 4.5 4.4 Exports of goods (FOB) (US$ millions) 830.5 1,092.1 1,472.4 1,666.6 1,907.8 Imports of goods (FOB) (US$ millions) -1,468.7 -2,007.6 -2,686.3 -3,685.8 -4,725.0 Current-account balance (US$ millions) -382.5 -423.1 -751.9 -1,243.3 -1,582.1 Foreign-exchange reserves excl gold (US$ millions) 196.2 386.7 478.6 930.8 1,592.1 Exchange rate (av) Lari:US$ 2.15 1.92 1.81 1.78 1.70

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (b) 2008 (c) 2009 (c)

Real GDP growth 9.4 10.0 9.0 8.5 Consumer price inflation (av) 9.2 8.0 6.5 6.0 Lending rate (%) 18.8 19.5 18.0 17.5 Government balance (% of GDP) -2.8 -2.3 -2.0 -1.8 Exports of goods (FOB) (US$ billions) 1.7 1.9 2.3 2.6 Imports of goods (FOB) (US$ billions) -3.7 -4.7 -5.4 -6.0 Current-account balance (US$ billions) -1.2 -1.6 -1.5 -1.3 Current-account balance (% of GDP) -16.1 -18.1 -16.1 -12.7 Exchange rate Lari:US$ (av) 1.78 1.70 1.72 1.73 Exchange rate Lari:[euro] (av) 2.24 2.31 2.37 2.28 Exchange rate Lari:Rb (av) 0.07 0.07 0.07 -

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts.

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Ferro alloys, copper & gold Oil, gas Automotives Ferrous waste & scrap, iron & steel Nuts Other Pharmaceuticals Other

14.0 17.8 7.3 71.1 73.0 5.7 8.0

3.1

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Russia Turkey Azerbaijan Russia Turkey Azerbaijan Turkmenistan Armenia Other Ukraine Germany Other

9.3 14.2 12.6 7.6 15.3 9.5 7.2

6.3 8.7

43.6 57.0 8.7

The Economic Intelligence Unit Ltd., July 2006

PAGE 73 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

IRAQ STOCK EXCHANGE The total trading volume for the year of 2007 reached US$ 354 million with an increase of 250%.

Taha Ahmed Abdul Salam CEO

The Iraq Stock Exchange (ISX) introduced a During January and February 2007, the ISX The ISX has successfully joined FEAS, special index in October 2004 which closed in has organized a number of training courses in at its annual meeting in Shiraz on December 2004 at 64.996 points, December Amman/Jordan at the the IBM location 21 September 2005. Also, ISX has 2006 at 25.288 points, January 2007 at 25.903 including training courses for brokers and successfully joined the Union of Arab Stock points and December 2007 at 34.590 points. training courses for the IT staff and other ISX Exchange in June 2006. employees. These training courses include The ISX held approximately 116 sessions in automated trading in ISX and run TWS for the The most important event in 2007, the Iraqi 2007 compared with 92 sessions in 2006. brokers, after the signing of the agreement securities commission approved the trading The total trading volume for the year of 2007 between ISX and OMX to provide the market for non-Iraqi investors on the ISX since August reached US$ 354 million, an increase of 250% with electronic trading systems (Equator & 2007. The number of shares traded for non- when compared with 2006. The total traded Horizon Systems). Iraqis represents 7 billion shares and a trading shares in 2007 were 158,002 billion shares, an volume of US$ 14 million. increase of 177% when compared with the The ISX publishes monthly newspaper called year 2006. The total numbers of transactions the Capital Market. Published in Arabic, the The ISX is still a small market but we are doing reached in 2007 was 30 thousand. Capital Market covers all financial events on our best to transform it to meet or exceed the the ISX and at the listed companies. The ISX standards in the region. The number of listed companies in 2007 also publishes this information on the website increased to 94 compared with 93 companies www.isx-iq.net. in 2006.

HISTORY AND DEVELOPMENT ISX Goals FUTURE OUTLOOK 1. Organize, train, and educate its members History and listed companies in methods and In 2008, the ISX plans to: 1. The ISX was established according to Law practices that protect investors and build trust • List more companies as they meet listing no. 74 on April 18, 2004 and began trading on in the integrity of the market. requirements, June 24, 2004. 2. Enhance the transparency and • Participate in conferences and international 2. The ISX ’s headquarters are in Baghdad and competitiveness of the market. symposiums, has the right to open branches in other Iraqi 3. Organize fair and effective clearance • Initiate development and training programs in cities. operations. cooperation with other exchanges, especially in 3. The ISX is a completely separate entity from 4. The primary business of the ISX is the the Middle East, the Baghdad Stock Exchange and is not selling, trading, clearing, and settlement of • Begin operating the automated electronic responsible for any outstanding liabilities or equity securities. In undertaking these activities trading system in March 2008 obligations incurred by that organization, which the ISX is consistent with the goals of • Assist in the eventual privatization of state no longer exists. protecting investors and promoting investor owned enterprises, 4. The ISX is committed to developing a confidence in the market. • Issue a new Securities Law in cooperation transparent, open, and competitive trading 5. Develop a financial market in Iraq capable of with the Iraqi Securities Commission, environment. providing capital to Iraqi companies thereby • Hold meetings and symposiums with 5. The ISX is financially and administratively supporting the growth of the national economy. financial investment companies and investors, independent from the Iraqi government 6. Encourage domestic and foreign investment • Publish trading data and information about including the Ministry of Finance. It is through the ISX. the ISX to encourage investment in Iraq, organized as a non-profit entity that is owned 7. Perform analyses and publish relevant • Open new branches (Trading halls ) In by its members, the brokers. information regarding the performance of the Babylon and Basra, that will be electronically 6. The ISX has the right to file law suits and ISX. linked to the ISX in Baghdad, bring matters to the proper investigative 8. Continue soliciting assistance from stock • Contract with a satellite channel to share authorities. The Chairman of the Board of markets in the region and throughout the trading session information to all investors. Governors will represent the ISX with regard to world. such matters. 9. Perform other activities that contribute to the success of the ISX.

PAGE 74 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

IRAQ STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 207.4180 14.8156 72,777.3500 5,198.3800 Aug-07 11.5292 0.9608 7,047.4400 587.2867 Sep-07 8.1644 0.6280 6,879.6400 529.2029 Oct-07 19.6314 1.9631 11,479.8100 1,147.9800 Nov-07 51.4555 3.9581 22.5084 1.7314 Dec-07 12.3913 1.7702 9,474.5500 1,353.5100 TOTAL 310.59 4.02 10,7681.30 1,469.68

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 1,516.63 25.88 250 45 2,500 Aug-07 2,146.86 40.95 40 Sep-07 1,901.19 41.90 200 35 2,000 Oct-07 1,733.36 38.55 30 Nov-07 1,745.56 36.99 150 1,500 25 Dec-07 1,690.82 34.63 20 100 1,000 15 50 10 500 5 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Jimmy Afham Toma E-mail [email protected] Website www.isx-iq.net

PAGE 75 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

IRAQ STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

General Economic Budget 2007 Oil revenues formed 94.2% of the revenues. Security improvements were made due to Which is comprised of: oil exports revenues additional American forces in Iraq and better The general budget expenses for the country 93%, equalization in selling prices of oil trained and distributed Iraqi forces. in 2007 were US$ 41,053 million which products revenues 1.2% and customs and increased 20.8% from the 2006 budget of US$ revenues which were achieved from general Iraq has the 3rd largest export capacity behind 33,975.4 million. This budget was distributed company activity 5.3%. Saudi Arabia and Iran but this capacity has between both current spending and been lowered because of security conditions. investment spending. The total oil exports revenue for 2007 was US$ 31,025 million as compared with US$ 28,070.9 Iraq is the third country from oil precautionary Salaries and fees in the 2007 budget totaling million 2006 (an increase of about 10.5%). This in the world after Saudi and Iran but these US$ 8,101 million formed 19.7% from total of increase resulted from an increasing of oil exports decrease because of security general budget and 16.6% from the total exports and increasing in oil prices, evaluate condition. budget and 20.3% from work spending. As oil export price about (50) g/d . there is a large increase in the general budget Iraq intends to pay back to the IMF a loan give for 2007, it is clear that there is a trend for The total investment in system provision from in 2004 for US$ 471 million by 2009.* increasing the salaries and fees of employees 2006 represented 21.2% from the total of the in 2006. In 2007 these increases 44% make it general budget for the same year and was * Information provided by the Iraq Stock Exchange. clear that many jobs were created in ministries kept at the same ratio for 2007. and offices which are centrally financed 136,905. When we look that the increasing There was a provision of eight billion dollars ration in salaries and then comparatively look from the general budget for security and at the inflation of 75% we see that there is a defense requirements. real increase in wages as the rate of increase of salaries is higher than the inflation rate. Iraq oil production in 2007 reach a level higher than before the American invasion in 2003 as A decision was taken to only import white oil reported by the international energy agency and leave the import and distribution of other reported. This agency also reported that oil derivatives to the private sector production reach 2.3 million gallons per day as compared with 1.9 million gallon in the The budget specification of US$ 730 million beginning of 2007. was set aside for social protection programs for the poor and jobless; this project will This Agency said in an oil markets report include about two million families this year. which is published on a monthly basis that production has been increased because of The Agricultural sector with a budget of US$ improvements in security on the central oil line 261 million was created to support farmers in from the northern fields to the Ceyhan port in addition to provision for agricultural and water Turkey. resources ministries this support to farmers represents only 1.8% from the general budget.

Key Information Contacts Iraq Association of Securities Dealers: www.iasd-iq.org Iraq Central Bank: www.cbiraq.org

PAGE 76 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

IRAQ STOCK EXCHANGE

IRAQ ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (b) 2006 (b) 2007 (b)

GDP (US$ billions) 10.6 25.5 34.0 42.2 55.4 Real GDP growth (%) -33.1 23.0 (b) 3.3 1.9 2.8 Consumer price inflation (av; %) 36.3 31.7 31.6 (a) 53.2 (a) 45.0 Population (millions) 26.9 (b) 27.5 (b) 28.0 28.5 28.9 Exports of goods (FOB) (US$ millions) 9,711.1 17,782.0 19,773.0 28,412.0 33,705.1 Imports of goods (FOB) (US$ millions) 9,933.5 19,954.0 18,748.0 21,480.0 23,091.0 Current-account balance (US$ millions) -934.5 -9,676.0 -152.0 5,665.0 7,464.1 Total external debt (US$ billions) 116.1 (b) 97.0 (b) 68.2 54.5 57.1 Debt-service ratio, paid (%) - 0.5 0.8 3.5 2.2 Exchange rate (av) ID:US$ 1,936.00 1,453.00 1,470.00 (a) 1,466.00 (a) 1,255.00

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2006 2007 2008 2009

Real GDP growth (%) 46.5 -3.0 2.1 5.5 Consumer prices (% change) 31.7 33.0 30.0 25.0 Merchandise exports (US$ billions) 16.86 24.03 27.14 25.69 Merchandise imports (US$ billions) 21.30 23.43 24.14 24.98 Exchange rate (NID:US$1) 1,453 1,469 1,477 1,470

2006-MAIN DESTINATION OF EXPORTS (%) (a) 2006-MAIN ORIGINS OF IMPORTS (%) (a)

USA Spain Italy Syrian Turkey USA Canada Other Jordan Other

22.9 20.6

26.9 46.6 13.3 12.0

7.3 13.1

4.1 33.2

(a) IMF, Direction of Trade Statistics

PAGE 77 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ISTANBUL STOCK EXCHANGE The ISE National-100 Index, the main indicator of the of the ISE, increased by 72% in US$ terms in 2007, compared to the values at end-2006.

Huseyin Erkan Chairman & CEO

After four years of robust GDP and trade strong, reflecting improved fundamentals in traded value amounted to US$ 301 billion while growth, conditions in global financial markets many countries. the average daily traded value stood at US$ have turned from favorable to less stable and 1.2 billion during the same period. less predictable in 2007. Global GDP growth Commitment to sound economic policies since eased to 3.6% in 2007 from 3.9% in the 2001 has placed the Turkish economy in a As of end-2007, 319 companies are traded on preceding year, and gains are expected to good position to embark on a sustained path the ISE. The market capitalization of the ISE moderate further in 2008, led by the high- of faster growth. The process of European registered an increase of 77%, reaching a level income countries. It is important that Union accession that was launched back in of US$ 289 billion as of end-2007. developing countries provide a little support for October 2005 provides for an anchor for the trade, so that more adverse global GDP continuation and deepening of reforms, thus The net equity investment by foreign portfolio changes are avoided. fostering Turkey’s growth potential and investors in the free-floating shares was accelerating convergence to EU living registered at US$ 4,534 billion at end-2007, Following the sudden and sharp drop in standards. Following the 2001 crisis, the representing 72% of the total custody balance market valuations of US mortgage-backed Turkish economy rebounded very strongly, of stocks. securities in mid-2007, global markets entered thanks particularly to the stable political and a phase of heightened uncertainty. This economic environment, the private sector’s The average daily trading volume on the ISE reflected in increased volatility in equity performance, while the public sector Bonds and Bills Market, on the other hand, markets, commodity prices, and exchange consumption and investment expenditures increased by 11% compared to the previous rates. Notwithstanding the increased volatility, shrank due to tight fiscal policies. year, reaching US$ 9,016 million. the impact on developing countries has been relatively minor so far. Risk premiums have As far as the Istanbul Stock Exchange (ISE) is The annual total trading volume in the ISE, escalated, but remain relatively low in a historic concerned, the ISE National-100 Index, the including both bonds and bills and equities, context, and capital inflows remain plentiful, main indicator of the of the ISE, increased by was realized at US$ 2,573 billion for the year while bank lending has dropped off. Aggregate 72% in US$ terms in 2007, compared to the 2007. growth in developing countries continues to be values at end-2006. The Stock Market total

HISTORY AND DEVELOPMENT The ISE was recognized as a “Designated the cooperation among the participating stock Offshore Securities Market” by the U.S. Securities exchanges, will host the second Forum Meeting In 1981, the Capital Market Law was enacted and and Exchange Commission in 1993 and was and the Working Committee meetings during the one year later, the Capital Markets Board was designated as an “appropriate foreign investment first half of 2008. established. In October 1983, the Parliament market for private and institutional Japanese • As part of its strategic plan for the upcoming approved the Regulations for the Establishment investors” by the Japan Securities Dealers years, the ISE is planning to increase the number and Operations of Securities Exchanges, which Association in 1995. Likewise, the ISE has been of public offerings through a number of activities in paved the way for the establishment of the ISE, approved by the Austrian Ministry of Finance 2008. Within the context of this project, a series of formally inaugurated in 1985. as a regulated market in accordance with the seminars are planned to be organized across the regulations of the Austrian Investment Fund Act country in cooperation with the local Chambers of Currently, there are three markets operating at the in 2000. Commerce and/or Industry in order to increase the ISE; the stock market, the bonds and bills market awareness among the companies about public and the foreign securities market. As a result of all these developments, foreign offerings; the benefits and procedures. As the investors now account for a substantial volume of second stage, consultancy units will be The ISE provides a fair and transparent daily trading and hold around 72% of the publicly- established at the Chambers of Commerce and/or environment for trading of a wide variety of held stocks in their portfolios. Industry of every city, which will inform the securities namely, stocks, exchange traded funds, companies on public offerings without any charge. government bonds, Treasury bills, money market The ISE currently owns 32.5% of the ISE The training of the personnel of these units will be instruments (repo/reverse repo), corporate bonds Settlement and Custody Bank, 30% of the Central given by the Istanbul Stock Exchange. Finally, in and foreign securities. Registry Agency and 18% of the Turkish order to provide assistance to companies planning Derivatives Exchange. On the international level, to go public with the public offering procedure, As of end-2007, 103 out of 104 members have the ISE has participations in the Kyrgyz and Baku “ISE Traded Company Nominees Club” will be been provided with remote access to the stock Stock Exchanges with stakes of 24.5% and 5.55%, founded which will be a platform where companies market trading systems. During the same period, respectively. already trading on the ISE will exchange their the number of orders sent by members via Ex-API public offering experience with non-public (Express Application Programming Interface) FUTURE OUTLOOK companies and various meetings /forums will be terminals reached 92% of all orders, with the organized with the attendance of other market number growing steadily. Trading on the bonds • A “Memorandum of Understanding” was signed actors (public institutions, intermediaries, domestic and bills market is already carried out remotely. between the ISE and the Shanghai Stock and international institutional investors). Exchange in October 2007 in order to facilitate the • Work towards trading of warrants on the the In 1989, the foreign exchange regime was development of channels of communication which Istanbul Stock Exchange is being carried out in amended to allow non-residents to invest in will foster a continuing relationship between the coordination with the Capital Markets Board (CMB) Turkish securities, making the Turkish stock and two parties for the mutual benefit of the securities of Turkey. In this regard, CMB will develop the bond markets open to foreign investors without markets in both countries. regulation of warrant trading and the ISE will any restrictions on the repatriation of capital and • The ISE, as the coordinator of the Organization determine on the listing and trading principles. The profits. of Islamic Conference Member States’ Stock work carried out is planned to be accomplished Exchanges Forum, which is a platform to reinforce during 2008.

PAGE 78 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ISTANBUL STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 35,471.19 1,612.33 13,060.19 593.6451 Aug-07 27,532.89 1,251.49 11,130.47 505.9303 Sep-07 27,035.55 1,351.78 11,192.33 559.6165 Oct-07 35,856.41 1,707.45 12,011.95 571.9975 Nov-07 30,511.96 1,386.91 9,575.85 435.2660 Dec-07 18,396.47 968.24 5,413.04 284.8970 TOTAL 174,804.47 1,379.70 62,383.83 491.89

Bonds Jul-07 26,131.73 1,187.81 0.0463 0.0021 Aug-07 20,926.71 951.21 0.0382 0.0017 Sep-07 21,759.93 1,088.00 0.0355 0.0018 Oct-07 25,228.94 1,201.38 0.0398 0.0019 Nov-07 24,021.88 1,091.90 0.0398 0.0018 Dec-07 13,684.71 720.24 0.0237 0.0012 TOTAL 131,753.89 1,040.09 0.22 0.002

Other Jul-07 180,904.07 8,222.91 0.0581 0.0026 Aug-07 172,806.90 7,854.86 0.0570 0.0026 Sep-07 165,124.87 8,256.24 0.0529 0.0026 Oct-07 189,438.07 9,020.86 0.0561 0.0027 Nov-07 220,711.47 10,032.34 0.0637 0.0029 Dec-07 167,551.16 8,818.48 0.0504 0.0027 TOTAL 1,096,536.53 8,700.95 0.34 0.003

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 239,431.17 2,413.39 40,000 3,000 300,000 Aug-07 234,897.78 2,263.55 35,000 Sep-07 268,871.24 2,612.03 2,500 250,000 Oct-07 292,938.14 2,863.61 30,000 2,000 200,000 Nov-07 280,785.94 2,694.76 25,000 Dec-07 289,985.68 2,789.66 20,000 1,500 150,000 15,000 1,000 100,000 10,000 500 50,000 5,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Eren Kiliclioglu E-mail [email protected] Website www.ise.org

PAGE 79 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ISTANBUL STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance As of end-2007, the ISE National-100 Index, Over the past six years, Turkey has Following the GNP growth rate of 6% achieved the main index on the Istanbul Stock significantly improved its macroeconomic in 2006, the Turkish economy grew by 4.0% in Exchange, showed an increase of 42% in YTL situation thanks to a combination of fiscal the first three quarters of 2007. The growth terms and 72.1% in US$ terms as compared discipline and prudent monetary policy by an was mainly driven by the construction sector to the values at the end of 2006. The stock independent central bank, complemented with and financial sector, which grew by 11.5% and market total traded value increased to political stability and structural reforms. 7.4%, respectively. US$ 300.8 billion by 31% in US$ terms as of the end of 2007 when compared to end 2006. Parliamentary Elections were held in 2007 As of end-2007, exports and imports reached The average daily traded value of equities which resulted with the winning of the ruling US$ 107.2 billion and US$ 170 billion, stood at US$ 1.19 billion as of end 2007. party by a wide margin. This was followed by respectively, exports registering an increase of the election of the new President of the -25.3% and imports registering an increase of The market capitalization of 319 ISE traded Republic. As a result of the election of the 21.8% compared to the same period of 2006. companies increased to a level of US$ 290 ruling party, the existing government program Accordingly, the rate of imports covered by billion as of the end of 2007 compared to continued without interruption. exports stood at 63.0% as of year-end 2007. US$ 163.8 billion at the end of 2006, showing an increase of 77%. Eight ETFs (Exchange Inflation and interest rates continued to fall The year-on-year consumer price index Traded Fund) are traded on the ISE as of significantly, the currency stabilized, decreased to 8.39% as of year-end 2007, from end-2007. government debt declined to more 9.65% as of the end of 2006. The year-on-year supportable levels, business and consumer producer price index decreased to 5.94% as The net equity investments within the free float confidence continued and Turkish economy of the year-end 2007, from 11.58% as of the of the ISE traded companies by foreign continued to grow for 23 quarters without any end of 2006. portfolio investors has been registered at interruption. Improvements in the bank around US$ 69.9 billion as of end 2007 supervisory framework and privatization The consolidated budget registered a deficit representing 72.4% of the total value in strengthened the banking system, promoted of YTL 9.7 billion as of end-November 2007 custody balance of stocks. foreign direct investment, and enhanced bringing the year to date primary surplus productivity. to YTL 37.2 billion. Total revenues increased The turnover in public debt securities by 10.7% to YTL 174.7 billion and total transacted on the Outright Purchases and Large privatizations aligned with these expenditures increased by 16.9% to YTL 184.4 Sales Market increased by 3.2% to welcome developments, and progress towards billion as of end-November 2007 compared to US$ 278.9 billion in 2007, compared to 2006. EU harmonization have been other factors the same period of 2006. The Repo/Reverse Repo Market turnover stimulating foreign direct investment. Turkey increased by 12.6% to US$ 1,993.3 billion in has been a big beneficiary of favorable The privatization gross revenues in 2007 were the same period. The average daily traded sentiment towards emerging markets in the recorded as US$ 4.2 billion. Among the value in Outright Purchases and Sales of past two years attracting US$ 18.9 billion in privatizations of the year, major ones were Government securities and the Repo/Reverse 2006 and US$ 14.7 billion in the January- “T. Halkbank”, “Mersin Port” and two valuable Repo Market, stood at US$ 9 billion as of end- November period of 2007. plots of land for urban development. 2007. The Turkish Government is planning to raise Rehabilitating the business environment, US$ 10 billion through privatizations in 2008. During 2007, nine companies and two diminishing unregistered economy, The public offering of the Treasury shares of Exchange Traded Funds (ETFs) had made strengthening financial system, promoting Turk Telekomunikasyon AS is the largest their initial public offerings (IPO). As of the communication and information technologies announced for this year. Electricity producers year-end, the amount of funds raised through are among the targets of the economy and distributors, sugar factories and operators IPOs of the nine companies was US$ 3.3 management for the upcoming years in order of highways and ports also are high on the billion.* to lift Turkey onto a significantly higher growth privatization agenda. trajectory. * Information provided by the Istanbul Stock Exchange

Key Information Contacts Capital Markets Board of Turkey www.cmb.gov.tr ISE Settlement and Custody Bank Inc.(Takasbank) www.takasbank.com.tr Central Registry Agency Inc.of Turkey www.mkk.com.tr The Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.tr The Turkish Derivatives Exchange (TurkDEX) www.turkdex.org.tr

PAGE 80 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ISTANBUL STOCK EXCHANGE

TURKEY ECONOMIC CHARTS AND TABLES

2001 2002 2003 2004 2005 2006 2007

GDP at market prices (YTL millions) 178,412 277,574 359,763 430,511 487,202 576,322 468,212(1) GDP (US$ millions) 145,573 184,400 241,300 300,578 361,470 400,046 348,472(1) (Revised) (Revised) Real GDP growth (%) -7.5 7.9 5.8 8.9 7.4 6.1 3.8(1) Consumer price inflation (av; %) 68.5 29.8 18.4 9.3 7.7 9.7 8.39 (Revised) Population (millions) 69.3 70.3 71.3 72.3 73.3 74 74.3 Exports (US$ millions) 31,334 36,059 47,253 63,167 73,476 85,526 107,154 (Revised) (Revised) Imports (US$ millions) 41,399 51,554 69,340 97,540 116,774 139,576 169,987 (Revised) (Revised) Exports/imports ratio 75.7 69.9 68.2 64.8 62.9 61.3 63.0 (Revised) (Revised) Current-Account Balance (US$ millions) 3,392 -1,521 -8,036 -15,601 -22,603 -32.331 -32,758(2) (Revised) (Revised) (Revised) (Revised) (Revised) (Revised) Foreign exchange reserves (US$ millions) 18,879 27,069 33,991 36,006 50,518 60,845 72,413(2) Total external debt (US$ billions) 113.6 129.7 144.3 160.8 168.8 207.7 237.3(1) (Revised) (Revised) (Revised) (Revised) (Revised) Debt-service ratio, paid (%) 40 46.5 38.5 27 32 30 26(3) (Revised) Exchange rate (av) YTL:US$* 1.2214 1.5027 1.4957 1.4208 1.3401 1.4285 1.3004

(1) January-September 2007 Istanbul Stock Exchange International Relations Department (2) As of end-November 2007 (3) As of end-October 2007

PAGE 81 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KARACHI STOCK EXCHANGE During the year 2007, the KSE witnessed its sixth consecutive year of a bullish run.

Adnan Afridi Managing Director

During the year 2007, the Karachi Stock A VaR based margining system was exposures, profits, losses and margins to be Exchange (KSE) witnessed its sixth introduced in place of a slab based Risk calculated client-wide, scrip-wide and market- consecutive year of a bullish run. The KSE 100 Management System. The new RMS included, wide on the outstanding buy and sell positions. Index increased from 10040.5 points in January amongst others, a new netting regime; a 2007 to reach an all time high record of 14,814 margining system based on Value at Risk The KSE’s growth and improvement is points on 26 December 2007, to finally close at (VaR) and Capital Adequacy. The attributed to the impressive rate of growth of 14,075 points on 31 December 2007, showing implementation of these new risk management the Pakistani economy, but particularly in the a remarkable increase of 40% during the year. measures have reduced the market’s Beta and banking, cement, oil & gas, fertilizer and The KSE market capitalization also increased helped protect investors in the event of another automobile sectors. Pakistan successfully to US$ 70.2 billion from US$ 45.7 billion. members inability to pay off his debts. entered into the international capital market During the period January-December 2007, 14 through the issuance of the sovereign Euro- new companies listed their shares on the Unique Identification Number was introduced Bond and floatation of GDR’s of OGDC, MCB Exchange–adding over US$ 927 million to the to provide a traceable link between every order and UBL indicating growing foreign investor’s listed capital. The KSE also listed 3 debt entered at the trading system of the Exchange. confidence in the long term economic instruments of US$ 105 million. The average The UIN systems allocates each individual prospects of the country. daily turnover of shares also increased from client and trade a separate number such that a US$ 261 million to US$ 268 million. record of each clients trade is stored and can In the coming year, the KSE plans to introduce be accessed at any time. The UIN system has derivative products, develop the corporate debt The KSE has a fully automated trading system significantly enhanced the risk management at market and improve regulatory compliance. with a sound risk management system. To client levels and considerably improved the Our efforts are also directed towards the strengthen the market environment and boost Exchange’s ability to monitor the market. demutualization of the Exchange investor confidence, a T+2 settlement system The KSE also introduced Client Level Netting was introduced in place of T+3 settlement system, this system was developed based on system whereby all trades must be settled on the core KSE business requirement of the second day after the trade.

HISTORY AND DEVELOPMENT Management The National Clearing & Settlement Company The KSE has an independent Board of has already been established. The company The KSE is the biggest and most liquid Directors (10 directors) with representation handles clearing and settlement of three exchange amongst the three exchanges of from the Members of the Exchange & from the exchanges of the country under one roof. Pakistan. It came into existence on 18 Corporate Community. Five directors are Physical settlement to online real-time book- September 1947. It was later converted and elected from amongst the 200 members of the entry settlement of the securities through registered as a company limited by guarantee Exchange and four non member directors are Central Depository System has also been on 10 March 1949. Initially, only five companies nominated by Regulator i.e., SECP the introduced to eliminate the opportunities for were listed with a paid-up capital of Rs. 37 Chairman is elected by Board from amongst forgery, fraud and delay in transfer. million (US$ 0.62 million). As of 31 December non member Directors whereas, Managing 2007, ordinary shares of 654 companies were Director is ex-officio member of the board Corporate governance is now the part of the listed having listed capital of Rs. 671.27 billion KSE’s listing regulation. Transparency of the (US $ 10.9 billion) with the market capitalization A Memorandum of Understanding was signed listed companies has also been enhanced with of Rs.4329.9 billion (US$ 70.2 billion). between SECP & KSE for demutualization of the implication of quality audits, quarterly KSE, whereby KSE presently a company financial reports and timely dividend payouts. The Karachi Stock Exchange was declared as limited by guarantee, will be converted into a “The Best Performing Market of the World” in company limited by shares. FUTURE OUTLOOK the year 2002, by international magazine “Business Week” and a US newspaper “USA Automation of the Exchange The KSE is determined to remain one of the Today” on registering increase of 112% in the In 1997 the KSE introduced state-of-the-art growing investment institutions not only within KSE 100 Index. computerized trading system known as the country but globally as well. The future Karachi Automated Trading System (KATS) to projects include: In 1991 the secondary market was opened to provide a fair, transparent, efficient and cost • Corporatization and demutualization of the foreign investors on an equal basis with local effective market for the investors. It is home Exchange. participants. This measure, along with a policy grown software capable of handling more than • Strengthen the management capacity of the of privatization, has resulted in rapid growth of 500,000 trades. An internet based trading Exchange the market since 1991. Privatization has been system was also launched in December, 2004 • Upgrade the IT infrastructure adopted as a philosophy, and activities that to provide an additional facility for investors to • Construction of new KSE Tower were previously reserved for the public sector enter their orders. • Introduction of new products and new have now been opened to the private sector. measures • Cross-border listing possibilities.

PAGE 82 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KARACHI STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 12,523.35 569.2431 9,119.61 414.5277 Aug-07 9,031.18 410.5080 5,578.25 253.5568 Sep-07 9,437.77 471.8883 4,989.26 249.4630 Oct-07 15,862.35 834.8606 7,832.78 412.2516 Nov-07 13,190.46 628.1172 6,008.38 286.1133 Dec-07 8,116.37 477.4338 4,793.45 281.9676 TOTAL 68,161.48 565.34 38,321.73 316.31

Bonds Jul-07 0.0018 0.0001 0.0 0.0 Aug-07 0.0264 0.0012 0.0003 0.0 Sep-07 0.0053 0.0003 0.0001 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0238 0.0014 0.0003 0.0 TOTAL 0.057 0.00050 0.00070 0.0

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 66,690.20 13,738.87 16,000 16,000 80,000 Aug-07 58,630.79 12,214.26 14,000 14,000 70,000 Sep-07 67,562.75 13,351.79 Oct-07 71,899.71 14,319.42 12,000 12,000 60,000 Nov-07 70,734.27 13,998.52 10,000 10,000 50,000 Dec-07 70,006.63 14,075.83 8,000 8,000 40,000 6,000 6,000 30,000 4,000 4,000 20,000 2,000 2,000 10,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Mohammed Yacoob Memon E-mail [email protected] Website www.kse.com.pk

PAGE 83 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KARACHI STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment International oil prices and domestic inflation sharply in 2007 as a result of rapid General Musharaf lived up to his earlier are high. Nevertheless, policymakers in merchandise import growth and high oil announcement of lifting the emergency after recent years created an environment in which prices. Import payments for petroleum and bringing the situation to normalcy effectively the private sector has begun to thrive. petroleum products rose sharply in 2006/07. dealing with elements engaged in Measures taken include substantial Pakistan imports US$ 30.54 billion in 2007 destabilization. The operation in Swat and privatization, reforms in the banking and utility against the export payment of US$ 16.97 other settled districts of NWFP and restored sectors and efforts to reduce red tape. billion. We expect export growth to pick up in normalcy. The general elections for the GDP growth (at purchasing power parity 2007/2008. Inflow of remittances and Foreign National and provincial assemblies are to be exchange rates) at an average of around 7% Investment provides a degree of support to held on 8 January 2008. is expected in 2008-09 the current account, and strong economic growth will limit the current-account deficit to Pakistan’s economy recorded one of the Economic Performance 4.5% of GDP in 2007/2008. But higher oil fastest growth rates in Asia during FY07. Real Real GDP growth of Pakistan was 7% in prices and faster import growth, fuelled by GDP growth accelerated to 7.0%. This was 2006/07, this reflects that the service strong investment growth and resurgence in surpassed only by China and India. This was economy, and in particular private consumption growth, will have a the third consecutive year in which growth telecommunications and finance, have been negative impact on the current account in the was supported by acceleration in real growing rapidly and have benefited from forecast period. The deficit will continue to investment. Sound macroeconomic policies unexpectedly high levels of investment. rise in 2009, but stronger economic growth in have successfully transformed the initial Agricultural growth witnessed a recovery, that year will allow the deficit to narrow as a consumption-led growth impetus of a few primarily due to a considerably improved proportion of GDP.* years back to a greater role for sustainable performance by the cropping sub-sector that investment led growth. With the investment to overshadowed the impact of moderation in * Information provided by the Karachi Stock Exchange. GDP ratio at a record 23%, complemented by the growth of the livestock sub-sector. The a surge in domestic private investment and economy also received a boost from strong record Foreign Direct Investment flows. growth in Foreign Direct Investment of US$ 5.14 billion in 2007. In proportion to GDP, National savings has Inflationary pressures remain the biggest increased, the external debt burden has threat to economic growth. The inflation declined and total revenue increased while target of 2007 was set 6.5% compared to a the budget deficit stayed at last year’s level of high inflation of 7.9%. Year-on-year inflation 4.3% to GDP. However key macroeconomic fell sharply in January, to 6.6%, but then challenges remain to be fully addressed. accelerated again to reach 8% in June. The current account deficit widened further, Concerned about this volatility, the central the tax to GDP ratio is still very low, and bank raised its benchmark interest rate. inflation remained stubbornly high. The current-account position deteriorated

Key Information Contacts Government of Pakistan www.pak.gov.pk Ministry of Finance www.finance.gov.pk Privatization Commission www.privatisation.gov.pk State Bank of Pakistan www.sbp.org.pk Security and Exchange Commission of Pakistan www.secp.gov.pk

2006/07-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a) 2006/07-COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (a)

Services Mining & manufacturing Agriculture Private consumption Government consumption Fixed investment & stockbuilding Construction Electricity, gas & water supply Exports of goods & services Imports of goods & services

22.5 80 74.9 19.5 70 60 50 53.7 40 2.5 30 23.1 1.8 20 10.4 13.9 10 0 -10 -20 -30 -22.2

PAGE 84 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KARACHI STOCK EXCHANGE

PAKISTAN ECONOMIC CHARTS AND TABLES

2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 2007

GDP at market prices (PRs billions) (b) 4,163 4,402 4,823 5,533 6,548 7,593.85 8,706.92 GDP (US$ billions) (b) 71.2 71.5 82.3 96.2 110.7 126.21 144.06 Real GDP growth (%) (b) 2.6 3.2 5 6.4 7.8 6.6 7.0 Consumer price inflation (av; %) 3.1 3.3 2.9 7.4 9.1 7.9 7.8 Population (millions) 144.6 147.7 (c) 150.7 (c) 153.7 (c) 153.96 156.77 164.7 Exports of goods (FOB) (US$ millions) 9,131.00 9,832.00 11,869.00 13,297.00 15,383.00 16,450 17,100 Imports of goods (FOB) (US$ millions) -9,741.00 -10,428.00 -11,978.00 -16,693.00 -21,560.00 24,990 27,000 Current-account balance (US$ millions) 1,878.00 3,854.00 3,573.00 -817 -3,463.00 -4,990 -7,094 Foreign-exchange reserves excl gold (US$ millions) 3,640.00 8,078.00 10,941.00 9,799.00 10,033.00 10,765 13,333 Total external debt (US$ billions) 31.7 33.7 35.9 35.7 34 35.65 38.69 Debt-service ratio, paid (%) 24.7 17.9 16 15 8.7 8.7 7.7 Exchange rate (av) PRs:US$ 61.93 59.72 57.75 58.26 59.51 60.17 60.44

(a) Actual. (b) Fiscal years ending June. (c) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2008 2009 2010 2011

Real GDP growth (%; fiscal years ending Jun 30th) 7.2 6.5 5.8 5.9 Consumer price inflation (av; %) 6.5 5 5.1 5.6 Budget balance (% of GDP; fiscal years ending Jun 30th) -4 -3.4 -3.4 -3.3 Current-account balance (% of GDP) -4.9 -3.9 -4.2 -4.1 Short-term interest rate (av; %) 7.5 7.5 7 7 Exchange rate PRs:US$ (av) 62.3 63.9 67.6 68.6 Exchange rate PRs:¥100 (av) 64.7 69.2 72.3 74.7

2006/07-PRINCIPAL EXPORTS (ab) 2006/07-PRINCIPAL IMPORTS (ab)

(US$ millions) (US$ millions)

Cotton & textile articles 11,014 Machinery & transport equipment 9,102 Vegetables products 1,603 Mineral, fuels etc 7,898 Mineral products 1,083 Manufacturing products 4,286 Leather products 979 Allied products & chemicals 3,309 Vegetables, food & live animals 2,900

2004/05-MAIN DESTINATION OF EXPORTS (%) (a) 2006/07-MAIN ORIGINS OF IMPORTS (%) (a)

USA UAE UK China Saudi Arabia UAE Afghanistan Germany Other USA Japan Other

11.6 24.0 7.6 11.4 54.7 6.2 9.1

5.2 7.5 4.8 5.7 52.2

(a) Fiscal years ending June 30th. (b) Customs basis. The Economic Intelligence Unit Ltd., November 2006

PAGE 85 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KAZAKHSTAN STOCK EXCHANGE The volume of trades at KASE nearly doubled in compare to 2006.

Azamat Joldasbekov President

In 2007 the Kazakhstan Stock Exchange (KASE) standards and best practices essential for to modify, develop and improve its services. has become a commercial entity, expanded and integration of Kazakhstan’s securities market In particular, the Exchange would like to expand modified its organizational structure, adopted into the global financial system. Along the the range of financial instruments traded on the international principles of corporate governance, lines of this strategy, the KASE undergoes KASE, modify its listing requirements and and launched the process of preparation to the operational and structural changes devoted to settlement procedures, develop and adopt the issuance of IPO. The volume of trades at the commercialization and additional capitalization automated system of information disclosure, KASE nearly doubled in compare to 2006. of the Exchange. The Exchange would like to modify its trading system, conduct the software The overall volume of trades in all sectors of the serve as an etalon of a joint stock company and and hardware upgrade, finalize and launch an market achieved US$ 322.5 billion with the repo issuer of securities in Kazakhstan setting an improved version of the web-site, among other market representing 65% of the total market example for other listed companies in terms of things. turnover. corporate governance, management and information transparency. With new reforms, the KASE hopes to further In 2008 the KASE plans to take rigorous and develop Kazakhstan’s securities market decisive steps in fulfillment of its development Based on the original intentions highlighted in reaching high international standards, contribute strategy adopted last year. The strategy is the development strategy, as well as results of to the overall economic development of the aimed at becoming a successful commercial the recently conducted survey among the country, as well as promote development of the entity adhering to internationally accepted members of the Exchange, the KASE is planning financial markets of the Central Asian region.

HISTORY AND DEVELOPMENT government securities was introduced and the FUTURE OUTLOOK first auction on municipal bonds floatation was The KASE is the only stock exchange in conducted. In 2001 the KASE became a The Kazakhstan Securities Market Development Kazakhstan. It represents a universal financial shareholder of the Kyrgyz Stock Exchange. Program adopted by the Kazakhstan market, which can be divided into four major The most important event of 2003 was government determined the main directions for sectors: foreign currency market, government introduction of a new legislation that substituted further development of the equity market in securities market, market of shares and the laws of previous years and was aimed at Kazakhstan. This program also established and corporate bonds, bills and derivatives market. provision of conditions that would prohibit prioritized program tasks directly related to the KASE is a member of the International infringement of the rights and legitimate interests activities of the KASE. Association of Exchanges of the Commonwealth of financial services consumers and improve the of Independent States, FEAS, and stability of the financial system of Kazakhstan. With reference to the governmental program the correspondent-member of the World Federation Among other things, this legislation also contains KASE has elaborated 2007-2010 Development of Exchanges. It continues working actively on the main goals, principles and objectives of the Strategy–a comprehensive document that establishment of bilateral and multilateral state control and supervision of the financial describes organizational and structural reforms, relations with the foreign companies, exchanges market and institutions and defines the status, lists priority areas and phased approach, linking and international financial institutions. functions and authority of the single authorized identified performance factors with strategic body designated by the President of the initiatives and projects designed to develop and The KASE (formerly the Kazakhstan Interbank Republic of Kazakhstan–the Agency for optimize organizational activities. Currency and Stock Exchange) was founded on Regulation and Supervision of Financial Markets 17 November 1993 on the basis of the Center of and Institutions, which executes the main The essence of the strategy is further growth and Interbank Currency Exchange that used to functions of state control and supervision of the development of “the KASE as a leading regional function at the National Bank of the Republic of security market, banking sector, insurances financial market that enables investors from all Kazakhstan. The main reason for creation of the companies and the activities of pension over the world to trade a wide variety of financial KASE was introduction of the national currency, accumulation and investment funds. products with minimal calculated risks according the Kazakhstan Tenge, on 15 November 1993 to the world’s best practices, as well as benefit accompanied by necessity to establish the In 2003 the KASE with its new subsidiary from other accompanying services of the KASE.” market exchange rate of Tenge to major foreign company "eTrade.kz" LLP launched the currencies. "eTrade.kz" project with the purpose to create an The KASE has identified the following areas of Internet-based trading system to carry out the development: Over the course of the first two years of its operations with the financial instruments on the • Commercialization and corporate structure existence, the KASE was organizing only foreign KASE. • Membership development currency trades. However, in 1995 the KASE • Financial instruments began trading state T-bills. Later, in 1996, it In 2006, creation of a Regional Financial Center • Listing received its securities trading license. As a result in Almaty with the aim of equity market • Information availability about issuers of of a proposal tendered by the government in development and the integration with the securities and their activities 1996, the KASE was chosen as a model international fund market opened new • Technologies exchange to trade the securities of the largest opportunities for the Exchange and equity • Calculations enterprises of Kazakhstan. market as a whole. The KASE was legally • Regulating and supervising functions of the determined as the special trade floor of the Exchange In 1998 an organized secondary market of Regional Financial Center of Almaty. • Tariff policy sovereign eurobonds was formed in Kazakhstan. • Marketing and Public Relations The first trades in these eurobonds were held at In 2007 the KASE elaborated and adopted a new • Location of the Stock Exchange the stock exchange in 1998. 2007-2010 development strategy, obtained a • Organizational structure and Human status of a commercial organization, adopted the Resources In 1999 first corporate bonds were included in Code of Corporate Governance based on the • Financial operations of the Stock Market. the Exchange's official list. Same year the OECD principles and began the process of • Capitalization Exchange’s sector of repo transactions in additional capitalization.

PAGE 86 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KAZAKHSTAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 521.2536 23.6933 296.6762 13.4853 Aug-07 303.5663 14.4555 185.7547 8.8455 Sep-07 206.7216 9.8439 75.9273 3.6156 Oct-07 431.5257 19.6148 35.8692 1.6304 Nov-07 2,507.6000 113.9820 103.7016 4.7137 Dec-07 393.7113 21.8728 76.9194 4.2733 TOTAL 4,364.38 33.91 774.85 6.09

Bonds Jul-07 15,665.80 712.0819 19,414.22 882.4645 Aug-07 17,112.68 814.8896 20,044.74 954.5115 Sep-07 16,973.90 808.2809 21,705.68 1,033.6000 Oct-07 17,433.77 792.4439 19,740.23 897.2834 Nov-07 15,288.33 694.9240 15,559.65 707.2567 Dec-07 11,888.17 660.4541 14,089.90 782.7723 TOTAL 94,362.65 747.18 110,554.42 876.32

Other Jul-07 7,956.36 361.65 0.0 0.0 Aug-07 11,158.05 531.34 0.0 0.0 Sep-07 7,759.73 369.51 0.0 0.0 Oct-07 4,967.44 225.79 0.0 0.0 Nov-07 9,646.01 438.46 0.0 0.0 Dec-07 9,833.19 546.29 0.0 0.0 TOTAL 51,320.78 412.17 n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 67,375.55 2,708.14 3,000 3,000 70,000 Aug-07 59,600.69 2,609.43 60,000 Sep-07 57,711.06 2,545.79 2,500 2,500 Oct-07 56,938.76 2,640.83 50,000 2,000 2,000 Nov-07 54,020.48 2,567.35 40,000 Dec-07 53,830.66 2,637.02 1,500 1,500 30,000 1,000 1,000 20,000 500 500 10,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Babenov Bolat E-mail [email protected] Website www.kase.kz

PAGE 87 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KAZAKHSTAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment year, has led revisions in real GDP estimate prices; this is likely to result in annual average The president, Nursultan Nazarbayev, will for 2007 to 9.6%, and annual growth is inflation of around 10.5% in 2007. Further remain in power in 2008-09, having expected to average around 8.5% in 2008-09. acceleration in inflation is anticipated in 2008, consolidated his hold on Kazakhstan's High food prices and a loosening fiscal policy to an annual average rate of around 15%, political structures. Authorities' committed to will exert upward pressure on consumer forced upwards by demand-side pressures democratic standards in Europe opting to prices, pushing average inflation upwards to such as public-sector wage increases and award Kazakhstan the chair in 2011 instead of around 15% in 2008, from an estimated 10.6% rises in social expenditure, as well as the 2009.Rising inflation and liquidity problems in in 2007. Disinflation should take hold from continued impact of high food prices. Tighter the banking sector will be among the 2009. monetary and credit policies should government's main policy challenges in 2008- nevertheless encourage disinflation from mid- 09. Accelerating inflation and liquidity problems in 2008, reducing the average rate in 2009 to the banking sector are among the principal around 7.5%. Nur Otan (Light-Fatherland), the party led by challenges facing Kazakhstan's policymakers. the president, Nursultan Nazarbayev, won all The two are partly linked, in that rapid growth The NBK has been forced to intervene in the of the 98 parliamentary seats contested in in bank lending has contributed to strong currency market in recent months to support Kazakhstan's general election, held on August growth in monetary aggregates, which in turn the tenge, as concerns over liquidity problems 18th. The remaining nine seats in the new has put upward pressure on prices. The in the banking sector sparked higher demand Majilis (the lower house of parliament) were government intervened quickly to stabilize the for foreign currency among the population. allocated to members of the Assembly of banking sector when banking entities faced The NBK was successful in stabilizing the Peoples of Kazakhstan, a body that brings difficulty in refinancing loans in October, and it tenge, which as of mid-November 2007 was together representatives of Kazakhstan's is expected that further such intervention will trading at Tenge121: US$1. Kazakhstan will ethnic minorities. Mr. Nazarbayev had justified occur should it prove necessary in the coming record a surplus on trade in goods of around the decision to bring the election forward by months. An anticipated slowdown in credit US$ 16 billion-17 billion in 2008-09, sustained two years by saying that it would enable growth might have a positive effect on prices, by high oil prices and growth in oil export recently approved amendments to the bringing inflation down from its recent seven- volumes. However, rising invisibles constitution to come into effect. Ostensibly year high. However, there is a risk that tighter transactions–income debits, in particular, aimed at enhancing the powers of the lending policies will dampen growth in the owing to profit and dividend outflows from legislature, the constitutional changes (which non-oil economy, thereby jeopardizing the foreign investors, and payments by Kazakstan include the lifting of the two-term limit on government's diversification targets. banks–will continue to outweigh the trade Mr. Nazarbayev), together with the election surplus. This will widen the current-account outcome, have instead further strengthened The authorities have reported year-on-year deficit from an estimated US$ 4.9 billion in the president's control over Kazakhstan's real GDP growth of 10.1% in January- 2007 to US$ 7.1 billion in 2008. The risks to political structures. Assessment of the September 2007, implying that the economy macroeconomic stability posed by the deficit Organization for Security and Co-operation expanded by 9.9% year on year in the third have risen, although Kazakhstan is expected in Europe (OSCE) proved a factor in its quarter–unchanged compared with the to meet its financing obligations relatively deliberations over whether to approve previous quarter. The third-quarter data comfortably, owing to continued large-scale Kazakhstan's bid to chair the body in 2009. indicates that growth has remained resilient, inflows of foreign direct investment (FDI). With It is forecasted that Kazakhstan will be despite the recent problems in the banking the Kashagan oilfield coming on stream awarded the chair for 2009. sector, suggesting that government measures towards the end of the decade, and several to stabilize the situation have had some other large projects under development, Economic Performance success. Therefore estimated real GDP annual FDI inflows are likely to average The National Bank of Kazakhstan (NBK, the growth in 2007 to 9.6%. Year-on-year around US$ 7.5 billion in 2008-09.* central bank) raised the refinancing rate only consumer price inflation accelerated again in when the liquidity situation has stabilized. October, to just over 15%–a seven-year * The Economic Intelligence Unit Ltd., October 2007 Resilient third-quarter growth, at 9.9% year on high–driven upwards mainly by rising food

Key Information Contacts Financial Institutions' Association of Kazakhstan www.afk.kz/eng/ National Bank of Kazakhstan www.nationalbank.kz Ministry of Finance of the Republic of Kazakhstan www.minfin.kz Central Securities Depository www.csd.kz Kazakhstan Agency for Financial Market and Financial Organizations Regulation and Supervision www.afn.kz

2006-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2004-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Industry Trade Transport & communications Private consumption Public consumption Gross fixed investment Construction Agriculture Other Change in stocks Net exports

60 12.5 53.5 50 30.6 11.5 40

30 25.1 9.2 20 11.6 5.7 10 8.6 30.5 1.2 0

PAGE 88 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KAZAKHSTAN STOCK EXCHANGE

KAZAKHSTAN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (Tenge billions) 4,612 5,870 7,591 10,140 12,424 GDP (US$ billions) 30.8 43.2 57.1 80.4 101.2 Real GDP growth (%) 9.3 9.6 9.7 10.6 9.5 Consumer price inflation (av; %) 6.5 6.9 7.6 8.6 8.8 Population (millions) 15.0 15.1 15.2 15.4 15.5 Exports of goods (FOB) (US$ millions) 13,233 20,603 28,301 38,762 46,118 Imports of goods (FOB) (US$ millions) -9,554 -13,818 -17,979 -24,120 -30,440 Current-account balance (US$ millions) -273 335 -1,056 -1,797 -3,710 Foreign-exchange reserves excl gold (US$ millions) 4,236 8,473 6,084 17,751 20,670 Total external debt (US$ billions) 22.8 32.8 43.4 73.5 (b) 88.6 Debt-service ratio, paid (%) 34.5 37.8 42.1 32.3 (b) 42.8 Exchange rate (av) Tenge:US$ 149.6 136.0 132.9 126.1 122.7

The Economic Intelligence Unit Ltd., October 2007

2006-PRINCIPAL EXPORTS (FOB) (%) 2006-PRINCIPAL IMPORTS (CIF) (%)

Mineral products Metals Chemicals Machinery & equipment Mineral products Food products Machinery & equipment Other Metals Chemicals Food products Other

14.3 13.3 71.9 16.1

45.2 10.8 4.2 2.8 7.0 1.8 3.2 9.4

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy Switzerland Russia Russia China Germany China France Other USA Ukraine Other

17.6 38.3 8.1 9.8 7.6 18.0 4.7 9.4 4.2

37.1 8.8

36.4

The Economic Intelligence Unit Ltd., October 2007

PAGE 89 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KYRGYZ STOCK EXCHANGE In 2007 trading volume of the Kyrgyz Stock Exchange increased by 32.4% in comparison with 2006.

Altynbek Alymkulov President

In 2007 trading volume of the Kyrgyz Stock Exchange (KSE) increased by 32.4% in comparison with 2006, and the total quantity of the transactions increased by 79.1%.

HISTORY AND DEVELOPMENT FUTURE OUTLOOK

The KSE was founded in 1994. The official Priorities for the KSE in 2008 are: opening and the first trade in stocks took • Continuing work on the introduction of a place in May 1995, while the privatization cryptographic information security system to process was in full swing in our country. be used in the process of trading; • Development of uniform rules of listing and At the initial stage of its existence and up until delisting in KR; 2000, the KSE had functioned as a non-profit • Continuing the work on engaging Kyrgyz organization with a total membership of 16. In company securities KSE listing; May 2000 the KSE was transformed into a • Continuing participation in the Privatization joint-stock company; simultaneously we program–sell / buy securities owned by acquired one of the largest shareholders and government on the KSE; and realization of a reliable partner the Istanbul Stock the project, Organizing state securities Exchange, which has actively assisted us in trading on the KSE. improving our activities. In 2001 the Kazakhstan Stock Exchange became a shareholder allowing the KSE to significantly increase its technical software potential. At present the KSE is a closed-type non-profit joint-stock company with 17 shareholders.

A significant contribution has been made by the US Agency on International Development (USAID) for the sake of our continued development. Thanks to the USAID, the KSE has obtained powerful financial support that has allowed our Exchange become independent.

PAGE 90 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KYRGYZ STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 3.6936 0.1679 5.1425 0.2337 Aug-07 14.2307 0.6469 10.0294 0.4559 Sep-07 4.4147 0.2207 12.4204 0.6210 Oct-07 6.3071 0.2742 2.8661 0.1246 Nov-07 16.1716 0.7351 8.2321 0.3742 Dec-07 31.1376 1.1121 4.7804 0.1707 TOTAL 75.96 0.53 43.47 0.33

Bonds Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 113.68 130.73 35 160 180 Aug-07 97.09 120.46 30 140 160 Sep-07 128.89 158.59 140 Oct-07 121.23 141.08 25 120 120 Nov-07 177.70 121.04 100 20 100 Dec-07 120.8 93.3 80 15 80 60 60 10 40 40 5 20 20 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Mahmud Usuphanov E-mail [email protected] Website www.kse.kg

PAGE 91 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KYRGYZ STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance A widening in the current-account deficit in Efforts to forge a resolution to the Preliminary figures indicate a sharp 2006 was driven by rising energy prices and constitutional tussles that have afflicted the acceleration in year-on-year real GDP growth slow growth in export revenue because of the Kyrgyz Republic since the ouster of the former to 9.2% in the first half of 2007, from annual fall in production at the Kumtor gold mine. president, Askar Akayev, in 2005 will remain growth of just 2.7% in 2006. Expansion is Given continued uncertainty over both these on hold for several more months. The Jogorku being driven by strong growth in private factors, the current-account deficit is expected Kenesh (parliament) will not scrutinize the consumption, fuelled by remittance inflows, to remain large, at US$ 677 million this year constitutional draft presented earlier this year and by a pick-up in fixed investment, although and US$ 763 million in 2008. Domestic by the Prime Minister, Almazbek Atambayev, both of these factors are contributing to a demand for imports of goods that cannot be until at least September, as the Constitutional deterioration of the net export position, despite produced domestically will also stay strong. Court is still reviewing the legality of the strong export growth. A moderate slowing of However, the government's efforts to limit a document. However, there is a good chance economic activity was expected, but real GDP further rise in the deficit will be helped in 2007- that the draft will eventually be approved by growth forecast has improved to 6As the 08 by steadily rising net transfers and the parliament, as it appears to have backing economy stabilizes in 2007-08 and returns to successful renegotiation of Paris Club debt, among opposition deputies, as well as the growth, inflation will be higher than in 2002-05, which will bring about a reduction in interest support of the president, Kurmanbek Bakiyev. further boosted by rising inflows of workers' payments.* remittances.5% (from 4%), and 2008 One of the main foreign policy issues for Mr projection to 5% (from 4.5%). Inflation will * The Economic Intelligence Unit Ltd., August 2007 Bakiyev over the next two years will be how to nonetheless remain manageable, as the pursue a "multi-vectoral" foreign policy-that is, economy has a low level of monetization, of one that seeks to maintain good relations with around 20% of GDP. all major powers in the region. In May the IMF completed the fourth review of the Kyrgyz Republic's three-year poverty reduction and growth facility (PRGF) signed in February 2005, releasing a trench worth US$ 1.9 million. Heavily reliant on multilateral funding, the Kyrgyz Republic has a strong incentive to maintain good relations with the IMF, but the goal of meeting the Fund's criteria will have to be balanced against preventing a rise in social instability, and political instability is likely to continue due to slow progress in implementing the structural reform agenda assertive Russia.

Key Information Contacts National Bank of the Kyrgyz Republic www.nbkr.kg Ministry of Finance www.minfin.kg The Service of Supervision and Regulations of Financial Market of Kyrgyz Republic www.nsc.kg Ministry of Foreign Trade and Industry of the Kyrgyz Republic www.mvtp.kg

2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Agriculture & forestry Industry Private consumption Public consumption Gross fixed investment Change in stocks Net exports

33.0 100 97.1 80 60 46.9 40 18.9 20 17.1 20.1 0.3 0 -20 -40 -38.2

PAGE 92 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

KYRGYZ STOCK EXCHANGE

KYRGYZSTAN ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)

GDP at market prices (Som billions) 75.4 83.9 94.4 100.9 113.2 GDP (US$ billions) 1.6 1.9 2.2 2.5 2.8 Real GDP growth (%) 0.0 7.0 7.0 -0.2 2.7 Consumer price inflation (av; %) 2.1 3.0 4.1 4.3 5.6 Population (millions) 5.0 5.0 5.1 5.1 5.2 Exports of goods (FOB) (US$ millions) 498 590 733 687 811 Imports of goods (FOB) (US$ millions) -571 -723 -904 -1,106 -1,792 Current-account balance (US$ millions) -30 -43 29 -29 -400 Foreign-exchange reserves excl gold (US$ millions) 289 365 528 570 764 Exchange rate (av) Som:US$ 46.94 43.65 42.65 41.01 40.15

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2005 (a) 2006 (a) 2007 (b) 2008 (b)

Real GDP growth -0.2 2.7 6.5 5.0 Exports of gold ('000 kilograms) 16.6 10.0 11.7 13.4 Consumer price inflation (av) 4.3 5.6 5.5 6.5 Lending rate 21.7 23.3 19.6 21.0 Government balance (% of GDP) (c) 0.2 -0.2 -2.5 -1.9 Exports of goods (FOB) (US$ millions) 687 811 1,040 1,196 Imports of goods (FOB) (US$ millions) -1,106 -1,792 -2,509 -2,948 Current-account balance (US$ millions) -29 -400 -677 -763 Current-account balance (% of GDP) -1.2 -14.2 -20.9 -20.2 Exchange rate Som:US$ (av) 41.01 40.15 37.75 37.21 Exchange rate Som:[euro] (av) 51.09 50.42 50.91 51.26 Exchange rate Som:Rb (av) 1.45 1.48 1.45 1.44

(a) Actual. (b) The Economic Intelligence Unit forecasts. (c) Including central and local budgets, but not the Social Funds.

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Precious metals & stones Mineral products Textiles Mineral products Machinery & equipment Chemicals Glass & construction materials Other Food, beverages & tobacco Other

22.4 15.8 12.2 30.7 8.5 26.8 5.5 8.2

33.1 36.8

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Switzerland Kazakhstan Russia Russia China UAE Other Kazakhstan Other

19.4 14.4

20.5 11.6 1.1 38.0

36.0 26.2 32.8

The Economic Intelligence Unit Ltd., August 2007

PAGE 93 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

LAHORE STOCK EXCHANGE As of 31 December 2007 the market capitalization of the Lahore Stock Exchange increased to US$ 66.501 billion.

Mian Shakeel Aslam Acting Managing Director

Pakistan has made headway in reviving its OMCB Bank in the global markets. The As of 31 December 2007 market capitalization economy by achieving macro-economic response has been encouraging and shows increased to US$ 66.501 billion. The average stability, resuming the path for high growth, the confidence of overseas investors in the daily turnover of shares remained 34.037 introducing deep-rooted structural reforms and economy of Pakistan. million shares with an average daily value of improving governance. The reform process is shares traded of US$ 52.598 million. paving the way for a more diversified financial The market remained volatile during the The Lahore Stock Exchange (LSE) listed 1 sector. The ongoing process of mergers and second half of year 2007. LSE-25 Index started company and 5 open-end mutual funds during acquisitions is having a profound impact on with 4,912.32 points on 2 July 2007 and the period under review. the ownership structure of the financial sector. showed a bearish trend in the 3rd quarter and The entry of foreign banks, Islamic banks and after touching the bottom at 4,113.81 points The LSE is expeditiously working on its microfinance banks who are adding depth to on August 27 started to gain momentum to corporatization and demutualization. The the financial sector. The year 2007 has reach the height of 5,091.31 points on October completion of process of demutualization has witnessed the largest ever IPO in Pakistan’s 18 then again started to decline sharply to been targeted by the first quarter of year 2008. capital market history. Habib Bank Ltd. IPO settle at 4,291.96 points on November 16 and Demutualization will give the Exchange the has been in the limelight ever IPO with respect finally under new sentiments closed at room to expand and to take up joint ventures to both value and number of shares offered 4,504.40 points on 31 December 2007. which are probably not possible in a (51.75 million shares). A major milestone was mutualized exchange. Integration of achieved by floatation of GDRs of OGDC and exchanges is also being considered and is likely after demutualization.

HISTORY AND DEVELOPMENT FUTURE OUTLOOK In 2008 Lahore Stock Exchange plans to: • continue with its strategy of increasing its The LSE was incorporated in Lahore, the With the advent of technology; approximately geographical outreach through the use of provincial capital of Punjab, Pakistan, under 49% of the trading volume is being generated information technology in order to attract the Securities and Exchange Ordinance in through remote trading terminals. It is also higher trading volumes; 1969, as a company limited by guarantee. because of technology that the LSE was able • phase-out of Carry-Over Trading and its The activities of the Exchange have increased to establish trading floors in other cities as well. replacement with Margin-Trading and other in all areas since the inception. The LSE The LSE has trading floors in the cities of modes of financing; introduced screen-based electronic trading in Faisalabad and Sialkot and is now considering • frame a strategy for the demutualization and 1996 and became the first fully automated opening trading floors in Multan and Peshawar integration of the stock exchanges of Pakistan Stock Exchange of Pakistan. The LSE has as well. in the interest of the Exchange and capital become a key institution in the financial sector markets of the country; of Pakistan and has a membership of 152 Introduction of index trading and derivatives • enhance trading in the derivatives market brokerage houses. As of 30 June 2007 there products such as options and swaps and other and introduce Stock and Sector Index Futures; were 520 listed companies, having a listed products will increase the products offered by • replace existing exposure monitoring system capital of US$ 9.8230 billion with a market the exchange, giving investors more choices with Value at Risk Margin System in line with capitalization of US$ 63.7673 billion. and hence increasing trading activity of the global practices; exchange. • Market BrokerNet - Broker hosted Internet Stock Trading Solution; Integration of the exchanges is also being • promote and market the indigenously considered and is likely after demutualization. developed trading software i.e. Ultra Trade and Another concept that will help greatly in related systems to other stock exchanges; expanding investor base is cross listings and • implement a regular timetable for the Broker GDRs. Work is underway in this regard. System Audit, in order to build investors’ confidence; and • strengthen the surveillance function of the Exchange

PAGE 94 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

LAHORE STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 1,265.9900 57.5450 1,019.2900 46.3316 Aug-07 758.0574 34.4572 617.0091 28.0459 Sep-07 781.7080 39.0854 474.1502 23.7075 Oct-07 1,313.6200 69.1381 732.6765 38.5619 Nov-07 1,026.4800 48.8798 509.9439 24.2830 Dec-07 723.0501 42.5324 450.6762 26.5104 TOTAL 5,868.91 48.61 3,803.75 31.24

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 63,885.02 4,829.02 1,400 5,000 70,000 Aug-07 56,203.54 4,220.65 1,200 60,000 Sep-07 64,409.28 4,582.48 4,000 Oct-07 68,785.45 4,769.78 1,000 50,000 Nov-07 67,620.79 4,569.23 800 3,000 40,000 Dec-07 66,501.44 4,504.40 600 2,000 30,000 400 20,000 1,000 200 10,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Amir Razakhan E-mail [email protected] Website www.lahorestock.com

* Please refer to page 84 for the Pakistan country report.

PAGE 95 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MACEDONIAN STOCK EXCHANGE In 2007, the total turnover of the Macedonian Stock Exchange was a record breaking US$ 990 million, 4.5% higher than the combined turnover in 2005 and 2006.

Ivan Steriev CEO

2007 was an extraordinary year for the At the end of the year 38 companies were ascending trend of the MBI-10 index (2.292,04 Macedonian Stock Exchange (MSE). The total listed on the Official market with market points in 2005 and 3.702,54 points in 2006). turnover of the MSE was a record breaking capitalization of around US$ 2.7 billion, which US$ 990 million. The turnover in 2007 is 4.5% compared with 43 companies listed at the end During 2007 a few takeovers become effective, higher than the combined turnover in 2005 of 2006 with market capitalization of US$ 1.2 especially in the banking sector with the and 2006. billion means an increment of 122%. Until entrance of French, Icelandic and Bulgarian 31 December 2005 all companies that fulfill capital. More detailed analysis of the turnover shows listing requirements were obliged to be listed the quality level of the MSE performance in on the MSE Official market, but since January By the end of the year four exchanges from 2007: trading in equities through BEST trading 2006, listing is on a voluntary base. the region (the Belgrade, Macedonian, Zagreb system reached about US$ 683.7 million which and Ljubljana stock exchanges) signed indicates 237% increment compared with the The MSE index, MBI-10, started the year at Memorandum of Partnership. This document same figure in the 2006. The total number of 3.812 points and then increased the highest will contribute to closer cooperation in the transactions executed in 2007 (141.984) level in the history of the MSE on 31 August promotion of the regional market, international increased by 168% compared to 2006 and it is 2007 (10.057,77 points) and ended the year at promotion of regional issuers and products almost equal with the number of transactions 7.740,79 points which indicates increment of and further development of regional products, performed on the MSE during the previous 6 109%. This is the third year in a row with an services and members. years combined.

HISTORY AND DEVELOPMENT a for-profit basis, with a founding capital of In 2008 we expect that the presence of foreign EUR 500,000. The MSE shareholders may be investment funds, as well as appearance of The MSE was founded on September 13, 1995 private, domestic and foreign entities. several new domestic funds will contribute to and commenced trading on March 28, 1996, Shareholdings per entity is limited up to 10% of the improvement of the demand side of the as a central marketplace for trading in the MSE outstanding shares. securities market. securities and the first organized stock exchange in the history of the Republic of Currently MSE has 20 shareholders (9 The MSE will promote a few changes and Macedonia. brokerage houses, 9 banks and 2 private amendments in the Listing Rules that will investors). introduce higher standards for disclosure for The MSE was founded as a not-for-profit joint the companies on the Exchange Listings. stock company with founding capital of FUTURE OUTLOOK 500,000 EURO. According to the legislation Through various forms of cooperation with that was in effect in 1996 the only eligible For the MSE 2007 was extremely successful other regional exchanges the MSE will be founders of the MSE were banks and other year with extraordinarily high turnover; market involved in the processes of the promotion of financial institutions (saving houses and capitalization was three times higher than 2006 regional markets and international promotion of insurance companies). MSE initially had 19 and the official stock index MBI-10 reached its issuers and products in order to attract members: 13 banks, 3 saving houses and 3 highest level ever. international as well as regional investors. insurance companies. In 2008 the Macedonian securities market will All MSE members must be licensed for trading be more influenced by non-economic factors. in securities by the Macedonian SEC. Only Expectations that Macedonian admission in brokers, authorized by the MSE members may NATO will resolve positively, determination of trade in securities at MSE. the date for starting the negotiations with EU for Macedonian membership, as well as The MSE currently has 22 members–16 resolving of Kosovo’s status of independence brokerage houses and 6 banks. Starting from will have significant influence over the economy 20 June 2001 (with the amendment of the of the country and will influence future trends Securities Law), the MSE started to operate on on the capital market.

PAGE 96 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MACEDONIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 33.3728 1.5169 1.0710 0.0487 Aug-07 69.8951 3.3283 1.6572 0.0789 Sep-07 76.7912 3.8396 1.1769 0.0588 Oct-07 110.9378 5.5469 1.2628 0.0631 Nov-07 38.6577 1.7572 0.5968 0.0271 Dec-07 24.2971 1.2149 0.5116 0.0256 TOTAL 353.95 2.87 1.05 0.05

Bonds Jul-07 2.1514 0.0978 1.9329 0.0879 Aug-07 1.3017 0.0620 1.1776 0.0561 Sep-07 2.6036 0.1302 2.2602 0.1130 Oct-07 9.0905 0.4545 7.5580 0.3779 Nov-07 2.1435 0.0974 1.7300 0.0786 Dec-07 1.7073 0.0854 1.3879 0.0694 TOTAL 19.00 0.15 16.05 0.13

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 2,648.85 8,021.55 120 12,000 3,500 Aug-07 3,203.53 10,057.77 Sep-07 3,133.96 9,283.00 100 10,000 3,000 Oct-07 2,837.02 8,258.54 2,500 80 8,000 Nov-07 2,376.25 6,566.52 2,000 Dec-07 2,703.69 7,740.79 60 6,000 1,500 40 4,000 1,000 20 2,000 500 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Milco Kupev E-mail [email protected] Website www.mse.com.mk

PAGE 97 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MACEDONIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance The Republic of Macedonia officially joined The Republic of Macedonia is a country In August 2006, after the elections held in July, CEFTA in February 2006 and new trading placed in the middle of the Balkan Peninsula, a new government was formed. The Prime arrangements took effect from July. A “one- with a population of just over two million. minister of the government is Mr. Nikola stop shop” for the registration of businesses In 1991, it declared its sovereignty from Gruevski. The program of the new government came into effect in January 2006, reducing the Yugoslavia, and has since experienced mixed anticipates reforms in several areas, such as: time taken to establish a business from 48 success in liberalizing its economy. The introduction of flat rate taxes, fight against the days to 5 days. In March 2006 parliament industrial sector comprises about 18% of GDP corruption, more favorable climate for foreign approved new bankruptcy legislation, aiming and employs about one-third of those holding investments etc. to shorten proceedings and reduce costs. The jobs in the formal economy. The largest new pension law took effect in September components of industrial production are All reforms in the following years will be 2005 and contributors started to be transferred metals, chemicals and food and beverage tailored towards the main goal of the Republic to private pension funds in January 2006. processing. The privatization process is almost of Macedonia: accession into the European finished and the country has adopted a market Union and NATO. The Republic of Macedonia In August 2006 Fitch Ratings improved the economy system. The primary goals of the is an EU candidate country and is expected to Republic of Macedonia long term credit rating country are accession to the EU and NATO be accepted as a NATO member in 2008. in domestic and foreign currency from “BB+” and on this issue the country is boosted by a with stabile prospects into “BB+” with positive wide consensus of all Macedonian political prospects. factors.

The President of the Republic of Macedonia is Mr. Branko Crvenkovski. Prime minister of the Government is Mr. Nikola Gruevski.

2003 2004 2005 2006

GDP (US$ millions) 4,119 4,298 4,534 4,882 GDP per capita (US$) 2,032 2,114 2,226 2,393 Real GDP growth (%) 2.8 4.1 4.1 3.7 Industrial production growth (%) 6.6 -2.1 7.0 2.5 Inflation rate (%) 1.2 -0.4 0.5 3.2 External debt (US$ millions) 1,813 2,044 2,258 2,567 Foreign currency reserves (US$ billions) 0.90 0.99 1.33 1.89 Foreign direct investments (US$ millions) 94.3 150.1 120.0 350.7 Export (US$ millions) 1,359 1,672 2,040 2,396 Import (US$ millions) 2,211 2,931 3,097 3,681 The data for 2006 for GDPare preliminary. Information provided by the Macedonian Stock Exchange.

Key Information Contacts Central Securities Depository www.cdhv.org.mk Securities & Exchange Commission www.sec.gov.mk National Bank of the Republic of Macedonia www.nbrm.gov.mk Ministry of Finance www.fin.gov.mk

2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2004-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Private consumption Public consumption Gross fixed investment Agriculture, forestry, fishing & water management Changes in stocks Exports of goods & services Imports of goods & services

77.9 27.8 80 58.9 70 60.5 60 50 40.2 40 13.2 30 20.8 20 17.8

10 3.7 0

PAGE 98 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MACEDONIAN STOCK EXCHANGE

MACEDONIAN ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (b) 2008 (c) 2009 (c)

Real GDP growth 3.1 (b) 4.6 4.7 5.0 Industry (excl construction) -2.2 6.0 6.5 7.0 Agriculture 0.6 0.5 0.5 0.5 Consumer price inflation (av) 3.2 2.0 2.3 2.5 Consumer price inflation (year-end) 2.6 2.2 2.4 2.5 Central bank 28-day bill rate (av) 6.0 5.0 4.7 4.4 General government balance (% of GDP) -0.6 (b) -1.1 -1.5 -1.5 Exports of goods (FOB) (US$ millions) 2,396 2,844 3,240 3,185 Imports of goods (FOB) (US$ millions) -3,682 -4,079 -4,603 -4,504 Current-account balance (US$ millions) -24 5 -146 -137 Current-account balance (% of GDP) -0.4 0.1 -1.9 -1.9 External debt (year-end; US$ billions ) 2.4 (b) 2.6 2.6 2.6 Exchange rate Den:US$ (av) 48.80 45.17 42.56 46.33 Exchange rate Den:[euro] (av) 61.28 61.50 61.50 61.50 Exchange rate Den:[euro] (year-end) 61.30 61.50 61.50 61.50

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts.

2005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)

Iron & steel Clothing Petroleum & petroleum products Petroleum & petroleum products Road vehicles Tobacco Chemicals Industrial machinery Meat and meat preparations

24.4 15.2 7.7 4.9 26.2 5.0 4.6 4.4 2.7

32.3 72.6

2005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)

Serbia & Montenegro Germany Saudi Arabia China UAE Greece Italy Croatia Other USA Japan Other

17.8 13.2 10.4 51.7 22.5 15.3 9.2

8.3 8.2 4.0 40.4 7.3

The Economic Intelligence Unit Ltd., September 2006

PAGE 99 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MOLDOVAN STOCK EXCHANGE As for dynamics of development, the year 2007 is characterized by the increase of the exchange indicators.

Dr. Corneliu Dodu President

Within the bounds of integration of the securities market has been incorporated in The main factor in achieving the 2007 year Republic of Moldova in the European Union, the Republic. Implementation of a new record indicator is transactions with banks with the purpose of the implementation of instruments process has been developed shares. The most important transactions new instruments in order to attract with in the financial market as corporate were executed through public offerings: the investments in the country and for market bonds, sustained by government and all the tender offer with shares of commercial banks integration; fruitful work has been completed country’s financial institutions in order to “Mobiasbanca” to the amount of US$ 37.5 in adopting new laws and modifications of attract foreign investments. million, and “Unibank” to the amount of US$ the existing legislation on Stock Exchange 21.4 million. The increased demand for Market in 2007. A new law has been As for dynamics of development, the year banks’ securities has been reflected on their approved regarding the National 2007 is characterized by the increase of the market price. Commission of Financial Market (it’s created exchange indicators. The volume of the the Megaregulator) and a new member to Exchange market constituted 84% (US$ 106 In 2007, the process of reorganization of the Administrative Board of the financial million) of general volume of secondary open-end funds in the process of liquidation market has been assigned. The code of securities market (regarding the OTC- has been finalized; nowadays they no longer corporate governance has been exchange volumes, only buy and sell exist as professional participants of the implemented. The new laws of audit and transactions are taken into consideration), financial market. accounting activities have been initialized, as this appears to be a record for this indicator. well as many normative and legislative acts One of the most successful auctions of the The main reason for these modifications are in this field. The essential modifications and year was the auction of selling public the development of a transparent and liquid additions have been implemented regarding property shares in the amount of US$ 6.8 securities market, which will encourage the legislation of the securities market and million where the securities of 83 join stock domestic and foreign investors to accelerate legislation of the join stock companies. Thus, companies of different economic areas have their activity in the Moldovan Market. the basis of the further development of the been placed.

HISTORY AND DEVELOPMENT Index, serves as a basis for the calculation of assigned a new membership of the the CNVM-32. Administrative Board of the financial market. In December 1994, the MSE, a closed The code of corporate governance has been company, was established under the law on In June 2005, the MSE celebrated its 10th implemented. The new laws of audit and Securities Circulation and Stock Exchanges. anniversary. At the end of 2006 the accounting activities have been initialized, as Originally, 34 securities market professionals methodology of calculation CNVM-32 Index well as many normative and legislative acts of participated in trading. The first transactions was changed, regarding number of issuers this field. It has been implemented the were held on 26 June1995, which is included in index calculation, diminishing the essential modifications and additions in the considered the date of the founding of the total from 32 companies to 24 companies. legislation of securities market and legislation MSE. The changes that have taken place, have had regarding join stock companies. Thus, the a positive effect on the activities of all basis of the futher development of the Due to the assistance of the USAID, the participants of the stock market, including the securities market is incorporated in the Exchange was equipped with advanced Exchange itself. Republic.It has been initialized the process of technology for stock auctions. In 1998 the implementation of new instruments of financial MSE established the National Securities Rules of the MSE were renewed with new market as corporate bonds, sustained by Depository (NSD), a non-commercial joint- listing requirements for the companies this government and all the financial institutions of stock company. spring. There were three listing levels and the country in order to attract foreign non-listing section before, now there are only investments. In present, all the open-end At the initial stage of the MSE's development, two plus non-listing. Also, new projects on founds created at the beginning of the authorized capital adequacy standards base securities market laws in accordance privatization are in the process of liquidation, were set as an authorized capital of with European Standards were introduced to except 6 Investment Founds, which have US$ 18,030 (238,000 lei). In 1998 capital the community. been reorganized in commercial enterprise adequacy increased from US$ 29,697 with no license for activity on financial market. (392,000 lei) and is now US$ 37,879 (500,000 FUTURE OUTLOOK They are expecting the legislation regarding lei). The equity capital sufficiency norms of the holdings. Thereby, it has been adopted US$ 75,758 (1.0 million lei), and guaranty fund Within the bounds of integration of The the basis of future development of Moldavan adequacy norms of 30% of the authorized Republic of Moldova in the European Union financial market. Securities on Moldavan capital as set by the legislation are currently in with the purpose to implement of new market still presents a high interest for local practice. instruments for attracting investments in the investors as well as for foreign investors, that country and markets integration, in 2007 has leads to the increasing volume of securities In April 2000, the MSE received the status of a been done a fruitful work in adopting new liquidity and positive tendencies in the market self-regulating non-commercial organization. laws and modifications of the existing development. legislation on Stock Exchange Market. It has At the beginning of 2002, the National been approved a new law regarding the Commission introduced the CNVM-32 index. National Commission of Financial Market (it’s The world famous index, the Dow Jones created the Mega regulator) and it has been

PAGE 100 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MOLDOVAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 3.9857 0.1812 1.8471 0.0840 Aug-07 3.5465 0.1689 7.7622 0.3696 Sep-07 23.3756 1.1688 1.9890 0.0995 Oct-07 2.3357 0.1168 0.3610 0.0181 Nov-07 11.5495 0.5250 6.4613 0.2937 Dec-07 6.7530 0.3377 7.4198 0.3710 TOTAL 51.55 0.42 25.84 0.21

Bonds Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.0 0.0 0.0 0.0 TOTAL 0.0 0.0 0.0 0.0

Market MONTHLY STOCK VOLUME 5-YEAR STOCK VOLUME Capitalization* (US$ millions) (US$ millions) (US$ millions) Index

Jul-07 0.0 n/a 25 120 Aug-07 0.0 n/a Sep-07 0.0 n/a 20 100 Oct-07 0.0 n/a 80 Nov-07 0.0 n/a 15 Dec-07 0.0 n/a 60 10 * MSE recalculated its market cap. data is not available 40

5 20

0 0 Jul Aug Sep Oct Now Dec 2003 2004 2005 2006 2007

CONTACT INFORMATION

Contact Name Mr. Serghei Istrate E-mail [email protected] Website www.moldse.md

PAGE 101 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MOLDOVAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance Moldova will continue to record a trade in The political scene in 2008-09 is expected Real GDP surged by 8.5% year on year in the goods deficit of around 50% of GDP. Even if to be less predictable and more unstable second quarter of 2007, resulting in 8% growth wine sales to Russia, which were suspended in than at any point in the past two years. for the first half as a whole. The strong showing March 2006, resume as expected towards the The deteriorating outlook is a consequence of reflected buoyant fixed capital investment and end of 2007, they will remain far below the parliamentary and presidential elections household demand. However, a sharp historical levels, and Moldovan exporters will that are due in the first half of 2009, as well as slowdown is estimated for the second half of be able to make up only a small part of the the political dynamics set off by the local the year, owing to drought, which has slashed difference in newer markets. On the imports elections of June 2007, which revealed a clear agricultural output and is having a knock-on side, strong demand for consumer goods, weaknesses in the ruling PCRM, while at the effect on agro-processing. A steeper decline financed by inflows of workers' remittances, will same time polarizing inter-party relations and should nevertheless be contained by solid be the most important factor pushing up the emboldening the opposition. investment and household demand, which will trade deficit. In addition, oil import prices are ensure that services continue to drive the no longer expected to fall in 2008, and are The presidential administration and economy, and we still expect full-year growth expected to come down by just 10% in 2009, parliamentary majority are expected to of around 5% in 2007. whereas gas prices will continue to rise continue to maintain their pro-EU stance, and throughout the forecast period. All of this will fulfillment of the EU-Moldova Action Plan will The process of implementation of new be only partly mitigated by the ATP deal that remain a central policy goal. Once this is instruments in financial market has been the EU will grant to Moldova's exports in 2008. completed in 2008, the government will initialized with the implementation of corporate However, the sizeable trade deficits expected probably secure a follow-on deal with the EU, bonds, which are sustained by the government in 2008-09 will be largely offset by continued which should further deepen ties between the and are expected to attract foreign inflows of earnings sent by Moldovan working two sides, although it will fall well short of investments. abroad, as well as by an increase in foreign offering clear membership prospects. grants. These will allow the current-account Consumer price inflation is no longer expected deficit to narrow to around 9% of GDP by A three-year poverty reduction and growth to ease as sharply as before, owing to a severe 2009.* facility (PRGF) approved by the IMF in mid- drought that has already begun to lift food 2006, combined with the government's prices, and which pushed overall prices up by * The Economic Intelligence Unit Ltd. September 2007. economic growth and poverty reduction an unusually high 1.1% in July and 2.2% in strategy paper (EGPRSP) and the EU-Moldova August. Year-end inflation is now expected to Action Plan, provides a solid policy framework. be 13.5% in 2007, which is higher than The mix of fiscal and monetary policies is previously forecast, but still below the 14.1% expected to remain generally sound in 2008- recorded at end-2006, owing to the disinflation 09, particularly as the government will pass on achieved in the first half of the year. Faster higher gas import costs to consumers, raise disinflation should prove possible in 2008-09, heating and water tariffs to cost-recovery levels owing to smaller increases in the price of food in 2008, and improve the balances. and relatively tight policies. Consumer price inflation is nevertheless likely to remain above 8.5% year on year until the end of the forecast period.

Key Information Contacts MSE President Dr. Corneliu Dodu [email protected] Listing, Marketing and Quotation Department [email protected], [email protected] Financial Market Commission of Moldova www.cnvm.md Department of Privatization www.privatization.md

2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Agriculture & fishing Private consumption Public consumption Gross fixed investment Industry Construction Increase in stocks Net exports

21.3 100 91.6 54.3 80 60 19.1 40 24.4 20 16.9 5.4 4.8 0 -20 -40 -41.7 -60

PAGE 102 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MOLDOVAN STOCK EXCHANGE

MOLDOVA ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (Lei billions) 22.6 27.6 32.0 36.8 44.1 GDP (US$ billions) 1.7 2.0 2.6 2.9 3.4 Real GDP growth (%) 7.8 6.6 7.4 7.5 4.0 Consumer price inflation (av; %) (b) 5.2 11.6 12.4 11.9 12.7 Population (millions) (c) 3.6 3.6 3.6 3.4 3.4 Exports of goods (FOB) (US$ millions) 660 805 994 1,105 1,054 Imports of goods (FOB) (US$ millions) -1,038 -1,428 -1,748 -2,296 -2,644 Current-account balance (US$ millions) -25 -135 -59 -263 -404 Foreign-exchange reserves excl gold (US$ millions) 269 302 470 597 775 Total external debt (US$ billions) 1.8 1.9 1.9 2.1 2.5 (d) Debt-service ratio, paid (%) 20.2 10.3 14.9 10.3 11.3 (d) Exchange rate (av) Lei:US$ 13.57 13.94 12.33 12.60 13.13 (a) Actual. (b) Annual and quarterly series from different sources. (c) Excludes Transdniestr. (d) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (b) 2008 (c) 2009 (c)

Real GDP growth 4.0 5.0 6.0 5.8 Industrial production growth -6.9 2.0 8.0 9.0 Agricultural production growth -4.6 -12.0 14.0 3.0 Consumer price inflation (av) 12.7 12.3 12.0 8.5 Consumer price inflation (year-end) 14.1 13.5 9.0 8.5 Lending rate (av) 18.1 18.5 19.0 18.8 Deposit rate (av) 11.9 12.2 12.5 12.5 Consolidated government balance (% of GDP) -0.3 -0.2 -0.5 -0.5 Exports of goods (FOB) (US$ millions) 1,054 1,430 1,660 1,740 Imports of goods (FOB) (US$ millions) -2,644 -3,580 -4,120 -4,480 Current-account balance (US$ millions) -404 -558 -525 -508 Current-account balance (% of GDP) -12.0 -13.1 -10.3 -8.9 External debt (year-end; US$ millions) 2,524 (b) 2,868 3,182 3,580 Exchange rate Lei:US$ (av) 13.13 12.18 12.10 12.40 Exchange rate Lei:US$ (year-end) 12.91 11.70 12.30 12.50 Exchange rate Lei:[euro] (av) 16.49 16.58 17.48 16.46 Exchange rate Lei:Rb (av) 0.483 0.474 0.476 0.481 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts.

2006-PRINCIPAL EXPORTS (%) 2006 -PRINCIPAL IMPORTS (%)

Food products Textiles Vegetable products Mineral products Machinery & equipment Chemicals Metals Mineral products Other Metal & metal products Vegetable products Other

21.7 14.1 8.3 13.0 26.3 24.6 8.1

7.2 2.7

2.6 42.2 29.2

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Russia Romania Italy Ukraine Russia Romania Ukraine Belarus Other Germany Other

15.5 14.8 12.2

19.2 17.3 12.8 12.2

8.0 7.0

44.5 36.5

The Economic Intelligence Unit Ltd., October 2006

PAGE 103 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONGOLIAN STOCK EXCHANGE In 2007 the Mongolian Stock Exchange has accomplished far successful results than it has ever before.

Rentson Sodkhuu Chairman and CEO

On behalf of the Mongolian Stock Exchange Highlights of our accomplishments of the year • Negotiating on Information Distribution (MSE), I greet the honorable reader and can be noted as follows: agreement with Bloomberg and Reuters colleagues, professionals and with all • Renewed Trade Regulation and MSE Listing agencies in order to disseminate the MSE’s participants of securities market all over the Rule information to the rest of the world world. • “Dornod Autozam”, “Hai Bi Oil”, “Olloo” and • Participated at both international and “Tuul-Songino usni Noots” joint stock domestic seminars, trainings and organized I am delighted to inform you that in 2007 the companies were listed on the MSE and issued seminars and trainings with foreign specialists. MSE has accomplished more successful securities results than it has ever before. The trading • “Bats”, “Ci Ci Pi”, “Global Asset”, “Frontier”, Today the MSE is putting increased emphasis volume for stocks increased by 4.9% and the “Bloomsbury Securities” broker dealer on its operations, by improving its securities total value of bond trading was increased by companies were listed on MSE trading system, technology to provide 7.5 times over the previous year, during the • A Memorandum of Understanding agreement beneficial, transparent, confident trading same period. Market capitalization of the listed with Hong Kong Exchange was signed. We environment also in educating investors, companies reached US$ 612.214 million which also shared opinions and agreed to cooperate issuers and participants of the securities represent a 5.5 times increase. By the end of in terms of “Mongol Bond” project with the market, moreover to establish and co-operate 2007, the MSE’s top-20 index reached to Taiwan GreTai Stock Exchange and signed with other foreign exchanges and other 10,256.13, which is higher by 5.1 times from letter of Intent on implementing the MSE professional organizations in order to improve the same period of the previous year. technology, software reform and human our operations and strategies into the resource capacity building” project with the international standard. Korea Stock Exchange

HISTORY AND DEVELOPMENT 30 October Listing rules of the MSE updated. 23 January “MonInjbar” Joint Stock Company 05 July 2002 Top value of a stock trading issued additional shares 18 January 1991 The MSE established amounted to MNT 376.77 million. 12 February CEO visits Singapore and attends according to the Government decree No 22. 03 December Memorandum of Understanding to “2nd Asian Emerging Markets Conference” 22 May Privatization law enacted. on Mutual Cooperation with the Taiwan Stock 21 March ESOP developing plan started for 07 February 1992 Primary market trading Exchange signed. Mongolian companies started. 30 December Revision to the Securities Law 16 April “Tuul Songino Usnii Noots” Joint Stock 26 September 1994 Securities law enacted. adopted. Company was listed on MSE 14 November Mongolian Securities 26 March 2003 The MSE was divided into two 03 May “High- B Oil” - Joint Stock Company Commission established. independent organizations: was listed on the MSE 01 July 1995 Privatization of securities “Mongolian Stock Exchange” 30 May Trading for corporate “MonFresh” - companies has started. “Securities Clearing House and Central bond has started 31 July Securities Dealers and Brokers Depository” 01 August 3000th trading has commenced with Association founded. 26 March The MSE was reorganized as a profit total transaction value of MNT 1 billion 12 August First General Assembly of Securities making state owned Shareholding Company. 06 August Letter of Intent with GreTai Securities Dealers and Brokers Association was held. 15 May The MSE charter passed by State Market signed 28 August Secondary market trading started. Property Committee. 15 August Top 20 Index reaches over 10,000 25 October 1996 The first trading day of the 06 November Shares of the MSE listed on the and gains market value of MNT 620 billion Government bonds. Stock Exchange. 21 August Joint project research has started 11 February 1998 Off-exchange trading 29 October 2004 First time the special license with the Korea Stock Exchange started. has been issued to an underwriting 13 September “Olloo” online service company 01 October The MSE joined as a full-member company on security market was listed on the MSE issued and offered its in FEAS. 30 March 2005 “Information Center” of the shares to public 02 July 1999 A new Companies law enacted. MSE established 25 August A software for trading was 17 June “Mongol Shiltgeen” JSC was listed on FUTURE OUTLOOK introduced. the MSE and issued shares as a classical way. 10 September 1000th trading day 01 November “Training center” of capital In 2008, the MSE will focus on achieving the 01 November The MSE has started to calculate market established. following goals: composite price index. 18 January 2006 Celebrated 15th anniversary • influence and assist in developing the 21 January 2000 The first securities company of MSE securities market legal environment with foreign investment registered as a member 14 February “Zoos Bank” was listed on the • create new products of the MSE. MSE • strain the listed companies by monitoring 26 September Structure of the MSE 30 March Celebrated “Annual Shareholders inspecting implementation of the rules and reorganized. Day” regulations 16 November Trading of the Government 15 June Memorandum of Understanding with • reform IT systems and operating technologies bonds restarted. the Korea Stock Exchange signed. of the stock exchange 08 January 2001 The monthly magazine of the 19 July Memorandum of Understanding with • change proprietary/ownership form of the MSE “Security and Trading” published. the Istanbul Stock Exchange signed stock exchange under the name of “Development + 31 October The MSE’s training center • strengthen the human resource capacity Investment”. celebrates its first year successful operation • increase information coverage and 18 January 10th anniversary of the MSE. 04 January 2007 FRC Announces 2007 as a distribution 08 June Corporate bond trading started. “Financial Market Development Year”

PAGE 104 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONGOLIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 0.8455 0.0445 2.5162 0.1324 Aug-07 6.8928 0.2997 13.7353 0.5972 Sep-07 7.6362 0.3818 7.9858 0.3993 Oct-07 11.0346 0.4798 8.5558 0.3720 Nov-07 3.7734 0.1797 2.7488 0.1309 Dec-07 14.0400 0.6686 20.0046 0.9526 TOTAL 44.22 0.34 55.55 0.43

Bonds Jul-07 0.0710 0.0178 0.0130 0.0033 Aug-07 3.4029 0.8507 0.0488 0.0122 Sep-07 6.5017 3.2508 0.0800 0.0400 Oct-07 6.5327 3.2664 0.0800 0.0400 Nov-07 0.0010 0.0005 0.0001 0.0001 Dec-07 0.0 0.0 0.0 0.0 TOTAL 2.75 7.39 0.037 0.016

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 n/a n/a 16 14,000 700 Aug-07 n/a n/a 14 600 Sep-07 n/a n/a 12,000 Oct-07 n/a n/a 12 10,000 500 10 Nov-07 n/a n/a 8,000 400 Dec-07 n/a n/a 8 6,000 300 6 200 4 4,000 2 2,000 100 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Ms. J. Erdenbileg E-mail [email protected] Website www.mse.mn

PAGE 105 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONGOLIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment main source of government revenues. The size enterprises, and provide for reserves of The political scene is set to remain volatile as the revenues from the mining windfall tax accounted wheat and petroleum. No less than MNT 100 government struggles to assert its legitimacy. The for 18.5% of total central government budget billion will be allocated for purchasing the current four-party coalition government, led by the revenue in August 2007. Inflation (CPI) picked up reserves of meat, milk, flour, potatoes, other kinds from a low 4.2% in January 2007 to 11.3% in of vegetables, and petroleum products. MNT 30 Mongolian People's Revolutionary Party (MPRP), August, due to rapid monetary growth, public billion is planned for supporting the development will remain fractious. Cracks within the MPRP may sector wage increases and increases in the price of small and medium-size enterprises and deepen in the run-up to the next elections due by of some main imports (c.f. next section). As of manufacturing of consumer goods, and MNT 10 June 2008. Reducing poverty will remain a policy August 2007, broad money increased by 45% billion was allocated in the state budget to priority. and credit to the private sector by 53%. provide for 50% of bank loans. Three electric power stations with a capacity of more than The government is also investing heavily in The government forecasts real GDP growth of 9% 10,000 megawatts will be built in Ulaanbaatar and infrastructure, far better transport links are needed for 2007, up from 8.4% in 2006. Economic growth Shivee-Ovoo to support the mining industry. both within the country and to reach key markets is expected to reach around 7-8% a year in 2007- No less than MNT 50 billion will be allocated in in China, Russia, Kazakhstan and the Kyrgyz 08. Heavy government spending on infrastructure the state budget to resolve issues related to Republic. Foreign aid will continue to play a vital and housing projects will boost the construction infrastructure, water supply and air pollution in role in raising educational standards, not least by sector in 2007-08. The industrial sector as a Ulaanbaatar. Additional MNT 15 billion will be providing the funds to create a new curriculum whole will also benefit from strong foreign-direct spent to increase transport capacity in Zamiin- and to replace educational facilities that are well investment, particularly in the mining sector Uud border post. following approval of a revised minerals law in past their prime. 2006. The main guidelines for socio-economic development of the country envisage resolving a The MPRP-led coalition is maintaining its In the 2008 state budget, every M1 out of M3 will considerable number of social issues. For predecessor's pragmatic approach to foreign be spent on investment and development instance, the document spells out the need to policy, reflecting the need to balance the schemes. The fiscal proposal also envisions a ensure independency of the social insurance influence of its larger and more powerful two-fold increase in investments, which is sector, reduction of social insurance deductions neighbors. The main focus of foreign policy will expected to exceed MNT* 675 billion. In addition by two-fold and the same amount of social therefore remain the need to balance relations to investments, which will be allocated from the insurance deductions both for civil servants and with Russia, on which Mongolia depends for state budget, MNT 167 billion will come as foreign private sector employees. It also envisages an energy, and China, on which it relies as an export loans and assistance. Domestic and foreign increase in the amount of money spent to market. investments combined, in 2008, a total of MNT purchase lunches for schoolchildren from MNT 851 billion will be allocated for construction of 300 to MNT 400. The state also undertook a Economic Performance schools and kindergartens, more than 500 responsibility for paying the permanent costs of Mongolia's economic outlook is broadly favorable. kilometers of asphalt roads will be built, and 33 state-owned tertiary educational institutions. soums (provinces) will be provided with Funds are also allocated for renewing parking lots As of August 2007 gross industrial output electricity. of hospitals, border, police and defense increased by 13.6% in real terms compared to the institutions.** corresponding period last year, led by Next year’s state budget was approved last week manufacturing (33.7%), grain mill and fodder and the parliament members consider it has * MNT- Mongolian National Tugrik. US$1= MNT1170 products, dairy products, and basic metals. While become an historic budget at MNT 2 trillion. ** Mongol Messenger (www.mongolmessenger.mn) most of the foreign direct investment (FDI) National Statistical Office (www.nso.mn) World Bank Country Report coming into Mongolia continues to go to mining, Furthermore, the government bonds will be sold next year onto international financial market to (http://go.worldbank.org/D8H9DQNLZ0) its output grew by only 3.9% this year (mainly UB Post (www.ubpost.mongolnews.mn) came from coal extraction). Mining is also the facilitate the development of small and medium-

Key Information Contacts Parliament of Mongolia www.parl.gov.mn State Property Commission www.spc.gov.mn Ministry of Finance www.mof.pmis.gov.mn Financial Regulatory Commission www.frc.mn The Central Bank of Mongolia www.mongolbank.mn Mongolian Chamber of Commerce & Industry www.mongolchamber.mn National Statistical Office of Mongolia www.nso.mn Ministry of Foreign Affairs www.mfa.gov.mn

2007-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2007-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Mining& quarrying Agriculture, hunting & forestry Private consumption Government consumption Gross fixed capital formation Transport and communicatoin Trade Manufacturing Change in stocks Net exports of goods & services Construction Other

20.6 35 33.1 29.9 30 9.1 25 20 27.4 15.1 7.6 15 10 4.1 5.7 5 1.9 0 29.3 -5 * World Bank reports -10 -5.8

PAGE 106 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONGOLIAN STOCK EXCHANGE

MONGOLIA ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007

GDP at current prices (Tg billions) (c) 1,329.5 1,549.1 1,976.9 2,316.4 2.7 4,557.5 GDP (US$ millions (c) 1,197.4 1,348.5 1,667.8 1,921.8 2.3 3,895.3 Real GDP growth (%) (c) 4.0 5.6 10.6 6.2 8.4 9.9 Consumer price inflation (av; %) (d) 1.8 4.6 11.0 12.7 5.1 9.0 Population (millions) (c) 2.55 2.58 2.61 n/a 2.635 2.675 Merchandise exports (FOB) (US$ millions) (e) 524.0 615.9 869.7 1,064.9 1,545.2 1,889.0 Merchandise imports (FOB) (US$ millions) (e) 690.7 801.0 1,021.1 1,148.4 1,356.7 2,117.3 Current-account balance (US$ millions) (c) -158.0 -148.1 -24.6 n/a 108.9 -228.3 Reserves excl gold (year-end; US$ millions) (c) 349.5 236.1 236.3 430.1 926.0 Total external debt (US$ millions) (c) 978.0 1,237.0 1,360.0 1,380.0 n/a Exchange rate (av; Tg:US$) (c) 1,110.3 1,146.5 1,185.3 1,205.3 1,179.7 1,170.35

(a) Actual.(b) The Economic Intelligence Unit Ltd. estimates. (c) IMF, International Financial Statistics; Mongolia: Selected Issues and Statistical Appendix; World Bank, Mongolia Macroeconomic Brief. (d) Asian Development Bank. (e) Bank of Mongolia.

2007-PRINCIPAL EXPORTS (b) 2007-PRINCIPAL IMPORTS (b)

(US$ millions) (US$ millions)

Copper 812.0 Petroleum 551.3 Textiles 3.8 Machinery & equipment 419.3 Cashmere & cashmere products 177.7 Transport equipment 204.7

2007-MAIN DESTINATION OF EXPORTS (%) 2007-MAIN ORIGINS OF IMPORTS (%)

China Canada USA Italy Russia China Japan South Korea Russia South Korea Other Germany USA Other

31.7 74.4 9.5 3.4 3.0 34.6 3.0 6.0 2.2 4.5 5.5 3.5 2.7 16.0 The Economic Intelligence Unit Ltd., August 2006

PAGE 107 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONTENEGRO STOCK EXCHANGE Continuous development of our market is the basis of the future of the MSE, a future in which the MSE strongly believes.

Dejana Suskavcevic, MA CEO

2007 showed that everything is possible, The previous year exhibited that what In 2008 I expect a very dynamic atmosphere prices of securities can go in both directions. happened on the stock exchange is in direct on the stock exchange. Incorporation of new People can earn or lose money. 2007 relation with the political status of the institutional investors, investment and definitely showed that stock market fever is country, the macro-economic situation and pension funds, new stock market mediators not a temporary thing but the most exploited accession and membership in numerous with foreign property, and the interest of topic, and that proves the need for investing international institutions. foreign companies to be listed on the MSE, in all of us. After the first several months, and followed by the announcement of the issuing an incredible increase of MOSTE index by In the last part of 2007 the MSE achieved of corporate bonds, with an attractive tax 250% (period from the beginning of January- great results. Transactions of EUR 280 policy followed by appropriate legal May 7th) we had a decrease but stabilization million through almost 80,000 transactions regulation, is the basis of the development of prices, which almost kept still during the have proved that all expectations have been path of the capital market of Montenegro. rest of the year. But generally, the index in met. A Document of Association with the Continuous development of our market is the 2007 increased by 77% over 2006. Stock market of Vienna was signed, as well basis of the future of the MSE, a future in We did much for the education of investors, as many other activities with institutions from which the MSE strongly believes. minority shareholders, and the media. We abroad were coordinated. We had the goal installed a new web site for the stock of establishing of our market on the exchange with information about financials of international map in order to attract more all traded companies, corporate activities of new investments, as well in order to companies, indicators, analytical information introduce new market material. 2007 ended and information about trading, etc. with 28 companies being listed; this in turn compares very well in light of the statistics of more developed markets.

HISTORY AND DEVELOPMENT In order to increase its capital share, the FUTURE OUTLOOK MSE issued additional shares, upon the The MSE was set up in June 1993 pursuant approval of the Federal Commission for In 2008, the MSE has the following plans: to the Act on Money and Capital Markets Securities and Financial Markets. The shares • We will introduce Codex of Corporate (1989). The first founding members were the were subscribed and paid for by several Governance in corporation with IFC. four Montenegrin banks: Montenegrobanka Yugoslav banks, as well as the Federal • Performance of project signed at the end a.d. Podgorica, Pljevaljska banka a.d. Government. of last year with the Montenegrian-Italian Pljevlja, Beranska banka a.d. Berane, company Jadran Most regarding to the Hipotekarna banka a.d. Podgorica, and the In order to comply with The Law on implementation standards of the EU in the Republic of Montenegro, i.e. Montenegrin Securities of the Republic of Montenegro, sphere financial reporting, and accounting Agency for Economic Restructuring and the MSE issued a third issue of shares. The items of companies. Foreign Investments. importance of this issue which was sold • We will get first short term securities successfully with 100% subscription was issued by companies. During the constitutional meeting held on instrumental in the further development of • The MSE will organize the Second Annual 7 July 1997, the MSE harmonized its thecapital market of Montenegro because Conference. operations with the Exchange through the with the sale of this issue 10 new • We will become a member of the World exchange operations and exchange shareholders emerged as owners of the Federation of Stock Exchanges. intermediaries Act. Another three banks and MSE from banking sector, insurance two insurance companies joined the companies and private companies from all founding–members of the Exchange: spheres of economy. As of today, the MSE Podgoriaka banka a.d. Podgorica, has 23 shareholders. Jugobanka a.d. Podgorica, Niksicka banka a.d. Niksic, Lovcen osiguranje a.d. The MSE moved to its new premises in the Podgorica and Swiss osiguranje a.d. new business district of the city. Podgorica.

PAGE 108 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONTENEGRO STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 15.5992 0.7428 4.3939 0.2092 Aug-07 27.8645 1.2115 7.3168 0.3181 Sep-07 16.5135 0.8257 5.0286 0.2514 Oct-07 45.7404 1.9887 25.5730 1.1119 Nov-07 39.1168 1.7780 12.1229 0.5510 Dec-07 15.2565 0.7628 4.7094 0.2355 TOTAL 160.09 1.22 59.14 0.45

Bonds Jul-07 2.1097 0.1005 1.9343 0.0921 Aug-07 1.2823 0.0558 1.2028 0.0523 Sep-07 0.0610 0.0030 0.0601 0.0030 Oct-07 0.9350 0.0407 1.9529 0.0849 Nov-07 0.8032 0.0365 0.9159 0.0416 Dec-07 0.9824 0.0491 1.1592 0.0580 TOTAL 6.17 0.05 7.23 0.06

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 3,709.28 2,042.97 50 2,500 6,000 Aug-07 4,184.59 2,197.63 45 Sep-07 4,068.38 1,914.52 40 2,000 5,000 Oct-07 4,057.05 1,825.22 35 4,000 Nov-07 5,228.96 1,534.35 30 1,500 Dec-07 3,698.75 1,627.69 25 3,000 20 1,000 15 2,000 10 500 1,000 5 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Nedeljko Suskavcevic E-mail [email protected] Website www.montenegroberza.com

PAGE 109 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONTENEGRO STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Montenegro Country Report There were fears that the 2006 Montenegro, which means "Black Mountain", Montenegro emerged as a sovereign state independence vote could lead to unrest borders Croatia, Bosnia, Serbia, Serbia's after just over the required 55% of the in the areas of Montenegro where ethnic breakaway province of Kosovo and Albania. population opted for independence in a May Serbs, who make up roughly a third of the About half of it is covered in thick forest. The 2006 referendum. The vote heralded the end population, form the majority and strongly tiny republic encompasses an Adriatic of the former Union of Serbia and oppose separation from Serbia. There was coastline, lowlands and high mountain Montenegro which had existed since 2003 backing for independence from most ethnic ranges. The Tara River canyon is the and which was itself the rump of the former Montenegrins and ethnic Albanians living in deepest and longest in Europe. Yugoslavia. Montenegro. Filip Vujanovic, a pro-independence The EU-brokered deal forming it was The pro-independence camp led by Prime candidate and an ally of the prime minister, intended to stabilize the region by settling Minister Djukanovic argued that the has been president since May 2003. Montenegrin demands for independence association with Serbia was holding the from Serbia and preventing further changes republic back, not least with its bid for EU Milo Djukanovic, the spearhead of to Balkan borders. membership. Montenegro will now seek Montenegrin independence, is to step down, negotiations on a stability and association just a month after winning the September The same deal also contained the seeds of agreement with the EU in its own right. 2006 general elections. President Vujanovic the union's dissolution. It stipulated that after says the prime minister is leaving for three years the two republics could hold As the successor state to the union, Serbia personal reasons. referendums on whether to keep or scrap it. inherited its seat at the UN and other Montenegro opted for the latter. international organizations. The newly- Mr Djukanovic said his election victory independent Montenegro has since been proved that Montenegro was firmly on the Montenegro last experienced independence admitted to the UN in its own right European track. One of the major tasks for nearly 90 years earlier. It was absorbed into parliament will be to draft a constitution.* the newly-formed Yugoslavia at the end of World War I. * Information provided by the Montenegro Stock Exchange. * BBC Country Profile http://www.news.bbc.co.uk/2/hi/ europe/country-profiles/5033274.stm

Key Information Contacts Securities Commission of Montenegro www.scmn.cg.yu Central Depository Agency www.cda.cg.yu Central Bank of Montenegro www.cb-cg.org Ministry of Finance www.ministarstvo-finansija.cg.yu Montenegro Statistical Office www.monstat.cg.yu

FOREIGN TRADE IMPORT (US$ millions)

2000 2001 2002 2003 2004

Total 354,531 529,409 681,587 601,716 - Europe 307,274 451,301 589,846 516,476 - Asia 17,760 25,677 33,420 43,346 - Africa 6,669 542 1,143 840 - North and Central America 7,519 18,497 24,109 21,245 - South America 15,177 33,269 32,835 19,360 - Oceania 132 123 234 449 -

FOREIGN TRADE EXPORT (US$ millions)

2000 2001 2002 2003 2004

Total 161,335 177,960 194,195 171,286 - Europe 139,804 175,807 192,240 165,474 - Asia 200 1,593 182 526 - Africa 784 34 1,183 210 - North and Central America 20,545 482 585 5,068 - South America - - - 1 - Oceania 5 40 5 7 -

PAGE 110 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MONTENEGRO STOCK EXCHANGE

MONTENEGRO ECONOMIC REVIEW

2000 2001 2002 2003 2004 2005

GDP, market prices (EUR millions) 1,022 1,225 1,302 1,375 1,475 1,580* GDP real growth (annual in %) - -0.2 1.7 2.5 2.7* 4.0* GDP per capita (EUR) 1,679 2,031 2,113 2,231* 2,378* 2,548* Inflation (CPI changes) 24.8 28.0 9.4 6.7 4.3 3.0* Industrial output (annual percentage changes) 3.7 -0.7 0.6 2.4 13.8 - Unemployment rate (% of the total labor force) 37 37 - 25.8 22.2 - Monetary reserves (EUR millions) - - - - 53.5 - Montenegro's budget deficit (EUR millions) - - - 438.8 502.7 - External debts as % of GDP - - - 32.0 34.0 - Balance of payments current account (EUR millions) - - - -114 -118 - Montenegro's budget deficit (EUR millions) - - 25.16 45.29 32.21 34.32* Share in GDP (in %) - - 2.01 3.29 2.18 2.17 Export of goods (US$ millions) 161.3 178.0 194.2 171.3 - - Import of goods (US$ millions) 354.5 529.4 681.6 601.7 - - Balance of trade (deficit-surplus, US$ millions) 193.2 351.4 487.4 430.4 - -

* evaluation

GROSS DOMESTIC PRODUCT OF THE ENTIRE ECONOMY

2000* 2001* 2002** 2002*** 2003

2,471,756 3,397,400 1,868,849 - -

PRODUCTIVE BRANCHES OF ECONOMIC ACTIVITIES

2000* 2001* 2002** 2002*** 2003

Total 2,465,347 3,349,382 1,832,425 - - Agriculture 395,063 467,913 257,887 280,008 - Fishery 1,420 2,237 948 - - Stones and ores extraction 98,987 96,711 68,189 59,467 - Manufacturing industry 753,968 909,492 401,893 463,337 - Electricity, gas and water supply 168,850 252,508 142,791 129,931 - Construction industry 241,656 259,735 155,084 180,036 - Retail and wholesale trade 259,933 578,581 347,133 294,299 - Hotels and restaurants 111,093 142,236 88,310 84,530 - Transport, warehousing and communications 382,390 574,323 331,446 265,567 - Financial mediation - - - 42,676 - Real estate operations 48,716 61,412 35,860 172,366 - State administration and defence; Obligatory social insurance - - - 154,970 - Education - - - 64,632 - Health care and social welfare 1,921 2,612 1,307 76,621 - Other utility, social and personal service activities 1,350 1,622 1,577 85,398 - Gross value added - - - -2,700 - Gross value added (basic prices) - - - 1,154,623 - Taxes on products minus subsidies on products - - - 146,882 - GDP (market prices) - - - 1,301,505 -

Source: Monstat *2000: DM thousand **2002: EUR thousand ***SNA concept

PAGE 111 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MUSCAT SECURITIES MARKET The MSM recently revised its legislation with respect to listing, trading and clearance and settlement regulations to enable the MSM cater for our market

Ahmed Saleh Al-Marhoon demand. Director General

We are continuously working on developing We at Muscat Securities Market (MSM), In view of the above the MSM recently revised and operating an efficient and transparent however, have devised a comprehensive road its legislation with respect to listing, trading securities market to the best standards map that enables us to build capacity and and clearance and settlement regulations to expected by our local and foreign investors. promote sustainable capital market enable the MSM to cater to our market We believe that exchanges that adhere to development strategy specifically aimed at demand. good governance, greater transparency and improving access to the regional and greater accountability, are able to foster international capital markets. We are endeavoring to strengthen our investors’ confidence as well as creating an experience for a more scientifically built stock attractive investment environment. market.

HISTORY AND DEVELOPMENT This resulted in rapid growth in the exchange in FUTURE OUTLOOK terms of the number of stocks listed reaching a The MSM has passed through two stages; one peak at the end of 1996 with 97 companies, • Diversification of our investment tools. started when the exchange was first which was reflected in the increase of the The MSM is now in the process of listing established in 1989 and continued up to 1998. capitalization of the market where it reached Exchange Traded Funds (ETFs) RO 1.62 billion during the same period. Market • Activating the Primary Market for new issues. The second stage lasts from 1998 till today. cap was also overstated by the inflated indexes • Improving our technological systems to cope Each stage has its own characteristics and where the main indexes reached 5,300 at the the development in the trading, clearance and environment. One of the significant changes in first quarter of 1998. settlement operations. the market structure was the establishment of • Transformation of family enterprises into three independent organizations the Capital After 1998 the market entered into a very public joint stock companies. Market Authority (CMA) as a regulator the MSM critical situation with the main index dropping, • Increasing investment funds which are for listing and trading and the Muscat market confidence and market sentiments were specialized in dealing on securities. Depository Company as a central depository. very weak, and the corporate performance in • Attracting foreign investments. general was low due to difficulties which the The first era of MSM was a learning experience national economy was facing because of the for the people running the exchange and for decrease in oil prices at that time. the market participants as well as the investors and the public at large. In the beginning there The market authorities evaluated the first were 48 public shareholding companies listed period to identify what went wrong and started and six brokers; the market cap was around building on the experience they have for a RO 414.7 million (Rial 1= US$ 2.59781). The more scientifically operating exchange of ambition at that time was to grow the exchange today. by listing more and more companies. The government encouraged the establishment of new public companies through various incentives especially in the industrial sector.

PAGE 112 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MUSCAT SECURITIES MARKET

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 314.8461 14.3112 230.7043 10.4866 Aug-07 296.7282 13.4876 189.2211 8.6010 Sep-07 319.8996 15.2333 167.5190 7.9771 Oct-07 749.7175 37.4859 382.3963 19.1198 Nov-07 811.8491 42.7289 476.6123 25.0849 Dec-07 1,189.1300 59.4563 699.8923 34.9946 TOTAL 3,682.17 30.45 2,146.35 17.71

Bonds Jul-07 4.7424 0.0 0.0911 0.0 Aug-07 0.2895 0.0 0.1089 0.0 Sep-07 7.9870 0.5325 0.0406 0.0027 Oct-07 0.0188 0.0 0.0070 0.0 Nov-07 0.1863 0.0124 0.0677 0.0045 Dec-07 41.9306 0.0 0.2011 0.0 TOTAL 55.15 0.09 0.52 0.0

Other Jul-07 11.8257 0.0 5.7479 0.0 Aug-07 37.2235 0.0 14.7294 0.0 Sep-07 8.8275 0.5885 6.4280 0.4285 Oct-07 132.8387 8.8559 7.8177 0.5212 Nov-07 169.241 11.2827 18.2706 1.2180 Dec-07 26.6023 0.0 5.1512 0.0 TOTAL 386.56 3.45 58.14 0.36

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 18,215.76 6,426.66 1,200 10,000 30,000 Aug-07 18,713.26 6,650.49 9,000 Sep-07 19,491.23 6,986.64 1,000 8,000 25,000 Oct-07 22,308.83 8,021.23 7,000 800 20,000 Nov-07 24,085.76 8,442.75 6,000 Dec-07 26,682.87 9,035.48 600 5,000 15,000 4,000 400 3,000 10,000 2,000 200 5,000 1,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Talal H. Al Nasseb E-mail [email protected] Website www.msm.gov.om

PAGE 113 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MUSCAT SECURITIES MARKET

ECONOMIC AND POLITICAL DEVELOPMENTS

Main features of global and national the economic and monetary policies followed As to the privatisation program, the work on its economy in 2007 by the government. implementation is effectively progressing in a The global economy realized strong growth of good way. The consultancy group appointed 5.2% according to the forecasts of the One of the positive features of the national to evaluate the privatisation experience in the International Monetary Fund (IMF). This is due economy performance in 2007 was that all the electricity and water sector confirmed the to the continued high growth rates in the main activities contributed to this growth. The success of the experience, in respect of emerging markets in China, India and Russia value added to the oil activities, in spite of the restructuring of the sector and motivating the where they contributed half of the global decline in the production rates by 3.7% private sector to invest therein. Thus subsidy economy growth rate during 2007. Further, compared with 2006, will grow at a rate of to electricity decreased in the year 2007 from it is due to the high growth rates in the low- 5.5% due to the increase in the oil prices and RO135 million to RO 118 million. income countries in Africa and the oil the increase in the demand for natural gas. exporting countries resulting from With regard to the tourism sector, upon which unprecedented high oil prices in the global The non-oil activities are expected to grow by the Sultanate very much counts, in view of its markets. 17%. The leading activities for this growth were several potentials, the preliminary data for the refined oil products (80%), mining and 2007 indicate that the sector is expected to IMF is expecting the continuance of the quarries (30%), wholesale and retail trade grow by a rate exceeding 8%. international growth in 2008 but at lower rates (30%), transportation, warehousing and reaching 4.8%. This decline is ascribed to the communications (26%), and construction As to the performance of the national growing unrest in the financial markets due to (25%). economy in the year 2008, and in the light of the problem of the real estate mortgage the expected increase in the growth rates of market in the US and the weakness of the As for foreign trade, expectations indicate an the oil production, the continuation of its high American dollar and the increased inflationary increase of the overall proceeds of exports in prices thereof and the rise in the growth rate in pressures arising as a result of the increase in 2007 by 4% compared with 2006. The oil government expenditure, in addition to the the oil and commodities prices. exports are expected to grow by 0.7%, and the implementation of some projects as planned, non-oil exports of Omani origin are expected the performance of the national economy will It is also expected that oil prices will continue to increase by 9% by virtue of the increase in continue its growth streak at the level of all their current increase in 2008 as a result of the the exported quantities of liquified natural gas economic sectors and activities. strong demand, which is linked, on one hand, (LNG) and the increase in its prices that are to the economic growth and to the linked to the oil prices. Also the proceeds from The oil revenues for the general state budget congestions in the refining capacities, re-export operations are expected to increase for the year 2008 were estimated on the retraction of stock levels and other geopolitical by 18%. assumption of an average oil price of US$ 45 factors on the other. per barrel and production of 790,000 barrels Imports value is expected to increase by 46% per day. According to these assumptions, oil As for the national economy, preliminary in 2007 compared with 2006 as a result of the revenues are estimated to be about RO 3,610 estimates of the Gross Domestic Production increase in commodity prices in the million. (GDP) indicate that the national economy will international markets, retraction of dollar achieve growth of 11.6% continuing its exchange rate against the other foreign As for the gross expenditure for 2008, the total characteristic increasing growth in the recent currencies, in addition to the strong domestic expenditure during the fiscal year 2008 was years. The good performance of the national consumption and investment demand. In view estimated at about RO 5,800 million as against economy is due, from the one hand, to the of this, the balance of trade surplus will RO 4,890 million in the fiscal year 2007, i.e, an increase in oil prices and, from the other hand, decrease by 31% in 2007 compared with increase of RO 910 million or 19%.* to an appropriate environment that is 2006. conducive to growth, which was facilitated by * Information provided by the Muscat Securities Market.

Key Information Contacts Ministry of National Economy www.moneoman.gov.om Capital Market Authority www.cma-oman.gov.om Oman Chamber of Commerce and Industry www.cbo-oman.org Financial Corporation www.fincorp.org National Bank of Oman www.nbo.co.om

2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Private consumption Government consumption Fixed investment Exports, goods & services Imports, goods & services

70 63.3 60 50

40 35.1 35.9 30 19.4 20 18.1 10 0

PAGE 114 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MUSCAT SECURITIES MARKET

OMAN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (b) 2007 (b)

GDP at market prices (OR millions) 8,376 9,516 11,856 13,891 14,982 GDP (US$ millions) 21,784 24,749 30,835 36,127 38,965 Real GDP growth (%) 2.3 5.4 5.8 6.6 5.3 Consumer price inflation (av; %) 0.2 0.7 1.9 3.2 (a) 4.0 Population (millions) 2.3 2.4 2.5 2.6 2.7 Exports of goods (FOB) (US$ millions) 11,670 13,381 18,692 21,202 22,647 Imports of goods (FOB) (US$ millions) -6,086 -7,873 -8,029 -9,928 -11,032 Current-account balance (US$ millions) 1,484 569 4,717 4,403 3,795 Foreign-exchange reserves excl gold (US$ millions) 3,593 3,597 4,358 5,014 (a) 6,520 Total external debt (US$ millions) 3,963 3,870 3,472 3,465 3,480 Debt-service ratio, paid (%) 10.2 6.9 7.5 5.0 4.1 Exchange rate (av) OR:US$ 0.385 0.385 0.385 0.385 (a) 0.385

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (b) 2008 (c) 2009 (c)

Real GDP growth 6.6 (b) 5.3 5.1 5.2 Oil production ('000 b/d) 738 710 700 705 Crude oil exports (US$ billions) 14,378 (b) 14,813 13,704 12,341 Consumer price inflation (av) 3.2 4.0 4.0 3.5 Lending rate 7.4 7.3 7.2 7.2 Official net budget balance (% of GDP) (d) 4.1 0.4 -0.6 -1.4 Unofficial gross budget balance (% of GDP) (e) 15.5 11.7 8.0 4.2 Exports of goods (FOB) (US$ billions) 21.2 (b) 22.7 21.9 20.5 Imports of goods (FOB) (US$ billions) 9.9 (b) 11.0 11.6 11.7 Current-account balance (US$ billions) 4.4 (b) 3.8 2.0 0.3 Current-account balance (% of GDP) 12.4 (b) 10.0 5.0 0.8 External debt (year-end; US$ billions) 3.5 (b) 3.5 3.5 3.3 Exchange rate OR:US$ (av) 0.385 0.385 0.385 0.385 Exchange rate OR:[euro] (av) 0.483 0.523 0.556 0.510 Exchange rate OR:¥100 (av) 0.331 0.327 0.365 0.399 Exchange rate OR:SDR (av) 0.566 0.589 0.614 0.595

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The Economic Intelligence Unit Ltd. forecasts. (d) Excludes State General Reserve Fund operations. (e) Includes State General Reserve Fund operations.

2006-PRINCIPAL EXPORTS (FOB) 2006-PRINCIPAL IMPORTS (CIF)

(US$ millions) (US$ millions)

Crude oil 14,378 Machinery & transport equipment 5,383 Re-exports 1,994 Manufactured goods 1,831 Non-oil exports 1,733 Food & live animals 985

2006-MAIN DESTINATION OF EXPORTS (%) (a) 2006-MAIN ORIGINS OF IMPORTS (%) (a)

China South Korea Japan UAE Japan USA Thailand South Africa Other Germany India Other

10.9 16.4 18.0 8.1 5.4 10.7 22.4 4.3 23.7 7.7

43.4 29.0

The Economic Intelligence Unit Ltd., August 2007

PAGE 115 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

PALESTINE SECURITIES EXCHANGE The year 2007 witnessed prominent presence of the PSE on many levels.

Dr. Hasan Abu-Libdeh Chairman

The Palestine Securities Exchange (PSE) The year 2007 witnessed the prominent The PSE is very proud of its listed companies celebrated the 10th Anniversary of the First presence of the PSE on many levels. achieving 100% disclosure in the year 2007. Trading Session that took place on 18 The PSE was able to enhance its role locally Disclosure represents the most important February 1997. On that significant date, the by reinforcing principles of transparency, pillar of the stock exchange and one of the first stock exchange for trading securities was investment culture and good governance. The important conditions of fair trading. established in Palestine. PSE convened the “First Annual Palestinian Capital Market Forum” in September 2007 The year 2007 also witnessed distinctive For a whole decade, the PSE has proven to which gained everyone's recognition for its developments in terms of the Investor be up to the challenges resisting an unsmooth high level of organization, the high quality of Education Program, networking with economic and political reality with a high level presented papers and vast participation. The stakeholders, and active participation in the of commitment to its goals and to the Forum was under the auspices of his activity of companies' governance in development of an enabling investment Excellency, the President Mahmoud Abbas Palestine. The PSE also supported the environment. and the presence of the Palestinian Prime Palestinian community in the year 2007 by Minister Salam Fayyad. supporting the education sector. In spite that the value of traded stocks decreased during 2007–consequently the In 2007, the PSE issued the "Companies Today we see a locally, regionally and value of trading is dropped down–due to the Guide" for the first time in its history. It has internationally recognized institution that political situation, trading activity is considered also launched the e-trading service where it competes with many other stock exchanges to be better than the year 2006 in terms of the was the fourth Arab exchange to do this. with more conducive working environments. amount of stocks traded and number of Moreover, the PSE produced a documentary Our common values will always be good transactions executed. film in Arabic and English to attract foreign governance, transparency, efficiency, fairness investments and the production of the film & equal opportunities. We ask the almighty was completed during a road-show project in God to help us in providing a suitable and Dubai. better investment future for Palestine.

HISTORY AND DEVELOPMENT The PSE expanded its activity and FUTURE OUTLOOK communication efforts opening a branch The PSE is a public shareholding company office in Ramallah and with plans to open The PSE is currently preparing its five-year that was established in Nablus city in 1996, another one in the Gaza Strip in order to plan as it ushers into its second decade, and held the first trading session on the 18 serve investors and other stakeholders. setting forth strategic goals to provide an February 1997. The beginnings of the PSE Moreover, the PSE initiated a environment of equitable trading, increase were modest but developing, in terms of the comprehensive and intensive Investor investment opportunities, and prospects for number of listed companies and brokerage Education Program to build a culture of listed companies. It will diversify its financial firms, as well as the value of trading. investment that protects investors’ rights instruments and focus on the development Starting with a few companies in 1997, the and investments. of human resources and administrative the number of listed companies on the PSE upgrading. It will additionally dedicate more increased to 35 by mid 2007, while the The common values of the PSE are good effort to improvement of the legal number of brokerage firms increased to 9, governance, transparency, efficiency, environment, working mechanisms, with offices and branches in most of the fairness and equal opportunities. disclosure, transparency, listing and keeping Palestinian cities. The value of trading has up with the latest developments together increased from US$ 25,158,471 in 1997 to with investment awareness, communication reach US$ 1,067,365,232 in 2006. In July and an electronic trading environment. 1997, the PSE published the Al-Quds Index to measure the levels of stocks prices and define their general trend. In 2005, the PSE achieved the highest rank of all stock exchanges as the Al Quds Index increased by 306.61%. Only equities are currently traded on the PSE, but there is potential and readiness to trade other securities in the future.

PAGE 116 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

PALESTINE SECURITIES EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 42.0370 1.8277 15.1169 0.6573 Aug-07 39.3384 1.7881 14.8872 0.6767 Sep-07 96.8277 4.6108 30.8358 1.4684 Oct-07 86.0452 4.0974 29.0303 1.3824 Nov-07 44.2508 2.2125 17.5466 0.8773 Dec-07 53.6820 3.1578 16.2040 0.9532 TOTAL 362.18 2.95 123.62 1.00

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) US$ millions Index Stocks Index

Jul-07 2,276.97 479.43 100 600 2,500 Aug-07 2,118.50 446.19 90 Sep-07 2,437.16 517.18 80 500 2,000 Oct-07 2,390.08 509.90 70 400 Nov-07 2,452.81 522.16 60 1,500 Dec-07 2,474.68 527.26 50 300 40 1,000 30 200 20 100 500 10 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Dr. Hasan Abu-Libdeh E-mail [email protected] Website www.p-s-e.com

PAGE 117 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

PALESTINE SECURITIES EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Political Developments during 2005 with a drop of 55%. The main Al-Aqsa Intifada). On the other side During the year 2007, the Palestinian territory reason behind this decline is the current economic dependency ratio increased in the witnessed dramatic changes and situation in PT (decline in collecting local Palestinian territory from 4.8 to 5.6 between developments, from the one side the revenues), and also due to Israeli Q3 2000 and Q3 2007 (the change rate is Palestinian political map changed radically at government measures which resulted in 16.7%) which negatively impacted the level the results of 14 June events that led to the halting the transference of the Palestinian and standards of living and poverty levels in separation between West Bank and Gaza taxes revenues on a monthly base. The Palestine. strip, on the other the Palestinian economy donations received by the Palestinian keeps close to its average growth rates in authority during the first three quarters of Impact of the economical situation this year which did not exceed 2% according 2007 reached US$ 668 million, tout of US$ on the PSE to official sources. Taking into account the 867 million committed for the whole year, Despite the political and economical financial blockade was eased, followed by that is, nearly half of the amount donated deteriorations, the PSE stands on solid an international conference in Ana Police, the during 2006, taking into account the results ground, as it is better on both directions; expectation of the USA to activate the peace of the Donor conference hosted by France in improving the performance of the market, process in the Middle East, and later the December 2007 to support the Palestinian and improving the investment environment in donor conference held in Paris, aiming to government plan for the next three years securities market, which enables the PSE to provide the required financial support from where a US$ 7 billion are committed by achieve outstanding results in the year 2007 the International community, given these Donors to finance government plans for this although they were less than 2005. This goes evidence it is expected that the Palestinian period. in line with the case of the markets in the economy will realize better performance in region as most of the Arab exchanges the coming months, but this situation will be The preliminary estimates of the GDP at witnessed deep correction movement directly impacted by any further constant prices for the third quarter 2007 following the dramatic rises of stock prices in complications in the Palestinian territory. shows an increase of 0.9% compared with 2005 that was not anticipated by most the second quarter 2007, and showed an observers. In 2007, the PSE held 248 trading Economic Developments increase of 1.2% as compared to the third sessions with approximately 160 thousand By the end of the year 2007, the number of quarter of the year 2006, this performance is transactions were executed with a value that the Palestinians exceeded ten million people; still below its levels in previous years, as it goes around US$ 8 million. Despite the drop four million of them live in the Gaza Strip and has declined by 10.3% compared to the third of Al-Quds Index by 15.00% compared with the West Bank including Jerusalem. quarter of the year 2005. 2006, all indicators show that at any positive development in the political situation in From an economical prospective, statistics According to ILO standards; The percentage Palestine will be reflected immediately in the at the end of the year 2007 shows that the of persons who don't work, but are seeking economical circumstances and the PSE.* revenues of the Palestinian National Authority jobs increased from 19.2% in the 2nd quarter during 2007 are estimated to reach US$ 600 2007 to 23.2% in Q3 2007, as compared with * Information provided by the Palestine Stock Exchange. million in comparison to US$ 1,290 million 10.0% in Q3 2000 (before the beginning of

Key Information Contacts Palestine Capital Market Authority: www.cma.gov.ps Ministry of Finance: www.mof.gov.ps Ministry of National Economy: www.met.gov.ps Palestinian Investment Promotion Agency: www.pipa.gov.ps Palestine Monetary Authority: www.pma-palestine.org Palestinian Central Bureau of Statistics: www.pcbs.org.ps Palestinian Economic Council for Development and Reconstruction: www.pecdar.org Palestine Institute for Financial & Banking Studies: www.pifbs.com Palestine Media Center: www.palestine-pmc.com Custodian Bank - HSBC Bank Middle East: www.middleeast.hsbc.com Settlement Bank - Arab Bank Palestine: www.arabbank.ps

ECONOMIC RATIOS GROWTH OF INVESTMENT AND GDP (%)

Palestine Lower-middle-income group GDI GDP

10 Trade 0 -10 97 98 99 00 01 02 03 -20 -30 -40 Domestic -50 savings Investment -60 -70 -80

Indebtedness * World Bank reports

PAGE 118 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

PALESTINE SECURITIES EXCHANGE

PALESTINE MONEY SUPPLY, INTEREST RATES AND FOREIGN EXCHANGE RESERVES

1999 2000 2001 2002 2003 2004 2005 2006 2007

Real Growth Gross domestic product* (%) 8.8 -5.6 -6.4 -3.8 8.5 2.0 6.0 -8.8 - Private consumption* (%) 9.8 -5.6 -5.1 -1.9 12.0 - - - - Public consumption* (%) 9.3 8.9 14.9 -7.6 -3.5 - - - - Investment* (%) 35.9 -30.5 -22.4 -39.6 66.3 - - - - Exports (%) 13.0 3.0 -6.0 8.0 -28.0 -17.0 16.0 12.0 7.0 Imports (%) 11.0 6.0 27.0 -21.0 -15.0 -25.0 19.0 32.0 12.0 Real GDP, cumulated decline since 1999* (%) 8.8 3.2 -3.2 -6.9 1.6 3.5 9.5 0.8 - Real GDP per capital, cumulated decline since 1999* (%) 4.3 -5.3 -16.0 -24.5 -17.7 -19.7 -16.9 -28.8 - Net factor income, NIS* 3,208.8 2,695.7 1,410.0 1,167.4 1,519.2 - - - - Net current transfers, NIS* 1,672.5 2,445.3 4,158.8 5,309.8 6,811.4 - - - - Population (millions) 2.8 3.0 3.1 3.3 3.4 Exchange rate (NIS:US$) 4.1 4.1 4.2 4.7 4.6 4.5 4.5 4.5 GNI per capita, US$* 1,888.9 1,684.6 1,411.1 1,267.8 1,374.3 - - - - Consumer price inflation (%) 5.5 2.8 1.2 5.7 4.4 3.0 3.5 3.8 2.2

(*) The data for 2001-2006 is Preliminary Estimates and will be revised. Remaining West Bank refers to all West Bank excluding those parts of Jerusalem which were annexed by Israel in 1967. (-) Data is not available. The real growth rate was calculated based on the difference between year and previous year.

GROWTH OF EXPORTS AND IMPORTS (%) INFLATION (%)

Exports Imports GDP deflator CPI

18 10 16 5 14 0 12 97 98 99 00 01 02 03 -5 10 8 -10 6 -15 4 -20 2 0 -25 97 98 99 00 01 02 03 04 05 06

EXPORT AND IMPORT LEVELS (US$ millions) CURRENT ACCOUNT BALANCE TO GDP (%)

Exports Imports

3,000 40

30 2,000 20

1,000 10

0 0 97 98 99 00 01 02 03 97 98 99 00 01 02 03

Source: World Bank reports

PAGE 119 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

SARAJEVO STOCK EXCHANGE In 2007, we have analyzed all investor’s obstacles and started removing them. Above all we wanted to adequately show investors that our capital market is worthy

Zlatan Dedic for them and offers substation returns on General Manager their investments.

In its sixth year of operation the Sarajevo new Capital Market of the Federation of more options for further expansion. One Stock Exchange (SASE) has accomplished Bosnia and Herzegovina web portal, a joint more reason for greater investor’s interest in excellent results in trading of shares. There project of the SASE, Securities Commission capital market in the Federation of Bosnia are several examples that confirm this, but and Central Registry. Our openness to and Herzegovina is the announcement of the most illustrative one is the total turnover investors drew their attention and gave infrastructure projects especially in energy, in 2007 EUR 651 million which is more than incentive and confidence to the capital telecommunication and road construction the turnover in 2006 and 2005 combined. market in the Federation of Bosnia and sectors, and announcement for privatization Herzegovina. of companies who are the pillars of the In 2007, we have analyzed all investor’s Bosnian economy. All these factors will obstacles and started removing them. Above There were 4 mutual funds founded in 2007, ensure success from 2007 will continue into all we wanted to adequately show investors with several others currently in preparation. 2008 where the SASE will again exceed all that our capital market is worthy for them Also we expect the pension reform to bring expectations. and offers substantial returns on their additional demand to the market. We hope investments. The access to more information that the adoption of the new Security Market was enabled with new data available on the Law expected for 2008 will give the market

HISTORY AND DEVELOPMENT At the beginning of 2004, trading at the FUTURE OUTLOOK SASE Official Market started and all 11 The SASE was founded in September 2001 privatization investment funds were listed The SASE expects the excellent results from by eight brokerage houses and commenced there. The Official Market is a higher level 2007 to continue into the next year together trading on 12 April 2002. The SASE is a market where only securities that meet with the accomplishment of greater central marketplace for securities trading in special conditions and are approved by the efficiency and transparency of the Capital the Federation of Bosnia and Herzegovina. Securities Commission and the SASE’s Market in the Federation of Bosnia and The SASE is a joint-stock company which addition board can be listed there. Also in Herzegovina. The SASE future outlook for originally had eight founding members. 2004, after two years of trading with only call 2008 includes following activities: auction trading system, continuous trading • Continuation of privatization of the State The SASE currently has 18 members, whose has been introduced at the SASE under the owned capital through the SASE. headquarters are spread around the name Multi Fixing Trading Schedule (MFTS). • Creation of the joint index of the SASE and Federation of Bosnia and Herzegovina, the Only the most liquid securities on the SASE Banja Luka Stock Exchange. majority being in the capital, Sarajevo. All have been transferred to MFTS. In 2006 • Issuance of the government bonds which members of SASE must be licensed for another significant milestone was achieved would activate SASE trading platform for trading in securities by the Securities with listings of the first three companies on bonds. Commission of the Federation of Bosnia the SASE Official Market. From the 500 • Continuing to list strategic companies and Herzegovina. issuers which are listed on the SASE, currently on the SASE Free Market to the currently 14 are on the Official Market. SASE Official Market. Trading on the SASE is performed Turnover on the SASE has risen • Creation of the SASE Official Market index. electronically through an order driven substantially, which can be illustrated by the • Introduction of free-float methodology for electronic trading system BTS (Stock fact that in 2007 it rose up to US$ 961.5 all stock exchange indicators and statistics. Exchange System). BTS is a computer million–more than in 2005 and 2006 • Development of a corporate governance assisted information and trading system, combined. There were 4 mutual funds code with assistance from International which enables remote entry, modification, founded in 2007, and more are currently in Finance Corporation (IFC) with the intent to halt and removal of orders, automated preparation. In conclusion, after only six increase corporate culture of local issuers. matching of orders and concluding trades, years of operations market capitalization of • Attract new issuers through Initial Public supervision of orders and trades, as well as the SASE has reached over US$ 11.5 billion. Offers. survey of information on trading and on • Issuance of new publication titled listed securities. Investors Guide

PAGE 120 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

SARAJEVO STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 45.4159 2.0644 3.0824 0.1401 Aug-07 47.2439 2.0541 4.5094 0.1961 Sep-07 36.8553 1.8428 2.3087 0.1154 Oct-07 36.9050 1.8452 3.1005 0.1550 Nov-07 45.6170 2.1722 4.5996 0.2190 Dec-07 39.6369 2.2021 2.6303 0.1461 TOTAL 251.67 2.03 20.23 0.16

Bonds Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 12,835.11 8,232.03 50 9,000 14,000 Aug-07 12,570.17 7,962.32 45 8,000 12,000 Sep-07 12,713.82 7,500.04 40 7,000 Oct-07 11,972.07 7,010.04 10,000 35 6,000 Nov-07 11,322.78 5,997.16 30 5,000 8,000 Dec-07 11,686.38 3,685.15 25 4,000 20 6,000 3,000 15 4,000 10 2,000 2,000 5 1,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec CONTACT INFORMATION

Contact Name Mr. Goran Kahvedzic E-mail [email protected] Website www.sase.ba

* Please refer to page 46 for the Bosnia and Herzegovina country report.

PAGE 121 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTAN The exchange is one of the most important domestic economic institutions to date and acts as the main body for import and export operations in the country as well as a government regulator.

HISTORY AND DEVELOPMENT Business people from Turkey, Russia, the FUTURE OUTLOOK USA, the UAE, Germany, Great Britain, buy The State Commodity and Raw Materials oil products, liquefied gas, cotton fiber, The following plans are currently underway: Exchange of Turkmenistan (SC&RME) was cotton yarn, handmade Turkmen carpets, • further development of external economic created by decree of the President of hides and knitwear from Turkmenistan. links with foreign trade companies; Turkmenistan, Saparmurat Turkmenbashi, in • streamlining the uses of PR companies 29 July 1994. The Exchange is one of the An information and analytical system was and the services they provide in terms of most important domestic economic created for the SC&RME to enable direct mass media disclosure; institutions to date and acts as the main operational control of contract execution as • expansion of external contacts with body for import and export operations in the well as for information retrieval. The InfoBase international and regional organizations; country as well as a governmental regulator. database will be developed to allow the • simplification of the contract registration retrieval of world quotations on significant procedure; and There are many indicators of activity commodities in real time and to facilitate • increasing the level of skill and experience regarding the Exchange. During 2004, potential marketing outlets for domestic of Exchange staff through interactions 1,071 export contracts for the sum of commodity production. between organizations. US$ 677,577.3 thousand were registered. These figures are indicative of the favorable political and economic situation in Turkmenistan, its rich natural resources, and of utmost importance, the reliability and stability of state organizational structures to attract business from all over the world. SC&RME has relationships with more than 45 countries.

CONTACT INFORMATION

Contact Name Mr. Murad Muradov E-mail [email protected] Website www.turkmenbusiness.org

PAGE 122 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTAN

ECONOMIC AND POLITICAL DEVELOPMENTS

Politic and Economic Environment an agreement with Turkmenistan and Based on official reports of a substantial The former health minister and deputy prime Kazakhstan to expand the gas pipeline increase in trade turnover in 2007 (probably minister, Gurbanguly Berdymukhamedov, system connecting the three countries. owing to the large rise in the price of the won Turkmenistan's presidential election in However, China's demand for new energy country's gas exports to Russia), the forecast February 2007, which was called following sources means that Russia's dominance for the trade surplus has been revised to the death of the country's long-standing of Turkmen gas exports will not go US$ 2.4 billion in 2007, falling slightly to leader, Saparmurad Niyazov, in December unchallenged. In April 2006 China and around US$ 2.3 billion in 2008, in line with 2006. The ending of the Niyazov era Turkmenistan signed a co-operation declining energy prices. Turkmenistan will had raised hopes among international agreement that envisages the construction of continue to rely on imported services in observers that a new administration a gas pipeline between the two countries by sectors such as construction and the would reverse some of his more draconian 2009. hydrocarbons industry, which will result in domestic policies. However, although moderate growth in services debits. Current- Mr Berdymukhamedov has taken some Economic Performance account surplus of US$ 1.3 billion this year is steps in this direction, his governing style in The hydrocarbons industry will remain the expected and a surplus of US$ 1.1 billion in many respects differs little from that of principal engine of growth throughout 2007- 2008.* Mr Niyazov. The new president has already 08, and construction will also continue to dismissed several cabinet ministers, make a substantial contribution. Output of * The Economic Intelligence Unit Ltd. July 2007. as well as the head of the presidential natural gas is expected to rise moderately, guard, Akmurad Rejepov, who is believed driven by Turkmenistan's export contracts to have been instrumental in securing with Russia and Iran. Oil extraction will post Mr Berdymukhamedov's election. Prospects moderate growth, and development of the for a fundamental shift towards a more liberal downstream sector will lead to higher output political system seem remote. of refined products, destined mainly for export. Based on expectations for output Mr Berdymukhamedov has affirmed that growth of Turkmenistan's main commodities Turkmenistan's economic policies will remain (hydrocarbons, cotton and grain), annual broadly in line with those pursued by the late average real GDP growth of 8% in 2007-08 is Mr Niyazov. This would entail the state anticipated. Official statistics will continue to retaining a dominant role in all sectors of the overstate output, reporting growth rates of economy, with subsidies, price controls and around 20%. the free provision of utilities continuing to underpin the system. However, the An average annual inflation rate of 11.3% is disastrous performance of agriculture and forecast this year, rising to 11.8% in 2008. stagnation in the hydrocarbons industry--the Large inflows of foreign currency from oil and two leading economic sectors--could gas exports, along with restrictions on necessitate significant policy changes. access to foreign exchange, will enable the Turkmen authorities to maintain the official Turkmenistan has become vital to Russia's exchange rate at Manat 5,200: US$ 1 in energy policy, owing to Russia's growing gas 2007-08. export commitments, and the high cost of developing its own fields. Russia secured a diplomatic victory in May, when it concluded

1999-ORIGINS OF GROSS DOMESTIC PRODUCT (%)

Industry Agriculture & forestry Construction Services

26.0

11.0 32.0

31.0

PAGE 123 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTAN

TURKMENISTAN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (a)

GDP at market prices (Manat billions) 51,747 59,929 70,555 82,585 98,351 GDP (US$ billions) 5.2 5.8 6.4 7.6 9.2 Real GDP growth (%) 13.0 9.0 6.0 6.0 7.0 Consumer price inflation (av; %) 5.6 5.9 10.7 10.5 11.3 Population (millions) 6.2 6.5 6.5 6.7 6.8 Exports of goods (FOB) (US$ millions) 3,468 (b) 3,870 (b) 4,939 (b) 5,774 7,059 Imports of goods (FOB) (US$ millions) -2,502 (b) -3,320 (b) -3,638 (b) -4,057 -4,424 Current-account balance (US$ millions) 67 -506 257 699 1,448 Foreign-exchange reserves excl gold (US$ millions) 2,673 (b) 2,714 (b) 3,442 (b) 4,994 5,045 Exchange rate (av; estimated market) Manat:US$ 10,034 10,375 11,015 10,880 10,650 Exchange rate (av; official) Manat:US$ 5,200 5,200 5,200 5,200 5,200

(a) The Economic Intelligence Unit estimates. (b) Actual.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (a) 2008 (b) 2009 (b)

Real GDP growth 6.0 7.0 8.0 7.0 Oil exports (million tonnes) 5.4 5.6 5.7 5.8 Natural gas exports (billion cu metres) 47.2 55.0 55.5 58.0 Consumer price inflation (av) 10.5 11.3 11.8 12.0 Lending rate 17.2 17.0 17.0 17.0 Government balance (% of GDP) 0.6 0.4 0.3 0.2 Exports of goods (FOB) (US$ billions) 5.8 7.1 7.2 7.1 Imports of goods (FOB) (US$ billions) -4.1 -4.4 -4.8 -5.1 Current-account balance (US$ billions) 0.7 1.4 1.2 0.6 Current-account balance (% of GDP) 9.2 15.7 10.8 4.9 Exchange rate Manat:US$ (end-period; estimated market) 10,690 10,775 11,000 11,200 Exchange rate Manat:[euro] (av) 13,662 14,499 15,751 14,735 Exchange rate Manat:Rb (av) 400 414 429 430

(a) The Economic Intelligence Unit Ltd. estimates. (b) The Economic Intelligence Unit Ltd. forecasts.

2001-PRINCIPAL EXPORTS (%) 1999-PRINCIPAL IMPORTS (%)

Gas Crude & refined oil Cotton fiber Machinery & equipment Food products Other Textiles Other

26.0 60.0 57.0 15.0 3.0 2.0

12.0 25.0

2001-MAIN DESTINATIONS OF EXPORTS (%) 2003-MAIN ORIGINS OF IMPORTS (%)

Ukraine Italy Iran Russia Ukraine Turkey Russia Turkey Other UAE Germany Other

18.0 9.0 15.0 8.0 46.0 11.0 21.0 4.0 6.0

5.0 43.0

14.0

The Economic Intelligence Unit Ltd., October 2006

PAGE 124

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TEHRAN STOCK EXCHANGE Ratification of the executive law for floating a great part of public institutions to the private sector is among the most significant developments in the Iranian capital market.

Dr. Ali Rahmani Managing Director

Ratification of the executive law of the general Established on 3 December 2006, the Tehran investment banks and rating companies in Iran, policies of the Constitution's article 44 for Stock Exchange Corporation has carried out are among the other future plans for our floating a great part of public institutions to the major activities in operating of the market, Exchange. private sector is among the most significant including creating higher market transparency, developments in the Iranian capital market. improving listing requirements, accurate By the establishment of the TSE's Second As believed by most of the specialists, precise surveillance over the market's trading, planning Market, small enterprises with potential growth implementation of the law will bring important for Iran Financial Center (IFC) establishment power and the companies incapable of meeting structural changes to the country's economy. and holding several scientific-technical First market listing requirements will be able to It can also be hoped that execution of the law conferences about capital market. trade their stocks. leads to expediting privatization and decreasing the government's economic activities, as well as In order to develop its market and attract As another important step, the Iranian Stock depicting a prosperous outlook for the private foreign investors, the TSE also intends to Exchange Organization (SEO) initiated the sector in Iran. launch an international exchange in Kish free Issuers Information Network (Codal), in which zone. Correspondingly, Foreign Investment data will be filed and reported electronically. Up to December 2007, some of the largest Directive is being revised, with the intention to Ruling out any information asymmetry and public companies floated their stocks, worth facilitate investing in the Exchange. trading based on insider information, the US$ 29 billion. As the flotation is conducted by system expedites information dissemination the Tehran Stock Exchange (TSE), it is The TSE's cooperation with the regional and increase market transparency and predicted that its market capitalization will exchanges for mutual listing of the companies, efficiency. increase from the current figure of US$ 46.8 and facilitating the activity of Iranian brokerage billion to more than US$ 75 billion at the end of companies in those countries, and also the 2008. foreign financial entities, such as brokers,

HISTORY AND DEVELOPMENT The TSE is working to become a highly liquid FUTURE OUTLOOK secondary market for securities to raise funds The TSE was founded in 1967, by starting with and win confidence from all stakeholders. The The TSE is currently working on the following only six listed companies. Since then, the TSE is going to operate as a world-class goals: Exchange has experienced considerable marketplace for Iranian securities and • Installing new trading software by Atos changes in the path of development. Today, derivatives products. It strives to offer issuers Euronext in the early 2008 after the first anniversary of its demutualization, access to a wide national capital market and • Facilitating a new privatization plan through which took place on 6 December 2006, the maintain an open, secure, fair, orderly, efficient transferring shares of public enterprises to the TSE has evolved into an exciting and growing and transparent marketplace. It must contribute private sector marketplace, including 339 companies. to Iran's status as an economy which intends • Providing shorter settlement cycles and book to open-up to international financial centers. By entry settlement systems to meet the current The mission is setting the agenda for change servicing Iran's substantial long-term demand international standards of securities markets in the securities markets in Iran. The TSE must for capital and exchange services in • Providing diverse securities of high quality to be more than a mere market facilitator. It ought accordance with international standards and raise funds (new products; e.g. Sukuk) to be able to guide industries towards new practices, the TSE has the potential to become • Establishing an OTC market horizons and greater opportunities. The TSE one of the preeminent Exchanges in the • Planning to set up the Iran Financial Center must promote the Iranian Capital Market to Persian Gulf area. (IFC) respond to the socio-economic development needs of the nation. The Market should help to The Exchange has recently moved into its new stimulate industrial as well as economic growth place in No. 228, Hafiz Avenue, Tehran. and development of the Iranian economy. The TSE is preparing to maintain a free and open market in order to give opportunity to investors to convert their cash into securities at a fair and honest price and vice versa.

PAGE 126 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TEHRAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 519.3793 23.6081 1,733.90 78.8136 Aug-07 498.7165 24.9358 1,690.00 84.5000 Sep-07 806.1447 42.4287 2,182.45 114.8659 Oct-07 1,855.8900 88.3758 2,811.77 133.8936 Nov-07 469.8616 24.7296 1,167.69 61.4572 Dec-07 578.3487 26.2886 1,978.81 89.9458 TOTAL 4,728.34 38.39 11,564.61 93.91

Bonds Jul-07 0.8851 0.0402 0.0082 0.0004 Aug-07 0.4716 0.0236 0.0044 0.0002 Sep-07 1.6365 0.0861 0.0153 0.0008 Oct-07 0.4960 0.0236 0.0046 0.0002 Nov-07 2.1821 0.1148 0.0203 0.0011 Dec-07 0.9450 0.0430 0.0088 0.0004 TOTAL 6.62 0.06 0.06 0.001

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 33,813.62 9,235.00 2,000 12,000 50,000 Aug-07 43,430.33 9,615.00 1,800 45,000 Sep-07 46,880.96 10,192.00 1,600 10,000 40,000 Oct-07 47,527.35 10,234.00 1,400 8,000 35,000 Nov-07 45,772.62 9,803.00 1,200 30,000 Dec-07 45,573.81 9,736.00 1,000 6,000 25,000 800 20,000 600 4,000 15,000 400 2,000 10,000 200 5,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. M. E. Jahandoost E-mail [email protected] Website www.tse.ir

PAGE 127 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TEHRAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance Iran's current-account surplus will widen in In the run-up to the March 2008 parliamentary Iranian real GDP growth is set to remain 2007/08 (although it will fall as a percentage of election, Mr Ahmadinejad has been busily re- relatively strong over the outlook period, GDP) in tandem with higher global oil prices engineering his cabinet in order to strengthen supported by high oil prices. The resultant (which will lift oil export earnings despite his and the government's conservative buoyant oil earnings will allow the government stagnant oil export volumes) and slower credentials. In response to a strong push from to persist with its expansionary fiscal policy, import growth (as a result of petrol rationing, the reformist opposition camp to close ranks which will in turn contribute to high levels of which will curb the demand for imported fuel). ahead of the ballot as well as to reach out to private consumption and investment. It will then narrow in 2008-09 as global oil pragmatic conservatives with a view to However, oil export growth will be held back prices begin to fall, oil export volumes decline forming a unified list against the president's by a lack of refining capacity, which is largely and imports continue to expand steadily, in block, Mr Ahmadinejad has moved to regain a result of political interference and subdued line with growing consumer demand and control over core areas of the economy. The foreign investor interest. This lack of capacity investment spending. As a result, we estimate move is aimed at stemming the fall in support will leave Iran heavily reliant on imported fuels. that the trade surplus will widen to US$ 23.4 for the president over shortcomings in the Overall, it is expected that real GDP growth billion in 2007/08, before easing slightly to economy, an issue that will dominate the will slow slightly, to 4%, in 2008/09. In 2009/10 US$ 20.3 billion in 2008/09 and US$ 14 billion upcoming election. constraints on oil output and exports will in 2009/10. The non-merchandise deficit is contribute to an easing of real GDP growth to expected to stabilize in 2009/10, as the The key consideration in Iran's international a projected 3.7%. gradual widening of the services deficit, relations is the US. There continue to be a related to the growing import bill, is largely number of key points of difference between According to the latest Bank Markazi (central offset by the steady expansion of the income the two countries, with the most problematic bank) data, year-on-year inflation in August surplus, as debt interest payments fall in line being Iran's pursuit of a nuclear program, 2007 reached 17.3%. Anecdotal reports with Iran's declining external debt stock. which many fear the Islamic Republic is using suggest that the prices of essential goods and Overall, it is foreseen that the current-account as a basis for becoming a nuclear weapons services have risen sharply, that liquidity levels surplus will widen to US$ 19 billion (7.8% of power. remain high and that import costs are GDP) in 2007/08, before contracting to a still growing. Although fiscal policy is likely to high US$ 15.4 billion (5.5% of GDP) in The government is increasingly eschewing remain expansionary, inflationary pressures 2008/09 and US$ 9.1 billion (2.9% of GDP) in foreign investment and is seeking to make are set to ease slightly as the government 2009/10.* Iran more self-reliant and to favor local continues to enforce price controls. Average companies where possible, especially in the inflation is expected to stabilize at an average * The Economic Intelligence Unit Ltd., October 2007 energy and petrochemicals sectors. Although of around 15% in 2008-09. Iran is unlikely to stop trying to attract foreign investment into these sectors altogether.

Key Information Contacts Tehran Stock Exchange Corporation; http://www.iranbourse.com Securities and Exchange Organization; http://www.seo.ir Iranian Privatization Organization; http://www.en.ipo.ir TSE's Technology Management Company; http://english.tsetmc.com Central Bank of the Islamic Republic of Iran; http://www.cbi.ir Iranian Chamber of Commerce, Industries and Mines (ICCIM); http://www.iccim.com Organization for Investment, Economic & technical Assistance (OIETAI) a division of the Ministry of Finance; http://www.investiniran.ir

2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a) 2004-COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (a)

Services Industry Private consumption Public consumption Agriculture Oil Gross fixed investment Net external sector

60 20.1 54.2 50

40 35.2 51.8 13.7 30 20 10.9 10 10.4 0

-10 -7.1

PAGE 128 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TEHRAN STOCK EXCHANGE

IRAN ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)

GDP at market prices (IR trn) 926.5 1,109.5 1,406.0 1,701.2 1,884.4 GDP (US$ billions) 116.4 134.0 161.3 188.5 204.2 Real GDP growth (%) 7.5 7.1 5.1 4.4 4.3 Consumer price inflation (av; %) 14.3 16.5 14.8 13.4 12.0 Population (millions) 67.6 68.2 68.8 69.5 70.1 Exports of goods (FOB) (US$ millions) 28,237.0 33,991.0 43,852.0 60,012.0 66,770.6 Imports of goods (FOB) (US$ millions) 22,036.0 29,561.0 38,199.0 40,969.0 45,667.4 Current-account balance (US$ millions) 3,585.0 816.0 1,442.0 14,037.0 16,618.1 Foreign-exchange reserves excl gold (US$ millions) 21,409.0 24,427.0 32,709.0 45,209.0 (b) 58,209.0 Total external debt (US$ billions) 9.2 12.3 13.6 13.9 13.7 Debt-service ratio, paid (%) 4.8 (b) 4.6 (b) 4.1 (b) 3.6 (b) 2.9 Exchange rate (av) IR:US$ 7,958.1 8,281.5 8,719.0 9,026.0 9,227.1 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 4.3 4.0 3.7 3.5 3.4 3.5 Consumer price inflation (av; %) 17.0 15.5 15.0 15.0 14.8 14.8 Official net budget balance (% of GDP) -9.5 -9.9 -10.0 -9.5 -8.8 -8.2 Unofficial gross budget balance (% of GDP) 5.2 2.6 -0.4 -2.0 -1.8 -1.5 Current-account balance (% of GDP) 7.8 5.5 2.9 1.0 0.8 0.7 Commercial banks' lending rate 12.0 11.5 11.0 11.0 11.0 11.0 Exchange rate IR:US$ (av) 9,407 9,880 10,574 11,475 12,508 13,633

2004-PRINCIPAL EXPORTS (FOB) (a) 2004-PRINCIPAL IMPORTS (CIF) (b)

(US$ millions) (US$ millions)

Oil & gas 36,827 Capital goods 12,105 Petrochemicals 1,431 Industrial products 12,004 Fresh & dry fruits 772 Consumer goods 6,386

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Japan China Turkey Germany China UAE Italy South Korea Other South Korea France Other

14.1 12.1 10.6 53.7 12.9 56.1 9.4

7.3 6.2 6.3 5.6 5.7

(a) In real terms; Bank Markazi data. (b) Bank Markazi data.

PAGE 129 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TIRANA STOCK EXCHANGE The year 2006 was characterized by developments which improved the procedural and legal infrastructure for the development of the TSE.

Anila Fureraj General Manager

The year 2006 was characterized by scheme of the functioning of the Exchange and made in the informal market of stocks from developments which improved the procedural the adaptation personnel numbers to be in line anonymous companies. Through this analysis and legal infrastructure for the development of with its actual development conditions. All it was shown that the possibility of channeling the Tirana Stock Exchange (TSE). The political these changes were done for a better these transactions from the informal market changes, taking place in our country, have management of the work and to create better towards the organized market of valuable opened new opportunities for the improvement conditions to transforming TSE in a real papers, as necessary step, for the reduction of of the economical climate, encouragement of securities market informality in the economy and the activation of the local and the foreign investment and the the TSE, was essential. war against informality; these factors will work The purpose of our work has been the towards bringing about encouragement of broadening of the ways for the development of We have also undertaken many other different development in the capital markets in Albania. the TSE and the taking of the further secure projects with the various groups of interest steps so as to transform the Tirana SE into an aiming not only at their susceptibility but also During this year the management and active Exchange. For this reason, the TSE offering our legal and technical assistance. administrative arms of the TSE were started the work of reviewing the strategy of the reorganized. In this aspect, at the beginning of development of the TSE in accordance with the During 2006 the complete internal regulatory this year, new members of TSE Supervisory actual conditions of market developments and base of the functioning of the TSE has been Board were appointed by Minister of Finance, in the setting of the 2005-2009 Government improved, leaning on the guidelines given by as the only shareholder of the company. The Program. These strategies aim is to transform the FEAS according to the Book of Rules and Supervisory Board has also appointed a new the TSE into a real securities market. At the recommendations given by the consulting General Manager. The reorganization was same time, statistical analyses were done in group, GMA Company. followed by the changing of the organization connection with the volume of transactions

HISTORY AND DEVELOPMENT The license empowers the TSE “To operate as • Bilateral negotiations with Albanian a securities market for the trading of Government towards the inclusion of the TSE in The TSE opened officially on 2 May 1996, as Government/Corporate Debt Securities and the privatization process of the state-owned the first exchange in Albania’s financial history. Capital securities” with no time restriction. This enterprises (SOEs). These negotiations will The TSE was originally established as a was a big event for the TSE, since for the first cover identification of potential strategic and department of the Bank of Albania with the goal time in its history the TSE acts as an organized non-strategic state owned companies, which of spinning off as a separate institution after a securities market on an unlimited time-base, can be privatized through IPO, transition period of several years. At the after several periodical-limited licenses since • Negotiations both with the Albanian beginning, trading sessions were held every 2002. Government and the Ministry of Finance Monday and Thursday. By October 1997, the towards the assignment of the TSE, by MoF, as sessions were increased to every business day, Up to now, the TSE records six licensed Government’s agent in organizing primary and 3- and 6-month maturity T-bills were added members, three commercial banks and three auction for long-term public debt securities, to the existing instruments traded. Primary private companies, which offer brokerage • Negotiation and cooperation with both, MoF auctions for T-bills were conducted by the TSE services for investors. and Albanian Financial Supervisory Authority until 1 August 1998. towards the compilation of legal and fiscal FUTURE OUTLOOK incentives, which are deemed necessary to The major change in the legal framework of the encourage private companies to raise their TSE was the approval by the Parliament of Activating the securities market as a common capital through IPOs and TSE listing, some revisions to the actual Securities Law, trading platform for several financial • Performance of a marketing campaign, in full which came into force in March 2001. Under instruments, will be the strategic objective of compliance with the marketing program these new changes, the Ministry of Finance the TSE during 2008. Achievement of such an compiled by the TSE with a final objective to took all practical steps to develop and important goal shall be carried out through attract domestic business at exchange listing; institutionalize the capital market in Albania practical implementation of the strategic • In cooperation with AFS, carrying out of a during 2002. In this way, the TSE was finally alternatives pointed out within the TSE continued public education & information established for the first time, in March 2002, as Development Strategy. The activity of the TSE campaign regarding the securities market and an independent institution (joint-stock during 2008 will be mainly focused in: advantages that provides its use; company), with the sole owner the Ministry of • The approval of the TSE Development • Improvement of information technology at the Finance. Strategy in the Government’s Economic Policy TSE in order to make possible providing of this Committee as well as the implementation of the market with an appropriate Electronic Trading On 13 July 2007, the Albanian Financial Action Plan as an integral part of this strategy; System for securities; Authority, granted the TSE with infinite validity • Working closely with and assisting in the • Keeping fruitful cooperation with institutions in license. This was done after the TSE fulfilled continuance of domestic top level businesses, the region, regarding the exchange of successfully the preliminary criteria/conditions the TSE members, etc. to make them aware of experiences and staff training, targeting further imposed by the Authority to obtain an infinite advantages the securities market may offer improvement of human resources capacity license. them as well as providing these stockholders within the filed of securities market. with necessary information, in order to be listed at the TSE,

PAGE 130 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TIRANA STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jan-06 n/a n/a n/a n/a Feb-06 n/a n/a n/a n/a Mar-06 n/a n/a n/a n/a Apr-06 n/a n/a n/a n/a May-06 n/a n/a n/a n/a Jun-06 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Bonds Jan-06 n/a n/a n/a n/a Feb-06 n/a n/a n/a n/a Mar-06 n/a n/a n/a n/a Apr-06 n/a n/a n/a n/a May-06 n/a n/a n/a n/a Jun-06 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Other Jan-06 n/a n/a n/a n/a Feb-06 n/a n/a n/a n/a Mar-06 n/a n/a n/a n/a Apr-06 n/a n/a n/a n/a May-06 n/a n/a n/a n/a Jun-06 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a * The TSE is trading debt instruments only at this time, but there is no volume to-date.

Market 5-YEAR CURRENCY EXCHANGE MONTHLY CURRENCY EXCHANGE Capitalization (US$ millions) (US$ millions) (US$ millions) Index

Jan-06 n/a n/a 120 100 Feb-06 n/a n/a 90 100 Mar-06 n/a n/a 80 Apr-06 n/a n/a 80 70 May-06 n/a n/a 60 Jun-06 n/a n/a 60 50 40 40 30 20 20 10 0 0 2003 2004 2005 2006 2007 JFMAMJ JASOND

CONTACT INFORMATION

Contact Name Ms. Anila Fureraj E-mail [email protected] Website www.tse.com.al

PAGE 131 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TIRANA STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Political Environment Economic Performance The good rating at the end of the country’s The general elections of 3 July 2005 brought a In January 2003, Albania started negotiations risk assessment process assigned by the well- decisive victory to the rightist political forces in with the European Union (EU) for a known Moody’s agency will lead Albania to Albania. The Democratic Party (DP) of former Stabilization and Association Agreement. the international financial markets and allow it Prime Minister Sali Berisha became the Following three years of negotiations, on to access funds which will support the biggest in the new legislature with 56 seats. 12 June 2006, the European Union and the country’s needs for development. However, The electoral Alliance for Freedom, Justice government signed the Stabilization and this borrowing requires the formulation of and Welfare, composed of parties Association Agreement, bringing Albania strategic and consistent development plans in ideologically close to the DP, it became the closer to the EU. order to guarantee the efficient and prioritized third biggest political force with 18 seats. use of funds. Together, they have an absolute majority in According to World Bank and Bank of Albania, parliament and have formed the new over the past few years, Albania maintained The 2006-2009 Country Assistance Strategy government. These two political forces can macroeconomic stability as well as high rates (CAS) for Albania was approved on count on the legislative support of some small of economic growth. Export growth 10 January 2006. The fourth CAS that the right-oriented parties. accelerated, underpinned by an increase in World Bank Group has produced for Albania, As for the leftist camp, led by the Socialist tourism and favorable weather conditions, it outlines a program of support that includes Party (SP), it lost the elections (winning 42 which positively affected agriculture and agro- financing on modified IDA terms of up to US$ seats) and is now in opposition after being in processing. The economy is bolstered by 86 million as well as International Bank for power since 1997. annual remittances from abroad of US$ 600- Reconstruction and Development (IBRD) 800 million, mostly from Albanians residing in financing of up to US$ 110 million. The CAS Government Greece and Italy; this helps offset the towering program seeks to support Albania's efforts to On 10 September 2005 the Albanian trade deficit. improve governance while focusing on two Parliament endorsed the new coalition cabinet core areas: led by Prime Minister Sali Berisha. The new Monetary and financial policies curbed 1 Promoting economic growth through 14-member government, dominated by inflation, fostered confidence in the national support to private sector development; Berisha’s Democratic Party (DP), was currency (Lek), and spurred credit to the 2. Improving public services delivery, approved by a vote of 84 to 53. Berisha’s DP private sector. The annual inflation rate has particularly in social sectors. and its allies, the Agrarian Environmentalist been maintained within the 2-4% target range Party (AAP), the Republican Party (RP), the since 2002. The privatization of the Savings A governance filter has been introduced in all New Democratic Party (PDR) and the Union Bank and the easing of the monetary policy projects, programs, policy advice and for Human Rights Party (UHRP), control 81 of stance helped boost private sector credit dialogue, and in every sector of the economy the 140 seats in the newly-elected parliament. growth, albeit from a low base. in which the Bank will be involved to ensure The government is committed to fight proper mainstreaming of governance corruption and crime, reduce poverty and The macroeconomic developments over 2007 considerations in all bank-supported activities. unemployment, strengthen democracy and had a positive performance in terms of The Country Assistance Strategy was bring Albania closer to Euro-Atlantic economic growth and macroeconomic developed based on consultations with the institutions. stability, mainly owing to the dynamics of the Government, Parliament, donors, civil society, private sector. Moreover, this period identified the private sector, and other important President a number of structural deficiencies in stakeholders in the country.* The head of state of Albania is the president, economy, among which the solution of the elected for a five-year term by a two-thirds energy situation and the provision of energy * Information provided by the Tirana Stock Exchange. majority of the parliament. The president has supply are of primary importance. The quick no legislative or executive power, but and final solution of this issue will spur the represents the state in foreign relations, and is achievement of the projected economic the chief commander of the army. Since July growth rates. 2007, Mr Bamir Topi is president of Albania.

Key Information Contacts Bank of Albania www.bankofalbania.org Ministry of Finance www.minfin.gov.al Albanian Institute of Statistics www.instat.gov.al Albanian Financial Supervisory Authority www.amf.gov.al Ministry of Economy www.mete.gov.al

2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Agriculture Private consumption Public consumption Gross fixed investment Construction Industry Transport Exports of goods & services Imports of goods & services Changes in stocks

21.5 100 91.2 80 17.3 60 43.1 40 23.6 21.8 20 9.3 10.1 0 -20 8.0 -40 -60 -45.9

PAGE 132 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TIRANA STOCK EXCHANGE

ALBANIA ECONOMIC CHARTS AND TABLES

2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)

GDP at market prices (Lk billions) 625 683 766 837 909 (b) GDP (US$ billions) 4.5 5.6 7.5 8.4 9.3 (b) Real GDP growth (%) 2.9 5.7 5.9 5.5 5.0 (b) Consumer price inflation (av; %) 5.5 2.4 2.3 2.4 2.4 Population (millions) 3.1 3.1 3.1 3.2 3.2 Exports of goods (FOB) (US$ millions) 330.2 447.1 603.4 656.2 792.9 Imports of goods (FOB) (US$ millions) -1,485.3 -1,783.4 -2,195.0 -2,477.5 -2,915.7 Current-account balance (US$ millions) -407.6 -406.8 -358.0 -571.5 -670.8 Foreign-exchange reserves excl gold (US$ millions) 838.8 1,009.4 1,357.6 1,404.1 1,768.8 Exchange rate (av) Lk:US$ 140.16 121.87 102.78 99.87 98.10

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates

ECONOMIC FORECAST SUMMARY

2005 (a) 2006 (a) 2007 (b) 2008 (b)

Real GDP growth (av) 5.5 5.0 (c) 5.0 6.0 Agricultural output growth (av) 2.6 2.5 2.5 3.0 Industrial output growth (av) -3.4 2.0 2.0 3.0 Consumer price inflation (av) 2.4 2.4 2.5 2.5 Money market interest rate (%) 5.5 5.5 (c) 6.0 6.5 Government balance (% of GDP) -3.6 -3.2 (c) -3.5 -3.7 Exports of goods (FOB) (US$ millions) 656 793 962 1125 Imports of goods (FOB) (US$ millions) -2,478 -2,916 -3,420 -3,688 Current-account balance (US$ millions) -572 -671 -918 -925 Current-account balance (% of GDP) -6.8 -7.2 (c) -8.5 -7.9 Exchange rate Lk:US$ (av) 99.9 98.1 92.7 91.8 Exchange rate Lk:[euro] (av) 124.4 123.2 125.0 126.5

(a) Actual. (b) The Economic Intelligence Unit Ltd. forecasts. (c) The Economic Intelligence Unit Ltd. estimates.

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Textiles & footwear Building materials Food, beverages & tobacco Machinery Food, beverages & tobacco Building materials Minerals, fuel & electricity Machinery Other Minerals, fuel & electricity Textiles & footwear Other

16.8 16.0 54.7 17.9 7.9 13.9

7.6

3.9 11.7 20.2 9.1 20.3

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy Greece Germany Italy Greece Turkey Macedonia Other China Other

9.6 15.7 72.6 3.2 1.6 28.1 7.6 13.0

6.0

42.6

PAGE 133 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

“TOSHKENT” REPUBLICAN STOCK EXCHANGE In 2006 the TRSE plans to increase the volume of trade with securities. Most importantly, we will carry out technical modernization of the system of electronic

Bakhtiyor Khudoyarov exchange trades. Chairman

As a result of all of the hard work of the staff Although in comparison with the 1. Perfection of the technology of exchange of the “Toshkent” Republican Stock Exchange corresponding period of 2004, the trading trades: (TRSE) in 2005, the TRSE has achieved volume of shares has increased slightly, the First, the TRSE will create of a platform for the certain positive results. In year 2005, 5814 trading volume of shares for hard currency secondary circulation of shares in the transactions with the shares of 643 joint-stock has increased 7.4%. Our efforts about the secondary market, working on technology companies and 9 transactions with corporate increase of the secondary market have been based on simple auction. Second, the TRSE bonds have been carried out on the trading proving themselves. In the year 2005 trade will create a special platform on fulfillment of platforms of the TRSE. volume with shares in the secondary market transactions. increased 15%. • Trade with corporate bonds accounted for 2. Modernization by updating the equipment. 1%; We expect that the further development of the The TRSE will complete modernization of • Shares of the privatized state enterprises secondary market will keep this pace. equipment in all branches and in the accounted for 30.5%; Currently, there are securities of 700 exchange itself. • Shares of the privatized state enterprises companies in circulation in the secondary obtained by foreign investors for the hard market, which should considerably increase 3. Modernization of trading system of the currency accounted for 1.2%; the share of securities in the secondary TRSE. • IPOs and other additional issued shares of market. The TRSE will translate into a new the joint-stock companies for national technological platform the whole trading currency as well as for the hard currency In 2006 the TRSE plans to increase the system of the Stock Exchange and create a accounted for 4.1%; volume of trade with securities. Most uniform database. Further the TRSE will • Shares in the secondary market accounted importantly, we will carry out technical endeavor to open facilities for regional broker for 38.7%; and modernization of the system of electronic offices to access the trading system from • Shares in the secondary market obtained by exchange trades: distance and implement maintenance of a foreign investors for hard currency accounted closed network of data transmission for all for 24.5% of the total volume. regional branches.

HISTORY AND DEVELOPMENT TRSE. A specialized trading platform, for the FUTURE OUTLOOK purpose of selling shares of privatized A stock department was established in 1991, enterprises to foreign investors for hard The priority directions of the development of the which became a pioneer of Uzbekistan’s currency, was launched on 1 January 1999. TRSE in 2006 will become the opening of an securities market, and was eventually additional trade sections on transactions for transformed in 1994 into the “Toshkent” In 2001, work on Exchange information and shares of unlisted companies. Republican Stock Exchange (TRSE), a closed electronic trading systems continued. The joint-stock company. The TRSE became an website www.uzse.uz started operations in Additionally, the TRSE is planning to change open joint-stock company in 1998. 2001, and today the TRSE continues work on a the software system and bring it to standards in Establishment of the TRSE was closely transition to modern web-technology trading. In accordance with Rules of the Stock Exchange, connected to its market performance and a addition, the website reflects daily information as well as prepare new, more complex policy of establishing public joint-stock on IPOs and other JSCs. Investors may follow software, in particular: companies on the basis of privatized all the current changes and information on • development of the module on conclusion of government enterprises. Currently, the TRSE listed companies, share price and amounts turnip-deals, based on technology of continual has 39 shareholders. standing out. double auction; • modernization of software system, based on Throughout its development, the TRSE In 2003 new listing procedures were adopted at technologies of the simple auction; and completed a complex infrastructure, a central the TRSE where the requirements for the official • full modernization of software system of the office in Tashkent, and branches and brokerage as well as unofficial listing were stated. TRSE, with transition on new technical platform. offices in all regions nationwide. In 1994, 12 Currently the four largest companies of brokerage offices were members of the Uzbekistan are listed in Class “A” of the official Exchange and as of the 1 July 2005, this listing. number had increased to 61. Founded 12 years ago as Uzbekistan’s first On 1 February 1998, a listing procedure was stock exchange, the TRSE is actively taking introduced. On 1 September 1998, shares of part, always keeping in mind its major role, in the first listed company began trading on the the development of the Uzbek capital market.

PAGE 134 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

“TOSHKENT” REPUBLICAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 10.2115 0.4642 10.5010 0.4773 Aug-07 3.4569 0.1503 4.5175 0.1964 Sep-07 9.3320 0.4666 70.0394 3.5020 Oct-07 9.9120 0.4956 18.0455 0.9023 Nov-07 10.0327 0.4560 18.5214 0.8419 Dec-07 18.9546 0.9477 39.5453 1.9773 TOTAL 61.90 0.02 161.17 0.06

Bonds Jul-07 0.08 0.04 0.10 0.05 Aug-07 0.08 0.08 0.10 0.10 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.08 0.08 0.10 0.10 Nov-07 0.0 0.0 0.0 0.0 Dec-07 0.40 0.08 0.50 0.10 TOTAL 0.65 0.14 0.80 0.18

Other Jul-07 n/a n/a n/a n/a Aug-07 n/a n/a n/a n/a Sep-07 n/a n/a n/a n/a Oct-07 n/a n/a n/a n/a Nov-07 n/a n/a n/a n/a Dec-07 n/a n/a n/a n/a TOTAL n/a n/a n/a n/a

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization* (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 707.75 167.0 20 180 2,500 Aug-07 1,391.94 129.0 18 160 Sep-07 1,595.40 20.4 16 140 2,000 Oct-07 2,200.03 90.0 14 120 Nov-07 2,104.97 95.1 12 1,500 100 Dec-07 1,920.82 86.7 10 80 8 1,000 * The “Toshkent” RSE does not trade all joint-stock companies 60 each month and thus market capitalization varies widely. 6 4 40 500 2 20 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Gairat Mamadazizov E-mail [email protected] Website www.uzse.com

PAGE 135 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

“TOSHKENT” REPUBLICAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance Inflation is estimated to have remained high Uzbekistan will hold a presidential election Rising investment and exports will support in 2007, owing to election-related wage and on December 23rd. It will probably be Uzbekistan's economic growth in 2008-09. benefit rises, as well as strong inflows of announced in the coming weeks that the Energy companies from Russia and China, foreign exchange from commodity exports, incumbent president, Mr Karimov, will stand as well as those from other Asian countries, although the tightening of monetary policy. in the election, in which case he would be are set to invest increasing amounts in Once the election is over, the government certain to be returned to office. This will Central Asia's hydrocarbons sector, and will cut back on social spending, thereby pave the way for further political stagnation telecoms and some manufacturing sub slowing money supply growth–and hence in 2008-09, with little prospect of greater sectors will also attract investment. In turn, inflation–in 2008-09. A slowing of inflation in democratization and transparency. this will contribute to growth in export 2009 will be assisted by slightly lower volumes in industries such as gas and commodity prices. Relations with the EU are haltingly automotives. Although imports of capital improving from their 2005 low, with goods will rise, linked to the development of High commodity prices, together with Germany in particular keen to look for the hydrocarbons sector and the continued import controls, will keep the current alternative energy sources in Central Asia need of industries such as automotives to account in surplus in 2008-09. Gold prices so as to reduce reliance on Russia. import component parts, controls on are expected to continue to rise in 2008, Nevertheless, economic ties with the West imports of consumer goods will suppress thereafter dropping back to still high levels. will remain constrained by human rights overall growth in import volumes. An In conjunction with an increase in export issues. increase in government spending in volumes–assisted by increased deliveries of advance of the election has supported gas and cars to Russia–this will boost The IMF has commended Uzbekistan for a growth in domestic demand in 2007. Owing export revenue. Rising global cotton prices strong macroeconomic performance in to less favorable base effects, a moderate will support revenue from sales of cotton recent years, characterized by rapid slowing of expansion in the second half of fiber, although the value added of economic growth, large external surpluses 2007 compared with the 9.7% year-on-year Uzbekistan's cotton exports will remain low, and increasing international reserves. real GDP growth rate reported for the first given the country's slow progress in However, it has attributed this performance half is expected. Nevertheless, full-year increasing domestic cotton-processing largely to a favorable external environment, growth will accelerate to over 8%, compared capacity.* as well as to adjustments in fiscal and with 7.2% in 2006. A gradual easing of monetary policy. By contrast, although growth to 6.5% by 2009 is anticipated * The Economic Intelligence Unit Ltd., September 2007 important advances have been made in reflecting slower growth in Russia and some areas–notably, Treasury reforms and gently easing commodity prices. reducing the tax burden–the pace of structural reform remains slow overall. Price trends for Uzbekistan's main export goods look favorable over the forecast period. Global prices for gold, Uzbekistan's main commodity export, are forecast to rise to an annual average of US$ 705/troy oz in 2008, before declining to US$ 619/troy oz in 2009–still well above historical average prices.

Key Information Contacts State Property Committee www.spc.gov.uz Ministry of Finance www.mf.uz/eng National Bank of Uzbekistan http://eng.nbu.com/about/history/index.php State Central Securities Depository www.deponet.uz/english.shtml Portal of the State Authority www.gov.uz/en

2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%) 2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Private consumption Public consumption Gross fixed investment Agriculture & forestry Exports of goods & services Imports of goods & services

60 28.5 50.9 50 39.6 40 42.9 30 23.1 20 16.4 10 27.9 0 -10 -20 -30 -30.0

PAGE 136 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

“TOSHKENT” REPUBLICAN STOCK EXCHANGE

UZBEKISTAN ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (b) 2007 (b)

GDP at market prices (Som billions) 9,838 12,261 15,210 19,526 24,501 GDP (US$ billions) 10.1 12.0 13.6 16.0 19.4 Real GDP growth (%) 4.2 7.7 7.0 7.2 (a) 8.2 Consumer price inflation (av; %)(c) 14.8 8.8 21.0 19.8 16.0 Population (millions) 25.6 25.9 26.2(b) 26.5 26.8 Exports of goods (FOB) (US$ millions) 3,240 4,263 4,757 5,690 6,580 Imports of goods (FOB) (US$ millions) -2,405 -3,061 -3,310 -3,770 -4,570 Current-account balance (US$ millions) 882.0 1,215.3 1,949.1 2,766.7 3,045.0 Foreign-exchange reserves excl gold (US$ millions) 1,101 1,728 2,401 2,900 3,700 Total external debt (US$ billions) 4.9 4.8 4.2 4.8 5.4 Debt-service ratio, paid (%) 21.3 17.7(b) 14.2 (b) 14.5 13.0 Exchange rate (av) Som:US$ 971.3 1,020.0 1,115.0 1,219.8 (a) 1,263.8 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates. (c) The data are based on the IMF's inflation measure.

ECONOMIC FORECAST SUMMARY

2006 (a) 2007 (a) 2008 (b) 2009 (b)

Real GDP growth 7.2 (c) 8.2 7.2 6.5 Unemployment rate (av) 0.8 0.8 0.9 1.1 Consumer price inflation (av)(d) 19.8 16.0 14.5 11.5 Consumer price inflation (year-end)(d) 15.5 16.5 13.0 10.0 Government balance (% of GDP) 0.5 -0.4 -0.1 -0.3 Exports of goods (FOB) (US$ millions) 5,690 6,580 7,230 7,660 Imports of goods (FOB) (US$ millions) -3,770 -4,570 -5,320 -5,780 Current-account balance (US$ millions) 2,767 3,045 3,085 3,134 Current-account balance (% of GDP) 17.3 15.7 13.4 12.1 External debt (year-end; US$ billions) 4.8 5.4 6.2 7.1 Exchange rate Som:US$ (av) 1,220 (c) 1,264 1,311 1,379 Exchange rate Som:US$ (year-end) 1,238 (c) 1,285 1,330 1,400 Exchange rate Som:[euro] (year-end) 1,634 (c) 1,838 1,849 1,813 Exchange rate Som:SDR (year-end) 1,862 (c) 2,030 2,096 2,145

(a) The Economic Intelligence Unit Ltd. estimates. (b) The Economic Intelligence Unit Ltd. forecasts. (c) Actual. (d) The data are based on the IMF's inflation measure.

2005-PRINCIPAL EXPORT (%) 2005-PRINCIPAL IMPORTS (%)

Gold Cotton Machinery & equipment Foodstuffs Energy Other Energy products Other

21.7 48.1 27.6 7.8

13.1 3.1

41.0 37.6

2006-MAIN DESTINATION OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Russia Poland China Turkey Russia South Korea China Kazakhstan Ukraine Other Kazakhstan Germany Ukraine Other

23.9 11.8 15.6 27.8

10.5 10.4

7.5 7.3 35.6 27.0 7.1 6.0 4.7 4.8

PAGE 137 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

UKRAINIAN STOCK EXCHANGE The USE activity throughout the year was focused on improvement of trading technology, widening the number of market instruments and supplementing the market

Valentin Oskolsky information. Chairman of the Board

Trading value of the Ukrainian Stock The USE activity throughout the year was student has an opportunity to become an Exchange (USE) in 2007 amounted to US$ focused on improvement of trading exchange specialist and then a broker. 16.8 million. If we analyze trading structure technology, widening the number of market Through gaining theoretical and practical by market instrument, we can see that instruments and supplementing the market knowledge and accumulating experience, trading value for derivatives increased to information. students realize the importance of capital 15.5% from 0.05% in 2006, but trading markets and can better make their choice of value for corporate bonds decreased to The USE also provides educational activity. future professions. 17.3% in 2007 from 53% in 2006. The most The USE is a co-founder of the Kiev traded instrument was state-owned shares. Slavonic University continued its work with It is our belief that the USE has chosen a students, through the Securities Chair. strategy that will gradually result in Starting from 2002 there has been a transparent, liquid, investment and an Student Stock Exchange at the USE. Every attractive capital market.

HISTORY AND DEVELOPMENT Education and the Ukrainian Community • participation in the privatization processes “Intelligence of the Nation”. Chairman of the planned to be implemented by the State The USE is a pioneer in the capital market of Board of USE Mr. Valentin Oskolsky is also Privatization Program and the Law of Ukraine Ukraine, created according to “Law on President of Union of Economists of Ukraine “On State Budget of Ukraine for 2008”; Securities and the Stock Exchange”, and and President of Article Numbering • improvement of technologies for trading registered by decision of the Cabinet of Association “GS1 Ukraine”. State-owned shares of privatized companies; Ministers on 29 October 1991. The USE is a • promotion for the attraction of direct closed joint-stock company with an The USE has created many educational national and foreign investments to develop authorized capital divided into 288 ordinary programs in association with the Kiev strategically important industry companies nominal shares belonging to legal entities. In Slavonic University. during the process of its privatization; 1997, according to the Law “On State • development of the electronic Regulation of Securities Market in Ukraine”, The official publication, “Hermes”, can be documentation turnover and electronic digital the Securities and Stock Market State found in the daily newspaper “Ukraine- signature according to new Ukrainian Commission re-registered the USE. Since Business”. legislation; June 1998 the USE has been a self- • development of Exchange information regulated organization. There are 100 FUTURE OUTLOOK areas, expansion of publishing, scientific, registered brokerage companies as USE methodical and educational activities in order members. The USE has 3 branches in the Plans for the USE in 2008 include: to prepare specialists for national capital largest Ukrainian regions. • expansion through the System of Electronic market; and Trading (SELT USE) secondary securities • strengthening the international cooperation The USE is a member of the Coordinating turnover and trading the internal state loan with foreign stock exchanges and Council for the functioning of securities bonds; international financial organizations. market charged by the President of Ukraine. • creation of the conditions and basis for It’s also a member of the Consulting & formation and development of a derivatives Experts Council in the SSMSC, the Ukrainian market; Chamber of Commerce and Industry, the • taking actions to attract new members to Academy of Economic Science and the operate in SELT USE; Academy of Engineering Science of Ukraine, the Board of Ukrainian Council on Economic

PAGE 138 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

UKRAINIAN STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 0.5519 0.2759 14.6391 7.3195 Aug-07 0.0433 0.0144 0.9084 0.3028 Sep-07 0.0968 0.0484 3.3577 1.6788 Oct-07 1.1641 0.5821 23.4625 11.7312 Nov-07 0.0141 0.0071 0.2327 0.1163 Dec-07 0.1353 0.0677 2.6816 1.3408 TOTAL 2.01 0.17 45.28 3.75

Bonds Jul-07 0.3465 0.1733 0.0500 0.0250 Aug-07 0.8372 0.4186 0.1000 0.0500 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0012 0.0012 0.0001 0.0001 Nov-07 0.0012 0.0012 0.0001 0.0001 Dec-07 0.0 0.0 0.0 0.0 TOTAL 1.19 0.10 0.15 0.01

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0133 0.0133 0.0001 0.0001 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 1.7840 1.7840 0.0450 0.0450 Dec-07 0.7767 0.2589 0.0060 0.0020 TOTAL 2.57 0.343 0.0511 0.00785

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index

Jul-07 312.37 0.0 1.2 400 Aug-07 313.91 0.0 350 Sep-07 390.02 0.0 1.0 Oct-07 263.04 0.0 300 0.8 Nov-07 206.32 0.0 250 Dec-07 206.46 0.0 0.6 200 150 0.4 100 0.2 50 0.0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mrs. Hanna Yatsyuk E-mail [email protected] Website www.ukrse.kiev.ua

PAGE 139 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

UKRAINIAN STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Economic and Political Environment Economic Performance Ukraine's deficit on trade in goods is expected Uncertainty is likely to continue to mar the Real GDP is growing by 7.5% year on year to rise sharply over the forecast period, owing domestic political scene for much of the in January-August 2007, compared with 5.7% to further increases in the price paid for forecast period. The early parliamentary in the same period of 2006. Growth will Russian gas imports, as well as an election, held on September 30th, was called nevertheless slow during the remainder of the anticipated drop in steel export prices in 2008. in an attempt to break the political gridlock year as a result of a stronger statistical base, Strong growth in import volumes, linked to a that has afflicted the country since April 2007. and full-year GDP growth forecast is 6.8% in continued rise in incomes, will also contribute The election was closely run, and has again 2007. Growth is expected to slow down to to the larger deficit. Ukraine's current-account returned a divided parliament, with none of 6.1% in 2008 under the impact of lower steel deficit is therefore expected to widen, the coalition options likely to produce a strong prices. The recent global financial volatility especially in 2008. The services surplus is and stable government. In the short term, sparked by concerns over the US sub-prime unlikely to expand in the absence of an there is a risk that the election will be followed mortgage market also promises less favorable increase in the price charged to Russia for by a lengthy process of coalition-building, external conditions for Ukraine's corporate large-scale transit of energy exports irrespective of which groups form the next and banking sectors, which have increasingly westwards. The income deficit will continue to government, Ukraine appears likely to make borrowed abroad in the past few years. GDP widen, as a result of increasing interest continued, albeit slow, progress towards is expected to pick up to 6.3% in 2009 under payments on foreign debt and dividend greater integration with the EU (although a slightly more favorable export price outlook. payments on foreign direct investment (FDI) in actual membership will remain a distant Inflation has been accelerating since Ukraine.* prospect) and possibly also legal challenges February, with year-on-year price growth to the election result. Work is under way on a reaching 14.2% in August, compared with * The Economic Intelligence Unit Ltd.October 2007 new "enhanced agreement" with the 9.5% in February. The inflation rate is EU–potentially including a free-trade deal–to expected to remain high, at an average of replace the current Partnership and Co- 11.3% in 2007. operation Agreement (PCA), which expires at the end of 2007. Membership of the World Trade Organization (WTO) is also close.

Key Information Contacts Securities and Stock Market State Commission www.ssmsc.gov.ua Ministry of Finance www.minfin.gov.ua State Property Fund of Ukraine www.spfu.gov.ua State Committee of Financial Monitoring www.sdfm.gov.ua State Commission for Regulation of Financial Services’ Market in Ukraine www.dfp.gov.ua

2005-ORIGIN OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Services Industry Private consumption Public consumption Agriculture Gross fixed investment Increase in stocks Net exports

80 33.8 71.3 70 55.3 60 50 40

30 24.0 10.9 20 10 7.3 0.3 0.7 0

PAGE 140 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

UKRAINIAN STOCK EXCHANGE

UKRAINE ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (HRN billions) 267.3 345.1 441.5 537.7 705.3 GDP (US$ billions) 50.1 64.9 86.1 106.5 139.7 Real GDP growth (%) 9.5 12.1 3.0 7.4 6.8 Consumer price inflation (av; %) 5.2 9.0 13.5 9.1 11.3 Population (millions) 47.4 47.1 46.7 46.5 46.2 Exports of goods (FOB) (US$ millions) 23,739 33,432 35,024 38,949 46,680 Imports of goods (FOB) (US$ millions) -23,221 -29,691 -36,159 -44,143 -54,300 Current-account balance (US$ millions) 2,891 6,909 2,531 -1,617 -3,890 Foreign-exchange reserves excl gold (US$ millions) 6,683 9,491 18,990 21,840 28,300 Total external debt (US$ billions) 24.0 30.2 33.3 39.2 (b) 44.5 Debt-service ratio, paid (%) 13.1 11.0 13.1 16.0 (b) 16.5 Exchange rate (av) HRN:US$ 5.33 5.32 5.12 5.05 5.05 (a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 6.8 6.1 6.3 6.6 6.5 6.5 Consumer price inflation (%) 11.3 9.0 7.5 6.5 5.8 5.4 Consolidated budget balance (% of GDP) -1.6 -1.1 -1.5 -1.0 -1.3 -1.7 Current-account balance (% of GDP) -2.8 -4.4 -4.7 -2.4 -2.8 -2.3 Commercial banks' prime rate (av; %) 14.0 12.5 11.5 10.5 10.0 9.7 Exchange rate HRN:US$ (av) 5.05 5.11 5.20 5.21 5.22 5.22 Exchange rate HRN:[euro] (av) 6.85 7.04 6.86 6.66 6.58 6.60

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Non-precious metals Machinery & equipment Other Machinery & equipment Fuel & energy, incl ores Chemicals Food, beverages & agricultural products Fuel & energy, incl ores Chemicals Metals Food, beverages & agricultural products Other

18.1 12.3 29.6 8.7

7.4 10.1

42.9 7.1 8.8 30.7 16.5 7.8

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Russia Italy Turkey Russia Germany Turkmenistan Germany China Other China Poland Other

22.6 9.7 31.2 7.9 59.9 5.2 6.5 4.8 6.2

3.4 41.2 1.4

The Economic Intelligence Unit Ltd., October 2006

PAGE 141 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ZAGREB STOCK EXCHANGE We had a very successful year. Turnover increased, market capitalization rose significantly and number of trades almost doubled.

Roberto Motusic General Manager

We had a very successful year. Turnover introduction of market makers; faster and increased, market capitalization rose easier Internet access to stock market significantly and number of trades almost trading and further work on the doubled. We finished three major implementation of new financial instruments infrastructure projects and implemented new (derivatives). OMX X-Stream trading platform. Despite the global market depression we are looking Regional cooperation is a long term task that forward to further qualitative market we would like to revitalize and put higher on improvements. Three major tasks are: our list of priorities for year 2008.

HISTORY AND DEVELOPMENT FUTURE OUTLOOK In 2008 the ZSE will continue to promote national and regional market and attract The Zagreb Stock Exchange (ZSE) was The last two years were extremely international and regional investors. To incorporated in 1991 as a joint-stock successful for the ZSE. In 2007 turnover achieve this the ZSE will make a special company with 25 commercial banks and rose above expectations, market effort to enhance and intensify cooperation insurance companies. Today, the ZSE has capitalization doubled, two largest Croatian with the Federation and regional stock 47 shareholders and 42 members. companies were privatized and listed with exchanges. Prerequisites for the ZSE membership the exchange, domestic investors base include: compliance with the Securities Law, became more significant and the official licensing with CROSEC and acceptance of stock index CROBEX broke “all time high” the ZSE rules. A seat on the ZSE currently levels. At the end of the year a new modern costs approximately US$ 13,000. Members OMX trading platform has been introduced. are required to comply with the rules and In 2008 the ZSE will continue with regulations of the ZSE and must register at technological improvements and use these least one licensed broker. for further market development. The main goal is to widen the range of financial The ZSE annual trading report shows very products listed and traded at the exchange successful results this year: and to improve market liquidity. • Equity turnover increased by 57% above the record set in 2006 In order to achieve these targets in the first • Market capitalization rose by 78% quarter of 2008 the ZSE will introduce • Number of trades almost doubled “market makers”. Furthermore, new trading platforms will be more open for order routing Numerous IPOs, new listings and successful and extensive use of Internet technology. market stories, along with a great number of All of these technology steps are new retail investors expanded market base. prerequisites for easier access of Statistics show that despite the long-term institutional and retail investors to the stock downtrend at year’s end, CROBEX index exchange trading. Redesign of official stock and average prices of the most liquid exchange web site will bring more market stocks, increased by 63.2% on annual basis. information to a broad range of investors. Alongside, in 2007, the ZSE completed three New high-tech tools are supposed to help major infrastructural projects: moved to new investors to follow market trends and premises, merged with Varazdin Stock company news more easily and in a timely Exchange, and implementation of new OMX manner. X-Stream trading platform has been realized.

PAGE 142 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ZAGREB STOCK EXCHANGE

OFFICIAL 6 MONTH STATISTICS

US$ millions # Shares millions Total Volume Average Daily Volume Total Volume Average Daily Volume

Stocks Jul-07 214.5866 9.7539 1.2202 0.0555 Aug-07 256.4930 11.6588 1.6005 0.0728 Sep-07 312.5346 15.6267 2.1903 0.1095 Oct-07 641.8801 29.1764 5.7738 0.2624 Nov-07 419.2793 20.9640 3.0676 0.1534 Dec-07 372.7839 20.7102 2.3722 0.1318 TOTAL 2,217.56 17.98 16.22 0.13

Bonds Jul-07 742.3434 33.7429 2,668.94 121.3155 Aug-07 636.3036 28.9229 2,219.25 100.8752 Sep-07 227.0885 11.3544 573.8965 28.6948 Oct-07 528.6407 24.0291 1,183.39 53.7904 Nov-07 839.4426 41.9721 2,254.71 112.7357 Dec-07 768.8487 42.7138 1,875.52 104.1955 TOTAL 3,742.67 30.46 10,775.72 86.93

Other Jul-07 0.0 0.0 0.0 0.0 Aug-07 0.0 0.0 0.0 0.0 Sep-07 0.0 0.0 0.0 0.0 Oct-07 0.0 0.0 0.0 0.0 Nov-07 0.3748 0.0187 1.2400 0.0620 Dec-07 0.3445 0.0191 1.1450 0.0636 TOTAL 0.72 0.019 2.39 0.06

Market MONTHLY STOCK VOLUME VS INDEX MONTHLY MARKET CAPITALIZATION Capitalization (US$ millions) (US$ millions) (US$ millions) Index Stocks Index

Jul-07 59,758.70 5,039.90 700 6,000 80,000 Aug-07 57,456.40 4,760.40 70,000 Sep-07 61,490.50 5,037.20 600 5,000 Oct-07 69,148.90 5,123.60 500 60,000 4,000 50,000 Nov-07 66,282.10 4,657.50 400 Dec-07 70,653.20 5,239.00 3,000 40,000 300 30,000 2,000 200 20,000 1,000 100 10,000 0 0 0 Jul Aug Sep Oct Now Dec Jul Aug Sep Oct Now Dec

CONTACT INFORMATION

Contact Name Mr. Zeljko Kardum E-mail [email protected] Website www.zse.hr

PAGE 143 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ZAGREB STOCK EXCHANGE

ECONOMIC AND POLITICAL DEVELOPMENTS

Politic and Economic Environment External factors present a real risk to the The CNB is committed to using the stability The present government, led by the Croatian government's ambition of joining the EU of the kuna against the Euro as a nominal Democratic Union (HDZ), but reliant on by 2009. Sentiment within some of the anchor for monetary policy. There were smaller partners the Croatian Pensioners' established EU member countries is strongly signs of improving trade dynamics in 2006, Party (HSU) and the Independent against further enlargement, and a solution with growth in merchandise exports Democratic Serb Party (SDSS), as well as to the EU's constitutional impasse will have exceeding growth in imports. However, the the Croatian Social Liberal Party (HSLS) is to be found before further enlargement speed of this correction was too slow to preparing for a parliamentary election on receives support. This issue, combined with prevent a further deterioration in the trade November 25th. In anticipation of a tough the technical deficiencies of Croatia’s EU deficit. The full-year current-account deficit electoral battle with the main opposition bid, is likely to delay EU accession until in 2006 reached the equivalent of 7.3% of Social Democratic Party (SDP), the HDZ 2010 or even later. GDP. In the first three months of 2007 the has announced a number of spending current-account deficit increased to US$ 2.7 measures–notably, higher pension-related Economic Performance billion (the deficit was US$ 2.5 billion in the payments and a potentially costly package Real GDP growth reached an unexpectedly same period of 2006). A seasonal pattern of of new maternity and childcare benefits, high 6.8% year on year in the first half external deficits in the first, second and aimed at shoring up support. of 2007. There are signs that real activity in fourth quarters–interrupted by a tourism- the construction sector, which had driven surplus in July-September–are Despite uncertainty over EU enlargement, it supported GDP growth in previous years expected to be followed again this year. is expected that consensus on EU-related through the public sector's contribution to Current-account deficit is forecasted to be reforms will be preserved between Croatia's fixed capital investment, is beginning to lose above 7% of GDP in 2008-09.* main political parties. The government is impetus. Indicators of real economic activity under considerable pressure to speed up in the third quarter–industrial output and * The Economic Intelligence Unit Ltd. October 2007 reforms in the areas of anti-corruption retail sales–suggest that GDP growth will policy, the judiciary and bureaucracy, as remain robust, but begin to slow over the highlighted by the European Union’s (EU) remainder of the year. November 2006 report.

Key Information Contacts Croatian Agency for Supervision of Financial Services www.hanfa.hr Ministry of Finance www.mfin.hr Croatian Government www.vlada.hr

2006-ORIGIN OF GROSS DOMESTIC PRODUCT (%) 2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)

Manufacturing & mining Public services Transport & trade Private consumption General government consumption Gross fixed investment Agriculture, forestry & fishing Construction Other services Change in stocks Exports of goods & services Imports of goods & services

19.2 60 56.0 56.2 10.5 50 47.4 7.4 24.5 40 7.1 30.5 30

20 19.3 31.2 10 2.9 0

PAGE 144 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

ZAGREB STOCK EXCHANGE

CROATIA ECONOMIC CHARTS AND TABLES

2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (b)

GDP at market prices (HRK billions) 199.0 217.0 233.5 253.1 273.5 GDP (US$ billions) 29.7 36.0 39.3 43.4 50.7 Real GDP growth (%) 5.3 4.3 4.3 4.8 5.7 Retail price inflation (av; %) 1.8 2.1 3.3 3.2 2.2 Population (millions) 4.5 4.5 4.6 4.6 (b) 4.6 Exports of goods (FOB) (US$ millions) 6,308 8,210 8,955 10,606 12,051 Imports of goods (FOB) (US$ millions) -14,216 -16,560 -18,301 -21,117 -25,665 Current-account balance (US$ millions) -2,132 -1,841 -2,576 -3,175 -3,832 Foreign-exchange reserves excl gold (US$ millions) 8,191 8,758 8,800 11,488 12,896 Total external debt (US$ billions) 25.7 32.9 30.2 33.9 (b) 35.8 Debt-service ratio, paid (%) 26.2 26.4 23.5 25.4 (b) 22.1 Exchange rate (av) HRK:US$ 6.70 6.03 5.95 5.84 5.39

(a) Actual. (b) The Economic Intelligence Unit Ltd. estimates.

ECONOMIC FORECAST SUMMARY

2007 2008 2009 2010 2011 2012

Real GDP growth (%) 5.7 5.4 5.2 4.6 4.2 3.8 Consumer price inflation (av; %) 2.2 2.5 2.5 2.4 2.2 2.0 Budget balance (% of GDP) -2.7 -2.7 -2.5 -2.7 -2.3 -2.2 Current-account balance (% of GDP) -7.5 -7.6 -7.8 -8.0 -8.5 -9.5 Exchange rate HRK:US$ (av) 5.37 5.06 5.50 5.71 5.78 5.82 Exchange rate HRK:[euro] (av) 7.32 7.31 7.30 7.29 7.29 7.28

2006-PRINCIPAL EXPORTS (%) 2006-PRINCIPAL IMPORTS (%)

Machinery & transport equipment Mineral fuels & lubricants Machinery & transport equipment Mineral fuels & lubricants Chemicals Classified manufactures Food & live animals Chemicals Other Food & live animals Raw materials (excl fuels) Other

14.9 15.8 11.0 10.8 15.1 9.2 32.2 7.9

1.8

21.0 28.8 31.5

2006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)

Italy Bosnia & Herzegovina Germany Italy Germany Russia Austria Austria Other Austria Other

10.1 12.6 10.4 14.5 10.1 23.1 8.2

6.0 48.6 16.7 39.7

EIU ViewsWire. New York: Oct 17, 2007.

PAGE 145 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

AFFILIATE MEMBER PROFILES

CDA Central Depository of Armenia 147

Central Registry Agency Inc. of Turkey 148

Central Securities Depository of Iran 149

Macedonian Central Securities Depository 150

Misr For Clearing, Settlement & Central Depository 151

Securities Depository Center (SDC) of Jordan 152

Takasbank - ISE Settlement and Custody Bank, Inc. 153

Tehran Securities Exchange Technology Management Company (TSETMC) 154

PAGE 146 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CDA CENTRAL DEPOSITORY OF ARMENIA AFFILIATE MEMBER The securities market of Armenia, being in its nascent stage of development, strongly emphasizes the issue of protecting investor's rights and legal interests.

Hovhannes Navasardyan Executive Director

The securities market of Armenia, being in its through a centralized institution. This I am pleased to report that we aligned all our nascent stage of development, strongly adopted model significantly contributes to efforts to bring the CDA in line with the emphasizes the issue of protecting investor's the decrease of securities market institutional international standards from the governance, rights and legal interests. Past experience risks and protection of investors rights. technological and legal/regulatory has proved the success of the CDA’s model, viewpoints. which implements the registry maintenance, depository and clearing/settlement functions

Prehistory and Role of the Central Ownership Form of Settlement and Transfers Depository of Armenia Organization established on the principle of Book-entry Before the foundation of the "Central government of a voice per member. Depository of Armenia" close joint-stock Settlement Period company no centralized register system was Members of the Depository can be Exchange trades: T+0 operating in Armenia. Based on the professional participants of securities market, OTC (over the counter) trades: T+3 Government decree no: 4, dated 10 January stock exchanges and banks (including Central 1996 the "National Centralized Register" state- Bank of Armenia). Memberships to International owned enterprise was established. Organizations Legal Status Federation of Eurasian Stock Exchanges Then, in accordance with the Government Self-regulatory organization (FEAS) decree no: 211, dated 8 April 1999 "National European Central Securities Depositories Centralized Register" state-owned enterprise Type of Commercial Entity Association (ECSDA) was reorganized into the "Central Depository Not for profit International Association of Stock Exchanges of Armenia" CJSC, which started to carry out of the States of Commonwealth of centralized depository and custodian Form of Securities Independent States (IAS CIS). operations. Dematerialized

In August 2000, the RA Law on Securities Market Regulation (hereinafter, the Law) came The Organizational Structure of the CDA into effect. Under this Law, the exclusive right of the centralized principal custodian, securities registrar and clearing/settlement functions throughout the Republic of Armenia GENERAL MEETING OF CDA SRO were delegated to the "Central Depository of Armenia" self-regulatory organization. OBSERVER COUNCIL SUPERVISORY SERVICE The Central Depository of Armenia SRO as a main structure of the Armenian securities market plays a key role in it. EXECUTIVE DIRECTOR

Implemented Functions Assistant of the Responsible person for the staff, Executive Director the secretary of observatory 1. Register maintenance board, archivist 2. Custodian functions 3. Clearing and settlement functions Registry Maintenance Operational Unit Service of elaboration Legal Service Regulated by and Clearing Unit of strategy & analysis Central Bank of Armenia

Accounting IT Service Security Service Administration

* Please refer to page 34 for the Armenia country report.

CONTACT INFORMATION

Address Mher Mkrtchyan 5b, Yerevan, Republic of Armenia Tel (374 10) 520978 Fax (374 10) 585549 Contact Name Vahan Stepanyan E-mail [email protected] Website www.cda.am

PAGE 147 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CENTRAL REGISTRY AGENCY INC. OF TURKEY AFFILIATE MEMBER The Central Registry Agency of Turkey moved Turkish capital markets one step forward in terms of legal and operational quality, by putting the Central

Remzi Ozbay Dematerialization System into operation. CEO

The Central Registry Agency of Turkey (CRA) Through the CRA’s fee schedule banks and has been built on an architectural structure moved Turkish capital markets one step intermediary institutions saved in the range of which has no dependence on outside of forward in terms of legal and operational 50% to 93% in operational costs. company resources and it enables access quality, by putting the Central through different channels and levels of Dematerialization System into operation. The issuers, when making issues in the capital integration by investors and the intermediary Shares, mutual funds and corporate bonds market, were saved of the difficulties and risks institutions with the most sophisticated now can only be traded in dematerialized of distributing valuable documents and of systems. form. having their rights exercised by using valuable paper and presenting coupons. Within the framework of our mission of Investors can control their accounts by means representing and managing the Investor of the CRA website and the CRA Interactive All our operations with Takasbank (ISE Protection Fund, the difficulties suffered by the Voice Recognition System (IVR). Settlement and Custody Bank) are based on investors in the previous years were electronic exchanging of messages. The new compensated by the Fund within very short software facility we have put into operation time periods.

General Information Form of Securities: Dematerialized. The CRA also aims to increase the level of straight The CRA was established in accordance with the through processing, especially for corporate Turkish Capital Markets Law in 2001. The CRA Type of Commercial Entity: Although the actions, and to fully synchronize message formats serves as the central depository for the following CRA is operated as a private sector for-profit with ISO standards. Efficient reporting has always security types: equities, mutual fund certificates, company, the fee schedule is approved by the been one of our main concerns and in this regard exchange traded funds and corporate bonds. CMB. we plan to increase the report types available to The CRA will also serve for government bonds our members, while providing analytical tools to and treasury bills. All transactions regarding Regulated by The Capital Markets Board (CMB) manage them. In December 2007 a new tool dematerialized capital market instruments (e.g. within CDS has been introduced to make it easier creation of investor accounts, pledging securities, Ownership for the members to request and to receive furnishing colleterals, securities transfers, 30% Istanbul Stock Exchange (ISE) additional reports they may need. In the future the dematerialization operations) are done by the CRA 64.9% ISE Settlement and Custody Bank CRA plans to introduce new services with added members via Central Registry Software, CDS, (Takasbank) value for its members (financial intermediaries, which was developed in-house. In November of 0.1% Istanbul Gold Exchange (IGE) issuers) by providing business intelligence reports 2005 all stock certificates including the certificates 5% The Association of Capital Market Intermediary and investor behavior pattern analysis. In order to formerly kept at Takasbank were dematerialized. Institutions of Turkey (TSPAKB) enhance the transparency and information access Between April 2005 and March 2006, all mutual of market participants a web portal will be fund certificates were dematerialized at the CRA Memberships to International introduced by the CRA. platform. In August 2006, after approximately 5 Organizations years, first corporate bond in Turkish Capital European Central Securities Depositories Within the context of the ongoing alignment with Markets was issued through the CRA. Association (ECSDA) the European Union the coverage of the Investor International Securities Services Association (ISSA) Protection Fund will be extended to include all The CRA also manages and represents the securities in addition to shares. Investor Protection Fund. This involves, Future Outlook conducting all the formalities on behalf of the Following the issuance of the draft Turkish Preparations for the dematerialization of treasury Fund as per the applicable regulatory provisions Commercial Code, the CRA plans to provide bills and government bonds are completed in the and implementing liquidation formalities of services to investors enabling them to participate technical sense. A CMB decision for intermediary institutions, which are subject to in the issuers’ general assemblies remotely, using implementation is anticipated for the realization of gradual liquidation per the CMB resolution. electronic signatures. the transition to the CRA.

The CRA anticipates to dematerialize shares of Transaction Volumes (as end of 2007) those companies which are not traded at the Members 542 stock exchange but have the number of (390 being issuers, 152 being intermediaries) shareholders exceeding a certain threshold so as End-Users 1,311 to consider them as open to public. Accounts 23,115,350.00 Investors 10,139,215.00 Depository services for mortgage-backed Accounts Showing Balance 3,881,422.00 securities is also within the plans of the CRA. Market Value of Securities Deposited Equities US$ 253,121,649,611.97 Mutual Funds US$ 22,374,978,105.99 Exchange Traded Funds US$ 233,816,433.42 Corporate Bonds US$ 11,337,693,912.60

* Please refer to page 80 for the Turkey country report.

CONTACT INFORMATION Address Askerocagi Cad. Suzer Plaza No: 15 Kat: 3 34367 Elmadag/Istanbul Tel +90 (212) 334 57 00 Fax +90 (212) 334 57 57 Contact Name Mr. Soner Songul E-mail [email protected] Website www.mkk.com.tr

PAGE 148 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

CSDI CENTRAL SECURITIES DEPOSITORY OF IRAN AFFILIATE MEMBER Our objective is to guarantee the security and efficiency of Iran’s stock market through developing and improving the settlement procedure of the securities

Alireza Hajinorouzi trades via concentrating on increasing the CEO efficiency and reducing the risk and costs.

Objectives: 3- Procurement of the required hardware for 2- Procuring required interfaces for To guarantee the security and efficiency of establishing new depository system. communicating with the banking network of Iran’s stock market through developing and 4- Anticipating and providing backup systems Iran. improving the settlement procedure of the for encountering probable risks. 3- Choosing a settlement bank and signing securities trades via concentrating on 5- Training the human resources and required contracts with the bank provided that increasing the efficiency and reducing the developing the technical knowledge of staff the settlement is performed through the bank risk and costs. and members. payment system. 1- Establishing a modern system of 6- Anticipating the required interfaces and 4- Concluding the design and executive registration, depository, settlement and studying the conditions of transferring existing preliminaries of making a Settlement clearing. information to the new system. guarantee fund. 2- Guaranteeing the settlement process of 5- Anticipating the required fields for making securities trades in accordance with global B) Reforming the methods and executive the risk management tools, operational e.g. standards. processes short buy, pledge and lending/borrowing 3- simplifying the process of transferring the 1- Precise identifying and documenting securities. ownership of securities and reducing the current procedure. 6- Guaranteeing the clearing of trades and clearing costs of the trades. 2- Reviewing and reforming current accepting the role of CCP. 4- Decreasing the risks related to trades procedures with the objective of shortening 7- Providing the required foregrounds for settlement to the lowest point, through risk the office work, promoting the efficiency and performing corporate actions on behalf of management tools. reducing the costs. issuers. 5- Establishing a pervasive database for the 3- Reducing paper work and at last securities and shareholders of the companies. proceeding towards an electronic Settlement D) Amending regulations and required 6- Performing the corporate actions, system. instructions economically and efficiently. 4- Increasing the smoothness and safety of 7- Reinforcing the investor’s trust through the existing processes through establishing a E) Other activities increasing the efficiency of trades Settlement precise and pervasive controlling system. 1- Revising and improving the comprehensive and a transparent informing. (Using safety factors in published documents, establishment and organizing the office work 8- Providing the possibility of mutual increasing the automation, reviewing system. cooperation with global markets. accessibility levels to the system and human 2- Designing and using new productions and 9- Providing a suitable ground for increasing controls) services in order to be accountable to the the volume of trades in the market. 5- Completing the shareholding information growing demands of the market. for performing corporate actions. Plans: C) Improving the clearing procedure and A) Promoting and optimizing the the trades settlement depository system 1- Changing the method of Settlement from 1- Performing the executive preliminaries for the current semi mechanized system to a fully delivering the new depository software. mechanized and efficient system through 2- Implementation of the delivery process, using Real Time Gross Settlement (RTGS) experimental installation and the final system. transference to the new depository system.

* Please refer to page 128 for the Iran country report.

CONTACT INFORMATION

Contact Name Mr. Alireza Hajinorouzi E-mail [email protected], [email protected] Website www.csdiran.com Address 14, Azhari St., Hafez Ave., Tehran 1134844413 Phone +9821 667 49 180 Fax +9821 667 49 257

PAGE 149 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MACEDONIAN CENTRAL SECURITIES DEPOSITORY (MCSD) AFFILIATE MEMBER For the Macedonian Central Securities Depository, 2007 was an extremely successful year with extraordinary turnover, compared to the previous years.

Stevan Sapceski Executive Director

For the Macedonian Central Securities • Development of procedures, rules, policies • Development of new procedures, rules, Depository (MCSD), 2007 was an extremely and technological systems for Securities policies and technological systems for various successful year with extraordinary turnover, borrowing and lending corporate actions compared to the previous years. In 2008 the A new possibility shall be offered to the investors The MCSD system is able to perform a set of MCSD will focus on: on the Macedonian Capital Market: the possibility standard corporate actions, however new and to sell securities that they have borrowed. existing corporate actions will be widely offered • Development of new business services According to this, an investor borrows securities to the Issuers to make improvements in Since new financial instruments will be by signing a contract. CSD rules and regulations communication between Issuers and introduced on Macedonian Capital Market, on one side and Securities law on the other, shall shareholders. investors, especially foreign ones, we shall start be adopted to make possibility to use this feature seeking various information about their holdings. on Macedonian Capital Market. The MCSD will produce reports to help investors to maintain their portfolios.

General Information Form of Securities Principles of Clearing & Settlement The purpose of the Macedonian Central Securities All securities are registered and dematerialised. Main principle of clearing and settlement is delivery Depository (MCSD) is to establish central securities versus payment. register comprising all active shares, bonds and Depository Procedures other financial instruments in Republic of Records are kept in the Depository of the issued Settlement Cycle Macedonia. This will lead to better access and securities and ownership positions, rights of the Settlement cycle is usually T+3, but it is possible to distribution of information about the issuers and securities holders, the unique identification of the settle transactions from T+1, to T+n securities to: securities and their holders, possible limitations in • Investors the exercise of such rights, rights of third parties Clearing & Settlement Procedures • Foreign investors connected with the securities and other data • CSD performs the clearing and settlement of the • Holders of restrictive rights referring to such rights, transfer to the securities transactions with securities that were concluded on • Issuers accounts shall be made and other services the MSE. • Brokers connected with keeping records of the securities • The clearing and the settlement of the • Macedonian Stock Exchange (MSE) shall be provided. All securities shall be recorded in transactions are performed in accordance with the • Pledge Register the Depository in a procedure, on conditions and in principle “delivery versus payment”, i.e. the transfer • Other authorized institutions in accordance with a manner determined with these Rules and with the of securities related to the transactions with the law. guidelines of the Depository. securities is performed through a simultaneous exchange of securities and payment. The settlement Regulatory Environment ISIN is allocated to all securities upon their is performed on gross basis. The MCSD is Self Regulatory Organisation, under registration in the Depository. ISIN shall contain data • In MCSD frame the subject of clearing and authority of Security Exchange Commission. on the issuer, rights arising for the holders of those settlement are all the transactions with securities securities and other elements of the securities. The concluded on the MSE. Participants procedure, conditions and manner of allocating ISIN • The MCSD performs the clearing and settlement At present time, there are 22 participants, banks is determined by the guidelines of the Depository. of the transactions with securities based on the data and brokerage houses. received from the MSE on the trading day. The data The securities are recorded in special accounts with received from the MSE contains elements Services Provided the Depository. With the purpose of recording the necessary for clearing and settlement of the The MCSD is providing the following services to the securities, the Depository is opening accounts for matched transactions. participants in the operations, issuers and holders the issuers and holders of the securities. • After the MCSD receives the matched trades from securities: the MSE, the transaction is obligatory for both sides • recording of the securities in the Depository; The opening and closing of the securities accounts, included in the stated transaction. • notification of the issuers and holders of securities recording, changes and deletion of the ownership • The transactions received from the MSE are final about the condition on their accounts; positions in the accounts of the securities holders, and cannot be unilaterally canceled by the • clearing and settlement of the liabilities arising as well as other actions connected with the changes participant in the clearing (the broker). Only the from the transactions with securities; occurred in the accounts maintained in the MCSD is allowed, by request from the MSE and with • rendering services connected with the corporate Depository are performed by a sole account a special purpose for correction of errors, to activities; operator. The manner and procedure of opening perform some changes or to cancel the • other services that arise from the ownership and and closing an account and the types of accounts transactions. transactions with securities, arising from the scope with the Depository is prescribed within the • Before the settlement, the participant in the of its operations. guidelines of the Depository. clearing–the seller, is obliged to provide securities on his/on his client the securities account, and the participant in the clearing–the buyer, is obliged to provide cash on his account for cash settlement for each transaction. * Please refer to page 98 for the Macedonian country report.

CONTACT INFORMATION Contact Name Ms. Sofija Vidovic E-mail [email protected] Website www.cdhv.org.mk

PAGE 150 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MISR FOR CLEARING, DEPOSITORY & REGISTRY AFFILIATE MEMBER Secure, stable and encouraging investment environment is the goal of MCDR.

Mohamed S. Abdel Salam Chairman & Managing Director

MCDR was established by the end of 1994 to performance, B.I.D. (Business Initiative The assessment revealed that MCDR has complete the infra structure of the Egyptian Directions) presented its special recognition abided by all the rules and high standards set capital market. In time, MCDR has become the award to MCDR. Also MCDR was granted the by the SEC in Rule 17f-5 which even have biggest central registry firm among the major highest level of efficiency, following the results been developed to be more tough by and emerging markets in the world. MCDR’s of an assessment panel of depository amendments in Rule 17f-7 to secure American staff never spare any efforts to maintain the companies conducted by JPMorgan–Chase, foreign investments. Secure, stable and highest standard of services provided to the with a score of 1.25 points on a scale of 1 to 3 encouraging investment environment is the Egyptian market. As a result of its qualified where depository that closely resemble the goal of MCDR. This is never enough as MCDR performance, MCDR was awarded the best practice is rated 1, meet some of the will proceed its stable steps towards the top of International Gold Star for Quality in Geneva in requirements but not fully meet the preferred elite depositories. 2001. For significant contribution to the practice rated 2 and finally depositories that business world, for high standing and are deficient are rated 3. professionalism demonstrated by prestigious

Role of the Depository MCDR Main Activities & Services Legal Status MCDR is the sole Egyptian CSD providing 1. Clearing and settlement of operations Private Joint-Stock Company clearing and settlement services to the Cairo executed at CASE. and Alexandria Stock Exchanges (CASE). 2. Central depository and registry of all listed Type of Commercial Entity MCDR operates as both the depository and and unlisted securities Not for-profit company the clearing house. It is a not for-profit private 3. Management of securities accounts for company owned by the stock exchanges, custodian banks and issuers. Regulated by local banks and its participants. It was 4. Handling corporate actions (cash and stock Depository and Registry law number 93 incorporated under the Capital Market Law No dividends etc.) according to the issuers’ of year 2000 95 of 1992, commenced operations in October assemblies’ decisions. 1996 and is currently governed by the 5. Management of the Settlement Guarantee Form of Securities Depository and Central Registry Law No 93 of Fund to eliminate suspended movements due Immobilized in the book entry form 2000. It is regulated by the Capital Markets to brokers’ defaults (securities and/or cash). Authority (CMA). 6. Management of a pledge system for all Form of Settlement securities lodged into the central depository. Net cash settlement, gross securities Use of the central depository in the market for 7. Repatriation of international investors’ funds. settlement settlement and safekeeping is compulsory by 8. Customer servicing through the MCDR’s law, where securities in the depository are held front office, the call center, the Internet, the in certificated form. Equities are held via book- Settlement Dates entry, with certificates immobilized in MCDR's SMS and finally through direct phones or T+0 Same Day Trading Settlement vaults. All securities are treated as fungible faxes. T+1 Treasury Bonds and may be transferred or pledged by T+2 Active securities bookkeeping entry without actual physical T+3 Dematerialized securities delivery. T+4 Physical securities

MCDR’s authorized capital is EGP 100 million issued and paid capital is EGP 40 million and to be raised to EGP 80 million.

* Please refer to page 68 for the Egypt country report.

CONTACT INFORMATION

Contact Name Mohamed S. Abdel Salam E-mail [email protected] Website www.mcdr.com.eg Address 70 El-Gomhoria St., P.O. Box 1536 Attaba, Cairo, Egypt Phone +2022 5971 505-506-509 Fax +202 5971 670-523

PAGE 151 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

SECURITIES DEPOSITORY CENTER (SDC) OF JORDAN AFFILIATE MEMBER The Securities Depository Center has made a qualitative leap in the Jordan Capital Market by establishing a national center for registry, depository and clearing and

Samir Jaradat settlement of securities. Chief Executive Officer

The Securities Depository Center (SDC) has risks related to settlement of trading owner’s request. The SDC has designed and made a qualitative leap in the Jordan Capital transactions executed through the market by implemented a state-of-the-art electronic Market by establishing a national center for implementing by-laws, instructions and system that provides a one-stop solution for registry, depository and clearing and procedures that are fair, fast and safe. registration, depositing and clearing and settlement of securities. The SDC is an integral settlement of securities. The Securities Central part of a transparent, viable, fair, and efficient The SDC provides a number of services to Operation Registry Processing & Information equities market in Jordan that enhance the investors in securities, which include investor Online or SCORPIO system is bilingual and confidence of investors in securities and identification and account set-up, statements provides a registry that maintains records of enable them to follow-up their investments with of accounts and ownership balances, placing legal ownership of shares. ease by establishing a central registry to safe- and releasing pledges upon request and the keep the ownership of securities and reduce freezing of deposited securities upon the

Role of the Depository and it provides a complete solution for the Memberships in other International The Securities Depository Center of Jordan is a registration, deposit and clearing and Organizations public utility institution established in the settlement. The International Organization of Securities Hashemite Kingdom of Jordan by virtue of the Commissions (IOSCO) Securities Law. The SDC commenced operation The SDC offers different services to investors in Association of National Numbering Agencies in May 1999 and is the only entity in Jordan that securities including pledging services, providing (ANNA) is legally empowered to oversee the registration investors with statements of their securities Africa & Middle East Depositories Association of securities, deposit of securities, transfer of balances that show the securities owned by (AMEDA) ownership, safekeeping of securities and them and their distributions among members; in Federation of Euro-Stock Exchanges (FEAS) clearing and settlement of securities addition to providing investors with the ability to Union of Arab Stock Exchanges transactions. freeze their securities in the central registry. Central Securities Depositories (CSD9) Association of Global Custodian The SDC is one of the most important There are no restrictions on the remittance of Thomas Murray institutions in Jordan’s capital market as it holds investment funds into or out of Jordan, all the ownership register of all public shareholding income & capital gained from investment in Legal Status companies where ownership registration is in Jordan are exempted from tax; this includes Public utility institution the beneficial owner name where nominee & cash & stock dividends. However, (5%) applies street names does not apply. to interest gained from credit balances. Type of Commercial Entity Not for profit As a key component in the modernization of the Participation Criteria capital market, the SDC implemented a delivery- The SDC's members are public shareholding Regulated by versus-payment (DVP) settlement protocol. DVP, companies, public issuers, brokers and Jordan Securities Commission a globally recommended settlement custodians. methodology that ensures the simultaneous Form of Securities delivery of securities against final payment of Eligible Pledgee Dematerialized no physical certificates being funds. The ownership is transferred on T+2 and Pledgee are not considered members in that issued in Jordan backdated to T, these transfers are final and capacity irrevocable, and financial settlements are Form of Settlement currently conducted via the Central Bank of Issuers Book Entry at the SDC Jordan’s Real Time Gross Settlement System Membership is obligatory for public (RTGS-JO) which is a central real time, gross shareholding companies by virtue of the Settlement Cycle final & irrevocable electronic settlement system, Securities Law. T+2 using SWIFT instructions to effect transfers with immediate value. Size of Guarantee Fund Turnaround Trades Trades JOD 39.72 mn - US$ 56.42 mn as of 31 Allowed provided the same broker in the same The SDC also developed the “Securities Central December, 2007. settlement cycle Operation Registry Processing & Information Online (SCORPIO)” system. SCORPIO, an SDC- Does the SDC act as a central Numbering designed and implemented system, is bilingual counter party ISIN CODES complying with the International No Standard ISO-6166

* Please refer to page 30 for the Jordan country report.

CONTACT INFORMATION

Contact Name Mr. Samir Jaradat E-mail [email protected] Website www.sdc.com.jo Address The Securities Depository Center (SDC) 2nd Floor -Capital Market Building, Al-Mansour Bin Abi Amer Street Al-Abdali Area, Al-Madina Al-Riyadiya District, Amman, The Hashemite Kingdom of Jordan P.O.B. (212465) Amman 11121 Jordan

PAGE 152 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC. AFFILIATE MEMBER One of the greatest achievements of Takasbank in 2007 was the commencement of the acceptance of instructions through SWIFT integrated Real Time Gross Delivery

Emin Catana versus Payment Takasbank System. President & CEO

The year 2007 was characterized by the first stage of infrastructure development for a Market Participants on November 2007 in developments improving the operational and CCP mechanism for the equities market will be Istanbul. This program aimed to serve the goal of procedural infrastructure for constructing a achieved. Another important project aiming to improving performance and international productive, efficient and reliable settlement and provide more efficient and secure settlement competitiveness through mutual exchange of custody system and thus, to offer international system will be providing SWIFT service to market information, know-how and training activities. market players an environment that will ensure a participants who are not direct SWIFT members stable technical and operational infrastructure. In with considerable cost advantages. These Within the responsibility of its convenorship of this framework, one of the greatest achievements market participants will have access to the FEAS Affiliate Task Force and with the aim of of Takasbank in 2007 was the commencement of SWIFT system through Takasbank network. In better understanding the needs and goals of the acceptance of instructions through SWIFT 2008, studies will continue to be executed on affiliate members and to provide a more efficient integrated Real Time Gross Delivery versus these projects. as well as productive working platform, Payment (RTG DvP) Takasbank System. With the Takasbank is planning to prepare both a realization of this project, the DvP settlement In the framework of FEAS efforts, Takasbank revenue/expense survey and a corporate process has been integrated with SWIFT system shared its accumulated experience and governance questionnaire for the Clearing targeting to provide T+1 pre-matching between knowledge about the clearing and settlement Institutions, CSDs and CCPs operating in the the custodian banks and brokerage houses issues in Turkish capital markets with its peers in post-trade arena in the FEAS region. I believe giving service to foreign investors. FEAS region. In this context, Takasbank and the that the results of these studies will enhance the National Depository Center (NDC) of Azerbaijan implementation of internationally accepted During the course 2007, studies concerning two signed a Memorandum of Understanding (MoU) standards on clearing and settlement issues other important projects continued. Studies are in order to establish a mutually beneficial within FEAS capital markets and thus, contribute being carried out to transfer the management of relationship between the two institutions. A to increasing volumes of cross border collateral system from the Istanbul Stock training program was realized within the transactions among FEAS markets. Exchange to Takasbank. Through this transfer, framework of this MoU for Azerbaijan Capital

General Information Form of Securities Board of Directors: 11 Members Takasbank is incorporated as a non-deposit taking Dematerialized Istanbul Stock Exchange: 4 investment bank and is authorized by the Capital Banks: 3 Markets Board of Turkey to function as: the Clearing Form of Settlement and Transfers: Brokerage Houses: 2 and Settlement Institution for the ISE markets, the Book-entry Capital Markets Board: 1 Clearing House for the Turkish Derivatives and the President and CEO of Takasbank. Exchange, the National Numbering Agency of Turkey Legal Status and the Custodian for the Mutual Funds and Pension Joint stock company Memberships to International Organizations Funds incorporated in Turkey. Association of National Numbering Agency (ANNA) Settlement Period International Securities Services Association (ISSA) Services Provided Equities: T+2 Society for Worldwide Interbank Telecommunications • Central clearing and settlement for the organized Bonds and Bills: T+0 (SWIFT) markets of ISE and Turkish Derivatives Exchange Derivatives:T+1 Association of European Central Securities (TurkDEX), Depositories (ECSDA) • Cash settlement and transfer facilities (domestic Type of Commercial Entity and cross-border), Private sector for-profit company Future Outlook • Cross-border settlement and custody services, In 2008, Takasbank intends to: • Real Time Gross DvP settlement (among brokers Does Takasbank Act as a Central • Initiate efforts to become a Central Counterparty and custodians) for equities via integration with Counter Party? for equities and establish a central collateralization SWIFT system No for the ISE markets. (However, default procedure system • Takasbank Money Market, is applied for the settlement of the ISE markets). • Providing access to the SWIFT system through • Securities Lending and Borrowing Market (SLB), Yes for TurkDEX and Takasbank Money Market Takasbank network for non-SWIFT member • Cash Credits, institutions ; • Allocation of ISIN for securities issued in Turkey Regulated by • Establishment and implementation of a distribution Capital Markets Board and settlement system for investment fund units on Brief History Banking Regulation and Supervision Board the integrated system with the CRA Takasbank, started as a department within the Central Bank of Turkey. • Development and expansion of the scope of Istanbul Stock Exchange (ISE) in 1988, and originally Investment Fund Custody System; dealt with the provision of settlement services for Size of Guarantee Fund • Contribute to the development of international securities traded by the members of the ISE. In (As of December 2007) standards for securities and implementing these January 1992 , the operations of that department ISE Equities Market: US$ 37 million standards in Turkey. were transferred to an independent company, the ISE Bonds and Bills Market: US$ 45 million • Give-up process for TurkDEX transactions; ISE Settlement and Custody Co. Inc., which was set • Creation of an electronic securities data base up under the shareholdership of the ISE and its Ownership • Unbundling of Takasbank services and initiation members. This company was then transformed into Istanbul Stock Exchange (ISE): 32.62% of service/product based pricing system a bank and renamed Takasbank (ISE Settlement and Banks (19): 34.48% Custody Bank, Inc.) in 1996. Brokerage Houses (67): 32.90%

* Please refer to page 80 for the Turkey country report.

CONTACT INFORMATION Contact Name Ms. Filiz Kaya E-mail [email protected] Website www.takasbank.com.tr

PAGE 153 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

TEHRAN SECURITIES EXCHANGE TECHNOLOGY MANAGEMENT COMPANY (TSETMC) AFFILIATE MEMBER The major project for TSETMC is to implement a new trading solution for the Tehran Stock Exchange (TSE) in the year 2007.

Morteza Khazanedari Managing Director

TSETMC’s activities for the year 2007 are: During the implementation of the new core TSETMC has received the initial agreements for trade and post-trade solutions, TSETMC is the development of a Lending and Borrowing The major project for TSETMC is to implement a working with major brokerage firms in Iran for (LNB) Market for equities. The initial structure and new trading solution for the Tehran Stock the implementation of Brokerage Solution. business processes for the LNB market has been Exchange (TSE) in the year 2007. ATOS Euronext At the moment, the initial study phase has identified. TSETMC is in the process to develop Market Solutions (AEMS) is in the process of been finalized and various alternatives for the infrastructure and link it with other activities. integration testing of the new solution based on implementation are being evaluated. This Solution the customizations required by the TSE. The would allow e-trading in various markets in Iran. TSETMC is the main contributor in the trading solution is scheduled to be installed on development and implementation of international the purchase hardware in early April 2007. This The plan is to introduce financial and commodity standards in Iran. TSETMC is the main driving Solution is due to come online in the summer of derivatives markets in TSE and the newly force to implement a DVP Model2 for the equity 2007 after finalization of User Acceptance Testing established Iranian Commodity Exchange in the market. In addition, the new CSD Company (UAT). TSETMC is also assisting the newly near future. TSETMC is the main driving force for would become a CCP of the equity market by established CSD Iran Company for the the introduction of these markets and also their 2008. TSETMC is providing all the needed implementation of a new post-trade solution. processing. The new Solutions have the infrastructure and risk management mechanisms TSETMC has a very close relationship with CSD functionalities for trade and post-trade activities in for them. Iran Company since all of the post-trade activities Derivatives markets. TSETMC has planned were the responsibility of TSETMC before hand. various seminars, lectures, and workshops for The post-trade Solution is planned to go live in derivatives market to educate market participants. early 2008. CSD Iran Company is also in the TSETMC is an active member of a consortium process of becoming an Affiliated Member of with the responsibility to establish the Iranian FEAS. Petroleum Exchange.

General Information Brief History Regulated By Tehran Stock Exchange Services Company TSETMC started its operation as a subsidiary of Securities and Exchange Organization of Iran (TSETMC) is a subsidiary of the Tehran Stock the National Informatics Corporation (NIC) of Iran (www.sena.ir) Exchange (TSE). TSETMC was established on in July 1984. Originally, TSETMC developed, June 1994 as an independent company owned maintained and operated the computerized Ownership by TSE and its members. The TSETMC’s main system of TSE used for trade and post-trade Owned by the Tehran Stock Exchange (TSE) and function is to develop, maintain, operate, and activities. In June 1994, TSETMC was its members. promote systems for all stages of the trade-cycle incorporated as an independent company under services in Iran. the ownership of the TSE, its members, and NIC. Memberships to International Organizations Currently, TSE and its members are the sole Affiliate Member of the Federation of Euro-Asian Specifically, TSETMC is responsible to: owners of TSETMC. In November 2006, TSESC Stock Exchanges (FEAS) • maintain all hardware and software used for renamed to TSETMC. Association of National Numbering Agency trade and post trade activities (ANNA) • develop and enhance existing software Form of Securities applications Dematerialized Board of Directors: 11 Members • provide consultancy and technical advice Representatives of the TSE and member • function as the National Numbering Agency of Form of Settlement and Transfers: brokerage companies Iran Book-entry Future Outlook Services Provided Legal Status From March 2006 to March 2007, TSETMC intends Private Joint Stock Company to: Trading • lead the implementation of a new trade and Maintain Automated Trading System (ATS) Settlement Period post-trade solutions Disseminate trade information to interested Equities: T+3 • assist brokerage companies for implementing parties Corporate Bonds: T+1 total solutions especially introduction of e-trading • assist CSD Iran Company in the implementation Information and Supporting Type of Commercial Entity of a new pos-trade solution Provide operational services Private sector for-profit company • contribute in the introduction of new instruments Manage operational risks • Assist in the creation of the Iranian Petroleum Does TSETMC act as a central counter party? Exchange Others No. However, the plan is to introduce a CCP • champion the creation of a Lending and Provide consultancy organization for the Iranian markets in early 2008. Borrowing market Manage the data centers TSETMC is driving force for this undertaking. • contribute to the development and Implement specialized software implementation of international standards • initiate studies and efforts to introduce CCP

* Please refer to page 128 for the Iran country report.

CONTACT INFORMATION

Contact Name Mr. Houman Farajollahi E-mail [email protected] Website www.tsetmc.com

PAGE 154 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

MEMBER LIST

PAGE 155 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Abu Dhabi Securities Market Address: P.O. Box 54500 Abu Dhabi, U.A.E. Phone: (2) 627 7777 Fax: (2) 612 8787 E-mail: [email protected] Web Address: www.adsm.co.ae Country Code: 971 Company’s Name City Code Telephone Fax E-mail Address

AABAR PETROLEUM CO. 9712 626 44 66 626 82 28 ABU DHABI AVIATION CO. 9712 5758000 5757775 ABU DHABI CO FOR BUILDING MATERIALS (BILDCO) 9712 6455500 6455544 ABU DHABI COMMERCIAL BANK 9712 6962222 677 64 99 ABU DHABI ENERGY COMPANY (TAQA) 9712 6943662 6943774 ABU DHABI ISLAMIC BANK 9712 634 30 00 6333316 ABU DHABI NATIONAL HOTELS CO. 9712 4447228 4448495 ABU DHABI NATIONAL INSURANCE CO. (ADNIC) 9712 6264000 6268600 ABU DHABI SHIP BLDG (ADSB) 9712 55 10 800 5511067 ABU DHABI TAKAFUL 9712 626 27 27 626 07 77 AL BUHAIRA NATIONAL INSURANCE CO. 9716 568 40 00 574 88 55 AL DHAFRA INSURANCE CO. 9712 6721444 6729833 AL-AIN AHLIA INSURANCE CO. 9712 4459900 4456685 ALDAR PROPERTIES 9712 6964444 6417504 AL-KHAZNA INSURANCE CO. 9712 6767000 6768500 AL-WATHBA NATIONAL INSURANCE CO. 9712 6770566 6776628 ARKAN BUILDING MATERIALS 9712 24455888 24455282 ASMAK 9716 7435727 7432256 BANK OF SHARJAH 9716 569 44 11 568 33 77 COMMERCIAL BANK INTERNATIONAL 9717 2227555 2227444 COMMERCIAL INTERNATIONAL BANK / EGYPT (CIB) 202 747 22 92 / 3 573 15 41 DANA GAS 9716 556 94 44 55 66 522 EMIRATES DRIVING COMPANY 9712 551 05 44 551 02 27 EMIRATES FOODSTUFF & MINERAL WATER (AGTHIA) 9712 4455221 4463644 EMIRATES INSURANCE CO. 9712 6440400 6445227 EMIRATES TELECOMMUNICATIONS-ETISALAT 9712 6283333 6317000 FINANCE HOUSE 9712 621 99 99 619 40 99 FIRST GULF BANK 9712 681 66 66 681 37 27 FOODCO HOLDING CO. 9712 6731000 6732100 FUJAIRAH BUILDING INDUSTRIES 9719 2222051 2227314 FUJAIRAH CEMENT INDUSTRIES CO. 9719 222 31 11 222 77 18 FUJAIRAH NATIONAL INSURANCE CO 9719 2233355 2224344 FUJAIRAH TRADE CENTER 9719 2222661 2226212 GULF CEMENT COMPANY 9717 2668222 2668038 GULF MEDICAL PROJECTS COMPANY 9716 561 99 99 561 66 99 GULF PHARMACEUTICAL INDUSTRIES (JULPHAR) 9717 2461461 2461462 INTERNATIONAL FISH FARMING COMPANY 9716 743 57 27 743 22 56 INVEST BANK 9716 569 44 40 569 42 12 NATIONAL BANK OF ABU DHABI 9712 611 11 11 627 58 81 NATIONAL BANK OF FUJAIRAH 9719 202 93 12 222 45 16 NATIONAL BANK OF RAS AL KHAIMAH 9717 228 11 27 228 61 06 NATIONAL BANK OF UMM AL QIWAN 9716 7066666 765 15 25 NATIONAL CORPORATION FOR TOURISM & HOTELS 9712 4099777 4099778 NATIONAL MARINE DREDGING CO. 9712 5516000 5516500 OASIS INTERNATIONAL LEASING CO. 9712 6273880 6273990 OMAN & EMIRATES INVESTMENT HOLDING CO. 99682 4489458 4489465 PALESTINIAN TELECOMMUNICATION CO. (PALTEL) 9702 2405838 00970 92376227 QATAR TELECOMMUNICATION CO. (Q-TEL) 974 4400525 4830112 RAK CO. FOR WHITE CEMENT & CONSTRUCTION MATERIALS 9717 2668888 2668866 RAK NATIONAL INSURANCE CO. 9717 227 30 00 228 85 00 RAK PROPERTIES 9717 233 00 04 227 24 44 RAS AL KHAIMAH POULTRY & FEEDING CO. 9717 2462222 2462220 RAS AL-KHAIMAH CEMENT COMPANY 9717 2660111 2660006 RAS AL-KHAIMAH CERAMICS 9717 2445046 2445270 SHARJAH CEMENT & INDUSTRIAL DEV. CO. 9716 568 46 81 568 31 71 SHARJAH INSURANCE COMPANY 9716 568 66 90 568 38 88 SHARJAH ISLAMIC BANK 9716 568 10 00 568 01 01 SOROUH REAL ESTATE 9712 444 00 06 444 00 66 SUDANESE TELECOMMUNICATION CO. LTD 249183 770099 782322 UMM AL QIWAIN CEMENT INDUSTRIES 9716 765 55 22 765 55 20 UNION CEMENT COMPANY 9717 2668166 2668635 UNION INSURANCE CO. 9716 7466996 7466997 UNION NATIONAL BANK 9712 674 31 41 6773482 UNITED ARAB BANK 9716 5075500 573 39 13 UNITED INSURANCE CO. 9717 2351877 2353250

PAGE 156 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Amman Stock Exchange Address: P.O. Box 212466, Amman 11121, Jordan Phone: (6) 566 4109 Fax: (6) 566 4071 E-mail: [email protected] Web Address: www.exchange.jo Country Code: 962 Company’s Name City Code Telephone Fax E-mail Address

AHLI BROKERAGE COMPANY 6 5624361 5624362 www.ahli.com AJIAD FOR SECURITIES 6 5622269 5622293 - AL- SHOROUQ FINANCIAL BROKERS 6 5695512 5695551 www.alshorouqfb.com AL WAMEEDH FOR FINANCIAL SERVICES AND INVESTMENT 6 5681960 5681030 - AL-AMAL FINANCIAL INVESTMENTS CO. LTD. 6 5671485 5667993 - AL-ARABI INVESTMENT GROUP 6 5526491 5526492 www.atlasinvest.net AL-AULA FINANCIAL INVESTMENTS 6 5201450 5653564 - AL-AWAEL INTERNATIONAL SECURITIES 6 5633222 - - AL-BILAD FOR SECURITIES AND INVESTMENT 6 5105900 5105700 - ALEMAN FINANCIAL INVESTMENT 6 5663173 5664988 [email protected] ALFARES FINANCIAL INVESTMENTS 6 5650340 5696464 - AL-HEKMA FINANCIAL SERVICES 6 5654046 5654049 [email protected] ALJAZEERA FOR FINANCIAL INVESTMENTS 6 5651611 5651981 - AL-MAWARED FOR BROKERAGE 6 5688085 5622405 - AL-NADWA FOR FINANCIAL SERVICES AND INVESTMENT 6 5105213 - - ALNOUR FOR FINANCIAL INVESTMENTS 6 5666690 5656520 - AL-OMANA'A PORTFOLIO AND INVESTMENT 6 5549700 5549702 - AL-REDA FOR FINANCIAL SERVICES 6 5699995 5699995 [email protected] ALSAFWA FININCIAL INVESTMENTS 6 5201230 5655639 - AL-SAHM INTERNATIONAL FOR INVESTMENT & BROKERAGE 6 5691662 5691665 - AL-SALAM FOR FINANCIAL INVESTMENTS 6 5820628 5820630 - AL-WATANIEH FOR FINANCIAL SERVICES CO. 6 5663851 5682803 www.watanieh.com.jo AMAN FOR SECURITIES 6 5662362 5662381 [email protected] AMMAN INVESTMENT & SECURITIES 6 5669689 5672572 - ARAB CO-OPERATION FINANCIAL INVESTMENT CO. 6 5629300 5629301 [email protected] ARAB FALCON TRADING SECURITIES 6 5682225 5623118 [email protected] ASIA STOCK BROKERAGE 6 5673086 5676030 - BUSINESS WOMEN TRADING SECURITIES 6 5828872 5828834 www.al-multaqaa.com CAPITAL INVESTMENTS 6 5200330 5685508 - DELTA FINANCIAL INVESTMENTS 6 02/7254664 02/7254660 - ELITE FINANCIAL SERVICES 6 5680194 5686086 - EXCEL FOR FINANCIAL INVESTMENT 6 5600923 5675951 - EXPERTS FINANCIAL SERVICES 6 5661608 5663905 - FRIENDS FINANCIAL INVESTMENT & BROKERAGE 6 5639088 5680298 - HORIZONS INVEST 6 5690933 5626665 - IMCAN FOR FINANCIAL SERVICES 6 5604222 5601444 [email protected] INDEMAJ FINANCIAL SERVICES 6 5802930 5823819 - INDUSTRIAL DEVELOPMENT BANK 6 4642216 4647821 [email protected] INTERNATIONAL BROKERAGE & FINANCIAL MARKETS 6 5503300 5855362 - INTERNATIONAL FINANCIAL CENTER 6 5674558 5696720 - INVESTMENT HOUSE FOR FINANCIAL SERVICES 6 5685525 5685344 - JORDAN & GULF INVESTMENT 6 5675617 5675617 [email protected] JORDAN EXPATRIATES FOR FINANCIAL BROKERAGE 6 5653702 5653702 - JORDAN RIVER FINANCIAL INVESTMENT 6 5560023 5530801 [email protected] JORDANIAN SAUDI EMIRATES FINANCIAL INVESTMENT 6 5620011 5620050 [email protected] LBDA' FOR FINANCIAL INVESTMENT 6 5662440 5668910 - NATIONAL PORTFOLIO SECURITIES 6 5673101 5688793 www.npsc.com.jo OSOOL INVESTMENT AND FINANCIAL SERVICES 6 5696377 5696367 - SAMIR & SAMEH BROS. FOR INVESTMENT 6 5671546 5684476 www.aljabari.com SANABEL ALKHAIR FOR FINANCIAL INVESTMENTS 6 5653046 5653047 - SELWAN FINANCIAL BROKERS 6 5651546 5651549 [email protected] SHARECO BROKERAGE CO. 6 5673812 5695644 [email protected] SHARES HOUSE FOR FINANCIAL SECURITIES 6 5694114 5694114 [email protected] SHUA'A FOR SECURITIES TRADING AND INVESTMENTS 6 5623006 5623004 - SOCIETE GENERALE JORDAN - BROKERAGE 6 5681651 5681251 [email protected] SUKOOK INVESTMENT & BROKERAGE 6 5623997 5623998 - TADAWOL FOR SECURITIES & FINANCIAL SERVICES 6 5543200 5543207 www.tadawol.jo TANMIA SECURITIES INC. 6 5672460 5683559 www.tanmiainc.com THE ARAB FINANCIAL INVESTMENT 6 5692425 5692423 www.arabinvestco.com THE BANKERS FOR BROKERAGE AND FINANCIAL INVEST 6 5825380 5827590 - THE FINANCIAL INVESTMENT COMPANY FOR SHARES AND BONDS 6 5671569 5699626 - TRANS JORDAN FOR FINANCIAL SERVICES 6 5650287 5672980 [email protected] UNION FINANCIAL BROKERAGE 6 5675558 5606996 [email protected] UNITED ARABIAN JORDANIAN FOR INVESTMENT AND BROKERAGE SERVICES 6 5671578 5696156 - UNITED CO. FOR FINANCIAL INVESTMENT 6 5679829 5865870 www.ufico.com

PAGE 157 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Armenian Stock Exchange Address: 5B M. Mkrtchian Street, Yerevan 375010, Republic of Armenia Phone: (10) 543321 Fax: (10) 543324 E-mail: [email protected] Web Address: www.armex.am Country Code: 374 Company’s Name City Code Telephone Fax E-mail Address

ALINVEST LTD 10 454-112 [email protected] ALPHASECURITIES LTD 10 358-707 358-707 [email protected] AMERIA INVEST CJSC 10 524-040 546-800 [email protected] ARMENBROK CJSC 10 538-700 528-986 [email protected], [email protected] ARMSWISSBANK CJSC 10 529-593 591-592 [email protected] ASTVAN LTD 10 423-210 423-210 [email protected] CAPITAL ASSET MANAGEMENT CJSC 10 541-527 541-527 [email protected] CASCADE INVESTMENTS CJSC 10 547-010 - [email protected] FUTURE CAPITAL MARKET LTD 10 273-357 273-357 [email protected] PRIVATE INVEST CJSC 10 521-812 - [email protected] RENESA CJSC 10 548-383 548-383 [email protected] TONTON LTD 10 580-262 545-407 [email protected] YEREVAN BROKER LTD 10 544-657

Bahrain Stock Exchange Address: Hedaya Building 2, Government Avenue, Manama, Block: 305 Kingdom of Bahrain, P.O. Box 3203, Phone: (17) 261 260 Fax: (17) 256 362 E-mail: [email protected] Web Address: www.bahrainstock.com Country Code: 973 Company’s Name City Code Telephone Fax E-mail Address

ABC SECURITIES 17 543149 543758 - ABDULLA ZAIN AL-ABEDIN 17 246661 246661 - AHLI UNITED BANK 17 585824 580549 [email protected] AL AHLIA SECURITIES 17 207070 250800 - BBK BROKERAGE SERVICES 17 229993 216164 [email protected] GLOBAL INVESTMENT HOUSE 17 210011 210222 www.globalinv.net GULF SECURITIES 17 272579 258780 - INDOGULF FINANCIAL SERVICES CO. 17 227778 215231 - MUBASHER FINANCIAL SERVICES B.S.C 17 556139 556124 - NASSIR ABBAS KHOSROU 17 270130 271267 - SECURITIES & INVESTMENTS CO. 17 515000 530603 [email protected] TAIB SECURITIES CO. 17 549499 531213 [email protected] U.G.B SECURITIES 17 533233 531953 [email protected] YOUSIF AL-AJAJI 17 261006 262948 [email protected]

Baku Interbank Currency Exchange Address: 57, Acad H. Aliyev Str., AZ1110 Baku, Azerbaijan Phone: (12) 465 6314 Fax: (12) 465 6516 E-mail: [email protected] Web Address: www.bbvb.org Country Code: 994 Company’s Name City Code Telephone Fax E-mail Address

AFBANK 12 499 16 17 499 10 66 [email protected] AMRAHBANK 12 4978 862 4978 863 [email protected] ANARBANK 12 4989 437 4984 235 [email protected] AQRARKREDIT NON BANK CREDIT ORGANIZATION 12 4380 530 498 15 17 [email protected] ATABANK 12 497 34 96 4987 447 [email protected] ATLANTBANK 12 497 69 86 4976 989 [email protected] ATRA 12 4958 093 4981 274 [email protected] AZAL 12 4986 056 4989 701 [email protected] AZDEMIRYOLBANK 12 4402 722 496 09 77 [email protected] AZERBAIJAN CREDIT BANK 12 5.982.424 5982427 [email protected] AZERIGAZBANK 12 4975 017 4989 615 [email protected] AZERNEGLIYYATBANK 12 493 48 04 4934 804 [email protected] AZER-TURK BANK 12 4974 316 4983 702 [email protected] BANK OF AZERBAIJAN 12 4980 247 4980 250 [email protected] BANK OF BAKU 12 4470 055 498 82 78 [email protected] BIRLIKBANK 12 4416 775 441 61 19 [email protected] CAPITAL INVESTMENT BANK 12 4934 949 4938 450 [email protected] CAPITALBANK 12 4936 630 4986 605 [email protected] CAUCASIAN DEVELOPMENT BANK 12 4973 272 4971 222 [email protected] DEBUTBANK 12 4964 551 4974 560 [email protected] DEKA-BANK 12 4981 157 4981 147 [email protected] EUROBANK 12 4977 455 497 89 07 [email protected] GUNAY BANK 12 4980 456 4981 439 [email protected]

PAGE 158 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Baku Interbank Currency Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

MUGAN 12 4983 411 4983 511 [email protected] NBC BANK 12 5666 856 498 94 77 [email protected] NIKOYL 12 4972 972 4973 379 [email protected] OPEN JOINT-STOCK SOCIETY KOVSAR 12 4973 034 4973 029 [email protected] PARA-BANK 12 4471 000 4930 882 [email protected] POSTBANK 12 498 69 14 498 33 14 [email protected] RABITABANK 12 4926 097 4971 101 [email protected] RESPUBLIKA 12 498 08 00 498 08 80 [email protected] ROYAL BANK OF BAKU 12 498 65 88 498 13 19 [email protected] STANDART BANK 12 4971 070 4980 778 [email protected] TEKHNIKABANK 12 465 36 13 493 08 41 [email protected] THE AZERBAIJAN BANK OF MICROFINANCING 12 493 07 26 493 07 96 [email protected] THE INTERNATIONAL BANK OF THE AZERBAIJAN REPUBLIC 12 493 00 91 4989 128 ›bar@›bar.az THE NATIONAL BANK OF THE AZERBAIJAN REPUBLIC 12 4931 122 4935 541 [email protected] TURAN 12 497 25 92 4972 577 [email protected] UNIBANK 12 4982 244 4980 953 [email protected] UNITED CREDIT BANK 12 4900 641 490 05 22 [email protected] XALQ BANK 12 496 81 52 496 81 57 [email protected] YAPI CREDIT BANK AZERBAIJAN LTD. 12 4977 795 4970 276 [email protected] ZAMINBANK 12 498 81 05 493 41 90 [email protected]

Baku Stock Exchange Address: 19, Bul-Bul Avenue A21000 Baku, Azerbaijan Phone: (12) 498 9820 Fax: (12) 493 7793 E-mail: [email protected] Web Address: www.bse.az Country Code: 994 Company’s Name City Code Telephone Fax E-mail Address

ADB BROKER LLC 12 440-24-29 496-09-77 [email protected] ATABANK OJSC 12 497-87-00 498-74-47 [email protected] AZERBAIJAN INDUSTRIAL BANK OJSC 12 493-01-45 493-84-50 [email protected] AZERINTERTRADE LLC 12 598-25-71 [email protected] AZERIGASBANK OJSC 12 497-50-17 498-96-15 [email protected] AZERTURKBANK OJSC 12 497-43-17 498-37-02 [email protected] BOB BROKER LLC 12 447-00-55 498-82-78 [email protected] INTERNATIONAL TRANSACTION SYSTEMS LLC 12 436-84-90 436-84-85 [email protected] MARS INVESTMENT LLC 12 497-31-62 497-33-36 [email protected] RABITABANK OJSC 12 492-61-57 497-11-01 [email protected] RESPUBLIKA INVEST LLC 12 598-08-00 598-08-80 [email protected] STANDARD CAPITAL LLC 12 497-55-01 497-55-03 [email protected] TEKHNIKA CAPITAL MANAGEMENT LLC 12 440-29-61 493-87-11 [email protected] UNIBANK OJSC 12 498-22-44 498-09-53 [email protected] YAPIKREDI BANK AZERBAIJAN CJSC 12 497-77-95 497-02-76 [email protected]

Banja Luka Stock Exchange Address: Petra Kocica bb, 78 000 Banja Luka, Bosnia and Herzegovina, Phone: (51) 326 040 Fax: (51) 326 056 E-mail: [email protected] Web Address: www.blberza.com Country Code: 387 Company’s Name City Code Telephone Fax E-mail Address

ADVANTIS BROKER A.D. BANJA LUKA 51 348-900 348-901 [email protected] AKCIJA BROKER A.D. BANJA LUKA 51 227-460 227-460 [email protected] BALKAN INVESTMENT BANK A.D. BANJA LUKA 51 245-155 245-069 [email protected] BOBAR BANKA A.D. BIJELJINA 55 211-552 218-388 [email protected] EQUIES INVESTMENTS A.D. BANJA LUKA 51 344-260 344-261 [email protected] EUROBROKER A.D. BANJA LUKA 51 310-347 310-348 [email protected] FIMA A.D. BANJA LUKA 51 329-200 329-212 [email protected] GRAND BROKER A.D. BANJA LUKA 55 211-799 211-798 [email protected] HYPO-ALPE-ADRIA BANK A.D. BANJA LUKA 51 336-530 336-535 [email protected] INTERFINANCE A.D. BANJA LUKA 51 231-340 231-347 [email protected] KBC SECURITIES A.D. BANJA LUKA 51 230-781 230-780 [email protected] MONET BROKER A.D. BANJA LUKA 51 345-600 345-601 [email protected] NLB RAZVOJNA BANKA A.D. BANJA LUKA 51 226-570 226-571 [email protected] NOVA BANJALUCKA BANKA A.D. BANJA LUKA 51 243-392 243-267 [email protected] NOVA BANKA A.D. BIJELJINA 51 241-923 241-925 [email protected] RAIFFEISEN A.D. BANJA LUKA 51 231-490 243-491 [email protected] VOLKSBANK A.D. BANJA LUKA 51 241-165 241-135 [email protected]

PAGE 159 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Belarusian Currency and Stock Exchange Address: 48a, Surganova Str., 220013 Minsk, Belarus Phone: (375) 17 209 41 03 Fax: ( 375) 17 209 41 10 E-mail: [email protected] Web Address: www.bcse.by Country Code: 375 Company’s Name City Code Telephone Fax E-mail Address

ABSOLUTBANK CJSC 375-17 2370702 [email protected], www.absolutbank.by AIGENIS, CJSC 375-17 2054041 [email protected], www.aigenis.by AKTSIYA, LTD 375-17 2377891 [email protected] ALFA INDUSTRIAL CAPITAL, FE 375-17 2066174 elena_b@alpha-invest.com ALFA PROF-ACTIVE, LTD 375-17 2990084 [email protected] ASTANAEXIMBANK JSC 375-17 2895811 [email protected], www.aeb.by ATLANT-INVEST, DEPOSITORY 375-0152 721844 ATOM–BANK JSC 375-17 2198482 [email protected], www.atombank.by BANK OF RECONVERSION AND DEVELOPMENT JSC 375-17 2035727 [email protected], www.rrb.by BELAGROPROMBANK JSC 375-17 2185777 [email protected], www.belapb.by BELARUSKY NARODNY BANK JSC 375-17 2801663 [email protected], www.bnb.by BELARUSSIAN INDUSTRIAL BANK JSC 375-17 2039578 [email protected], www.bib.by BELGAZPROMBANK JSC 375-17 2067740 [email protected], www.belgazprombank.by BELINVESTBANK JSC 375-17 2892812 [email protected], www.belinvestbank.by BELMEZHKOMINVEST, JSC 375-17 2013341 BELPROMSTROIBANK JSC 375-17 2894606 [email protected], www.bpsb.by BELROSBANK CJSC 375-17 2897680 [email protected], www.belrosbank.by BELSWISSBANK UNITED STOCK COMPANY 375-17 2066933 [email protected], www.bsb.by BELVNESHECONOMBANK JSC 375-17 2092944 [email protected], www.bveb.by BROSTOK, CJSC 375-17 2135859 [email protected] CAPITAL-ACTIVE, CJSC 375-0232 574357 DENIM TRADING, UNITARY ENTERPRISE 375-17 236-9549 [email protected] DERZHAVAINVEST, JSC 375-17 203-8978 [email protected] GENERAL INVESTMENT SYSTEM CJSC 375-17 294-0353 [email protected] GT–BANK (GOLDEN TALER BANK) 375-17 2266298 [email protected], www.gtbank.net, www.gtbank.by INTERNATIONAL RESERVE BANK JSC 375-17 2996900 [email protected], www.irb.by INTERTRUSTGROUP, JSC 375-17 2373896 [email protected] INVALUE, CJSC 375-17 2064611 [email protected] ITI–BANK (JOINT–STOCK COMMERCIAL INTERNATIONAL TRADE AND INVESTEMENT BANK) 375-17 2006880 [email protected], www.itibank.by KASKAD-93-INVEST, LTD 375-17 2985768 [email protected] LIDERINVEST, LTD 375-17 2208353 [email protected] LOROBANK OJSC 375-17 2996901 [email protected] MINSK TRANSIT BANK JSC 375-17 2132901 [email protected], www.mtb.by MOSCOW–MINSK FOREIGN BANK 375-17 2886301 [email protected], www.mmbank.by NATIONAL BANK OF THE REPUBLIC OF BELARUS 375-17 2192242 www.nbrb.by NORTHERN INVESTMENT BANK JSC 375-17 2996621 [email protected] PARITETBANK OJSC 375-17 2883248 [email protected], www.paritetbank.by PRIORBANK JSC 375-17 2899087 [email protected], www.priorbank.by PROMREESTR, LTD 375-17 200-0272 PROMTECHINVESTVEKSEL, UNITARY ENTERPRISE 375-17 2218909 REESTR, LTD INVESTMENT COMPANY 375-02161 42862 [email protected] SAVINGS BANK "BELARUSBANK" JSSB 375-17 2188431 [email protected], www.belarusbank.minsk.by SLAVNEFTEBANK, CJSC 375-17 2162387 [email protected], www.snbank.by SOMBELBANK JSC 375-17 2066569 [email protected], www.sbb.by SOVMEDIA, UNITARY ENTERPRISE 375-17 2135472 [email protected] STOCK ALIANCE, LTD 375-17 2029647 [email protected] STOCK HOUSE, CJSC 375-17 2949170 SYNTHESIS INVEST GROUP, LTD 375-17 2112857 [email protected] TECHNOBANK OJSC 375-17 2832727 [email protected] www.tb.by TRUSTBANK, PRIVATE JSC 375-17 2032467 [email protected] TRUST-WEST, LTD 375-0162 203207 [email protected] WESTERN STOCK BUREAU, CJSC 375-162 230386 [email protected] ZARS, CJSC 375-17 2064611

PAGE 160 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Belgrade Stock Exchange Address: 1, Omladinskih Brigada Street, 11000, Belgrade, Serbia Phone: (11) 322 1599 Fax: (11) 138 242 E-mail: [email protected] Web Address: www.belex.co.yu Country Code: 381 Company’s Name City Code Telephone Fax E-mail Address

AAA SECURITY BROKER 11 30-32-137 2638-707 [email protected] AB INVEST 11 323 2977 323 2977 [email protected] AC-BROKER 11 202 77 00 202 77 00 [email protected] AGROBANKA 11 2021-401 2021-152 [email protected] ALCO BROKER 11 305 0376 3548 305 [email protected] ALFA BROKER 11 311-6276 311-6276 [email protected] ALPHA BANK SRBIJA 11 3023 971 33 42 349 [email protected] AS FINANCIAL CENTER 11 262 2266 262 2266 [email protected] ATHENA CAPITAL 11 2142-442 2142-332 [email protected] ATLAS BROKER 11 3248-405 3248-309 [email protected] BANCA INTESA 11 201 1422 201 1297 [email protected] BANKA POSTANSKA ·TEDIONICA 11 3024-329 3376-777 [email protected] BELGRADE INDEPENDENT BROKER 11 322 3227 322 3227 [email protected] BEO MONET 11 30 36 059 30 33 563 [email protected] BEOPUBLIKUM BROKERSKA KUCA 11 334 5171 334 5080 [email protected] BONITET GRUPA 11 30 678 55 30 678 55 [email protected] BROKER NIS 18 520 377 520 377 [email protected] BROKER POINT 11 262 2439 624 460 [email protected] CACANSKA BANKA 32 320-657 348-146 [email protected] CACANSKI NEZAVISNI BROKERI 32 310-690 341-772 [email protected] CITADEL SECURITIES 11 328 4036 628 165 [email protected] CITY BROKER 11 3836-913 3836-915 [email protected] CONFIDENCE 11 30 89 020 30 89 020 [email protected] CONVEST 21 455 629 450 595 [email protected] CREDY BANKA 34 360 685 331 360 [email protected] DELTA BROKER 11 201 2690 201 2677 [email protected] DIL BROKER 11 33 47 757 324 5035 [email protected] DUNAV STOCKBROKER 11 3223-764 3223-763 [email protected] EAST-WEST INVEST 11 3089 816 3089 429 [email protected] ECOTEL 11 303 0307 303 0308 [email protected] EMISSIO BROKER 11 316 5900 316 5900 [email protected] ENERGOBROKER 11 311 5261 311 5312 [email protected] EURO FINEKS BROKER 11 309 6920 309 6920 [email protected] EUROBANK EFG STEDIONICA 11 3027-538 3027-587 [email protected] FIDELITY BROKER 21 47 23 224 47 23 224 [email protected] FIMA INTERNATIONAL 11 334 1066 334 0787 [email protected] FIMAKS BROKER 11 339 8768 339 8915 [email protected] FIRST GLOBAL BROKERS 11 32 85 184 3282 398 [email protected] GALENIKA BROKER 11 316 2260 219 6572 [email protected] GT BROKER 11 2607 713 2607 713 [email protected] HYPO ALPE-ADRIA-SECURITIES 11 222 6808 222 6896 [email protected] I2R 11 472-8949 472-8949 [email protected] ILIRIKA INVESTMENTS 11 330 1000 330 1050 [email protected] IMTEL TRADE 11 301 6822 301 6822 [email protected] INTERCAPITAL SECURITIES 11 3111-420 222-31-05 [email protected] INTERCITY BROKER 11 308 3130 308 3150 [email protected] INVEST BROKER 11 324 8650 303 5006 [email protected] ITM MONET 11 361 5929 361 4148 [email protected] JORGIC BROKER 11 311 7835 311 7840 [email protected] JUBMES BROKER 11 311 0275 311 3851 [email protected] KBC BROKER 11 301-56-54 301-56-58 [email protected] KBC SECURITIES 11 2910-696 2910-696 [email protected] KBK BROKER 11 2434 820 2434 820 [email protected] KOMERCIJALNA BANKA 11 324 0911 323 9201 [email protected] LAIKI BANK 11 3306 407 3241 448 [email protected] M&V INVESTMENTS 21 6612 788 6612 788 [email protected] MAKLER INVEST 11 334 5351 334 5351 [email protected] MAX-DILL 32 222 277 222 277 [email protected] MEDIOLANUM INVEST 11 367 0137 367 0137 [email protected] MERIDIAN INVEST 11 330 5876 330 5908 [email protected] METALS BANKA 21 424 121 524 693 [email protected] MMK GROUP 18 521 951 521 925 [email protected] MOMENTUM SECURITIES 21 67-28-700 452-895 [email protected] MULTIBROKER 11 334 1158 334 1158 [email protected] NBA BROKER 11 313 1286 146 691 [email protected] OLIMPIA INVEST 11 301 7200 313 3115 [email protected]

PAGE 161 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Belgrade Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

PAN-BROKER 11 246 4231 2461 435 [email protected] PLATFORMA 11 362 90 30 362 90 31 [email protected] PRIVREDNA BANKA 11 641 874 264 1894 [email protected] PRIVREDNA BANKA PANCEVO 13 331-361 354-192 [email protected] PROFESSIONAL STOCK BROKER 11 383-75-99 344-69-27 [email protected] PROSPERA INVESTMENTS 11 3285-600 3285-601 [email protected] RAIFFEISENBANK 11 220 71 71 220 71 70 [email protected] SAB MONET 11 382 1002 382 1002 [email protected] SBD BROKER 24 558 275 554 003 [email protected] SINTEZA INVEST GROUP 11 301 8740 3018 749 [email protected] SOCIETE GENERALE YUGOSLAV BANK 11 311 1515 328 2230 [email protected] SUMADIJA BROKER 34 303 011 303 021 [email protected] SYNERGY CAPITAL 11 328 4825 262 2784 [email protected] TANDEM FINANCIAL 21 425 777 425 777 [email protected] TDK BROKER 32 340 610 340 610 [email protected] TEMA BROKER 21 443 809 472 1640 [email protected] TEZORO BROKER 11 2632 346 2632 057 [email protected] TRUST BROKER 21 67-921-80 679-21-84 [email protected] TRZISTE NOVCA 11 361 2430 361 2286 [email protected] UNICREDIT BANK SRBIJA 11 3204-570 3204-693 [email protected] VOJVODANSKA BANKA 21 488 6731 616 023 [email protected] WESTERN BALKAN BROKER 11 344-6957 344-5812 [email protected]

Bucharest Stock Exchange Address: 34-36 Carol I Boulevard, 14th Floor, Sector 2, Bucharest, 020922, Romania Phone: (21) 307 9502 Fax: (21) 307 9519 E-mail: [email protected] Web Address: www.bvb.ro Country Code: 40 Company’s Name City Code Telephone Fax E-mail Address

ACTINVEST 268 470938 411387 [email protected] ACTIVE INTERNATIONAL 21 3076020 3076024 [email protected] ALPHA FINANCE ROMANIA 21 2092233 2315332 [email protected] BCR SECURITIES 21 2223703 2227404 [email protected] BRD SECURITIES - GROUPE SOCIETE GENERALE 21 3014150 3014159 [email protected] BT SECURITIES 264 597980 431747 [email protected] BUCURESTI GLOBAL INVEST 21 3190251 3190253 [email protected] CA IB SECURITIES 21 2064680 2064690 [email protected] CARPATICA INVEST 269 217781 211398 [email protected] CENTRAL EUROPEAN INVESTMENTS 21 3191073 3191075 [email protected] COMPANIA ROMANA DE INVESTITII INVESTCO 21 3361018 3373365 [email protected] CONFIDENT INVEST BUCURESTI 21 3202102 3202103 [email protected] DELTA VALORI MOBILIARE 21 2552247 2554645 [email protected]; DORINVEST 21 3129970 3129962 [email protected] EASTERN SECURITIES 21 3140892 3140245 [email protected] EFG EUROBANK SECURITIES 21 2062300 3167745 [email protected] EGNATIA SECURITIES 21 3135350 3135351 [email protected] ELDAINVEST 236 472113 473393 [email protected]; [email protected] EQUITY INVEST 21 3117930 3104362 [email protected] ESTINVEST 237 238901 221804 [email protected] [email protected] ETEBA ROMANIA 21 3167153 3167269 [email protected] EURO INVEST VISION 21 2110137 2110531 [email protected] EUROSAVAM 244 0344401188 0344401188 [email protected] FINACO SECURITIES 21 6664870 6664870 [email protected] FINANS SECURITIES - SOCIETATE DE SERVICII DE INVESTITII FINANCIARE 21 3017250 3180965 [email protected] G.I.F. - GRUPUL DE INTERMEDIERE FINANCIARA 21 3112702 3126757 [email protected]; [email protected] GLOBAL VALORI MOBILIARE 21 2103441 2103411 [email protected] GM INVEST 21 3273151 3273155 [email protected] GOLDRING 265 269195 269195 [email protected] H B INVEST 268 542500 542503 [email protected] H&C SECURITIES 232 239019 233530 - HARINVEST 250 733898 733898 [email protected]; [email protected] HTI VALORI MOBILIARE 21 2532644 2522483 [email protected] IEBA TRUST 21 3130102 3131595 [email protected] IFB FINWEST 257 281611 281611 [email protected] [email protected] ING BANK 21 2221600 2221401 [email protected] INTERCAPITAL INVEST 21 2228731 2228731 [email protected] INTERDEALER CAPITAL INVEST 264 433212 433212 [email protected]; INTERFINBROK CORPORATION 241 639071 547829 [email protected]

PAGE 162 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Bucharest Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

INTERVAM 21 3157010 3158222 [email protected] INVEST TRUST 251 415287 417658 [email protected] KD CAPITAL MANAGEMENT 21 6500446 6500448 [email protected] MUNTENIA GLOBAL INVEST 21 3370947 3370947 [email protected] [email protected] NOVA INVEST 261 768875 768870 [email protected] OLTENIA GRUP INVEST 251 410502 418215 [email protected] PRIME TRANSACTION 21 3224614 3215981 [email protected] RAIFFEISEN CAPITAL & INVESTMENT 21 3061233 2300684 [email protected] ROINVEST BUCOVINA 230 520133 520133 [email protected] ROMBELL SECURITIES 21 2320185 2320197 [email protected] ROMCAPITAL 256 490121 490121 [email protected] ROMEXTERRA FINANCE 265 250132 250141 [email protected] S.S.I.F. ORIZONT VEST 259 415031 414990 [email protected] S.S.I.F. PIRAEUS SECURITIES ROMANIA 21 3050370 3050375 [email protected] SC BANK LEUMI ROMANIA SA 21 3120368 3120498 [email protected] SOCIETATEA DE SERVICII DE INVESTITII FINANCIARE ROMINTRADE 268 410605 410496 410592 [email protected] SSIF BROKER 264 433677 433677 [email protected] SSIF GEOFFREY INVEST 258 806600 806619 [email protected] [email protected] SSIF MAXWELL RAND SECURITIES INTERNATIONAL 21 2106103 2106113 [email protected] SSIF MOBINVEST 259 467335 410894 [email protected] SUPER GOLD INVEST 248 213417 215862 [email protected] SWISS CAPITAL 21 2227322 2226169 [email protected] TARGET CAPITAL 264 590776 590775 [email protected] TGH INVESTMENT 232 216562 212744 [email protected] TRANSILVANIA CAPITAL 266 206440 206442 [email protected] TREND 234 519346 519396 [email protected] UNICAPITAL 21 2318990 2318991 [email protected] UNICREDIT SECURITIES 21 3015170 3015172 [email protected] VALMOB INTERMEDIA 248 214661 210195 [email protected] VANGUARD 21 3369325 3369233 [email protected] VENTRUST INVESTMENT 265 262471 261752 [email protected] VOLTINVEST 251 419342 419342 [email protected] WBS ROMANIA 21 3104125 3104124 [email protected] WORLD ROM SECURITIES 21 3120084 3121590 [email protected]

Bulgarian Stock Exchange Address: 10 Triushi Str. Floor 5, 1303 Sofia, Bulgaria, 1301, Sofia, Bulgaria Phone: (2) 937 0937 Fax: (2) 937 0946 E-mail: [email protected] Web Address: www.bse-sofia.bg Country Code: 359 Company’s Name City Code Telephone Fax E-mail Address

CB "ALIANZ BULGARIA" 359 2 921 5480 980 2102 [email protected] CB "BNP - PARIBAS BULGARIA" 359 2 921 8640 981 6991 [email protected] CB "BULGARIAN-AMERICAN CREDIT BANK" 359 2 965 8358 944 5010 [email protected] CB "CENTRAL COOPERATIVE BANK" 359 2 926 6288 988 8107 [email protected] CB "CORPORATE & COMERCIAL BANK" 359 2 980 9362 980 8948 [email protected] CB "D COMMERCE BANK" 359 2 989 4444 989 4848 [email protected] CB "DSK BANK" 359 2 985 57220 980 6477 [email protected] CB "ECONOMIC & INV. BANK" 359 2 981 6534 981 2526 [email protected] CB "EMPORIKI BANK" 359 2 917 1711 917 1156 [email protected] CB "EUROBANK EFG BULGARIA" 359 2 816 6492 983 8104 [email protected] CB "FIRST INVESTMENT BANK" 359 2 910 0100 980 5033 [email protected] CB "INERNATIONAL ASSET BANK" 359 2 812 0253 986 2879 [email protected] CB "ING BANK - SOFIA BRANCH" 359 2 917 6716 917 6579 [email protected] CB "INVESTBANK" 359 2 818 6129 980 7722 [email protected] CB "MKB UNIONBANK" 359 2 915 3355 980 2367 [email protected] CB "MUNICIPAL BANK" 359 2 981 9270 981 5147 [email protected] CB "PEB TEXIMBANK" 359 2 935 9362 335 136 [email protected] CB "PIRAEUS ÇANK BULGARIA" 359 2 969 0723 969 0790 [email protected] CB "RAIFFEISENBANK - BULGARIA" 359 2 919 85452 980 7479 [email protected] CB "TOKUDA CREDIT EXPRESS BANK" 359 2 932 9133 981 5378 [email protected] CB "UNICREDIT BULBANK" 359 2 923 2596 988 4636 [email protected] CB "UNITED BULGARIAN BANK" 359 2 811 3753 988 0811 [email protected] FINANCIAL HOUSE "EVER" 359 2 873 7678 873 4926 [email protected] FINANCIAL HOUSE "FINA-S" 359 2 818 5520 955 5989 [email protected] INV. INTERMEDIARY "ABV INVESTMENTS" 359 2 601 594 955 5925 [email protected] INV. INTERMEDIARY "ARGO INVEST" 359 2 931 0361 931 0361 [email protected]

PAGE 163 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Bulgarian Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

INV. INTERMEDIARY "AVAL IN" 359 2 980 4825 986 0911 [email protected] INV. INTERMEDIARY "BALKAN ADVISORY COMPANY IP" 359 2 981 3559 981 7200 [email protected] INV. INTERMEDIARY "BALKAN INVESTMENT COMPANY" 359 2 943 9215 943 9216 [email protected] INV. INTERMEDIARY "BBG SIMEX - BULGARIA" 359 2 980 7510 980 9330 [email protected] INV. INTERMEDIARY "BENCHMARK FINANCE" 359 2 962 5405 965 1652 [email protected] INV. INTERMEDIARY "BETA CORP" 359 2 986 5566 986 5566 [email protected] INV. INTERMEDIARY "BG PROINVEST" 359 2 989 3002 981 0048 [email protected] INV. INTERMEDIARY "BORA INVEST" 359 2 980 4770 980 4770 [email protected] INV. INTERMEDIARY "BULBROKERS" 359 2 937 6209 981 4182 [email protected] INV. INTERMEDIARY "BULEX INVEST" 359 52 609 550 609 550 [email protected] INV. INTERMEDIARY "BULFIN IINVEST" 359 2 400 1192 952 1188 [email protected] INV. INTERMEDIARY "BULL TREND BROKERAGE" 359 2 943 3366 986 7998 [email protected] INV. INTERMEDIARY "CAPITAL ENGINEER PROJECT" 359 64 800 627 800 627 [email protected] INV. INTERMEDIARY "CAPITAL FINANCE" 359 2 981 5674 981 1755 [email protected] INV. INTERMEDIARY "CAPITAL MARKETS" 359 2 933 0030 933 0034 [email protected] INV. INTERMEDIARY "CAPMAN" 359 2 810 60 810 60 [email protected] INV. INTERMEDIARY "CEE SECURITIES" 359 2 817 7077 975 1690 [email protected] INV. INTERMEDIARY "D.I.S.L. SECURITIES" 359 2 962 2186 962 2186 [email protected] INV. INTERMEDIARY "DEALING FINANCIAL COMPANY" 359 2 987 0235 987 9240 [email protected] INV. INTERMEDIARY "DELTA STOCK" 359 2 811 5050 811 5050 [email protected] INV. INTERMEDIARY "DZI - INVESTMENT" 359 2 988 2150 988 2150 [email protected] INV. INTERMEDIARY "ELANA TRADING" 359 2 810 0000 810 0099 [email protected] INV. INTERMEDIARY "EURO - FINANCE" 359 2 980 5657 981 1496 [email protected] INV. INTERMEDIARY "EURO GARANT" 359 2 805 2014 805 2014 [email protected] INV. INTERMEDIARY "EURODEALING" 359 56 846 030 846 030 [email protected] INV. INTERMEDIARY "FAKTORY" 359 2 981 2710 943 4157 [email protected] INV. INTERMEDIARY "FIRST FINANCIAL BROKERAGE HOUSE" 359 2 810 6453 810 6401 [email protected] INV. INTERMEDIARY "FIëO INVEST" 359 52 603 519 603 519 [email protected] INV. INTERMEDIARY "INTERCAPITAL MARKETS" 359 2 921 0511 980 1148 h_djenev@ intercapital.bg INV. INTERMEDIARY "IP FAVORIT" 359 2 981 3469 981 3467 [email protected] INV. INTERMEDIARY "KAROLL" 359 2 981 1381 986 5363 [email protected] INV. INTERMEDIARY "KD SÖCURITIES" 359 2 810 2669 981 2165 [email protected] INV. INTERMEDIARY "KM INVEST" 359 2 963 1822 963 1822 [email protected] INV. INTERMEDIARY "MAKLER 2002" 359 32 269 931 622 139 [email protected] INV. INTERMEDIARY "MCCUP BROKERS" 359 2 951 5201 954 9982 [email protected] INV. INTERMEDIARY "METRIK" 359 2 981 4610 981 4610 [email protected] INV. INTERMEDIARY "NABA INVEST" 359 52 699 550 699 553 [email protected] INV. INTERMEDIARY "POPULIARNA KASA 95" 359 32 627 727 265 353 [email protected] INV. INTERMEDIARY "POSITIVA" 359 2 846 6623 846 8293 [email protected] INV. INTERMEDIARY "REAL FINANCE" 359 52 603 828 603 828 [email protected] INV. INTERMEDIARY "SOFIA INTERNATIONAL SECURITIES" 359 2 988 6340 988 6341 [email protected] INV. INTERMEDIARY "SOFIA INVEST BROKERAGE" 359 2 981 7119 981 7229 [email protected] INV. INTERMEDIARY "SOMONY FINANCIAL BROKERAGE" 359 2 951 6583 951 6579 [email protected] INV. INTERMEDIARY "STANDART INVESTMÖNT" 359 2 971 7667 870 3270 [email protected] INV. INTERMEDIARY "STATOS INVEST" 359 2 946 1740 980 0447 [email protected] INV. INTERMEDIARY "STS FINANCE" SC 359 2 963 0936 963 0936 [email protected] INV. INTERMEDIARY "TBI INVEST" 359 2 935 0626 973 5062 [email protected] INV. INTERMEDIARY "UG MARKET" 359 32 625 402 625 402 [email protected] INV. INTERMEDIARY "VARCHEV FINANCE" 359 52 631 000 631 000 [email protected] INV. INTERMEDIARY "VIP-7" 359 52 631 020 631 020 [email protected] INV. INTERMEDIARY "ZAGORA FINAKORP" 359 42 600 203 234 43 [email protected] INV. INTERMEDIARY "ZLATEN LEV BROKERS" 359 2 965 4515 965 4552 [email protected] WOOD & COMPANY FINANCIAL SERVICES, A.S. 420222 423 6065 096 222 [email protected]

Cairo & Alexandria Stock Exchanges Address: 4A, El Sherefeen St. Cairo, Egypt Phone: (2) 2392 8698 Fax: (2) 2392 4214 E-mail: [email protected] Web Address: www.egyptse.com Country Code: 20 Company’s Name City Code Telephone Fax E-mail Address

AGEAD SECURITIES BROKERS 2 3302 3735 3305 4038 [email protected] AL AHLY BROKERAGE CO. 2 3338 2930 3338 2950 AL AHRAM CO. STOCK EXCHANGE & SECURITIES BROKERS 2 2393 3543 2390 6579 [email protected] AL ALIAA STOCK BROKERAGE HOUSE 2 3338 5195 3761 7509 [email protected] AL AMALKA SECURITIES TRADING 2 3304 7732 3305 2846 [email protected] AL HAMD FOR STOCK BROKERAGE 2 2624 2376 2623 4176 AL KARMA BROKERAGE CO. 2 2417 3597 2417 3597 [email protected]

PAGE 164 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Cairo & Alexandria Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

AL MANAR FOR STOCK EXCHANGE 2 2396 1905 2396 1907 AL ROWAD SECURITIES BROKERAGE SAE 2 3749 7600 3335 8978 AL SHARK EL AWSAT FOR SECURITIES BROKERAGE 2 3303 5613 3303 5689 [email protected] AL SHOROUK BROKERAGE 2 3578 1177 3578 1166 [email protected] ALEXANDRIA BROKERAGE CO. 3 2484 0655 2484 8926 AMAN SECURITIES COMPANY 2 3794 2883 3794 3232 [email protected] AMWAL FOR TRADING SECURITIES 2 3736 2150 3736 2150 ARABIA ONLINE COMPANY FOR STOCKBROKERS 2 2414 0025 2418 0666 [email protected] BAB EL MOLOUQ SECURITIES 3 486 0800 485 9551 bab_ el_ molouq@mist-n BANKERS GROUP FOR BOOKKEEPER & BROKERAGE 2 2395 8382 2395 8384 [email protected] BARAKA FOR SECURITIES BROKERAGE 2 2395 6111 2392 1478 [email protected] BLOOM MISR FOR SECURITIES TRADING 2 3335 7054 3761 7680 BROKERS STOCK EXCHANGE 3 2485 6128 2485 6128 [email protected] CAIRO BROKERAGE 2 2391 0151 2395 8048 CAIRO CAPITAL SECURITIES CO. 2 3797 4333 3797 4344 CAIRO INTERNATIONAL SECURITIES EXCHANGE 2 2287 9903 2287 9904 [email protected] CAIRO NATIONAL CO. SECURITIES NEGOTIATION 2 3760 9394 3760 9438 [email protected] CAPITAL SECURITIES BROKERAGE 2 3762 7481 3335 7144 [email protected] CITY STARS FOR SECURITIES TRADING 2 2395 7809 2395 7809 CITY TRADE FOR SECURITIES TRADING 2 2395 4880 2395 8384 COMMERCIAL INTERNATIONAL BROKERAGE CO. 2 3338 3906 3761 8379 [email protected] CORRECT LINE BROKERAGE & STOCK EXCHANGE 2 3338 0568 3338 0568 [email protected] COUNSEL INC. 2 3792 1100 3792 1300 [email protected] DELTA SECURITIES EGYPT 2 3347 2120 3347 2180 [email protected] DYNAMIC SECURITIES TRADING CO. 2 3344 4919 3305 3423 [email protected] EGYPT BROKERAGE 2 3748 1816 2575 9815 [email protected] EGYPT STICKS SECURITIES 2 3303 3480 3303 3485 EGYPT TRUST SECURITIES 2 2395 2515 2395 2515 [email protected] EGYPTIAN AMERICAN CO. FOR BROKERAGE 2 3762 5811 3762 5817 [email protected] EGYPTIAN EMARITES SECURITIES CO. 2 3335 0009 3338 9521 EGYPTIAN GROUP FOR SECURITIES 2 3792 0183 3792 0183 [email protected] EGYPTIAN KUWAITI SECURITIES CO. 2 2579 8551 2579 8554 [email protected] EL ALAMIA FOR BROKERAGE 2 2393 5874 2393 5874 [email protected] EL AMAL STOCK BROKERAGE COMPANY 3 2545 8947 2545 8947 EL ARAABIA SECURITIES2 2 2392 4345 2393 3677 EL DAWLIA COMPANY FOR SECURITIES 3 2486 0505 2484 4457 EL ETEHAD BROKERAGE COMPANY 2 2395 7265 2395 4839 EL FATH STOCKBROKERS 2 3794 4712 3794 6216 EL GAWHARA SECURITIES 2 3776 9293 3572 8520 EL GEZIERA FOR SECURITIES TRADING 2 2578 0931 2578 0933 EL GIZA FOR SECURITIES TRADING 2 2573 2575 2417 2295 [email protected] EL HORREYA SECURITIES BROKERAGE CO. 2 2390 4940 2395 2172 [email protected] EL KARNAK STOCK BROKERAGE 2 23937 7715 2393 7715 [email protected] EL KHEIR FOR CIRCULATING & KEEPING SECURITIES 3 2483 6966 2480 3767 elkhair.comp@maileit EL KINANAH BROKERAGE SECURITIES CO. 2 2395 5053 2395 5046 info_kinanah.com.eg EL MAHROUSA FOR SECURITIES TRADING 3 2486 8267 2487 1490 [email protected] EL MEDINA SECURITIES 2 25740998 EL MOKATTAM SECURITIES BROKERAGE 2 2575 6903 2395 5614 [email protected] EL NOUR SECURITIES 2 3336 8780 3336 8783 [email protected] EL NOURAN FOR SECURITIES TRADING 2 2395 8081 2395 8081 EL OMANAA EL MOTAHEDEEN FOR BOOKKEEPING & BROKERAGE 3 2484 5088 2484 4712 [email protected]. EL SAFA FOR SECURITIES BROKERAGE 3 2487 4030 2487 4030 EL SALAM CO. FOR BROKERAGE 2 2391 9215 2392 8162 [email protected] EL TADAMON EL ARABI BROKERAGE CO. 2 3338 5466 3335 3990 [email protected] EL WASEET ELMOBASHER SECURITIES 2 3335 6522 3748 6644 FARANA SECURITIES TRADING 2 3748 1484 3748 1484 [email protected] FIRST BROKERAGE 2 3336 2373 3336 2373 FORTUNE SECURITIES CO. 2 3336 8129 3336 2373 [email protected] GLOBAL CAPITAL SECURITIES 2 2418 7750 2415 7313 GOLDEN HAND FOR SECURITIES BROKERAGE AND BOOKKEEPING CO. 2 2392 4570 2395 3796 [email protected] GOLDEN SHARE STOCKS 2 2418 3341 2418 3329 GOLDEN WAY SECURITIES 2 3338 4171 3338 6533 [email protected] GRAND INVESTMENT FOR TRADING SECURITIES 2 3302 1055 3304 6459 GUARANTEE FOR SECURITIES EXCHANGE 2 2392 6578 2392 4255 [email protected] GULF FOR SECURITIES EXCHANGE 3 2541 1756 2543 6601 H A FOR TRADING SECURITIES 2 3302 5078 3302 5181

PAGE 165 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Cairo & Alexandria Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

HC BROKERAGE 2 3749 6009 3749 6055 [email protected] HELWAN BROKERAGE & BOOKKEEPING 2 2554 8838 2554 8838 [email protected] HERMES FOR SECURITIES BROKERAGE 2 3338 8851 3338 5400 HONEST FOR BROKERAGE & BOOKKEEPING 2 25199 0111 2519 0666 HORISON FOR TRADING SECURITIES 2 2578 0911 2578 0912 HORUS FOR BROKERAGE 2 3588 9410 3588 9410 [email protected] HSBC SECURITIES EGYPT 2 3738 0145 3738 0028 [email protected] INTERNATIONAL BROKERAGE GROUP 2 590 5184 590 5195 lbggroup@egypto line.com INTERNATIONAL FOR SECURITIES 2 2418 3340 2418 6272 ›[email protected] LEADERS FOR BROKERAGE 2 1 6662 3347 2266 LEPON SECURITIES BROKERAGE & BOOKKEEPING 2 2391 4707 2391 4607 [email protected] LUXOR SECURITIES 2 2592 0634 2592 9071 MAADI CO. FOR STOCK DEALING 2 3760 0261 3760 0261 [email protected] MARWA BROKERAGE CO. 2 2574 0074 2578 3855 [email protected] MEDITERRANEAN CO. FOR BROKERAGE SECURITIES 2 2576 7187 2576 7879 [email protected] MEGA INVESTMENT FOR TRADING SECURITIES 2 3748 9888 3748 8820 METRO COMPANY FOR BOOKKEEPING & STOCK DEALING 2 2526 0445 2526 0447 [email protected] MINA BROKERS STOCK EXCHANGE 2 2417 2930 2417 2930 MIRACLE FOR SECURITIES TRANSACTIONS CO. 2 2392 1378 2392 1377 [email protected] MISR INTERNATIONAL FOR TRADING SECURITIES 3 2484 8138 2484 8265 [email protected] NAEEM INVESTMENTS SECURITIES 3 3303 4244 3346 7879 tahio [email protected] NAMAA FOR TRADING SECURITIES 2 3837 8346 3837 8346 NEW PRINT FOR TRADING SECURITIES 2 3335 9045 3338 6327 NILE ONE BROKERAGES FOR SECURITIES TRANSACTIONS CO. 2 2526 0445 2526 0447 OBLYSK FOR TRADING SECURITIES 2 3736 2237 3736 2239 OKAZ STOCKBROKERS & INVESTMENT CONSULTANTS 2 3589 5321 3589 1499 [email protected] OPTIMA SECURITIES BROKERAGE 2 2578 4725 2578 4726 optimabrokrage.com OROBA STOCK EXCHANGE CORPORATION 2 3792 0204 3792 0390 [email protected] OSOUL E.S.B BROKERAGE CO. 2 2413 9100 2417 2295 PHARAONIC BROKERAGE CO. 2 2393 5200 2390 1399 [email protected] PHAROUS SECURITIES 2 3736 8550 3736 1410 PIONEERS FOR SECURITIES 2 2392 2461 2272 6553 [email protected] PREMIERE BROKERAGE CO. 2 3336 9671 3762 7584 PRIME SECURITIES 2 3338 1526 3338 1993 [email protected] PRIZMA SECURITIES COMPANY 2 3338 1810 3338 1813 PROFIT FOR SECURITIES 2 2390 3843 2390 4891 [email protected] QUEEN FOR BROKERAGE & STOCK EXCHANGE 2 2575 3652 2575 3931 [email protected] ROOTS STOCK BROKERAGE HOUSE 2 2395 3041 2395 2799 SAFIR INTERNATIONAL FOR STOCKBROKERS 2 2639 7093 2639 5081 safir [email protected] SAUDI CRESCENT FOR TRADING SECURITIES 2 2395 9752 2395 9659 SAUDI EGYPTIAN FOR TRADING SECURITIES 2 2460 5577 2460 5577 SIGMA BROKERAGE CO. 2 3335 7575 3335 0066 SOLIDARE SECUIRITIES 2 2290 3116 2290 3115 STRATEGIC SECURITIES GROUP 2 3304 1260 3304 1290 [email protected] SWISS GROUP FOR SECURITIES BROKERAGE 2 2450 3150 2451 2030 TADAWOUL FOR TRADING SECURITIES 2 2519 2703 2519 2778 TAKAMOL SECURITIES BROKERAGE CO. 3 2485 4500 2485 4500 TEAM SECURITIES 3 484 4677 484 8926 THREE WAY FOR STOCK EXCHANGES BROKERAGE 2 3792 5045 3792 5045 [email protected] TIBA BROKERAGE CO. 2 2390 5906 2390 5906 [email protected] TOP FOR BROKERAGE 2 2623 6941 2623 6941 top_ 4_ [email protected] TREND FOR TRADING SECURITIES 2 2392 2012 2392 2407 TRIPLE A SECURITIES 2 2574 5427 2579 7442 TROPICANA FOR BROKERAGE AND BOOKKEEPING 2 2395 0014 2395 0014 [email protected] TRUST GROUP FOR SECURITIES 2 3792 4026 3792 5884 [email protected] TYCOON FOR BROKERAGE & BOOKKEEPING 2 2690 8078 2690 8078 [email protected] UNITED BROKERAGE CORPORATION & BOOKKEEPING 2 3774 4968 3569 9108 u.b.c@l›nk.net UNITED ECONOMIC GROUP 2 3337 5901 3337 5860 UNIVERSAL BROKERAGE CO. 2 2528 0771 WALL STREET SECURITIES 2 3748 7505 3336 4379 [email protected] WATANIA BROKERS 3 2484 3527 2484 3527 WEDIAN SECURITIES STOCK BROKERAGE AND BOOKKEEPING 2 2393 8930 2393 9235 [email protected] YASMINE BROKERAGE CO. 3 2485 8111 2484 4216 [email protected]

PAGE 166 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Georgian Stock Exchange Address: 74a Chavchavadze Avenue Tbilisi 0162 Georgia Phone: (32) 220 718 Fax: (32) 251 876 E-mail: [email protected] Web Address: www.gse.ge Country Code: 995 Company’s Name City Code Telephone Fax E-mail Address

AICBERGI 32 914 847 [email protected] BONA 32 230 074 227 447 [email protected] CARTU BROKER 32 230 021 251 410 [email protected] CAUCASUS CAPITAL GROUP 32 291 457 info@capital,ge CAUCASUS FINANCIAL SERVICES 32 559 900 559 903 [email protected] DBL CAPITAL 32 377 724 378 724 [email protected] DELPHO 32 330906 330906 GALT & TAGGART SECURITIES 32 235 800 235 804 [email protected] GEORGIAN INVESTMENT GROUP 32 225 907 225 907 [email protected] GEORGIAN INVESTMENT GROUP + 32 914 999 252 815 [email protected] GEORGIAN STOCK COMPANY 32 987 109 999 007 [email protected] KABARJINA 32 250 052 [email protected] ODEN 32 294 621 [email protected] PRIMA BROKER 32 92 15 54 932 710 [email protected] PUBLIC INVESTMENT MANAGEMENT COMPANY 32 555 505 912 269 [email protected] TBC BROKER 32 222 537 27 27 33 [email protected] TBILINTERCAPITAL 32 433 095 [email protected]

Iraq Stock Exchange Address: P.O. Box, 3607 AlAlwiya, Iraq Phone: (790) 148 6733 Fax: (1) 717 4461 E-mail: [email protected] Web Address: www.isx-iq.net Country Code: 964

Company’s Name City Code Telephone Fax E-mail Address

AHLIYA INSURANCE AL- AMEEN ESTATE INVESTMENT AL- EKHA'A FOR AGRICULTURAL AL -HILAL INDUSTRIES AL- ITHMAR AGRICULTURAL AL -KHAZER FOR CONSTRUCTION MATERIALS AL- KINDI FOR VETERINARY VACCINES AL-AHLYIA FOR AGRICULTURAL PRODUCTION AL-AMEEN FINANCIAL INVESTMENT AL-AMEEN INSURANCE AL-AYAIM FOR FINANCIAL INVESTMENT AL-BADIA GENERAL TRANS AL-BATEK FOR FINANCIAL INVESTMENT AL-ESHA'A FOR AGRICULTURAL PRODUCTION AL-HADHAR FOR MARBLE EXTRACTION AL-HAMRAA INSURANCE AL-KHAIMA FINANICAL INVESTMENT AL-KHEIR FINANCIAL INVESTMENT ALKOULD FOR AGRICULTURAL&FREEZING STORE AL-MA'MUN FOR GENERAL TRADING AL-MANSOUR HOTEL AL-MANSOUR PHARMACEUTICALS INDUSTRIES AL-MANSOURIA FOR TOURIST INVESTMENT AL-NUKHBA FOR CONSTRUCTION AL-QUM'A FOR FINANICAL INVESTMENT ALRAFIDAIN CARBONATED DRINKS ALRAFIDAIN FOR TRADE AL-SADEER HOTEL AL-THERAR FOR AGRICULTURAL PRODUCTION AL-WIAIM FINANCIAL INVESTMENT AL-ZAWRAA FOR FINANICAL INVESTMENT AMUSEMENT TOWN ARABIAN AERATED WATER ASHOUR HOTEL ASHUR INTERNATIONAL BANK BABEL CINEMA&TELEVISION PRODUCTION BABIL FOR ANIMAL PRODUCTION BABYLON BANK BABYLON HOTEL BAGHDAD FOR PACKING MATERIALS BAGHDAD HOTEL BAGHDAD MOTOR CARS SERVICING

PAGE 167 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Iraq Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

BAGHDAD PASSENGERS TRANSPORT BAGHDAD SOFT DRINKS BANK OF BAGHDAD BASRAH INTERNATIONAL BANK BASRAH PEARL SHIPPING COMMERCIAL BANK OF IRAQ CREDIT BANK OF IRAQ DAR ESSALAAM INSURANCE DAR ESSALAAM INVESTMENT BANK EASTERN BREWERY ECONOMY BANK FOR INVESTMENT ELECTRONIC INDUSTRIES FALLUJAH CONSTRUCTION MATERIALS GULF COMMERCIAL BANK INVESTMENT BANK OF IRAQ IRAQI AGRICULTURAL PRODUCTS MARKETING IRAQI BOTTLING AND CANNING IRAQI CARTON MANUFACTURIES IRAQI DATE PROCESSING AND MARKETING IRAQI ENGINEERING WORKS IRAQI FOR GENERAL TRANSPORTATION IRAQI FOR PRODUCTION AND MARKETING MEAT IRAQI FOR SEED PRODUCTION IRAQI FOR TUFTED CARPETS IRAQI ISLAMIC BANK IRAQI LAND TRANSPORT IRAQI MIDDLE EAST INVESTMENT BANK ISHTAR HOTELS KARBALA INDUSTRY KHARKH TOUR AMUZEMENT CITY KHUBAB FOR GENERAL CONSTRUCTION KURDISTAN INTERNATIONAL BANK MAMOURA REALESTATE INVESTMENT MESOPOTAMIA INVESTMENT MESSAN FOR FOOD INDUSTERIES METALLIC INDUSTRIES AND BICYCLES MIDDLE EAST FOR PRODUCTION- FISH MODERN CHIMICAL INDUSTRIES MODERN CONSTRUCTION MATERIAL INDUSTRY MODERN FOR ANIMAL PRODUCTION MODERN PAINT INDUSTRIES MODERN SEWING MOSUL BANK FOR DEVELOPMENT MOSUL FOR FUNFAIRS NATIONAL BANK OF IRAQ NATIONAL CHEMICAL &PLASTIC INDUSTRIES NATIONAL FOR FOOD INDUSTRIES NATIONAL FOR PRODUCTION FISH NATIONAL FOR TOURIST INVESTMENTS NATIONAL HOUSEHOLD FURNITURE INDUSTRY NINEVEH FOOD INDUSTRIES NORTH BANK NORTH SOFT DRINKS NORTHERN SOFT DRINKS PALESTINE HOTEL READY MADE CLOTHES SUMER COMMERICAL BANK THE LIGHT INDUSTRIES TOURIST VILIAGE OF MOSUL DAM UNION BANK OF IRAQ UNITED BANK FOR INVESTMENT WARKA BANK FOR INVESTMENT

PAGE 168 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Istanbul Stock Exchange Address: IMKB Building, Resitpasa Mah., Tuncay Artun Cad., Emirgan, 34467 Istanbul, Turkey Phone: (212) 298 2100 Fax: (212) 298 2500 E-mail: [email protected] Web Address: www.ise.org Country Code: 90 Company’s Name City Code Telephone Fax E-mail Address

ABN AMRO BANK N.V. MERKEZI AMSTERDAM IST. SB. 212 3594040 3595050 ACAR YATIRIM MENKUL DEGERLER A.S. 212 2162661 2660543 ADA MENKUL DEGERLER A.S. 212 2132570 2885796 ADABANK A.S. 212 2726420 2726446 AK YATIRIM MENKUL DEGERLER A.S. 212 3349494 2491287 AKBANK T.A.S. 212 3855555 2697383 AKDENIZ MENKUL DEGERLER TIC.A.S. 212 2331102 2344101 ALAN YATIRIM MENKUL DEGERLER A.S. 212 3812000 3812020 ALFA MENKUL DEGERLER A.S. 212 2774910 2770120 ALTAY YATIRIM MENKUL DEGERLER A.S. 212 2295980 2250135 ALTERNATIF YATIRIM A.S. 212 3155800 2313842 ALTERNATIFBANK A.S. 212 3156500 2257615 ANADOLU YATIRIM MENKUL KIYMETLER A.S. 212 3687700 2333318 ANADOLUBANK A.S. 212 2969811 2965715 ARAP TURK BANKASI A.S. 212 2250500 2249687 ARTI MENKUL KIYMETLER A.S. 216 5177245 5177246 ATA YATIRIM MENKUL KIYMETLER A.S. 212 3106200 3106210 ATAONLINE MENKUL KIYMETLER A.S. 212 3106060 2590764 AYBORSA MENKUL DEGERLER TIC.A.S. 212 2200930 2203851 B.A.B. MENKUL DEGERLER TICARETI A.S. 212 2344428 2962834 BAHAR MENKUL DEGERLER TICARETI A.S. 216 3362953 3478980 BANKPOZITIF KREDI VE KALKINMA BANKASI A.S. 216 5382525 5384241 BASKENT MENKUL DEGERLER VE YATIRIM A.S. 212 2912121 2190535 BGC PARTNERS MENKUL DEGERLER A.S. 212 3394200 3531301 BIRLESIK FON BANKASI A.S. 212 3401000 3401339 BIZIM MENKUL DEGERLER A.S. 216 4529090 4529093 CALYON BANK TURK A.S. 212 3393700 2826301 CAMIS MENKUL DEGERLER A.S. 212 3503002 3505150 CENSA MENKUL DEGERLER A.S. 212 3460300 3460333 CITIBANK A.S. 212 2887700 2887760 CREDIT SUISSE ISTANBUL MENKUL DEGERLER A.S. 212 3490400 3490409 CAGDAS MENKUL DEGERLER A.S. 212 2364510 2364520 CALIK YATIRIM BANKASI A.S. 212 3391414 3391444 DARUMA MENKUL DEGERLER A.S. 212 2166064 2166068 DEGER MENKUL DEGERLER A.S. 212 2864800 2864818 DEHA MENKUL KIYMETLER A.S. 212 2527190 2527198 DELTA MENKUL DEGERLER A.S. 212 3100800 2366567 DENIZ TUREV MENKUL DEGERLER A.S. 212 3364296 2118316 DENIZ YATIRIM MENKUL KIYMETLER A.S. 212 2753500 2125412 DENIZBANK A.S. 212 3550800 2672724 DEUTSCHE BANK A.S. 212 3170100 3170105 DEUTSCHE SECURITIES MENKUL DEGERLER A.S. 212 2522000 2933490 DILER YATIRIM BANKASI A.S. 212 2536630 2563040 DUNYA MENKUL DEGERLER A.S. 212 5128465 5272337 ECZACIBASI MENKUL DEGERLER A.S. 212 3195999 3195790 EFG ISTANBUL MENKUL DEGERLER A.S. 212 3172727 3172726 EGEMEN MENKUL KIYMETLER A.S. 232 4894530 4896130 EKINCILER YATIRIM MENKUL DEG.A.S. 212 2662766 2661607 EKSPRES YATIRIM VE MENKUL DEGERLER A.S. 212 3365100 3365101 ENTEZ MENKUL DEGERLER TICARETI A.S. 216 3477035 3466343 ETI MENKUL KIYMETLER A.S. 212 3213838 2949393 EURO YATIRIM MENKUL DEGERLER A.S. 212 3540700 3562076 EVGIN YATIRIM MENKUL DEGERLER TICARETI A.S. 212 2701046 2828820 FINANS YATIRIM MENKUL DEGERLER A.S. 212 2821700 2822250 FINANSBANK A.S. 212 3185000 3185578 FORM MENKUL DEGERLER A.S. 212 2848495 2848492 FORTIS BANK A.S. 212 2744280 2115879 FORTIS YATIRIM MENKUL DEGERLER A.S. 212 3580770 3580778 GALATA MENKUL DEGERLER A.S. 212 3933900 2931010 GARANTI YATIRIM MENKUL KIYMETLER A.S. 212 3182838 2178470 GEDIK YATIRIM MENKUL DEGERLER A.S. 216 4530000 4530101 GFC GENERAL FINANS MENKUL DEGERLER A.S. 212 2331010 2968575 GLOBAL MENKUL DEGERLER A.S. 212 2445566 2445567 GSD YATIRIM BANKASI A.S. 216 5879000 4899781 GUNEY MENKUL DEGERLER A.S. 212 4413300 4413388 GUVEN MENKUL DEGERLER A.S. 212 2123270 2885038

PAGE 169 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Istanbul Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

HAK MENKUL KIYMETLER A.S. 212 2968484 2329823 HALK YATIRIM MENKUL DEGERLER A.S. 212 3930303 2929946 HEDEF MENKUL DEGERLER A.S. 212 3102700 2278333 HSBC BANK A.S. 212 3661173 3362641 HSBC YATIRIM MENKUL DEGERLER A.S. 212 3764600 3362472 INFO YATIRIM A.S. 212 3192600 3248428 IS YATIRIM MENKUL DEGERLER A.S. 212 3502000 3502001 JPMORGAN CHASE BANK MERKEZI NEW YORK ISTANBUL-TURKIYE SB. 212 3198500 3198664 K MENKUL KIYMETLER A.S. 212 2756060 2740991 KALKINMA YATIRIM MENKUL DEGERLER A.S. 212 2133005 2119702 KAPITAL YATIRIM MENKUL DEGERLER A.S. 212 3300333 3300369 MARBAS MENKUL DEGERLER A.S. 212 2863000 2863050 MED MENKUL DEGERLER A.S. 212 2745444 2744656 MEKSA YATIRIM MENKUL DEGERLER A.S. 212 3850900 3441121 MERKEZ MENKUL DEGERLER A.S. 312 3116665 3113397 MERRILL LYNCH MENKUL DEGERLER A.S. 212 3199669 3199512 MERRILL LYNCH YATIRIM BANK A.S. 212 3199500 3199511 METRO YATIRIM MENKUL DEGERLER A.S. 212 3440900 3440913 MILLENNIUM BANK A.S. 212 3153535 2331968 MNG MENKUL KIYMETLER YATIRIM A.S. 212 2922323 2934888 MORGAN STANLEY MENKUL DEGERLER A.S. 212 3390000 3390043 NUROL MENKUL KIYMETLER A.S. 212 2868000 2868001 NUROL YATIRIM BANKASI A.S. 212 2868000 2868001 OPUS MENKUL DEGERLER A.S. 212 3850101 3850199 ORION INVESTMENT MENKUL DEGERLER A.S. 212 3199800 3441577 OYAK BANK A.S. 212 3351000 2866100 OYAK YATIRIM MENKUL DEGERLER A.S. 212 3191200 3510599 ONCU MENKUL DEGERLER A.S. 212 2518380 2519012 ONER MENKUL KIYMETLER A.S. 212 2344062 2259892 PAY MENKUL DEGERLER A.S. 212 2751708 2750185 PIRAMIT MENKUL KIYMETLER A.S. 212 2939500 2939560 POLEN MENKUL DEGERLER A.S. 212 2525500 2522005 POZITIF MENKUL DEGERLER A.S. 216 6813030 6813001 PRIM MENKUL DEGERLER A.S. 212 2838888 2838890 RAYMOND JAMES YATIRIM MENKUL KIY. A.S. 212 3492000 3492001 SAN MENKUL DEGERLER A.S. 212 2433500 2491332 SANKO MENKUL DEGERLER A.S. 212 4100500 4100505 SARDIS MENKUL DEGERLER A.S. 212 3283750 3283755 SAYILGAN MENKUL DEGERLER TICARETI A.S. 212 5204242 5135209 SOCIETE GENERALE PARIS MRK. FRANSA IST. TR. MRK. SB. 212 2821942 2821844 SOYMEN MENKUL KIYMETLER A.S. 312 4688750 4688101 STANDARD UNLU MENKUL DEGERLER A.S. 212 3300202 3300178 STANDARD YATIRIM MENKUL KIYMETLER A.S. 212 3234878 3234850 STRATEJI MENKUL DEGERLER A.S. 212 3547900 2884811 SEKER YATIRIM MENKUL DEGERLER A.S. 212 2134370 2134391 SEKERBANK T.A.S. 212 3197200 3197079 T.C ZIRAAT BANKASI GEN. MD.SERMAYE PIYASALARI MD. 212 2765960 5843140 T.GARANTI BANKASI A.S. 212 3181818 3181880 T.HALK BANKASI A.S. 212 3930600 3930596 T.IHRACAT KREDI BANKASI A.S. (EXIMBANK A.S.) 312 4171300 4257896 T.IS BANKASI A.S. 212 3160000 3160900 T.KALKINMA BANKASI A.S. 312 2318400 2313125 T.SINAI KALKINMA BANKASI A.S. 212 3345050 2432975 T.VAKIFLAR BANKASI T.A.O. 312 4557575 4557690 TACIRLER MENKUL DEGERLER A.S. 212 3554646 2820997 TAIB YATIRIM MENKUL DEGERLER A.S. 212 3475454 3470111 TAIB YATIRIM BANK A.S. 212 3475454 3470111 TAKSIM YATIRIM A.S. 212 2517116 2497483 TEB YATIRIM MENKUL DEGERLER A.S. 212 3451111 3450714 TEKFENBANK A.S. 212 3570707 3570808 TEKSTIL BANKASI A.S. 212 3355335 3281328 TEKSTIL MENKUL DEGERLER A.S. 212 2762727 2762900 TERA MENKUL DEGERLER A.S. 212 2906990 2906995 TICARET YATIRIM MENKUL DEGERLER A.S. 212 2637373 2637363 TOROS MENKUL KIYMETLER TICARETI A.S. 212 2315252 2313849 TURKISH BANK A.S. 212 2250330 2250353 TURKISH YATIRIM A.S. 212 3151000 3151001 TURKLAND BANK A.S. 212 3683434 3683535

PAGE 170 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Istanbul Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

TURK EKONOMI BANKASI A.S. 212 2512121 2496568 UBS MENKUL DEGERLER A.S. 212 3192000 3192015 ULUS MENKUL DEGERLER A.S. 212 2573232 2578631 UNICORN CAPITAL MENKUL DEGERLER A.S. 212 2364141 2363918 UNIVERSAL MENKUL DEGERLER A.S. 212 2765540 2765617 VAKIF YATIRIM MENKUL DEGERLER A.S. 212 3523577 3523620 WESTLB AG MERKEZI DUSSELDORF IST. MRK. SB. 212 3392500 2830460 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 212 2801030 3252245 YAPI VE KREDI BANKASI A.S. 212 3397000 3396000 YATIRIM FINANSMAN MENKUL DEGERLER A.S. 212 3176900 2821550 ZIRAAT YATIRIM VE MENKUL DEGERLER A.S. 212 2851150 2851661

Karachi Stock Exchange Address: K.S.E. Building, Stock Exchange Rd., Offl. I. Chundrigar Road, Karachi-74000, Pakistan Phone: (21) 111-001-122 Fax: (21) 241 0825 E-mail: [email protected] Web Address: www.kse.com.pk Country Code: 92 Company’s Name City Code Telephone Fax E-mail Address

A. LATIF NOORANI 021 2410240 2428776 A. SATTAR MOTIWALA SECURITIES (PVT.) LTD 021 2446230 A.A.K. SECURITIE (PRIVATE) LIMITED 021 2413087 A.H.K.D. SECURITIES (PVT.) LIMITED 021 2444499 A.R.SECURITIES (PVT.) LIMITED 021 2473620 2473624 AAG SECURITIES (PVT) LIMITED 021 2429382 AAU SECURITIES (PRIVATE) LIMITED 021 2412280 AAZEB SECURITIES (PRIVATE) LIMITED 021 5670751 5670756 ABA ALI HABIB 021 2412491 2413822 ABBASI SECURITIES (SMC-PVT) LIMITED 021 2423785 2418823 [email protected] ABID ALI HABIB 021 2422118 2413822 [email protected] ACE SECURITIES (PRIVATE) LIMITED 021 5363439 5363438 ADAM HAJI MOHAMMAD SECURITIES (PRIVATE) LTD. 021 4937808 ADAM SECURITIES (PVT.) LTD 021 2420909 2437380 AFROZ ALI MERCHANT 021 2417434 AKD SECURITIES LIMITED 021 111-253-111 5867992 AKHAI SECURITIES (PVT.) LIMITED 021 2418672-74 AKY SECURITIES (PRIVATE) LIMITED 021 2439867-69 2439870 [email protected] AL HABIB CAPITAL MARKETS (PVT.) LIMITED 021 2417840 2417822 AL-ASAR SECURITIES (PVT.) LIMITED 021 2436786 2432086 ALFA ADHI SECURITIES (PVT.) LTD. 021 2422550 2425669 [email protected] ALFALAH SECURITIES (PRIVATE) LIMITED 021 2422359111-777 2422358 [email protected] AL-HOQANI SECURITIES & INVESTMENT CORPORATION (PVT) LTD. 021 2460931-6 2460937 ALI HUSAIN RAJABALI LIMITED 021 2417601-3 2420485 [email protected] AL-MAL SECURITIES & SERVICES LTD. 021 5611537 5611357 [email protected] ALTAF ADAM SECURITIES (PRIVATE) LIMITED 021 2446875-6 2440242 [email protected] AMBER HAROON SAIGOL 021 5670001 5870507 [email protected] AMIN TAI SECURITIES (PRIVATE) LIMITED 021 2429505-8 2423469 AMPLE SECURITIES (PVT.) LIMITED 021 2446796 2412412 AMZ SECURITIES (PRIVATE) LIMITED 021 2418491-3 2418495 [email protected] APEX CAPITAL SECURITIES (PRIVATE) LTD. 021 2472390 2472397 ARIF HABIB LIMITED 021 2415213-5 2429653 [email protected] ASHFAQ ASHRAF SECURITIES (PRIVATE) LIMITED 021 2444209 2462600 ASIAN SECURITIES LIMITED 021 2426649, 5870404 [email protected] ATLAS CAPITAL MARKETS (PVT.) LIMITED 021 111-226-100 5870543 [email protected] AZEE SECURITIES (PRIVATE) LIMITED 021 2411698 2410708 [email protected] AZIZ A. DAWOOD 021 2473955 2566929 AZIZ FIDAHUSEIN & CO. (PVT.) LIMITED 021 2410091-4 2415042 [email protected] B&B SECURITIES (PVT.) LTD. 021 2410857 BAGASRA SECURITIES (PRIVATE) LIMITED 021 2429708 2429709 [email protected] BAWA SECURITIES (PVT.) LIMITED 021 2418253 2410313 [email protected] BHAYANI SECURITIES (PRIVATE) LIMITED 021 2429774-7 2421755 [email protected] BMA CAPITAL MANAGEMENT LIMITED 021 111-262-262 2437094 CAPITAL ONE EQUITIES LIMITED 021 2412295 2410470 CASSIM INVESTMENTS (PRIVATE) LIMITED 021 2421626 2414742 CLIKTRADE LIMITED 021 5379611-2 5379669 [email protected] CONCORDIA SECURITIES (PVT) LTD. 021 2424526 2434832 CONTINENTAL CAPITAL MANAGEMENT (PVT) LTD 021 2446723 2446724 CREATIVE CAPITAL SECURITIES (PRIVATE) LIMITED 021 2446131-35 2446130 [email protected] CROSBY SECURITIES PAKISTAN (PRIVATE) LIMITED 021 5611883-5 5611886

PAGE 171 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Karachi Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

D.J.M. SECURITIES (PVT.) LIMITED 021 2441193 2443541 DALAL SECURITIES (PVT.) LIMITED 021 2467054-61 2467062 [email protected] DARSON SECURITIES (PRIVATE) LIMITED 021 2471083 2471088 [email protected] DATTOO SECURITIES (PRIVATE) LIMITED 021 2419713 2439236 [email protected] DAWOOD EQUITIES LIMITED 021 2271908 2271912-3 DAWOOD MOHAMMED 021 2413931 EASTERN CAPITAL LIMITED 021 5863801-10 5872206 [email protected] ELIXIR SECURITIES PAKISTAN (PRIVATE) LIMITED 021 2401021-28 2420527 [email protected] ESCORTS INVESTMENT BANK LIMITED 021 6371931-34 6312022 [email protected] FAIRTRADE CAPITAL SECURITIES (PRIVATE) LIMITED 021 2429042-46 2428552 FAWAD YUSUF SECURITIES (PRIVATE) LIMITED 021 2444554-5 2428464 [email protected] FDM CAPITAL SECURITIES (PVT.) LIMITED 021 2427174-6 2430302 FIRST CAPITAL EQUITIES LIMITED 021 2425698 2425329 FIRST CHOICE SECURITIES LIMITED 021 111-611-611 5660752 FIRST EQUITY MODARABA 021 5672815-8 5686116 FIRST NATIONAL EQUITIES LIMITED 021 111-000-363 5395953 [email protected] FORT SECURITIES (PRIVATE) LIMITED 021 5683148 5684768 [email protected] FORTUNE SECURITIES LIMITED 021 5309101-09 5309156 [email protected] FOUNDATION SECURITIES (PRIVATE) LIMITED 021 5612290-94 5612262 [email protected] FRIENDLY SECURITIES (PVT.) LIMITED 021 24421742 2442189 [email protected] GAZIPURA SECURITIES & SERVICES (SMC-PVT) LTD. 021 2418903 2422893 [email protected] GHORY'S SECURITIES (PRIVATE) LIMITED 021 2420005-7 2427269 [email protected] GLOBAL SECURITIES PAKISTAN LIMITED 021 2457500 2418061 GMI CAPITAL SECURITIES (PRIVATE) LIMITED 021 2417628 2437135 [email protected] GROWTH SECURITIES (PRIVATE) LIMITED 021 2463002-4 2463005 H & H SECURITIES (PRIVATE) LIMITED 021 4939854 H. M. IDREES H. ADAM 021 2425001 H. M. YOUNUS JANMOHAMMED 021 2419885 H.H.K. SECURITIES (PVT.) LIMITED 021 111-633-633 HAJI GHANI HAJI USMAN 021 2470220-29 2470090-96 HAROON SULEMAN 021 2412622 HH MISBAH SECURITIES (PRIVATE) LIMITED 021 2429106 2429106 [email protected] HUM SECURITIES LIMITED 021 2413358 2418973 HUSSAIN EBRAHIM (LATE) 021 2417601-5 [email protected] I.I. KODVAVI SECURITIES (PRIVATE) LTD. 021 2446651-4 2446655 [email protected] IGI FINEX SECURITIES LIMITED 021 2429601-6 2429607 [email protected] INTERMARKET SECURITIES (PVT.) LIMITED 021 2428765-69 2427388 INTERNATIONAL INVESTMENT COMPANY (PVT) LTD. 021 2419438 INVEST & FINANCE SECURITIES LIMITED 021 2276932-35 2276969 [email protected] INVEST CAPITAL & SECURITIES (PVT) LTD. 021 5215226-28 5215200 [email protected] INVESTEC SECURITIES LIMITED, (UNDER SUSPENSION) 021 2444428-31 2444432 INVESTMENT MANAGERS SECURITIES (PRIVATE) LTD. 021 5303145 5303152 [email protected] INVISOR SECURITIES (PRIVATE) LIMITED 021 5611492-5 5611532 [email protected] IQBAL USMAN KODVAVI SECURITIES (PVT.)LTD. 021 2424144 2429802 [email protected] IRFAN MAZHAR SECURITIES (PVT.) LIMITED 021 2446155 2446157 ISMAIL ABDUL SHAKOOR SECURITIES (PVT.) LIMITED 021 2424057 2424043 ISMAIL IQBAL SECURITIES (PVT.) LTD. 021 2470998 2470126 [email protected] J.P. MORGAN PAKISTAN BROKING (PRIVATE) LTD. 021 5610861 5610121 JAHANGIR SIDDIQUI & CO. LTD. 021 2799005 2800167 [email protected] JAN MOHAMMED A. LATIF NINI & SONS (PVT) LTD 021 2411284-5 2420277 [email protected] JAVED OMER VOHRA & CO. LTD. 021 2410849 2415709 [email protected] JAWED ZAKARIA GULABI SECURITIES (PRIVATE) LTD 021 2411492 JS GLOBAL CAPITAL LIMITED 021 2799005 2800167 KAI SECURITIES (PRIVATE) LIMITED 021 2446581 2446585 KASB SECURITIES LIMITED 021 111-222-000 2630202 [email protected] KHANANI SECURITIES (PRIVATE) LIMITED 021 2421752 KHOJA'S CAPITAL MANAGEMENT (PVT) LIMITED 021 5308301-9 5363170 KIF CAPITAL SECURITIES (PRIVATE) LIMITED 021 111-467-467 2427388 KOSMOPOLITAN SECURITIES (PRIVATE) LIMITED 021 2446035 2416951 LAKHANI SECURITIES (PRIVATE) LIMITED 021 2413741 2423467 LATIF SULEMAN SECURITIES (PRIVATE) LIMITED 021 2431957 2433767 LIVE SECURITIES (PRIVATE) LIMITED 021 2417346-49 2419649 [email protected] M H SECURITIES (PRIVATE) LIMITED 021 2432375 2414049 [email protected] M.A.N. SECURITIES (PVT.) LIMITED 021 2410240 M.B.J. SECURITIES (PVT.) LIMITED 021 2412265 M.J. MEMON SECURITIES (PRIVATE) LIMITED 021 2436948 2433748 [email protected] M.R.A. SECURITIES (PVT.) LIMITED 021 2419138 2417729 MAC SECURITIES (PRIVATE) LIMITED 021 2446550 2446559 [email protected] MAK SECURITIES (PRIVATE) LIMITED 021 111-633-633 2432368 [email protected] MALIK KHAN AWAN 021 2415263 MANNOO CAPITAL (PRIVATE) LIMITED 021 2419393 MARS SECURITIES (PVT) LTD. 021 2446441 2446441

PAGE 172 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Karachi Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

MAS CAPITAL SECURITIES (PVT.) LTD. 021 2446593-94 2437194 [email protected] MASHRIQ SECURITIES (PRIVATE) LIMITED 021 2410301 MASONS SECURITIES (PVT.) LIMITED 021 2416629 [email protected] MAYARI SECURITIES (PRIVATE) LIMITED 021 2416665 2400337 [email protected] MAZHAR HUSSAIN SECURITIES (PVT) LIMITED 021 2410456 2417414 [email protected] MEMON SECURITIES (PRIVATE) LIMITED 021 2417511 2427841 [email protected] MILLENNIUM CAPITAL MANAGEMENT (PVT.) LIMITED 021 (051) 2802271 051-2277307 MOHAMMED ANIS ISMAIL 021 2429277-81 MOHAMMED FAROOQUE HAJI ABDULLAH 021 2425147 2429825 MOHAMMED SIDDIQ AKBANI 021 5374017-18 MOHAMMED TARIQ MOTI 021 2413024 MOONACO SECURITIES (PRIVATE) LIMITED 021 2427740 2421176 [email protected] MOOSA, NOOR MOHAMMED, SHAHZADA & CO. (PVT) LTD. 021 2441991-3 2444115 MOOSANI SECURITIES (PVT) LIMITED 021 2400871-5 2416004 [email protected] MOTIWALA SECURITIES (PVT.) LTD. 021 2401933-35 2429375 themotiwala.com MSMANIAR FINANCIALS (PRIVATE) LIMITED 021 2427414 2437050 MUHAMMAD ANAF KAPADIA SECURITIES (SMC-PVT) LTD. 021 111-633-633 2432368 [email protected] MUHAMMAD AYUB YOUNUS SECURITIES (PVT) LTD 021 2470245 MUHAMMAD BASHIR KASMANI SECURITIES (PRIVATE) LTD. 021 2411460 MUHAMMAD HUSSAIN ISMAIL SECURITIES (PRIVATE LTD 021 2417326 MUHAMMAD MUNIR MUHAMMAD AHMED KHANANI SECURITIES (PVT) LTD. 021 2443434 2443434 [email protected] MUHAMMAD SHAHID DURVESH 021 2416059 MUHAMMED ASHFAQ HUSSAIN 021 2427814 [email protected] MUHAMMED SALIM KASMANI SECURITIES (PRIVATE) LTD. 021 2411460 MULTILINE SECURITIES (PVT.) LTD. 021 2440192-4 2440191 MUNAF SATTAR SECURITIES (PRIVATE) LIMITED 021 2422306 2429078 [email protected] MYTP SECURITIES (PRIVATE) LIMITED 021 2416647 N.U.A. SECURITIES (PRIVATE) LIMITED 021 2415739 2460913 [email protected] NAVEED H.M. IDREES 021 2433830 NINI SECURITIES (SMC-PRIVATE) LIMITED 021 2411284 NOMAN ABID & COMPANY LIMITED 021 5693580-2 5680206 nomanabid.org.pk ORIENTAL SECURITIES (PRIVATE) LIMITED 021 2446741-44 2446750 ORIX INVESTMENT BANK PAKISTAN LIMITED 021 5861266 5868862 [email protected] PAK MEEZAN SECURITIES (PVT.) LIMITED 021 2446293 2446712 PARDESI SECURITIES (PRIVATE) LIMITED 021 2428973-4 2416450 PATEL SECURITIES (PRIVATE) LIMITED 021 2416647 PEARL CAPITAL MANAGEMENT (PRIVATE) LIMITED 021 5884601 5312510 PRIME SECURITIES (PVT.) LIMITED 021 2437334-36 2437336 PRUDENTIAL SECURITIES LIMITED 021 2401660-3 2428192 R.F.R. SECURITIES (PRIVATE) LIMITED 021 2413087 R.T. SECURITIES (PVT.) LIMITED 021 111-267-111 5835958 RAFI SECURITIES (PRIVATE) LIMITED 021 111-159-111 2439631 [email protected] RAYOMUND JAL H.P. BYRAMJI 021 2443582 2436659 [email protected] S. NASIR HUSSAIN 021 2636000 2636325 SAAO CAPITAL (PRIVATE) LIMITED 021 22466922 SAKARWALA CAPITAL SECURITIES (PVT.) LTD. 021 2411998 2428303 [email protected] SALIM SOZER SECURITIES (PRIVATE) LIMITED 021 2411564 2417306 [email protected] SALMAN SERVICES (PVT) LIMITED 021 2425570 2425570 [email protected] SATTAR CHINOY SECURITIES (PVT.) LIMITED 021 2429715 [email protected] SAYA SECURITIES (PRIVATE) LIMITED 021 2417393 2427664 SAZ CAPITAL SECURITIES (PVT.) LTD. 021 2437195-8 2437194 SCHON CAPITAL MARKETS LIMITED 021 2636000 (10 Lines) 2636325 SECURITY INVESTMENT BANK LIMITED 021 2418410-13 2418414 [email protected] SEVEN STAR SECURITIES (PRIVATE) LIMITED 021 2441100 2428488 SHAHID ALI HABIB SECURITIES (PVT.) LIMITED 021 2446682 2471688 SHEHZAD CHAMDIA SECURITIES (PVT.) LIMITED 021 2462547-49 2462546 [email protected] SHERMAN SECURITIES (PVT.) LIMITED 021 2426002-5 2417472 SIDDIQ MOTI 021 2415484 2446536 [email protected] SIRAJUDDIN CASSIM (PRIVATE) LIMITED 021 2415459 SNM SECURITIES (PVT.) LIMITED 021 2467201-19 2467200 STANDARD CAPITAL SECURITIES (PRIVATE) LIMITED 021 2432367 2421639 [email protected] SURMAWALA SECURITIES (PRIVATE) LIMITED 021 2413346 2446851 [email protected] TARIQ VOHRA SECURITIES (PRIVATE) LIMITED 021 2423278 TAURUS SECURITIES LIMITED 021 2423772 TEWFIQ MOHAMMED AMIN FIKREE 021 2423113 2432097 TIME SECURITIES (PVT.) LIMITED 021 2439857-61 [email protected] TRADE-IN-SECURITIES (PRIVATE) LIMITED 021 2416321 2426180 TS SECURITIES (PRIVATE) LIMITED 021 2429124-5 2412337 [email protected] UNITED CAPITAL SECURITIES (PVT.) LIMITED 021 4316645 4322365 [email protected] WE FINANCIAL SERVICES LIMITED 021 2429288-9 2429292 [email protected] WORLDWIDE SECURITIES (PVT.) LIMITED 021 2472067 2472071

PAGE 173 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Karachi Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

Y.H. SECURITIES (PVT.) LIMITED 021 2446100 2446100 Z.A. GHAFFAR SECURITIES (PRIVATE) LIMITED 021 2419326 ZAFAR MOTI CAPITAL SECURITIES (PVT.) LTD. 021 2410307 2446536 ZHV SECURITIES (PRIVATE) LIMITED 021 2428184 [email protected] ZILLION CAPITAL SECURITIES (PVT.) LTD. 021 111-047-047 2429073 [email protected] ZUBEDA ABDUL SATTAR 021 2422306

Kazakhstan Stock Exchange Address: 67 Aiteke bi, 050000, Almaty, Republic of Kazakhstan Phone: (327) 272 98 98 Fax: (327) 272 09 25 E-mail: [email protected], [email protected] Web Address: www.kase.kz Country Code: 7 Company’s Name City Code Telephone Fax E-mail Address

ABN AMRO SECURITIES KAZAKHSTAN 727 2581 505 2581 506 ABS SECURITIES 727 2717 851 2717 851 ACCUMULATIVE PENSION FUND "GNPF" 727 2503 836 2509 135 [email protected] ACCUMULATIVE PENSION FUND KAZAKHMYS 3102 74 42 45 72 33 14 [email protected] ACCUMULATIVE PENSION FUND OF HALYK BANK OF KAZAKHSTAN 727 2397 028 2730 227 [email protected] AFC CAPITAL 727 2720 828 2720 827 AFFILIATED BANK "ABN AMRO BANK KAZAKHSTAN" 727 250 73 02 264 76 27 [email protected] AFFILIATED BANK "ALFA-BANK" 727 292 00 12 250 78 03 [email protected] AFFILIATED BANK "BANK OF CHINA IN KAZAKHSTAN" 727 258 55 10 258 55 17 [email protected] AIM CAPITAL 727 2444 333 2444 333 ALEM MANAGEMENT COMPANY 727 2668 250 2668 248 [email protected] ALFA TRUST 727 2915 291 2597 194 [email protected] ALIBI SECURITIES 727 2694 731 2694 725 [email protected] ALLIANCE BANK 727 250 03 00 259 67 87 [email protected] ALMATY FINANCIAL CENTER 727 272 64 80 272 63 50 [email protected] ALMATY INVESTMENT MANAGEMENT 727 2444 333 2445 153 [email protected] ALMEX ASSET MANAGEMENT 727 2442 333 2442 441 [email protected] ASIA BROKER SERVICES 727 2717 851 2717 873 [email protected] ASTANA-FINANCE 7172 592 252 591 051 [email protected] ASYL-INVEST 727 2630 415 2630 415 [email protected] ATF FINANCE 727 2583 117 2441 410 ATFBANK 727 258 30 81 258 30 32 [email protected] BANK "KASPIYSKIY" 727 250 18 20 250 95 96 [email protected] BANK CENTRECREDIT 727 2584 158 259 86 22 [email protected] BANK TURANALEM 727 250 51 24 250 02 24 [email protected] BCC INVEST 727 2443 232 2443 231 [email protected] BCC SECURITIES 727 2443 232 2443 231 BROKAGE COMPANY ASTANA-FINANCE 727 2446 046 2596 177 CAIFC COMPANY 727 3110 137 3110 144 [email protected] CAPITALIST SECURITIES 727 2509 737 2509 739 CENTRAS FINANCIAL 727 2598 877 2598 877 CENTRAS SECURITIES 727 259 88 77 259 88 87 [email protected] CITIBANK KAZAKHSTAN 727 298 03 91 298 03 99 [email protected] DB SECURITIS (KAZAKHSTAN) 727 267 10 60 258 16 42 [email protected] DELTA BANK 7292 2448 555 2448 557 [email protected] DEMIR KAZAKHSTAN BANK 727 250 85 50 250 85 25 [email protected] DEVELOPMENT BANK OF KAZAKHSTAN 7172 792 679 792 638 [email protected] EURASIA CAPITAL 727 3334 020 3334 669 [email protected] EURASIAN BANK 727 250 86 07 250 86 54 [email protected] EXIMBANK KAZAKHSTAN 727 2663 093 2663 910 [email protected] FINANCE COMPANY GREENWICH CAPITAL MANAGEMENT 727 273 98 20 2735 373 [email protected] FINANCIAL COMPANY ALLIANCE CAPITAL 727 258 24 16 258 24 15 [email protected] FIRST BROKERAGE HOUSE 727 2717 851 250 61 32 [email protected] FIRST INVESTMENT 727 258 70 79 258 29 36 [email protected] GENERAL ASSET MANAGEMENT 727 291 86 13 293 84 83 [email protected] GLOBAL SECURITIES (KAZAKHSTAN) 727 258 28 88 258 16 61 [email protected] GLOTUR INVEST 727 2980 876 2598 881 GRANTUM ASSET MANAGEMENT 727 244 57 44 261 12 59 [email protected] HALYK CAPITAL 727 2590 260 2590 022 HALYK FINANCE 727 259 00 28 259 05 93 [email protected] HALYK SAVING BANK OF KAZAKHSTAN 727 2590 350 2590 238 [email protected] HOUSE CONSTRUCTION SAVINGS BANK OF KAZAKHSTAN 727 2793 511 272 34 99 [email protected] IFG KONTINENT 727 2446 929 2446 932 [email protected] INFORMATIONAL-DISCOUNT CENTRE OF THE PROPERTY AND PRIVATIZATION COMMITTEE OF THE MINISTRY OF FINANCE 717 2320 374 2322 397 [email protected] INTERNATIONAL BANK "ALMA-ATA" 727 250 73 39 503 749 [email protected] INVESTMENT FINANCIAL HOUSE "RESMI" 727 266 71 77 266 70 77 [email protected]

PAGE 174 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Kazakhstan Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

KAZAKHSTAN FINSERVICE 727 2726 211 2726 001 KAZAKHSTAN INNOVATIONAL COMMERCIAL BANK 727 292 60 08 292 01 44 [email protected] KAZAKHSTAN-ZIRAAT INTERNATIONAL BANK 727 250 60 80 250 60 82 [email protected] KAZEXPORTASTYK-SECURITIES 7142 511 151 548 544 [email protected] KAZINVESTBANK 727 259 88 59 2598 658 [email protected] KAZKOMERTS INVEST RFCA 727 261 00 00 2443 838 [email protected] KAZKOMMERTS INVEST 727 261 00 00 2443 838 [email protected] KAZKOMMERTS RFCA 727 2588 493 2588 495 KAZKOMMERTS SECURITIES 727 258 84 93 258 84 95 [email protected] KAZKOMMERTSBANK 727 258 52 25 2509 507 [email protected] KAZPOST 727 259 06 43 259 06 47 [email protected] KG SECURITIES 7212 410 321 410 332 [email protected] LARIBA-BANK 727 2583 473 249 64 21 [email protected] MAG CAPITAL 727 2445 113 2445 113 MAG FINANCE 727 3111 018 3111 018 [email protected] MANAGEMENT COMPANY INVESTMENT RESOURCES 727 267 12 89 267 12 90 MONEY EXPERTS 727 2502 640 2502 013 [email protected] NATIONAL BANK OF KAZAKHSTAN 727 2596 800 2509 456 [email protected] NOMAD FINANCE 727 2726 966 2726 966 [email protected] NURBANK 727 250 00 00 250 67 03 [email protected] OPEN ACCUMULATIVE PENSION FUND OTAN 727 2503 040 2501 374 [email protected] ORDA CAPITAL 7252 545 236 545236 [email protected] PENSION ASSETS INVESTMENT MANAGEMENT COMPANY "BAILYK ASSET MANAGEMENT" 727 250 73 81 250 73 82 [email protected] PENSION ASSETS INVESTMENT MANAGEMENT COMPANY "PREMIER ASSET MANAGEMENT" 727 2667 177 2667 077 [email protected] PENSION ASSETS INVESTMENT MANAGEMENT COMPANY "ZHETUSY" 727 2442 661 2694 347 [email protected] PRIME FINANCIAL SOLUTIONS 727 3111 030 3111 031 [email protected] RBNT SECURITIES 727 2686 516 2456 242 [email protected] REAL-INVEST.KZ 727 295 21 06 295 21 08 [email protected] REAL-INVEST RFCA 727 2952 106 2952 108 RENESSANCE CAPITAL INVESTMENTS KAZAKHSTAN 727 2441 544 2441 545 RESMI INVESTMENT HOUSE ALMATY 727 2667 177 2667 400 SENIM-BANK 727 268 10 51 268 18 56 [email protected] SEVEN RIVERS CAPITAL 727 2739 081 2734 978 [email protected] SMART GROUP 727 2644 899 2954 375 [email protected] SUBSIDIARY BANK "HSBC BANK KAZAKHSTAN" 727 259 69 70 259 69 02 [email protected] TCESNABANK 7172 770 201 770 195 [email protected] TEMIRBANK 727 2587 873 250 77 85 [email protected] TEXAKABANK 727 250 00 87 250 00 63 [email protected] TOP INVEST 727 2378 400 2378 399 [email protected] TSESNA CAPITAL 727 2584 865 2584 865 [email protected] TURANALEM SECURITIES 727 299 10 50 299 10 25 [email protected] UNICORN IFC 727 2635 757 2635 761 [email protected] VERNY CAPITAL 727 2952 630 2952 637 [email protected] VISOR CAPITAL 727 277 77 17 277 77 18 [email protected] VISOR INVESTMENT SOLUTIONS 727 259 88 44 259 88 33 [email protected] VOSTOK CAPITAL 727 2500 834 2500 834 [email protected]

Kyrgyz Stock Exchange Address: 172 Moskovskaya St., 720010 Bishkek, Kyrgyz Republic Phone: (312) 665 059 Fax: (312) 661 595 E-mail: [email protected] Web Address: www.kse.kg Country Code: 996 Company’s Name City Code Telephone Fax E-mail Address

AALAM 312 284 530 284 610 [email protected] ARABEL 312 540 540 ASKO & CO. 312 544 242 544 216 [email protected] ATO FINANCE 312 652 234 240 922 [email protected] BBB 312 663 507 [email protected] BNC CAPITAL MANAGEMENT 312 663 660 667 211 [email protected] CAPITAL 312 663 660 663 543 [email protected] CHUIINVEST 313 333 747 333 747 [email protected] GLOBAL FINANCE 312 626 544 626 544 [email protected] JS HALYK BANK KYRGYZSTAN 312 218 932 218 955 [email protected] KAZINVEST 312 443 450 443 470 [email protected] KLS SECURITIES 555 928 206 NIET-ARAKET 312 910 122 910 223 [email protected] SENTI 312 219 946 610 025 [email protected]

PAGE 175 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Lahore Stock Exchange Address: 19, Khayaban-e-Aiwan-e-Iqbal, Lahore-54000, Pakistan Phone: (42) 636 8000 Fax: (42) 636 8485 E-mail: [email protected] Web Address: www.lahorestock.com Country Code: 92 Company’s Name City Code Telephone Fax E-mail Address

128 SECURITIES ( PVT) LTD. 42 5731747 5734501 [email protected] ABBASI & COMPANY (PVT.) LTD. 42 732 0707 735 4538 [email protected] ABID INVESTMENT (PVT) LTD. 42 5756161-65 575 3399 ABM SECURITIES (PVT.) LTD. 42 6310555-56 631 0557 [email protected] ADAM SECURITIES (PVT) LTD. 21 241 3580 243 7380 [email protected] ADEEL ZAFAR SECURITIES (PVT ) LTD. 42 636 8222 631 6204 [email protected] ADEEL & NADEEM SECURITIES (PVT) LTD. 42 5781601-5 578 1660 [email protected] ADHI SECURITIES (PVT.)LTD. 42 6369729-32 636 9728 [email protected] AFIC SECURITIES (PVT.) LTD. 42 6300101-3 630 0104 [email protected] AHMAD KULI KHAN KHATTAK 21 256 3138 256 4458 ALI USMAN STOCK BROKERAGE(PVT ) LTD. 42 111-254-254 636 8884 [email protected] AL-HAMAD INVESTMENT & SECURITIES (PVT) LTD. 42 6300277-81 630 0282 [email protected] ALLIED BANK LTD. 42 631 1428 631 1418 ALLIED SECURITIES ( PVT) LTD. 42 5894525-26 589 4527 ALTAF ADAM SECURITIES ( PVT. ) LTD. 21 2429541-43 242 9540 [email protected] AL-HAQ SECURITIES (PVT.) LTD. 42 636 2010 636 8782 [email protected] AL-HOQANI SECURITIES & INVESTMENT CORP (PVT.) LTD. 41 2623023-24 AMCAP SECURITIES (PVT.) LTD. 42 6309687-90 630 9690 [email protected] AMER SECURITIES (PVT.) LTD. 21 2415213-15 242 9653 [email protected] ARIF HABIB LTD. 42 6311611-14 636 0613 [email protected] ARIF LATIF 42 631 0412 631 0401 [email protected] ARIF MAJID CHAUDHRY 42 588 4071 583 8683 [email protected] DR ARSALAN RAZAQUE (SMC-PVT) LTD. 42 631 4552 631 4558 A. S. SECURITIES (PVT.) LTD. 42 6366170-74 636 6175 ATLAS CAPITAL MARKETS (PVT ) LTD. 42 7992284-86 799 2233 [email protected] AYAZ MAHMOOD (DECEASED) 21 2275353-56 227 5357 A.Z SECURITES (PVT) LTD. 42 6315 555 630 4687 [email protected] BMS CAPITAL (PVT) LTD. 42 567 1305 568 1296 [email protected] BRIGHT SECURITIES (PVT.) LTD. 21 5860668-69 586 9715 [email protected] BRIDGE SECURITES ( PVT ) LTD. 21 2472721-3 246 2030 CAPITAL VISION SECURITIES (PVT.) LTD. 42 637 2456 636 8466 [email protected] CRESCENT STANDARD BROKERAGE & INVT. SERVICES LTD. 42 6308781-83 631 5728 [email protected] DARSON SECURITIES (PVT.) LTD. 42 631 7111 631 4293 [email protected] DOSSLANIS SECURITIES (PVT.) LTD. 42 6375046-49 636 7999 [email protected] ESCORTS INVESTMENT BANK LTD. 42 6371931-34 637 5950 [email protected] FARZANA MUNIR FAIRWAY SECURITIES ( PVT ) LTD. 42 5878940-41 587 8941 [email protected] FIRST FIDELITY LEASING MODARABA 42 6306411-13 630 4156 FIRST PAKISTAN SECURITIES LTD. 42 631 1375 584 3730 [email protected] FINANCIAL HARBOUR (PVT) LTD. 42 300843 2358 FLOAT SECURITIES (PVT.) LTD. 42 584 4649 [email protected] GPH SECURITIES (PVT.) LTD. 42 6310715-16 766 2939 GUARDIAN SECURITES ( PVT ) LTD. 42 111-265-669 628 0791 [email protected] GUL ABDULLAH DHAMI 42 6368401-09 [email protected] GULREZ SECURITIES (PVT.) LTD. 42 6309851-54 630 9855 [email protected] HABIB ULLAH SHEIKH (PVT ) LTD. 42 6311383-7 636 8220 [email protected] HAJI ABDUL SATTAR 42 636 8963 721 2072 HAMEED MUKHTAR CHAUDHRY 42 6375470-71 636 9088 HARVEST SMARTREND SECURITIES (PVT.) LTD. 42 11180 0000 631 4193 [email protected] H.M.SIDDIQUE CHAUDHRY (DECEASED) H. HATIM H. KARIM 21 9217084-86 921 2374 HORIZON SECURITIES (SMC-PVT) LTD. 42 628 0825 628 0826 [email protected] H.S.Z. SECURITIES (PVT.) LTD. 42 6309439-40 630 9438 [email protected] HUMAYUN SAEED SHEIKH 42 630 4904 636 8679 [email protected] IFTIKHAR AHMAD MALIK 42 5716134-36 571 1530 [email protected] IGI FINEX SECURITIES LTD. 21 568 7494 568 4087 www.finexsecurities.com ILYAS SECURITIES (SMC-PVT) LTD. 42 111-135-135 758 6042 INNOVATIVE HOUSING FINANCE LIMITED 42 7235081-82 735 8817 INVEST & FINANCE SECURITIES LTD. 42 5787732-6 578 7737 [email protected] JAMSHAID & HASSAN SECURITIES (PVT.) LTD. 42 6371901-3 631 0154 www.jandhsec.com JAVAID IQBAL SECURITIES (PVT.) LTD. 42 6369112-6 636 9117 javediqbal@jis_lse.com JAVED AHMED SECURITIES (SMC-PVT ) LTD. 42 575 9621 571 0312 KASHIF RAFIQ VOHRA SECURITIES (PVT.) LTD. 42 630 1758 631 6204 www.krvsecurities.com K.H.S. SECURITIES (PVT.) LTD. 42 636 8436 636 8919 [email protected] KHALID JAVED SECURITIES (PVT.) LTD. 42 6307680-83 636 9143 [email protected] KHAWAJA IMTIAZ AHMED 42 575 6953 571 0604 KHAWAJA USMAN ARIF 42 630 8717 630 9489 [email protected] KSR STOCK BROKERAGE (PVT.) LTD 42 6316611-4 637 1868 [email protected] MAAN SECURITIES (PVT.) LTD. 42 6308000-2 631 5558 [email protected] MALIK HAMID ALI NOON 42 630 1803 630 1803 [email protected]

PAGE 176 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Lahore Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

MAXIMUS SECURITIES (PVT.) LTD. 42 6315772-4 630 9216 [email protected] MAZHAR HUSSAIN SECURITIES (PVT.) LTD. 42 627 8787 631 7329 [email protected] MAHA SECURITIES ( PVT ) LTD. 42 6310526-28 6368526 [email protected] MEHDI SECURITIES (PVT.) LTD. 42 631 2180 628 0764 [email protected] MGM SECURITIES (PVT.) LTD. 42 6279181-82 637 2475 [email protected] MILLENNIUM BROKERAGE(SMC-PVT) LTD. 42 6280771-6 630 8333 [email protected] MIAN MUHAMMAD SAEED (DECEASED) MIAN ASIF MAQBOOL SUKHERA 42 6305663-5 631 3803 [email protected] MIAN KHALID BASHIR 42 6312569-7 631 2567 MIAN NUSRAT-UD-DIN 42 6313995-6 627 9204 [email protected] MIAN SAJID MASOOD (ENGR.) 42 6313981-84 631 3985 [email protected] MIAN SHAUKAT SHAFI 42 568 5231 568 3662 [email protected] MIAN TAJAMMAL HUSSAIN 42 724 4181 724 2839 [email protected] MIRZA YASIN MAHMOOD 21 586 9398 MOOSANI SECURITIES (PVT.) LTD. 21 2400871-75 241 6004 www.moosani.com MONEYLINE SECURITIES (PVT.) LTD. 42 6279141-43 627 9144 [email protected] M.R.A SECURITIES (PVT.) LTD. 21 243 3090 241 7729 [email protected] M.R.SECURITIES ( SMC-PVT) LTD. 42 631 2222 636 8303 [email protected] MSA SECURITIES& SERVICES ( SMC-PVT ) LTD. 21 241 8903 242 2893 [email protected] MTM SECURITIES (PVT.) LTD. 42 6369991-8 627 9101 [email protected] MUHAMMAD AMER RIAZ 42 631 0441 631 3960 [email protected] MUHAMMAD AYUB CHAUDHRY 42 636 8322 636 9096 [email protected] MUHAMMAD ILYAAS SETHI 42 636 5756 636 8113 [email protected] MUHAMMAD IQBAL KHAWAJA 42 637 6808 631 5803 MUHAMMAD SHABBIR MALIK 42 766 8188 766 2303 MUHAMMAD JAVED 21 11126 3263 263 1021 [email protected] MUHAMMAD TAUQIR MALIK 42 6311401-4 636 0438 [email protected] MUHAMMAD YOUSAF RAO 21 2212882-89 221 2890 [email protected] MUMTAZ ENTERPRISES (PVT.) LTD. 21 2412145-46 241 6104 [email protected]. MUNIR KHALID 42 636 8974 636 8976 MZ SECURITIES (PVT) LTD. 21 241 2212 247 2235 [email protected] NAJAM RIAZ GHAURI 42 6371138-41 636 7976 [email protected] NASEER-UD-DIN 42 631 5997 631 5998 NASIR ALI SHAH BUKHARI 42 11122 2000 11122 2001 [email protected] NAVEED USMAN ENGR. 42 576 2494 [email protected] NAYYAR SHEIKH SECURITIES (PVT.) LTD. 42 6316116-8 631 6448 [email protected] N.H. SECURITIES (PVT.) LTD. 42 7235084-87 723 5083 [email protected] NETWORTH SECURITIES LTD. 42 6307701-4 630 7705 [email protected] ORIX INVESTMENT BANK PAKISTAN LTD. 21 5303515-17 582 1916 [email protected] PERVEZ AHMED SECURITIES (PVT.)LTD. 42 575 9621 571 0312 PLUS SECURITIES (PVT.) LTD. 41 2540956-59 262 9967 [email protected] PROGRESSIVE SECURITIES (PVT.) LTD. 42 631 7049 631 7048 www.progressive_lse.com PRUDENTIAL SECURITIES LTD. 42 637 5466 637 5980 [email protected] QASIM MAHMOOD SECURITIES (SMC-PVT.) LTD. 42 6372747-50 [email protected] QF SECURITIES (PVT) LTD. 42 663 9929 663 9753 R. F. J. EQUITY (PVT.) LTD. 21 2412265-66 241 6791 [email protected] RAVI SECURITIES (PVT.) LTD. 42 542 3378 542 3378 RAHAT SECURITIES LTD. 42 631 5223 631 4253 [email protected] R.S. EQUITIES (PVT.) LTD. 42 574 7905 574 7904 SALIHA HAROON 42 6311372-74 631 0245 SAT SECURITIES (PVT.) LTD. 42 6375445 637 5450 [email protected] SAFE SECURITIES (PVT ) LTD. 42 6368651-3 6368658 [email protected] S. D. MIRZA SECURITIES (PVT.) LTD. 42 636 8748 636 9108 [email protected] SEEMA MUBASHIR 42 7655578-79 SHAFFI SECURITIES (PVT.) LTD. 42 631 4732 631 4730 [email protected] SHAHID HASSAN AWAN (SUSPENDED) SHAUKAT SHAFFI 21 568 5231 568 3662 [email protected] SHAHID IQBAL 42 760 4184 SHAHID NAUMAN RANA (SUSPENDED) SHEWANI SECURITIES (PVT.) LTD. 42 630 7841 SHEIKH MUHAMMAD IQBAL 586 2168 SOHAIL RAZA MOOSANI(SMC-PVT) LTD. 21 240 0871 241 6004 [email protected] SONIA NISAR STOCK MASTER SECURITIES (PVT.) LTD. 42 6316454-7 631 6458 [email protected] SWITCH SECURITIES (PVT.) LTD. 42 631 7124 586 0497 [email protected] SLAS SECURITIES (SMC-PVT)LTD. 42 583 1644 SYED SARMAD MAQSOOD (SUSPENDED) S. Z. SECURITIES (PVT.) LTD. 42 627 8973 631 5969 s.z. [email protected] T&J SECURITIES (PVT ) LTD. TARIQ MAJID CHAUDHRY 42 631 0402 631 0401 TECHNO FUNDAMENTAL SECURITIES (PVT.) LTD. 42 631 7351 631 7350 [email protected] TRUST INVESTEMENT BANK LTD. 21 240 4714 240 4720 [email protected]

PAGE 177 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Lahore Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

TRUST SECURITIES & BROKERAGE LTD. 42 6373041-43 637 3040 [email protected] UNION SECURITIES (PVT.) LTD. 42 300429 4942 [email protected] UNIVERSAL EQUITIES (PVT) LTD. 42 591 1454 VALUE STOCK SECURITIES (PVT.) LTD. 42 11111 1255 577 0190 [email protected] WASI SECURITIES (SMC-PVT) LTD. 42 6367935-36 636 0067 [email protected] YASIR MAHMOOD SECURITIES ( PVT) LTD. 42 631 4141 631 4488 [email protected] Y.S. SECURITIES & SERVICES (PVT.) LTD. 42 636 8772 631 0186 [email protected] ZAFAR MOTI 21 241 0307 244 6536 [email protected] ZAFAR SECURITIES (PVT.) LTD. 42 5789500-03 578 9595 [email protected] ZAHID ALI HABIB 21 2429664-67 2413822 [email protected]

Macedonian Stock Exchange Address: Mito Hadzivasilev Jasmin 20, 1000 Skopje, Republic of Macedonia Phone: (2) 312 2055 Fax: (2) 312 2069 E-mail: [email protected] Web Address: www.mse.com.mk Country Code: 389 Company’s Name City Code Telephone Fax E-mail Address

ALTA VISTA BROKER 2 3 217 103 3217103 [email protected] AUCTOR BROKERI 2 3248 980 3246 570 [email protected] BITOLA BROKER 47 258 830 258 840 [email protected] BRO-DIL 2 329 8850 311 8670 [email protected] DINEV BROKER 2 3217 617 3217 926 [email protected] EURO BROKER 2 321 5198 322 3397 [email protected] FERSPED-BROKER 2 321 9333 221 9478 [email protected] ILIRIKA INVESTMENTS 2 329 6853 3213785 [email protected] INOVO BROKER 2 3120 941 3120941 [email protected] INVESTBROKER 2 311 0280 311 0290 [email protected] KBC SEKJURITIS SKOPJE AD SKOPJE 2 3239 605 3223 088 [email protected] KOMERCIJALNA BANKA 2 321 8217 321 8222 [email protected] NLB TUTUNSKABROKER 2 329 0931 313 3305 [email protected] OHRIDSKA BANKA 2 321 6250 322 2920 [email protected] POSTEL BROKER 2 322 4300 322 4300 [email protected] PUBLIKUM 2 3232 352 3232 353 [email protected] SILEKS BANKA 2 324 9360 324 9303 [email protected] STOPANSKA BANKA 2 329 5420 329 5551 [email protected] TTK BANKA 47 226 360 203 692 [email protected] UNIVERZALNA INVESTICIONA BANKA 2 321 0911 321 0950 [email protected] VIP BROKER 2 3298 385 3217 160 [email protected]

Moldovan Stock Exchange Address: 73 Stefan cel Mare Blvd., Chisinau 2001, Moldova Phone: (22) 277 594 Fax: (22) 277 356 E-mail: [email protected] Web Address: www.moldse.md Country Code: 373 Company’s Name City Code Telephone Fax E-mail Address

AD-MANAGER 22 227-484 278-060 [email protected] BANCA DE ECONOMI 22 218-026 218-006 [email protected] BANCA DE FINANTE SI COMERT 22 220-080 237-308 [email protected] BANCA SOCIALA 22 220-070 224-230 [email protected] BROKWEST 22 256-016 256-017 [email protected] DAAC PROM 22 743 314 746 397 [email protected] DAAC-INVEST 22 220-677 746-397 [email protected] ENERGBANK 22 276 033 544-378 [email protected] EUROCREDITBANK 22 500 128 548-827 [email protected] EXIMBANK 22 549 828 546 234 [email protected] FINCOM 22 541 917 272-564 [email protected] GEST-CAPITAL-MF 22 270-965 [email protected] INVESTPRIVATBANK 22 279 523 540-510 [email protected] IUVENTUS-DS 22 270-035 271 337 [email protected] M-INVEST 22 260-463 546-276 [email protected] MOBIASBANCA 22 256-449 541-935 [email protected] MOLDINDCONBANK 22 576-835 279-195 [email protected] MOLDOVA-AGROINBANK 22 220 671 226 162 [email protected] OLDEX 22 270 024 542 966 [email protected] PASSIM 22 555 579 522 049 [email protected] PROAJIOC 22 507 085 507 085 [email protected] UNIBANK 22 253-923 220 530 [email protected] VAL-INVEST 22 449-113 449-697 [email protected] VICTORIABANK 22 576-350 233 089 [email protected]

PAGE 178 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Mongolian Stock Exchange Address: Sukhbaatar Sq.-2, Ulaanbaatar, Mongolia Phone: (11) 310 501 Fax: (11) 325 170 E-mail: [email protected] Web Address: www.mse.mn Country Code: 976 Company’s Name City Code Telephone Fax E-mail Address

AJNAI INVEST 345757 ALTAN KHOROMSOG 450899 ALTAN SAN 311558 ARGAI BEST 327026 [email protected] BATS 326042 BATS INVEST 320773 BDSEC 321763, 313108 [email protected] BULGAN BROKERAGE 322708 [email protected] BUMBAT ALTAI 22166 CCP [email protected] DARKHAN BORKERAGE 27831 [email protected] DELGER KHANGAI SECURITIES 689254 ERDENEST FRONTIER 70119999 [email protected] GENDEX 636335, 632903 GLOBAL ASSET 320889 KHANSH INVEST 325849 [email protected] MASDAQ - [email protected] MERGEN SANAA 451626 MONGOL SECURITIES 462130 MONSECURITIES 323090 [email protected] MUNKHUD NIKI SANAR [email protected] TAVAN BOGD 351210, 22093 [email protected] TULGAT CHANDMANI UNDURKHAAN WORLDKEY 330594 [email protected] ZERGED 367609

Montenegro Securities Market Address: Cetinjski put, Zgrada Vektre 2A, 81000 Podgorica, Montenegro Phone: 81 235 051 Fax: 81 235 051 E-mail: [email protected] Web Address: www.montenegroberza.com Country Code: 381 Company’s Name City Code Telephone Fax E-mail Address

3M BROKER CO. PODGORICA 81 210 685 210 688 [email protected] ANGLO BROKER CO. PODGORICA 81 665 695 667 307 [email protected] BASILLEUS BROKER CO. PODGORICA 81 664 310 664 310 [email protected] CG BROKER CO. PODGORICA 8 230 490 230 497 [email protected] ENERGO BROKER CO. PODGORICA 81 215 230 215 231 [email protected] FIRST FINANCIAL BROKER BROKER-DEALER CO. PODGORICA 81 665 780 665 784 [email protected] GLOBAL BROKER-DEALER CO. PODGORICA 81 667 280 667 281 [email protected] HOLDER BROKER CO. PODGORICA 81 408 105 408 108 [email protected] HYPO ALPE ADRIA BROKER-DEALER CO. PODGORICA 81 408 691 408 690 [email protected] IN BROKER CO. NIKSIC 83 200 220 200 221 INVEST BANKA MONTENEGRO CO. PODGORICA 81 407 900 407 956 [email protected] INVEST BROKER CO. PODGORICA 81 210 335 210 335 [email protected] MARKET BROKER CO. BIJELO POLJE 84 430 360 430 363 [email protected] MB BROKER CO. PODGORICA 81 210 655 210 685 [email protected] MIK BROKER CO. PODGORICA 81 665 871 665 872 [email protected] MONETA BROKER - DEALER CO. PODGORICA 81 205 455 205 456 [email protected] MONTE ADRIA BROKER - DEALER CO. PODGORICA 81 231 305 210 640 [email protected] MONTE BROKER CO. BERANE 87 230 514 230 515 [email protected] MV BROKER CO. NIKSIC 83 212 036 212 822 [email protected] NARODNI BROKER CO. PODGORICA 81 662 622 662 622 NK BROKER CO. NIKSIC 83 220 044 220 045 [email protected] NOBL BROKER CO. PODGORICA 81 235 146 235 179 [email protected] NOVE BROKER CO. PODGORICA 81 664 100 667 711 [email protected] ONYX BROKER CO. BUDVA 86 451 816 402 416 [email protected] PARTNER BROKER CO. PODGORICA 81 232 255 232 266 [email protected] PODGORIâKI BROKER CO. PODGORICA 81 205 365 205 366 [email protected] SENZAL BROKER CO. PODGORICA 81 238 410 238 390 [email protected] VIP BROKER CO. PODGORICA 81 205 345 205 346 [email protected] WALL STREET BROKER CO. BUDVA 86 455 097 451 004 [email protected] WORLD BROKER-DEALER CO. PODGORICA 81 667 225 667 226 [email protected]

PAGE 179 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

Muscat Securities Market Address: P.O. Box 3265, Ruwi, Postal Code 112 Oman Phone: 2481-2607 Fax: 2481-5776 E-mail: [email protected] Web Address: www.msm.gov.om Country Code: 968 Company’s Name City Code Telephone Fax E-mail Address

AL AMIN SECURITIES 248 13738 15507 [email protected] AL MADINA FINANCIAL & INVESTMENT SERVICES 248 10859 10772 [email protected] AL SHUROOQ SECURITIES 247 89113 88882 [email protected] BANK MUSCAT 247 80139 98220 [email protected] FINANCIAL CORPORATION 248 116655 16611 [email protected] FINANCIAL SERVICES 248 17208 17205 [email protected] GLOBAL FINANCIAL SERVICES 247 00667 00662 [email protected] GULF INVESTMENTS SERVICES 247 90614 90612 [email protected] INTERNATIOMAL FINANCIAL SERVICES 247 95186 95188 [email protected] NATIONAL BANK OF OMAN 248 11491 98647 [email protected] NATIONAL SECURITIES CO. 245 71340 68737 [email protected] OMAN ARAB BANK 247 97428 93953 [email protected] Q INVEST 248 15580 17483 [email protected] UNITED SECURITIES 247 88647 88671 [email protected] VISION INVESTMENT SERVICES 248 12860 08088 [email protected]

Palestine Securities Exchange Address: Al Qasr Bldg., Rafidia, P.O. Box 128, Nablus, Palestine Phone: (9) 234 55 55 Fax: (9) 234 13 44 E-mail: [email protected] Web Address: www.p-s-e.com Country Code: 970 or 972 Company’s Name City Code Telephone Fax E-mail Address

AL-WATAN‹EH SECUR‹T‹ES COMPANY 2 298 0420 298 7277 [email protected] GLOBAL SECUR‹T‹ES COMPANY 9 238 7880 238 5060 [email protected] JORDAN & PALEST‹NE F‹NANC‹AL INVESTMENT COMPANY 2 298 7778 298 7779 [email protected] LOTUS F‹NANC‹AL INVESTMENTS CO. 2 297 1729 297 1727 [email protected] SAHEM TRAD‹NG & INVESTMENTS COMPANY 2 296 5710 296 5713 [email protected] TARGET INVESTMENT & SECUR‹T‹ES COMPANY 9 238 6111 238 6119 [email protected] UN‹TED SECUR‹T‹ES COMPANY 2 240 3090 240 3091 [email protected]

Sarajevo Stock Exchange Address: Fra Andela Zvizdovica 1A / X, 71000 Sarajevo, Bosnia and Herzegovina Phone: (33) 251 462 Fax: (33) 251 478 E-mail: [email protected] Web Address: www.sase.ba Country Code: 387 Company’s Name City Code Telephone Fax E-mail Address

AA KAPITAL BROKERS BIHAC 37 228 308 228 272 [email protected] AUCTOR BH MOSTAR 36 355 680 355 689 [email protected] AW BROKER SARAJEVO 33 766 666 766 725 [email protected] BOND INVEST MOSTAR 36 334 140 316 612 [email protected] EBROKERS SARAJEVO 33 714 370 714 371 [email protected] EUROHAUS SARAJEVO 33 720 900 710 611 [email protected] FIMA INTERNATIONAL SARAJEVO 33 710 840 710 842 [email protected] HYPO ALPE ADRIA VRIJEDNOSNICE SARAJEVO 33 755 736 755 790 [email protected] ICM SARAJEVO 33 561 600 561 601 [email protected] KVANTUM SARAJEVO 33 560 020 560 021 [email protected] MARKET BULL SARAJEVO 33 557 915 557 926 [email protected] NBC SARAJEVO 33 555 185 555 186 [email protected] PALISAEN SARAJEVO 33 776 171 776 173 [email protected] PREMIUM BROKER TUZLA 35 362 330 279 434 [email protected] RAIFFEISEN BROKERS SARAJEVO 33 296 546 296 553 [email protected] SEE INVESTMENT SOLUTIONS SARAJEVO 33 275 650 275 651 [email protected] UNIBROKER SARAJEVO 33 561 660 561 661 [email protected] VGT BROKER VISOKO 32 730 540 730 541 [email protected]

Tehran Stock Exchange Address: 228, Hafez Avenue, P.O Box 11355-399, IR-11389 Tehran, Iran Phone: (21) 6671 8385 Fax: (21) 6671 0111 E-mail: [email protected] Web Address: www.tse.ir - www.irbourse.com (Persian Website) Country Code: 98 Company’s Name City Code Telephone Fax E-mail Address

ABAN 21 66730226 6671 5666 [email protected] AGAH 21 66726505 6670 6487 info@agah_broker.com AMIN SAHM 21 6672 6505 6670 6487 [email protected] ANDISHE BARTAR 21 8870 6042 8872 1100 [email protected] APADANA 21 8873 2873 8874 1582 [email protected] ARMAN TADBIR NAGHSHE JAHAN 811 9512063 6615 973 [email protected] ARMOON BOURSE 21 8871 8056 8871 8056 [email protected] ARYA BOURS 21 6674 5965 6673 3389 [email protected] ARYA NOVIN 21 8882 8252 8832 3530

PAGE 180 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Tehran Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

ASEL 21 8870 1890 8871 5847 [email protected] ATI SAMAN 21 2203 7644 2203 7645 ATI SAZ 21 6673 3539 6674 3665 [email protected] ATIEH 21 6671 6285 6671 0285 [email protected] BADREH SAHAM 21 8871 1083 8870 1256 BAHMAN 21 8871 4799 8872 4241 [email protected] BANK EGHTESSAD NOVIN 21 6674 4240 6674 3848 [email protected] BANK KARAFARIN 21 8875 0064 8875 9314 [email protected] BANK KESHAVARZI 21 8872 9480 8872 9481 [email protected] BANK MASKAN 21 8872 0383 8872 0384 [email protected] BANK MELLAT 21 6671 4993 6671 4995 [email protected] BANK MELLI IRAN 21 8870 9693 8872 2189 [email protected] BANK REFAH KARGARAN 21 8880 8790 8880 8793 [email protected] BANK SADERAT IRAN 21 8872 6157 8872 6158 [email protected] BANK SAMAN 21 8877 4669 8877 0240 [email protected] BANK SANAT VA MADAN 21 6670 2868 6672 9173 [email protected] BANK SEPAH 21 8872 6057 8872 6058 [email protected] BANK TEJARAT 21 8872 0296 8855 5338 [email protected] BANK TOWSE-E SADERAT IRAN 21 8872 7690 8872 7692 [email protected] BAZARE SAHAM 21 2225 4129 2225 4127 [email protected] BEHGOZIN 21 6671 8408 66671 8408 [email protected] BIMEH IRAN 21 8897 3529 8896 4040 [email protected] BOURSIRAN 21 8883 2860 8884 3879 [email protected] DONYAYE KHOBREH 21 6672 4001 6672 4002 [email protected] DONYAYE NOVIN 21 6670 5889 6670 6743 EBRAZ 21 6672 5132 6672 5133 [email protected] ETEMAD SOROUSH 21 [email protected] ETMINAN SAHM 21 6672 8080 6672 8081 [email protected] GANJINEYE SAHAM 21 6672 4916 6673 8073 [email protected] GOLCHIN 21 6674 3713 6672 4809 [email protected] HAFEZ 21 8875 4916 8875 4918 [email protected] HESABDARAN 511 88458031 88458031 IMEN BOURSE 21 6674 0877 6670 5293 [email protected] IRAN SAHM 21 8887 3236 8879 7940 [email protected] ISATIS POYA 21 6674 5560 6674 5864 [email protected] JAHAN SAHM 21 6672 6500 6672 6650 KARAMAD 21 6672 4875 6672 4843 [email protected] KHOBREGAN SAHAM 21 6671 7760 6671 8492 [email protected] KIMIA SAHM 21 6672 4997 6670 5483 [email protected] MAHAKE SAHAME SANAYEH 21 6672 5706 6672 5708 [email protected] MEHR AFARIN 21 6674 4680 6674 4681 [email protected] MEYAR SAHAM 21 6673 6661 6672 2502 [email protected] MOEIN SAHM 21 6671 6945 6672 4978 [email protected] MOFID 21 8 1900 6672 6499 [email protected] MOSHAVERAN SAHAM 21 8870 1363 8870 1398 [email protected] NAHAYAT NAGAR 21 6673 9101 6671 9253 [email protected] NOANDISHAN BAZAR SARMAYEH 21 8873 9378 8876 2975 [email protected] OMID SAHM 21 8884 2738 88842738 [email protected] OMRAN 21 6672 4809 6671 8901 ORDIBEHESHTE IRANIYAN 21 8873 7367 8873 6260 [email protected] PARS BEYNOLMELAL 511 7684387 7684387 PARS GOSTAR KHOBRE [email protected] PARS NEMOUDGAR 21 6671 4952 6671 4955 [email protected] PARSIYAN info@pim_co.com PISHGAMANE BAZAR NOVIN 21 6672 4891 PISHTAZAN TAMADON PARS 711 2317680 8852 4235 [email protected] RAHBORD SARMAYEGOZARI 21 6672 5124 6672 5125 [email protected] RAHNAMAYE SARMAYEGOZARAN 21 6672 3355 6672 6011 [email protected] RAZAVI 21 8887 2053 8867 7987 [email protected] ROSHD PAYDAR 21 6671-9604 6671-5869 [email protected] SAHAM BAREZ 21 6673 1315 6671 5372 [email protected] SAHAM GOSTARAN SHARG 21 6672 4987 6672 7235 [email protected] SAHAM PAJOOHAN SHAYAN 21 6671 7751 6673 5361 [email protected] SAHAM POUYA 21 6671 8062 6672 4120 SAHM ANDISH 21 6672 8273 6672 9041 [email protected] SAHM ASHENA 21 6672 4908 6671 6891 [email protected] SAHM AZIN 21 8873 1215 8851 5748 [email protected] SAHM YAR 21 8871 0357 8871 0357 [email protected] SARMAYEGOZARI MELLI IRAN 21 8891 9679 8891 9670 [email protected] SARMAYEH VA DANESH 21 6671 6428 6674 3087 info@ckbroker SHAKHES SAHAM 21 8879 7885 8879 7884 [email protected] SIMABGOOUN 21 6672 4995 6670 1411 [email protected]

PAGE 181 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

Tehran Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

TADBIRGAR SARMAYE 21 8888 2265 8888 2290 [email protected] TADBIRGARAN FARDA 21 8852 5580 8852 5581 [email protected] TAHLILGARANE BASIR 21 6674 8990 6674 8991 TORBATI 21 6670 5889 TOWSE-E SAHAND [email protected] TOWSE-E SARMAYE DONYA 21 6672 9121 6672 9122 [email protected]

Tirana Stock Exchange Address: Rr. Dora D'lstria, Nr 2, Tirana, Albania Phone: (4) 265 058 Fax: (4) 271 850 E-mail: [email protected] Web Address: www.tse.com.al Country Code: 355 Company’s Name City Code Telephone Fax E-mail Address

BALLKAN GROUP 01 4 272 722 [email protected] ITALO-ALBANIAN BANK (BIA) 4 233 966 225 700 [email protected] KAPITAL INVEST 4 280 201 280202 [email protected] NATIONAL COMMERCIAL BANK (BKT) 4 228 743 237 570 [email protected] RAIFFEISEN BANK 4 274 910 227 262 [email protected] TRIUMF GROUP 4 256 081 256 081 [email protected]

“Toshkent” Republican Stock Exchange Address: 10, Bukhoro St., Tashkent 700047, Republic of Uzbekistan Phone: (71) 136 0740 Fax: (71) 133 3231 E-mail: [email protected] Web Address: www.uzse.uz Country Code: 998 Company’s Name City Code Telephone Fax E-mail Address

GALLABANK 71 136 1617 133 4225 IPOTEKA BANK 71 136 0388 133 3089 PAKHTABANK 71 173 2551 120 8808 UZSANOAT QURILISH BANK 71 120 4534 120 4534

Ukrainian Stock Exchange Address:10 Rylsky Provulok, 01025 Kiev, Ukraine Phone: (44) 279 4158 Fax: (44) 278 5140 E-mail: [email protected] Web Address: www.ukrse.kiev.ua Country Code: 380 Company’s Name City Code Telephone Fax E-mail Address

A.I.S.T. INVEST 44 244 9758 244 9758 ABSOLUT INVESTMENTS 0322 97 0989 39 5334 [email protected] AGENCY FOR SECURITIES "KREDO-INVEST" 61 231 49 09 286 15 51 AGENCY OF CORPORATE INVESTMENTS 44 2489186 2489160 AJKO 522 235 583 236 398 AUTOZAZ BANK 612 172 966 172 961 [email protected] AVAL BANK 44 290 8888 490 8938 [email protected] AVEST BROK 057 720 5945 703 4309 AVTOMOBILNAYA FONDOVAYA COMPANY 57 7140 014 7140 014 [email protected] AYAKS 572 940 951 943 772 [email protected] BANK NRB 44 247 43 22 247 43 23 BANK OF REGIONAL DEVELOPMENT 44 494 4847 494 4847 [email protected] BRIAR 352 55 00 07 55 00 05 BROKBUSINESSBANK 44 206 2959 459 6747 [email protected] BROKERAGE COMPANY - STOCK MARKETS COMPANY 57 719 41 51 758 79 12 BROKERAGE COMPANY "STANISLAV D" 342 554 222 554 222 BROOKS 562 341 877 341 271 [email protected] BUL-SPRED 472 54 06 85 54 06 85 CAPITAL MANAGEMENT GROUP 629 343 093 412 853 [email protected] CAPITAL MARKET 57 7198 021 7198 021 [email protected] COMMERCIAL BANK "UKRAINIAN FINANCIAL GROUP" 44 251 8380 251 8353 [email protected] COMMERCIAL BANK "VOLODYMYRSKYY" 542 21 54 00 21 54 23 DEMARK BANK 4622 164 686 178 055 [email protected] DIKOM 62 337 0773 332 2595 [email protected] EAST-EUROPEAN BANK 44 205 4270 205 4270 [email protected] EAST-EUROPEAN INVESTMENT-INNOVATION CO. 44 229 4088 229 4088 [email protected] ELIT-BROCK 57 759 06 91 759 06 91 ENERGOPROEKT 44 456 3479 456 3479 [email protected] EUROPEAN BANK 572 282 287 282 006 [email protected] FAGOT 44 451 5698 451 5698 [email protected] FINKOM TRADING 564 260 905 260 905 [email protected] FINANCE COMERZ 57 757 8335 757 8336 [email protected] FINANCIAL COMPANY "KUB" 44 296 5228 296 5228 [email protected] FINANCIAL COMPANY "STOLICHNYY CAPITAL" 44 235 3243 234 8161 [email protected] FINANCIAL GROUP "FONDOVI TECHNOLOGII" 44 417 20 70 417 20 70

PAGE 182 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 20072008

Ukrainian Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

FINANCOVA COMPANIA "STOCKS" 44 537 43 80 566 93 74 [email protected] FINANSY TA CREDYT BANK 44 490 6870 484 2571 [email protected] FLAYTON 482 250 202 250 202 [email protected] FONDOVA COMPANIA "DALIZ-FINANCE" 44 285 75 47 285 75 47 FONDOVA COMPANIA "EKSPERT" 44 455 6853 240 9783 [email protected] FONDOVA COMPANIA "FAVORIT" 44 458 05 45 458 05 45 [email protected] FONDOVA COMPANIA "OPTSION" 44 486 86 12 455 68 53 FONDOVA GRUPA 44 462 0325 462 0319 [email protected] FONDOVA SPILKA 44 538 0979 538 0979 [email protected] FONDOVYY AGENT "AVISTA" 44 501 48 33 501 48 33 GELIKON 4622 710 15 710 15 GENERAL INVESTMENT CO. 44 455 6766 464 5961 [email protected] GENERAL INVESTMENTS 572 282 264 282 266 [email protected] GOLDEN GATE BUSINESS 44 201 2020 201 2023 [email protected] INDEX-STOCKS 571 7578 145 7578 146 [email protected] INDUSTRIALNO-EXPORTNYY BANK 44 494 1506 494 1506 [email protected] INVEST TRADE 44 416 7113 416 1559 [email protected] INVESTMENT COMPANY "STANDARD-INVEST" 44 286 24 73 286 24 73 ITT INVEST 44 246 6841 277 2112 [email protected] JEROM SECURITIES 44 206 5450 206 5450 JOINT-STOCK COMMERSIAL PROMINVEST BANK 44 229 8303 229 1456 [email protected] KOMEX SECURITIES 44 220 9588 227 7022 [email protected] KOMFORT-SECURITIES 44 590 29 52 590 29 50 KONKORD CAPITAL LTD. 44 207 50 30 207 50 31 KROK-MT 3422 40 056 76 261 [email protected] KYIV-DILER 44 529 24 51 592 84 15 LEGBANK 44 227 9570 227 9519 [email protected] LVIVSKI SECURITIES 322 970 668 970 668 [email protected] MAST 057 7140 643 7140 956 [email protected] MORSKYY BANK 692 458 570 458 570 [email protected] MORTRANSBANK 482 301 300 301 301 [email protected] MRIYA 44 244 6199 216 6543 [email protected] MRIYA-FINANCE 44 265 0841 265 0841 ›[email protected] NADRA 44 238 8477 205 3011 [email protected] NPK INVEST 57 7005 011 7005 012 [email protected] ONIKS-IVA 3422 311 55 323 20 [email protected] PKTB-SECURITIES 44 496 0115 496 0115 [email protected] PLANETA BROK LTD. 44 20612 96 206 12 93 POLIKOMBANK 462(2) 74 895 101 513 [email protected] PRIVATBANK 562 390 718 680 514 [email protected] RENESSANS CAPITAL UKRAINE 44 230 9318 230 9319 [email protected] RIELT INVEST GROUP 44 272 42 64 272 42 64 RIKA-BROKER 44 416 8352 416 8352 [email protected] RINKOM INVEST 44 544 5647 544 5647 [email protected] SEB BANK 44 238 67 67 234 63 50 SECURITIES TRADER "EAST-MAKLER" 57(2) 712 1848 219 9761 [email protected] SELYANSKA INVESTMENT CO. 44 246 4897 234 6037 [email protected] SEVASTOPOLSKYY DEPOSITORY 692 48 81 56 48 81 56 SIGMA FéND 572 141 180 141 188 [email protected] SIRIUSSECURITIES 532 508 921 508 921 [email protected] SOFIYA SECURITIES 44 244 2887 244 2996 [email protected] STATE OSCHADNY BANK OF UKRAINE 44 247 8450 247 8515 [email protected] STOCK 564 260 807 261 561 [email protected] STOCKTRADER 342(2) 43 033 785 328 [email protected] STOIK 57 757 4527 712 3386 [email protected] STOLICHNA FONDOVA CO. 44 249 3697 249 3697 SYNTEZ 44 461 7930 228 6400 [email protected] TAVRIKA BANK 692 2055 983 2055 983 [email protected] TECHNOTERN INVEST 352 229 086 235 579 [email protected] TEKT-BROK 44 201 6391 201 6392 [email protected] TRADEINVEST 44 290 5150 249 3697 TRANSFERBUTIK 44 272 1748 272 1708 [email protected] TRICK LTD. 512 471 991 471 991 UKRAINIAN BANK FOR RECONSTRUCTION & DEVELOPMENT 44 585 24 28 585 28 42 UKRAINIAN DEPOSITORY CO. 44 451 4447 451 4447 [email protected] UKRAYINSKA KONZESIYNA COMPANY LTD. 44 244 3222 244 0715 [email protected] UKRAYINSKI SECURITIES 44 253 6863 206 3022 [email protected] UKRAYINSKY KOMUNALNY BANK 642 553 529 420 106 [email protected] UKRAYINSKY PROMYSLOVY BANK 44 537 5154 537 5154 [email protected] UKRINBANK 44 247 2182 247 2134 [email protected] UKRINVEST 352 235 366 239 9777 [email protected] UKRSOTSBANK 44 238 3243 269 1307 ›[email protected]

PAGE 183 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008

Ukrainian Stock Exchange (con’t) Company’s Name City Code Telephone Fax E-mail Address

UNIVERSAL FONDOVY 44 268 5696 268 5696 [email protected] VABANK 44 490 0662 216 0033 [email protected] VALENTA INVESTMENTS 44 272 14 86 272 14 86 VASH VYBOR 652 546 613 546 613 [email protected] VEST STOCK 312 612 181 619 277 [email protected] ZDOBUTOKINVEST 44 451 2815 451 2816 [email protected]

Zagreb Stock Exchange Address: I. Lucica 2a/22 HR-10000 Zagreb, Croatia Phone: (1) 468 6800 Fax: (1) 467 7680 E-mail: [email protected] Web Address: www.zse.hr Country Code: 385 Company’s Name City Code Telephone Fax E-mail Address

ABACUS BROKERI D.D. 1 482 5790 487 7651 [email protected] ANTEA BROKERI D.O.O. 1 231 9715 232 0110 [email protected] APEX VRIJEDNOSNICE D.O.O. 1 6386211 6386215 [email protected] ARGUS VRIJEDNOSNICE D.O.O. 1 099/2146382 AUCTOR D.O.O. 1 480 7600 480 7622 [email protected] CBB VRIJEDNOSNICE D.O.O. 42 314 258 313 132 [email protected] CENTAR BANKA D.D. 1 487 7444 488 0375 [email protected] COMPLETE LINE D.O.O. 44 523 062 524 116 [email protected] CREDOS D.O.O. 1 236 3431 236 3433 [email protected] CROBA VRIJEDNOSNICE D.O.O. 1 239 1605 239 1669 [email protected] DIONICA BROD 35 447 750 443 343 [email protected] EA SISTEM D.O.O. 47 415 341 415 891 [email protected] ERA KAPITAL D.O.O. 1 6391700 639 1705 [email protected] ERSTE VRIJEDNOSNI PAPIRI D.O.O. 62 37 2819 37 2801 [email protected] FIMA-VRIJEDNOSNICE D.O.O. 42 390 937 390 989 [email protected] FINTRADE D.O.O. 21 344 454 270 670 [email protected] HITA VRIJEDNOSNICE 1 480 7750 480 7770 [email protected] HRVATSKA PO·TANSKA BANKA D.D. 1 488 8222 481 3111 [email protected] HYPO ALPE ADRIA BANK D.D. 1 603 5380 603 5110 [email protected] I.C.F D.O.O. 1 600 5600 600 5601 [email protected] ILIRIKA VRIJEDNOSNI PAPIR D.O.O. 1 480 8057 480 8030 [email protected] INTERFINANCE D.O.O. 1 238 1000 238 1020 [email protected] INTERKAPITAL VRIJEDNOSNI PAPIRI D.O.O. 1 482 5850 481 2338 [email protected] INVESTCO VRIJEDNOSNICE D.O.O. 1 481 1777 492 0711 [email protected] ISTARSKA KREDITNA BANKA D.D. 52 702 340 702 388 [email protected] KARLOVACKA BANKA D.D. 47 614 315 614 306 [email protected] KD UPRAVLJANJE IMOVINOM 1 627 4403 627 4408 [email protected] MOMENTUM BROKERI D.O.O. 1 6396671 /672 6396680 [email protected] OTP BANKA 62 201 707/ 710 201 711/ 712 [email protected] PARTNER KAPITAL 1 460 2361 460 2365 [email protected] PODRAVSKA BANKA D.D. 48 655 260 655 261 [email protected] PRIVREDNA BANKA ZAGREB D.D. 1 489 1332 636 0771 [email protected] PRVA GENERACIJA D.O.O. 1 461 2055 461 9761 [email protected] RAIFFEISENBANK AUSTRIA D.D. 1 469 5072 456 0772 [email protected] [email protected] RAST D.O.O. 42 658910 658 901 [email protected] SOCIETE GENERALE - SPLITSKA BANKA D.D. 21 304621 304 607 [email protected] STED-KAPITAL D.O.O. 1 630 6639 618 7531 [email protected] TO ONE BROKERI D.D. 1 492 4790 492 4700 [email protected] TRCIN VRIJEDNOSNICE D.O.O. 1 492 0350 481 3090 [email protected] UTILIS D.O.O. 40 310114 312 726 [email protected] VOLKSBANK D.D. 1 480 1226 480 1233 [email protected] ZAGREBACKA BANKA D.D. 1 4801544 480 1706 [email protected]

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