GSS NEWSLETTER ISSUE 122 June 2011 2
Content Dear Clients 5 JOHN'S CORNER 7 Austria 8 UniCredit Bank Austria expects stock market in Vienna to rise 8 UniCredit Bank Austria raises GDP forecast for 2011 8 ATX companies distribute EUR 2.1 bn in dividends this year 8 Belarus 9 National Bank of Belarus increases borders of price range 9 National Bank to increase the refinancing rate 9 Bosnia and Herzegovina 10 Credit rating of Bosnia and Herzegovina 10 6th International conference of the Banja Luka Stock Exchange 11 Bulgaria 12 Draft law on collective investment schemes 12 Government measures for further development of the Bulgarian capital market 13 BNB transfers its Shares in CDAD to the Ministry of Finance 14 New tariff of the Financial Supervision Commission 14 Croatia 15 Banks report HRK 1.26 bn in gross profits in Q1 15 10 bids submitted for construction of new passenger terminal at Zagreb airport 16 World Bank grants EUR 150 mn to Croatia 16 Czech Republic 17 New issue of New World Resources Plc 17 New bonds on PSE markets 18 2010 annual report of the Prague Stock Exchange 18
Issue 122, June 2011 3
Hungary 19 Successful Eurobond launched by Hungary 19 GDMA buys back highest debt in the past two years 20 Kazakhstan 21 Reorganisation of financial authorities 21 Kyrgyzstan 22 Increased business activity 22 Poland 23 NDS officially launches partial settlement project 23 Romania 25 Stock Exchange companies announced an increase of 26% for the first quarter of 2011 25 Romanian investment fund, Fondul Proprietatea, received the approval of the National Securities Commission to invest in foreign markets 25 New changes in the management of Teraplast are meant to efficient the company 26 Vimetco plans to sell share package in Romania’s Alro Slatina through secondary public offering 26 Romanian Central Bank keeps main interest rate unchanged at 6.25% 26 Inflation reached a new high at 8.34% 27 The Romanian GDP increased by 0.6% in 1Q 2011 27 New Romanian accounting law 27 Romania up four places in competitiveness ranking 27 Russia 28 A new strategy for the banking sector 28 Requirements to capital of professional market participants remain unchanged 29 Finance Ministry to place Eurobond 29 Serbia 30 Serbian market posts growth in Q1 30 Risk rating downgraded 31 NBS appoints its lead economist 31 Benchmark rate unchanged, monetary policy to slowly ease 32 IMF discusses pension law changes 32
Issue 122, June 2011 4
Slovak Republic 33 Slovak banks passed stress tests 33 Bratislava Stock Exchange ranking in 1st quarter 2011 34 Central Securities Depository published annual statistics for 2010 34 Bratislava Stock Exchange trading in April 2011 35 Slovenia 36 Amended CSD regulations 36 PM meets UK investors, announces fresh round of privatistion 37 Ukraine 38 Net direct investment inflow to Ukraine in Q1 increased by 8.4 times 38 SSMSC to invigorate stock market development through mini-IPO 38 Georgia 39 Financial assistance for Georgia 39 Azerbaijan 39 Central Bank of Azerbaijan has raised the refinancing rate from 5% to 5.25% 39 Your Contacts 40 Disclaimer 43 Imprint 44
Issue 122, June 2011 5
Dear Clients
Lejla Sabljica (Head of GSS Bosnia and Herzegovina)
It is my pleasure to introduce Bosnia and Herzegovina B&H is a signatory of the Central European Free Trade (B&H) in this issue and bring this country closer to you. Agreement (CEFTA). B&H also has free trade agreements B&H lies in the very heart of South Eastern Europe, at the with Turkey, as well as preferential export regimes with the crossroads of Europe, the Middle East and Northern Africa European Union, USA, Japan, Canada, Switzerland, Aus- with an area of 51.209 km2 and an estimated popula- tralia, Norway, New Zealand, Russia and Iran. tion of 3.9 mn. B&H is a very hilly country with the Dinaric Mountains dominating the landscape. The highest point, B&H is a potential candidate country for EU accession. In Mt. Maglic, rises to 2,387m. Thick forests cover almost this respect, it is worth mentioning that B&H has signed 50% of the land. In the north, along the Sava River valley, the Stabilization and Association Agreement (SAA) with the a hilly, fertile plain stretches east to west. The country has EU, establishing formal contractual relations between the 23 km of coastline in the southwest of the country, provid- EU and B&H. ing access to the Adriatic Sea. The capital city is Sarajevo and the other major cities are: Banja Luka, Bihac, Mostar, The last elections took place on 3 October 2010 and the Tuzla, Zenica. Bosnian winters can be very cold with a lot new government is elected on mandate period of four of snow, especially in the hills and mountains. Summers years. are generally warm and comfortable. The time zone is CET Capital markets in B&H are regulated at entity level (FB&H (GMT+1hour). and RS). There are two securities commissions, two CSDs The country comprises two governing entities, the Federa- and two stock exchanges (one in each entity). The legal tion of Bosnia and Herzegovina (FB&H) and the Republic framework for capital markets is to be found in the Law on of Srpska (RS), with a third region, the Brcko District being Securities Market in FB&H and Law on Securities Market administered by both. As regards the government struc- in RS. ture, B&H is a parliamentary democracy with a bicam- eral parliament (House of Representatives and House of Peoples), a three-member rotating presidency, a Council of Ministers, and Constitutional Court. The official currency is convertible mark (BAM) which is pegged to EUR at the following exchange rate: 1 EUR = 1.955830 BAM. In 2010 GDP per capita amounted to EUR 3.280. The current country ratings are: Moody's Investors Service B2 with negative outlook and Standard & Poor's B+ with stable outlook.
Issue 122, June 2011 6 Dear Clients
Trade of securities in B&H is conducted through two stock Market capitalisation of securities listed on Sarajevo Stock exchanges, The Sarajevo Stock Exchange (SASE) located Exchange and Banja Luka Stock Exchange has increased in Sarajevo and The Banjaluka Stock Exchange (BLSE) in the first four months of 2011 by 8.8% compared to capi- located in Banja Luka. According to the legal regulations talisation as of 31 December 2010. The main SASE index governing capital markets in B&H, the stock exchanges “SASX-10” recorded an increase of 10.8%, while the BLSE are places to organize a connection between the supply index “BIRS” increased by 22.3% as of the end of April. and demand in the securities trade and provide information on supply, demand, market price as well as other informa- In May 2011 new instruments became available on the tion on securities. The third function of stock exchanges is B&H capital market. The Government of Republic of to determine and publish quotation list of securities. Listed Srpska issued T-bills in the amount of BAM 30 mn. The securities are: equities, corporate bonds, government securities are listed on the BLSE. Furthermore, the Govern- bonds, municipal bonds, commercial papers, T-bills. The ment of Federation of B&H issued frozen savings bonds in settlement cycle is T+3. the amount of BAM 227 mn which are listed on the SASE.
The Sarajevo Stock Exchange (SASE) was founded by In the following months we expect an increase of capital eight brokerage houses on 13 September 2001. SASE has of the SASE, a new Law on Take Over in the Federation of three segments, with trading conducted on separate rules: B&H and Amendments of the Law on Securities Market in The Official Quotation, The Fund Quotation (as a sub-seg- the Republic of Srpska. ment of official quotation), and The Free Market. The GSS Department wishes you a pleasant reading! The Banjaluka Stock Exchange (BLSE) was founded on 9 May 2001 by eight banks and one company to trade Kind regards, in securities. The BLSE has two stock-exchange market- segments: the Official Stock Market (Quotation), and the Free Stock Market.
Lejla Sabljica Head of GSS Bosnia and Herzegovina
Issue 122, June 2011 7
JOHN'S CORNER
John Gubert
As Target 2 for Securities works to finalise the I would recommend that CSD pricing follow the rule of user Framework Agreement, which will define the relationship pays, whereby costs are allocated for each service charged between CSDs and the ECB, it is crucial how little momen- and fees aligned to those costs. That means that the CSD tum is behind the CSD definition of their own T2S service would levy the T2S charge on each transaction it handles as offering to their users. it, itself, is charged, whilst mark-ups will need to be compat- ible with those of the major CSDs to avoid becoming uncom- I believe the preferred option for local custodians is to inter- petitive. T2S reports would be passed on at cost (being the mediate T2S through their CSD, at least in the initial stages. price charged by T2S for the package plus outbound com- However, such a routing has to allow them to offer their clients munication costs) as the CSD adds no value to them but is service compatible with the alternative model, namely the merely a conduit. Added costs and replacement of lost set- direct route into T2S through sponsorship of a home country tlement revenues (beyond any savings that can be made- if CSD or one of its peers. any) are best recouped through ad valorem charges, which are born by all CSD users. Marginalisation of their settlement role will cause major prob- lems for the CSDs as they are essentially fixed cost organisa- If a CSD wishes to develop cross border links, the costs tions. T2S will also increase their operating costs, especially should be ring fenced and charged to users of the cross in the early days, and they have to persuade their users that border service and not to those whose usage is limited to the inevitable new fee schedules to replace lost settlement domestic counters .And the CSD should not look to develop revenues and cover those extra costs are logical, fair and banking services or enter into risk (credit- including intraday competitive. or overnight) transactions that could result in a levy on users if they are not unwound. So what is needed from the CSDs? I see four key ground rules: Logically, many CSDs should not survive the T2S world. Cross Europe links are illogical for smaller CSDs, and the a. Produce a detailed price schedule no later than early 2012. business case for such limited geographical reach is far from clear for the others. The T2S CSD related develop- b. Confirm cut off times for settlement identical to those for ment effort, although at times exaggerated as a cover for direct participants in T2S on the basis that the CSD will needed upgrades to legacy platforms, is substantial and merely act as a message switch for T2S; on-transmitting perhaps too much to contemplate for some CSDs. But, inbound messages, formatted correctly, in real time. unfortunately, national pride may place CSDs in the same bracket as national airlines – often financially unsound but c. Commit to a package of reports under T2S at user choice symbolically important. and available in real time, in line with the timings of such reports for direct participants in T2S.
d. Maintain asset services compatible, at the minimum, with those currently offered today and avoid unprofitable and risky business expansion. John Gubert
Issue 122, June 2011 8
Austria
UniCredit Bank Austria expects stock market in Market Capitalisation EUR 89.7bn Vienna to rise YTD Dev. of Market Capitalisation 0.2% The leading index, ATX, is forecast to climb to 3200 points over the next twelve months, with the total returns potential Number of SE Transactions p.m. n.a. including dividends being 15% according to Thomas Neu- YTD Dev. of SE Transactions n.a. hold, Head of Austrian Equity Research at UniCredit. Neuhold SE Turnover (Vienna SE) EUR 2.1bn expects two to three interest rates moves by the ECB this Monthly Index Performance (ATX/VSE) 0.2% year, but none by the US Fed. The inflation rate will continue GDP per Capita (2011 in EUR) 35,520 to rise this year, but is expected to flatten next year. GDP Real 2011 (Change against prev. year in %) 2.3 3-Month Money Market Rate (current in %) 1.51 Impact on investors Inflation in 2011 (yearly average in %) 2.5 For information purposes. Austria Upcoming Holidays 2, 13, 23 June UniCredit Bank Austria raises GDP forecast for 2011 Source: UniCredit, National Statistics Austria’s economy will grow more robustly this year than had been expected up to now according to estimates by ATX UniCredit Bank Austria. The 2011 GDP growth forecast was Actual 38 Day moving average 200 Day moving average raised to 2.8 (2.3)%. 3100 3000 2900 “Compared to the rapidly spreading insecurity and risks in the 2800 past few weeks, the current economic recovery is surprisingly 2700 robust,” said Chief Economist at UniCredit Bank Austria, 2600 Stefan Bruckbauer. 2500 2400 2300 Impact on investors 2200 For information purposes. 2100 2000 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May ATX companies distribute EUR 2.1 bn in dividends this year Source: Thomson Datastream In total, the 20 ATX companies paid out around EUR 2.1 bn in dividends for the preceding business year. This is an increase of 16% versus the previous year. Telekom Austria paid out EUR 332.6 mn to shareholders and OMV almost EUR 300 mn. The payouts by Erste Group and Raiffeisen International increased to EUR 264.7 mn and EUR 205.3 mn, respectively, and VIG and Post raised their dividend payouts to EUR 128.0 mn and EUR 108.1 mn. Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 (Source: Wiener Börse) Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 Impact on investors SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 For information purposes. GDP per Capita (2011e in EUR) 35,520 GDP Real 2011e (Change against prev. year in %) 2.3 3-Month Money Market Rate (current in %) 1.51 Inflation in 2011e (yearly average in %) 2.5 .../EUR - Upcoming Holidays none
Written and edited by: Thomas Rosmanitz Head of Relationship Management Global Securities Services, Austria Tel. +43 50505 58515 · [email protected]
Issue 122, June 2011
5/30/2011 9:29 AM 9
Belarus
National Bank of Belarus increases borders of price Market Capitalisation USD 712.0mn range YTD Dev. of Market Capitalisation n.a. National Bank of Belarus has decided to increase the exist- ing borders of price range for foreign currency. The decision Number of SE Transactions p.m. (BCSE) 2,059 enters into force on 12 May. Limits will be expanded from YTD Dev. of SE Transactions -58.5% +/- 8% to +/-12%. The increase in the exchange rate band SE Turnover (BCSE) BYR 2,838bn will reduce the rate of local currency. At this point the OTC Monthly Index Performance (BCSE) 6.1% exchange rate of BYR/USD is 70% higher than the official GDP per Capita (2011 in EUR) 322 one. The dollar is sold at a price of 5,000 BYR, while its cost GDP Real 2011 (Change against prev. year in %) 18.57 should not exceed 3,000 BYR. 3-Month Money Market Rate (current in %) n.a. The currency crisis has been developing in the Republic of Inflation in 2011 (yearly average in %) 4.5 Belarus since the beginning of the year and on 19 April 2011 BYR/EUR 0.00023 the National Bank decided to start devaluation of the local Upcoming Holidays none currency.
Source: UniCredit, National Statistics Impact on investors Increase of the local currency rate fluctuation.
National Bank to increase the refinancing rate Starting from 18 May 2011 the National Bank of Belarus increases the refinancing rate by 1% resulting to 14%. Such decision was made by the National Bank due to significant growth of consumer prices. The last increase of the refinan cing rate was done in April 2011 from 12% to 13%.
Impact on investors Support of the local currency stability.
Written and edited by: Evgenia Klimova Head of Product and Business Development Global Securities Services, Russia Tel. +7 495 232-5298 · [email protected]
Issue 122, June 2011 10
Bosnia and Herzegovina
Credit rating of Bosnia and Herzegovina Market Capitalisation (Sarajevo SE) BAM 7.6bn On 16 May 2011, the international agency Moody’s Inves- YTD Dev. of Market Capitalisation 5.0% tors Service changed the outlook on the B2 sovereign credit rating to negative from stable. Bosnia and Herzegovina was Number of SE Transactions p.m. 1,105 also rated by Standard & Poor’s to have the credit rating B+ YTD Dev. of SE Transactions -39.2% with a stable outlook. SE Turnover (SASE) BAM 9.4mn Monthly Index Performance (SASX-10/SASE) -5.3% Pursuant to a formal decision of Bosnia and Herzegovina’s Market Capitalisation (Banja Luka SE) BAM 4.3bn Counsel of Ministers, Bosnia and Herzegovina signed the contract for sovereign credit rating reporting and monitoring YTD Dev. of Market Capitalisation 16.1% with two international credit rating agencies Moody’s Inves- Number of SE Transactions p.m. 2,785 tors Service and Standard & Poor’s. On the behalf of Bosnia YTD Dev. of SE Transactions 118.1% and Herzegovina, the contracts have been entered into by SE Turnover (BLSE) BAM 7.2mn the BH Ministry of Finance and Treasury. The Central Bank Monthly Index Performance (BIRS/BLSE) 4.5% of BH, in the capacity of a fiscal agent of the BH Ministry of GDP per Capita (2011 in EUR) 3,403 Finance and Treasury, coordinates the BH sovereign credit rating reporting and monitoring. GDP Real 2011 (Change against prev. year in %) 1.8 3-Month Money Market Rate (current in %) n.a. Based on their analysis, on 16 May 2011, Moody’s Investors Inflation in 2011 (yearly average in %) 2.1 Service has changed the outlook on the B2 sovereign credit BAM/EUR 1.96 rating to negative from stable. In December 2010, Standard & Poor’s confirmed that Bosnia and Herzegovina’s credit Upcoming Holidays Bosnia_Herzegovina none rating is B+ with a stable outlook. An overview of the cur- rent sovereign credit rating of BH issued by both agencies is Source: UniCredit, National Statistics provided in Table 1 below. BIFX Table 1: Current BH credit rating Actual 40 Day moving average 200 Day moving average Moody’s Investors 850 Standard & Poor’s Service 800 Credit Rating B2 / negative outlook B+ / stable outlook 750 Date 16 May 2011 17 December 2010 700 Status Outlook downgraded Confirmed 650 Source: Moody‘s Investors Service, Standard & Poor‘s 600 Jul
Apr Moody’s Investors Service was hired to asses the credit rating Jan Oct Jun Feb Mar Dec Aug Sep Nov May May in 2003 and in 2004 Bosnia and Herzegovina received its Source: Bloomberg first sovereign credit rating. Standard & Poor’s was hired in 2008 and also issued the BH sovereign credit rating for that year. Both agencies have regularly monitored Bosnia and Herzegovina’s status. They in fact travel to BH at least once a year for a mission to directly talk to BH state and entity officials, representatives of BH institutions, representatives of international community in BH, businesspeople and academ- ics with the objective to get a comprehensive picture of the Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 actual condition and outlooks of our country. Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 3,403 GDP Real 2011e (Change against prev. year in %) 1.8 3-Month Money Market Rate (current in %) - Inflation in 2011e (yearly average in %) 2.1 BAM/EUR 1.96 Upcoming Holidays none Issue 122, June 2011
5/30/2011 9:29 AM 11 Bosnia and Herzegovina
Bosnia and Herzegovina’s sovereign credit rating history 6th International conference of the Banja Luka Stock represents a review of all the ratings issued so far. Based Exchange on their analyses and appraisals, both Moody’s Investors The Sixth International Conference of the Banja Luka Stock Service and Standard & Poor’s publish reports on Bosnia Exchange was held on 19 May 2011 in Bosna hotel in Banja and Herzegovina. The history of the BH’s sovereign credit Luka. rating is provided in Tables 2 and 3 below. The following presentations were held at the conference: Table 2: BH sovereign credit rating history - Moody’s Investors Service ■■Debt securities market
■■Financing of development projects of Elektroprivreda RS Rating Date Status Outlook ■■The role of the Pension Reserve Fund in the capital market B2 / negative outlook 16 May 2011 downgraded ■■Current situation and perspectives of corporate governance B2 / stable outlook 17 May 2006 Rating upgraded ■■Possible directions of development of investment funds B3 / positive outlook 29 March 2004 Rating assigned The main objectives of the Banja Luka Stock Exchange con- Source: Moody‘s Investors Service ference were:
■■To educate the participants in RS capital market about Table 3: BH sovereign credit rating history - current issues that are crucial for the development of the Standard & Poor’s capital market, and to come up with proposals for the improvement of capital market development; Rating Date Status ■■To present investment opportunities in the capital market B+ / stable outlook 8 December 2009 Rating affirmed of RS and B&H to domestic investors and foreign institu- tional investors. B+ / stable outlook 22 December 2008 Rating assigned
Source: Standard & Poor‘s Impact on investors For information purposes only. Source: Central Bank of Bosnia and Herzegovina
Impact on investors For information purposes only.
Written and edited by: Amra Telacevic Relationship Manager Global Securities Services, Bosnia and Herzegovina Tel. +387 33 491 816 · [email protected]
Issue 122, June 2011 12
Bulgaria
Draft law on collective investment schemes Market Capitalisation BGN 11.8bn The Bulgarian Government is working on a draft law on the YTD Dev. of Market Capitalisation 10.1% activities of collective investment schemes (CIS) and other collective investment undertakings aiming to introduce the Number of SE Transactions p.m. 7,689 requirements of Directive 2009/65/EC on the coordination of YTD Dev. of SE Transactions -27.7% laws in the Bulgarian legislation, regulations and administra- SE Turnover (Bulgarian Stock Exchange) BGN 54.9mn tive provisions relating to undertakings for collective invest- Monthly Index Performance (SOFIX) -0.9% ments in transferrable securities. GDP per Capita (2011 in EUR) 5,070 This project aims at the differentiation of regulatory provisions GDP Real 2011 (Change against prev. year in %) 2.8 on the activities of collective investment schemes and their 3-Month Money Market Rate (current in %) 3.91 separation from the Public Offering of Securities Act (POSA). Inflation in 2011 (yearly average in %) 3.2 In addition, the project develops and refines elements of EUR/BGN 1.96 the existing legal framework of CIS. In particular, the project Upcoming Holidays Bulgaria none introduces the provisions which expand the possible busi- ness activities of the asset management companies within Source: UniCredit, National Statistics the EU on the basis of the “single passport” principle. Thus, an asset management company from another EU Member SOFIX State may receive a license to manage a CIS in Bulgaria, Actual 38 Day moving average 200 Day moving average as well as an asset management company licensed by the Bulgarian Financial Supervision Commission (FSC) will be 480 allowed to manage a CIS in another Member State.
450 A Bulgarian asset management company will be able to oper- 420 ate in another Member State, including the management of
390 CIS through a branch or simply through a place of business and vice versa EU-based asset management companies 360 will be able to conduct their business in Bulgaria based on 330 the certificates granted by the competent authorities of the company’s Member State. 300 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May A detailed regulation on cross-border activities of the asset Source: Thomson Datastream management companies has also been included, in order to cover the cases in which the law of the Member State of origin is applicable and the respective cases in which the legislation of the other Member States applies.
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 5,070 GDP Real 2011e (Change against prev. year in %) 2.8 3-Month Money Market Rate (current in %) 3.91 Inflation in 2011e (yearly average in %) 3.2 EUR/BGN 1.96 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 13 Bulgaria
The project also aims at transposing the provisions on Government measures for further development of M&A Conversions (absorptions and amalgamations), includ- the Bulgarian capital market ing the new legal framework facilitating cross-border con- At the beginning of April 2011 the Council of Ministers versions. Regardless of their legal form, all CIS are allowed adopted a Concept of Integration of the Bulgarian Stock to participate in such corporate transformations and con- Exchange – Sofia (BSE) and the Central Depository AD versions. The law introduces also specific requirements to (CDAD) in the European and Global Financial Markets and be met in the process of conversion aiming to protect the delegated to the Vice Prime Minister and Minister of Finance, interests of the owners of units of the CIS. Mr. Simeon Dyankov, the implementation of the concept and monitoring of its execution. With respect to the depository bank of the CIS, the existing regulatory provisions have been preserved. The liability of The document sets out guidelines for the organization, per- the depository bank may be sought by the owners of units formance and completion of the BSE and CDAD integration in CIS directly or indirectly, through the asset management through privatization to ensure their stable and effective gov- company. The depository bank will be obliged to provide, ernance in the future, and further develop the entire capital upon request by the FSC, all information relevant to its obli- market in Bulgaria. The BSE and CDAD consolidation has gations as a depository institution, which may be of neces- the following three main purposes: sity to the FSC with regard to its supervision functions. In case a CIS originating from Bulgaria has contractual relations ■■Development of the Bulgarian capital market and guaran- with an asset management company from another Member tee of its future among the European markets; State, the depository bank is obliged to conclude a written ■■ agreement with the Management Company to determine the Building a more liquid and reliable stock market with more information necessary to perform its functions. efficient infrastructure and practices, fully in line with the highest international standards; The entry in force of the Law and regulations relating to its ■■ application targets the creation of more clear and unambigu- Establishment of the Bulgarian capital market as an infra- ous rules on the activity of CIS and their asset management structural centre of capital markets in the region. companies, as well as the compliance with the requirements The development of the Bulgarian capital market is also the for timely transposition of Directive 2009/65/EC and its imple- main goal of a strategy document which was adopted by menting Directives, into Bulgarian legislation. BSE’s management early last year – Strategy of the Devel- opment of BSE in the period of 2010 – 2012. The Bulgarian Impact on investors Government confirms its commitment to fully support this The legal changes align local legislation with EU Directives goal as a priority, because the modern and effectively func- and expand the business opportunities for asset manage- tioning capital market has a direct impact on the economic ment companies within the EU, facilitating competition and growth and financial stability of the country. A liquid and free movement of capital. reliable market, regaining foreign and local investors’ trust, new attractive stock exchange products and decreased risks related to stock trading require constant harmonization with European standards and active and consistent participation of the main players in the capital market, including the state. Achieving this goal is inevitably related to the integration of the Bulgarian stock market with the global and European market.
Impact on investors Recognition of the state’s key role in the development of the Bulgarian capital market and its expansion into an infrastructural centre in the region.
Issue 122, June 2011 14 Bulgaria
BNB transfers its Shares in CDAD to the Ministry of New tariff of the Financial Supervision Commission Finance The Council of Ministers adopted a new Tariff of the Financial The Bulgarian National Bank (BNB) Governing Council Supervision Commission which entered into force with its decided to transfer the shares held by the Bulgarian National promulgation in the State Gazette on 17 May 2011. The new Bank in the capital of the Central Depository AD (CDAD) to tariff covers the following groups of fees charged by the FSC the Ministry of Finance. BNB held 2000 CDAD shares of to market participants: BGN 100 nominal value each, which comprised 20% of the company’s capital. The transfer of the shares was effected ■■Fees for the issuance of licenses and permits; at their nominal value, and if CDAD is sold to a strategic ■■ investor, BNB will receive the difference between the nominal Fees for exercising general financial supervision; value and the sale price of the shares it transferred to the ■■Fees for the issuance of approvals of prospectuses. Ministry of Finance.
Along with its decision the BNB Governing Council conveyed Impact on investors its support for the goals of the Concept of Integration of the The new tariff of the FSC may affect the pricing of services Bulgarian Stock Exchange - Sofia and the CDAD in the Euro- offered by local investment intermediary to clients. pean and Global Financial Markets adopted by the Council of Ministers. As is well known, its main goals are the develop- ment of the Bulgarian capital market, and its establishment as an infrastructural centre for the international markets in the region. The position of the Central Bank is that drawing in a strategic investor in the Central Depository AD would have a positive impact on the development of the Bulgarian capital market. An expression of this view was the decision of the BNB Governing Council in 2005 to authorize the Privatisa- tion Agency to take the necessary actions for the sale of the shares held by BNB in the Central Depository AD together with those held by the Ministry of Finance. The implementa- tion of this action was postponed until the adoption of the relevant decision by the Council of Ministers.
Impact on investors Expected positive impact from a strategic investor in the Central Depository AD, general development of the Bulgar- ian capital market.
Written and edited by: Veselin Stefanov Relationship Manager Global Securities Services, Bulgaria Tel. +359 2 923 2818 · [email protected]
Issue 122, June 2011 15
Croatia
Banks report HRK 1.26 bn in gross profits in Q1 Market Capitalisation HRK 204.2bn Banks in Croatia made about HRK 1.26 bn in pre-tax profit in YTD Dev. of Market Capitalisation 5.5% this year’s first three months, up 3.37% on the year, according to figures the Croatian National Bank. The assets of 33 banks Number of SE Transactions p.m. 19,261 at the end of March totalled HRK 389.82 bn, down 0.33% YTD Dev. of SE Transactions -56.2% from the end of 2010. The average liable capital adequacy SE Turnover (Zagreb SE) HRK 397.6mn in the first three months of 2011 was 19.13%. Monthly Index Performance (Crobex/ZSE) -2.5% GDP per Capita (2011 in EUR) 10,620 Of the 33 banks, 25 reported a profit, while eight reported losses totalling HRK 64.2 mn. GDP Real 2011 (Change against prev. year in %) 1.6 3-Month Money Market Rate (current in %) 1.3 The leader in terms of gross profit was Zagrebacka Banka Inflation in 2011 (yearly average in %) 2.3 (ZABA) with HRK 522.2 mn, up 49.9% from the first three EUR/HRK 7.44 months of 2010. Upcoming Holidays Croatia 22, 23 June Privredna banka Zagreb (PBZ) followed with HRK 267.7 mn, up 16.7% on the year. ZABA accounted for 41.5% of the total Source: UniCredit, National Statistics gross profits in the first three months of 2011, up from 28.6%
CROBEX the year before, followed by PBZ with a 21.2% share, up from 18.8% in 2010. These two banks accounted for nearly 63% Actual 38 Day moving average 200 Day moving average 2400 of the gross profit of all the banks in Croatia.
2300 They were followed by Erste & Steiermaerkische with HRK 2200 183.7 mn, Raiffeisenbank Austria with HRK 151.4 mn, Soci- 2100 ete Generale-Splitska Banka with HRK 54.2 mn, and Hypo- Alpe-Adria-Bank with HRK 40.4 mn. 2000
1900 ZABA led also in terms of assets with HRK 99.1 bn (24.97% of total assets), up 3.10% from the end of 2010, followed 1800 by PBZ with HRK 66.04 bn (16.63% of total assets), down 1700 2.78%. Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May Erste & Steiermaerkische followed with HRK 51.3 bn, up Source: Thomson Datastream 1.24% from the end of 2010, Hypo-Alpe-Adria-Bank with HRK 39.06 bn, up 0.33%, and Raiffeisenbank Austria with HRK 38.2 bn, down 5.63%.
Impact on investors Banks made HRK 1.26 bn pre-tax profit in Q1.
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 10,620 GDP Real 2011e (Change against prev. year in %) 1.6 3-Month Money Market Rate (current in %) 1.3 Inflation in 2011e (yearly average in %) 2.3 EUR/HRK 7.44 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 16 Croatia
10 bids submitted for construction of new passenger World Bank grants EUR 150 mn to Croatia terminal at Zagreb airport The World Bank’s Board of Directors approved a EUR150 mn The Ministry of the Sea, Transport and Infrastructure has Economic Recovery Development Policy Loan to Croatia. The received 10 bids in the first stage of a tender for a public- loan is the first in a series of two Development Policy Loans private partnership for Zagreb Airport. approved at 6-month EURIBOR for EUR plus a fixed spread (which would currently translate into an interest rate of about The bids were submitted by Germany’s GMR Infrastructure 2.5%) with a 15-year bullet repayment pattern. & Flughafen Muenchen, Turkey’s IC Ictas Insaat Sanayi ve Ticaret together with IC Ictas Altiapi Yatiramlan ne Istetru The loan supports reforms in two broad areas. The first area and Incheon Int. Airport Corporation, Turkey’s TAV Airports focuses on fiscal consolidation efforts through expenditure- Holding & TAV Construction, American ADC & HAS Airports, based adjustments in public administration, health, pensions, Alpine Bau and FCC Construction, J&P Avax & Athens Inter- and social welfare areas. These efforts have led to improvements national Airport of Greece, European transport infrastructure in the management of public spending and have strengthened operator Vinci Concessions, Germany’s Hochtief Conces- the medium-term sustainability of public finances, with the goal sions, Britain’s Zaic, Switzerland’s Flughafen Zuerich & Stra- of preserving macroeconomic stability, the statement read. bag, and Limak - French Riviera Airports Consortium. Secondly, the loan supports the development of a dynamic The transport and infrastructure ministry’s task force for private sector by improving the business environment and assessing bids for concession for constructing a new pas- reducing state involvement in the corporate sector. Croatian senger terminal at the Zagreb Airport has decided to exercise authorities have already taken measures to enhance labor its legal rights and ask additional explanations from some of market flexibility, reduce administrative and regulatory barriers the ten bidders. for businesses, and speed up privatization of state-owned companies, according to the statement. The ministry is planning to call, during June, qualified bid- ders to submit their final offers. The planned deadline for the “We are pleased that the Croatian authorities are moving forward selection of the best bidder is the end of September and the with the implementation of the Economic Recovery Program signing of the contract is planned for October. Construction and that important reforms to promote sustainability of public work is expected to begin in the second quarter of 2012. finances are under way,” said Peter Harrold, Country Director for The first stage of investment is estimated at EUR 192 mn. Central Europe and the Baltic Countries. “At the same time, we encourage the authorities to accelerate reforms, since deepen- The key qualifying terms for the second round of bidding are ing reforms before entering the European Union will maximize that a bidder may not own an airline, must be independent the benefits that Croatia derives from membership.” from a government budget and may not have a consider- able stake in airports within a 400 km radius of Zagreb. They “Cooperation with the World Bank (International Bank for must have a record of managing an airport with over 10 mn Reconstruction and Development) is of exceptional impor- passengers in the last three years, must be without losses tance and we value the Bank’s support from the very begin- in the last three years and must have an annual money flow ning of this cooperation. It remains so today, when Croatia is of at leat EUR 50 mn in the last three years. at the doorstep of the European Union. By approving this new loan, the World Bank has confirmed its support for the Gov- Impact on investors ernment’s Economic Recovery Program adopted in 2010 with In the first stage of a tender for a public-private partnership the aim to support recovery and mitigate the social impact of for Zagreb Airport 10 bids have been submitted. the global financial crisis. We believe that this development loan will provide the appropriate tool for the Bank’s support in addressing our medium term policy and institutional reform,” said Martina Dalic, Croatian Finance Minister.
Since joining the World Bank in 1993, Croatia has benefited from financial and technical assistance, policy advice, and analytical services provided by the global development institu- tion. To date, the World Bank has supported 46 operations amounting to around USD 3 bn, and approved 52 grants with a total value of USD 70 mn.
Impact on investors The World Bank approved a EUR150 mn Economic Recovery Development Policy Loan.
Written and edited by: Snjezana Bruncic Relationship Manager Global Securities Services, Croatia Tel. +385 1 6305 400 · [email protected]
Issue 122, June 2011 17
Czech Republic
New issue of New World Resources Plc Market Capitalisation CZK 1.5trn The Listing Committee approved the listing of share issue YTD Dev. of Market Capitalisation 4.6% New World Resources plc. (ISIN GB00B42CTW68) for trading on the main market of Prague Stock Exchange and simul- Number of SE Transactions p.m. n.a. taneously the Trading Committee determined parameters YTD Dev. of SE Transactions n.a. for inclusion of the share issue to the SPAD regime. The SE Turnover (Prague SE) CZK 65.2bn Exchange is commenced trading with the share issue NWR Monthly Index Performance (PX) 0.29% (ISIN GB00B42CTW68) on 6 May 2011. GDP per Capita (2011 in EUR) 14,825 One lot was set for 5,000 pieces and the maximum quo- GDP Real 2011 (Change against prev. year in %) 1.8 tation spread is CZK 6 in the SPAD regime. Prospectus 3-Month Money Market Rate (current in %) 1.05 of the share issue is available on the website of the issuer Inflation in 2011 (yearly average in %) 2.1 www.newworldresources.eu. EUR/CZK 24.52 Parameters of the share issue NWR (ISIN GB00B42CTW68): Upcoming Holidays Czech none Issuer New World Resources Plc Source: UniCredit, National Statistics Identification code of 7584218 PX-50 British Commercial Register Actual 38 Day moving average 200 Day moving average BIC BAANWRUK 1300 ISIN GB00B42CTW68
1225 Ticker name NWR
1150 Nominal value 0.40 EUR Number of issued pieces 264 698 715 1075 Trading currency CZK
1000 Currency of Quotation CZK Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May Start of Trading 6 May 2011 Source: Thomson Datastream Market Type A Arithmetic Midpoint of the will be set based on Allowable Spread closing price of New World Resources N.V. (ISIN NL0006282204) from 5 May 2011
Market Capitalisation HRK 397.2 bn Trading Group 3 YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 Source: CDCP SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 Impact on investors GDP per Capita (2011e in EUR) 14,825 GDP Real 2011e (Change against prev. year in %) 1.8 The PSE started trading with a new share issue NWR 3-Month Money Market Rate (current in %) 1.05 (ISIN GB00B42CTW68) on 6 May 2011. The share is also Inflation in 2011e (yearly average in %) 2.1 available for OTC trades. EUR/CZK 24.52 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 18 Czech Republic
New bonds on PSE markets 2010 annual report of the Prague Stock Exchange A new bond issue of the issuer CETELEM Cˇ R, a.s. was The Annual Report of the Prague Stock Exchange for the launched to the Prague Stock Exchange market on year 2010 is available on the PSE‘s web pages. The annual 9 May 2011. The bond issue CETELEM Cˇ R VAR/14, report contains detailed information on the company‘s opera- ISIN CZ0003501736 is traded on the Free Market. tion during 2010. Furthermore, you will find basic information on the CEE Stock Exchange Group (CEESEG) and its other Basic characteristics of the issue: member stock exchanges in Vienna, Budapest and Ljubljana.
Nominal value of the security CZK 2,000,000 To view the annual report please refer to the below link: http://www.pse.cz/dokument.aspx?k=Annual-Reports Issue value CZK 1,000,000,000
Issue maturity date 9 May 2014 Impact on investors For information purposes. Interest rate variable
A new bond issue of the issuer Capital City of Prague was launched to the Prague Stock Exchange markets on 11 May 2011. The bond issue HL.M.PRAHA 4,25/21, ISIN CZ0001500110 is traded on the Free Market.
Basic characteristics of the issue:
Nominal value of the security CZK 1,000,000
Issue value CZK 5,000,000,000
Issue maturity date 11 May 2021
Interest rate 4.25%
Source: PSE
Impact on investors New bond issues traded on the Free Market of the PSE.
Written and edited by: Dita Šafářová Relationship Manager Global Securities Services, Czech Republic Tel. + 420 221 216 772 · [email protected]
Issue 122, June 2011 19
Hungary
Successful Eurobond launched by Hungary Market Capitalisation HUF 19,760.6bn On 18 May 2011 the Hungarian Government Debt Manage- YTD Dev. of Market Capitalisation 6.8% ment Agency (GDMA) issued EUR 1bn seven-year Eurobond and thereby completed its EUR 4 bn gross foreign issue plan Number of SE Transactions p.m. 243,186 for this year. The transaction attracted a significant demand, YTD Dev. of SE Transactions 37.6% due to which the issue was four times oversubscribed by the SE Turnover (Budapest SE) HUF 602,833.3mn investors. According to the analysts, the 270 basis points pre- Monthly Index Performance (BUX) 2.2% mium offered is a favorable one, which more or less reflects GDP per Capita (2011 in EUR) 10,427 Hungary’s five-year CDS premium of 240 basis points. The GDP Real 2011 (Change against prev. year in %) 2.6 annual interest payment coupon specified by the GDMA is 6%. 3-Month Money Market Rate (current in %) 5.47 Inflation in 2011 (yearly average in %) 4.4 The GDMA’s plan for 2011 was to issue EUR 4bn foreign EUR/HUF 267.97 currency bonds throughout the year, which would be enough Upcoming Holidays Hungary 13 June to cover EUR 2 bn of bonds maturing in June and October and a EUR 2 bn repayment due to the European Commis- Source: UniCredit, National Statistics sion in November in association with the IMF-led standby loan Hungary signed for in November 2008. Hungary has BUX already issued USD 4.25 bn of ten- and 30-year dollar bonds Actual 38 Day moving average 200 Day moving average in March and April 2011. The dollar issues, worth about 25000 EUR 3 bn, left about EUR 1 bn to meet the annual foreign 24500 bond issue plan. 24000 23500 UniCredit Bank Hungary was one of the banks that were 23000 mandated with the organization of the euro denominated 22500 bond issue. According to the GDMA, the proceeds of it will 22000 21500 be used for general financing purposes. 21000 20500 Impact on investors 20000 Hungarian government papers denominated in Euro have Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May been offered for purchase. Source: Thomson Datastream
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 10,427 GDP Real 2011e (Change against prev. year in %) 2.6 3-Month Money Market Rate (current in %) 5.47 Inflation in 2011e (yearly average in %) 4.4 EUR/HUF 267.97 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 20 Hungary
GDMA buys back highest debt in the past two years Hungarian Government Debt Management Agency (GDMA) has repurchased bonds in a value of HUF 36.5 bn on 18 May 2011. This was the highest volume of debt bought back by the GDMA in the past two years.
Almost the entire volume of the repurchased debt, HUF 34.4 bn, consisted of the government bond 2012/B that would have expired originally in June 2012. The lowest yield among the accepted benchmarks was 5.83%, while the average yield was 5.90%. The other bond involved in the buy-back was that of 2011/B set to expire in October 2011, from which HUF 2.1 bn was repurchased by the GDMA at a minimum yield of 5.90% and an average yield of 5.91%.
According to analysts, the improved cash position of the GDMA deriving from the crisis taxes collected this year and the abolition of the second tier pension system by the govern- ment have encouraged the GDMA to buy back state debt in order to boost the short term cash position of the government and create a buffer for debt repayment due throughout 2013. Also, the GDMA could now take advantage of improved market appetite experienced internationally.
Repurchase auctions may be continued by the government in the future.
Impact on investors The GDMA has reduced the outstanding state debt of Hungary by purchasing back government bonds worth of HUF 36.5 bn in May 2011.
Written and edited by: Barbara Rubint Relationship Manager Global Securities Services, Hungary Tel. +36 1 301 1914 · [email protected]
Issue 122, June 2011 21
Kazakhstan
Reorganisation of financial authorities Market Capitalisation KZT 24,262.1bn By decree of the President of the Republic of Kazakhstan YTD Dev. of Market Capitalisation 2.1% the Agency of the Republic of Kazakhstan on Regulation of Activities of the Regional Financial Centre of Almaty city and Number of SE Transactions p.m. 943 the Agency of the Republic of Kazakhstan on Regulation and YTD Dev. of SE Transactions -37.7% Supervision of Financial Market and Financial Organizations SE Turnover (KASE) KZT 1.4bn are abolished. Monthly Index Performance (KASE) 1,621.3 GDP per Capita (2011 in EUR) 6,977 In consequence, their responsibilities and powers will be transferred to the National Bank of the Republic of Kazakh- GDP Real 2011 (Change against prev. year in %) 5.3 stan. 3-Month Money Market Rate (current in %) 1.15 Inflation in 2011 (yearly average in %) 7.2 The related decree On Further Improvement of the System of EUR/KZT 207.52 Government Control of the Financial Market in the Republic Upcoming Holidays Kazakhstan none of Kazakhstan was signed by the President of the Republic of Kazakhstan on 12 April, 2011, and has been published in the official mass media. Source: UniCredit, National Statistics
KASE With the same decree, the president also resolved to appoint the National Bank of the Republic of Kazakhstan as succes- Actual 40 Day moving average 200 Day moving average sor with regard to liabilities of the agencies being abolished. 1150
1100 Within a National Bank a Committee of Control and Super-
1050 vision of financial market and financial organizations was formed. 1000
950 Impact on investors 900 Improvement of the System of Government Control of the 850 Financial Market in the Republic of Kazakhstan
800 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May
Source: Bloomberg
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 6,977 GDP Real 2011e (Change against prev. year in %) 5.3 3-Month Money Market Rate (current in %) 1.15 Inflation in 2011e (yearly average in %) 7.2 EUR/KZT 207.52 Upcoming Holidays none
Written and edited by: Zhanna Mussakhanova Leading Specialist, Trade Settlement Unit Global Securities Services, Kazakhstan Tel. +7 727 258 30 15 · [email protected]
Issue 122, June 2011
5/30/2011 9:29 AM 22
Kyrgyzstan
Increasd business activity Market Capitalisation n.a. In April 2011 trade volumes on both Kyrgyz stock exchanges YTD Dev. of Market Capitalisation n.a. increased by 89.2% against the same period of the previ- ous year and made up KGS 0.20 bn (USD 9.3 mn) with 566 Number of SE Transactions p.m. 566 trades provided. YTD Dev. of SE Transactions 89.2% SE Turnover (KSE) KGS 208.5mn Trade volumes on JSC “Kyrgyz Stock Exchange” in April 2011 Monthly Index Performance (KSE) 186.9 made up KGS 131.68 mn (USD 2.8 mn) with 291 trades. GDP per Capita (2011 in EUR) 642.58 Trade volumes on JSC “Kyrgyzstan Stock Exchange - BTC” GDP Real 2011 (Change against prev. year in %) -1.4 in April 2011 made up KGS 76.77 mn (USD 1.65 mn) with 3-Month Money Market Rate (current in %) n.a. 275 trades. Inflation in 2011 (yearly average in %) 18.80 EUR/KGS 66.61 Impact on investors Upcoming Holidays none For information purposes only.
Source: UniCredit, National Statistics
Written and edited by: Zhanna Muusakhanova Leading Specialist, Trade Settlement Unit Global Securities Services, Kazakhstan Tel. +7 727 258 30 15 · [email protected]
Issue 122, June 2011 23
Poland
NDS officially launches partial settlement project Market Capitalisation PLN 577.5bn The National Depository for Securities (NDS) has recently YTD Dev. of Market Capitalisation 6.4% publicly announced that it starts work aimed at the introduc- tion of a partial settlement functionality to its system (called Number of SE Transactions p.m. 1,101,515 kdpw_stream). According to the preliminary schedule of YTD Dev. of SE Transactions 5.6% the project, such feasibility could be offered – provided that SE Turnover (WSE) PLN 20.3bn all technical and regulatory tasks are completed on time – Monthly Index Performance (WIG20) 3.4% already in Q1 2012. Monthly Index Performance (WIG) 2.6% Partial settlement, defined as the possibility to fulfil settlement GDP per Capita (2011 in EUR) 10,039 obligations in parts, using available holdings on contractual GDP Real 2011 (Change against prev. year in %) 4.4 settlement day and settling remaining parts on the following 3-Month Money Market Rate (current in %) 4.33 days once new securities are available in the participant’s Inflation in 2011 (yearly average in %) 3.5 account, is eagerly awaited in the market as it is expected EUR/PLN 3.97 that it may significantly streamline the settlement process Upcoming Holidays Poland none and reduce the number and value of failing trades. It should be also pointed out that partial settlement is strictly related to KDPW_CCP plans concerning introduction of netting for Source: UniCredit, National Statistics on-exchange transactions. Actually, such functionality is per- WIG-20 ceived as a prerequisite for offering netting in securities. In Actual 38 Day moving average 200 Day moving average the long run partial settlement could be used for other types 3000 of settlement (including non-mandatory settlements) as an 2900 optional feasibility. 2800 In an official letter addressed to all NDS participants it has 2700 been also pointed out that the solution that NDS is going 2600 to introduce will be compatible with the partial settlement 2500 mechanism that is being implemented on the T2S platform. In 2400 terms of information flow, the new functionality will be based 2300 on ISO20022 standard. 2200 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May
Source: Thomson Datastream
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 10,039 GDP Real 2011e (Change against prev. year in %) 4.4 3-Month Money Market Rate (current in %) 4.33 Inflation in 2011e (yearly average in %) 3.5 EUR/PLN 3.97 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 24 Poland
NDS has already listed main assumptions that may explain NDS claim they may be still pretty flexible in specifying details how the new functionality will be used in practice to support of this newly introduced system functionality. All the partici- the settlement. First of all, it should be noted that partial set- pants have been asked to fill in the questionnaire in which tlement will be used jointly with the other solutions developed they can opt for certain solutions and present their views to optimize the settlement, namely automatic netting and on desired solutions. In particular, NDS is interested to see automatic securities lending. whether there is a common will to expand partial settlement for other types of settlement (apart from mandatory on- The main goal of the settlement optimization mechanism – exchange clearing), to get to know how – in participants’ that will be used during the last settlement batch – will be perception – the minimum thresholds for partial settlement to maximize the number of settled trades and their value in should be set-up or to see what is the most convenient and accordance with system algorithm calibrated by the NDS. effective implementation scenario. Depending on the answers received from the industry NDS may adjust some details of In a first step the system will try to cover all outstanding trades the proposed solution. by automatic lending, but loans could only be granted for total originals quantities (quantities equal to original trans- actions or to outstanding quantities resulting from partial Impact on investors settlements from previous days) and only if it is not possible In accordance with the NDS strategy, the introduction to cover all trades by auto-lending programme NDS system of partial settlement is one of the main objectives for the will split them in accordance with partial settlement algo- nearest future and it seems NDS is determined to offer rithm. Trades might be subject to partial settlement only if it already in 2012. Should the project be successful, the their value crosses certain pre-defined thresholds. It should settlement process in Poland would be further streamlined. be highlighted that partial settlement will not apply to linked We will keep you updated with respect to the progress trades (e.g. trades with indicators BEFO, AFTE or WITH). of the project as well as regarding the final shape of the agreed solutions.
Written and edited by: Krzysztof Pekrul Relationship Manager Global Securities Services, Poland Tel. +48 22 5245864 · [email protected]
Issue 122, June 2011 25
Romania
Stock Exchange companies announced an increase Market Capitalisation RON 116.0bn of 26% for the first quarter of 2011 YTD Dev. of Market Capitalisation 16.3% The cumulated turnover of the 120 biggest listed companies that have so far published their financial results for the first Number of SE Transactions p.m. 106,201 quarter went up 26%, to RON 19.8 bn (EUR 4.77 bn). Their YTD Dev. of SE Transactions -33.8% cumulated profits doubled during this period, to RON 2 bn SE Turnover (Bucharest SE) RON 672.0 (nearly EUR 500 mn). Monthly Index Performance (BET/BSE) -0.1% GDP per Capita (2011 in EUR) 5,851 Rompetrol Rafinare, Transelectrica and TMK Artrom Slatina are some of the companies that posted big incomes from GDP Real 2011 (Change against prev. year in %) 1.7 financial operations. 3-Month Money Market Rate (current in %) 5.15 Inflation in 2011 (yearly average in %) 6.1 Analysts say the rebound experienced in the first quarter EUR/RON 4.12 confirms economic recovery. Upcoming Holidays Romania none Impact on investors Source: UniCredit, National Statistics Increase of cumulated turnover of the 120 biggest listed companies. BET Actual 38 Day moving average 200 Day moving average 6300 Romanian investment fund, Fondul Proprietatea, 6100 received the approval of the National Securities 5900 Commission to invest in foreign markets 5700 The Romanian investment fund, Fondul Proprietatea, has 5500 received the National Securities Commission approval to 5300 invest in securities traded on the New York Stock Exchange 5100 (NYSE). The commission’s approval was granted following 4900 the application of the Fund’s Manager, Franklin Templeton 4700 Investment Management. 4500 The market in New York is authorized and supervised by Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May the Securities & Exchange Commission. In March, Fondul Source: Thomson Datastream Proprietatea has made the first capital investment on foreign markets, buying shares worth EUR 63 mn on the Austrian stock market.
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 5,851 GDP Real 2011e (Change against prev. year in %) 1.7 3-Month Money Market Rate (current in %) 5.15 Inflation in 2011e (yearly average in %) 6.1 EUR/RON 4.12 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 26 Romania
The fund’s portfolio already includes most liquid shares Vimetco plans to sell share package in Romania’s listed on the Bucharest Stock Exchange companies, blue Alro Slatina through secondary public offering chips such as BRD, Transelectrica and Transgaz. Fondul Vimetco group plans to sell a 21% share package in alu- Proprietatea’s shares are traded on the Bucharest Stock minum producer Alro Slatina in Romania through a secondary Exchange. In total, 11.8% of the fund was traded on the BSE public offer. The Romanian Securities Commission (CNVM) during this period, according to investment manager Frank- has recently approved the preliminary prospect for the sale, lin Templeton. The value of the transactions with the fund’s at a nominal value of RON 0.5 per share. shares exceeded EUR 237 mn, in over 27,000 transactions. The offer will be intermediated by UniCredit Bank AG through Fondul Proprietatea was created in 2005 as a joint stock its brokerage firm UniCredit CA IB Securities. The joint book company with a special purpose to provide compensation runners in this secondary public offer are: UniCredit Bank AG, to the persons whose real estate assets have been confis- Raiffeisen Capital & Investment and ING Bank. cated abusively by the Romanian state during the communist regime and who can no longer receive restitution in kind. The value of the secondary public offering could be of EUR 139.8 mn, based on the last trading price on the Source: Romania Insider Bucharest Stock Exchange. Alro Slatina’s shares are cur- rently trading on the Bucharest Stock Exchange at a closing Impact on investors price of RON 3.85 per share. Fondul Proprietatea has received the National Securities Commission approval to invest in securities traded on Currently Vimetco owns 84% of Romanian Company Alro. NYSE. Other shareholders in the company are Fondul Proprietatea, with 10% of the shares and Conef, with 3.5%. New changes in the management of Teraplast are Alro posted a turnover of USD 570 mn last year and a net meant to efficient the company profit of USD 50.5 mn. Alro Slatina estimates for this year Emanoil Viciu, former president of Teraplast Bistrita (TRP.RO) a net profit of USD 64 mn, up by 28% compared to last and one of the main shareholders of the PVC profiles and year, according to a report submitted to the Bucharest Stock pipes manufacturer stated that the recent changes in the Exchange. company’s management are aimed at improving the com- pany’s profitability, which has declined in the last two years despite the turnover growth. Impact on investors Secondary public offer in a Romanian company listed at Teraplast’s Board of Directors has made significant changes BSE. to the management team since the beginning of this year, bringing Stefan Bucataru, formerly investment manager at Greek private equity company Global Finance, as general Romanian Central Bank keeps main interest rate manager. unchanged at 6.25% Romania’s Central Bank left the main interest rate unchanged Mr. Stefan Bucataru has expertise in reorganizing and restruc- for the last year at a rate of 6.25%. turing businesses. In the first quarter, Teraplast’s net profit fell 57%, to around RON 1 mn (EUR 250,000) while its turnover The officials of Romanian Central Bank explained that one of climbed 10.9% to RON 38.1 mn (EUR 9 mn). the reasons for this decision is to control the rising of prices. The Romanian Central Bank kept the benchmark interest Impact on investors rate at a record-low 6.25%, matching the expectations of Changes in the management of Teraplast Bistrita (TRP.RO). all 11 economists surveyed by Bloomberg. The bank left its minimum reserve requirements on foreign-exchange deposits at 20% and the ratio for Romanian lei deposits at 15%.
Impact on investors Romanian Central Bank maintains the benchmark interest rate unchanged.
Issue 122, June 2011 27 Romania
Inflation reached a new high at 8.34% New Romanian accounting law The rise in food prices underestimated by analysts again, and The new accounting law, modified through a Government compounded by the increase in electricity price took annual Emergency Ordinance, for the first time makes a clear dis- inflation to 8.34% at the end of April, after a 0.66% monthly tinction between organizing and keeping the books, versus increase. Food became 0.92% more expensive in April com- doing more advanced reporting (an accountant’s job) and pared with March, while non-food prices went up by 0.87%. signing for it. The Romanian accounting system takes one more step towards deregulation, which brings it closer to the On the other hand, service tariffs fell slightly by 0.42%, as a Anglo-Saxon school, says Marin Toma, chairman of the Body result of the appreciation of the RON against the EURO and of Expert and Licensed Accountants of Romania (CECCAR), the US DOLLAR. who has been running one of the most important and stable bodies in Romania for the last 18 years. As for non-food products, the highest increase was recorded with the price for electricity, which weighs quite a lot in the A novelty that the accounting law brings is that these gradu- total consumer wallet, with the jump compared with March ates of economics faculties will be able to organize, keep the standing at 5%. books, as well as do accounting and sign financial state- ments. Impact on investors The Romanian economy registered an increased inflation. Impact on investors The new accounting law separates between accounting reports and organizing books. The Romanian GDP increased by 0.6% in 1Q 2011 The preliminary GDP data for the 1Q 2011 has been released by the National Institute of Statistics, while the GDP break- Romania up four places in competitiveness ranking down will become available on 8 June 2011. The Romanian Romania has gained four positions in the world’s competitive- GDP increased by 0.6% in 1Q 2011 compared to the previ- ness ranking, the so-called World Competitiveness Score- ous quarter, the second consecutive positive quarterly evolu- board, to no. 50, according to the ranking published by the tion, after having added 0.1% quarter on quarter in 4Q 2010, International Institute for Management Development (IMD), thus resulting in Romania’s technical exit from the recession. one of the world’s most prestigious business schools, based On a yearly basis (1Q 2011 vs. 1Q 2010), GDP increased by in Switzerland. 1.6%, after a yearly drop of 0.6% in 4Q 2010. Each country is rated from 0 to 100 based on the following Impact on investors indicators: economic performance, government efficiency, The Romanian GDP increased. business efficiency and infrastructure. Based on these criteria, Romania managed to climb four places this year, to no. 50 out of the 59 economies analyzed, ahead of Slovenia, Bulgaria, Greece, Ukraine and Croatia. Romania scored 57.4 out of 100.
Compared with 2010, when the Romanian economy recorded its second year of recession, this year’s most upbeat fore- casts suggest an around 2% GDP growth.
Romania’s exit from recession was brought in the first quarter by the around 40% rise in exports against the similar period of last year, as well as by the increase in the value of fuel exports.
Impact on investors World Competitiveness Scoreboard ranked Romania on position 50 ahead of Slovenia, Bulgaria, Greece, Ukraine and Croatia.
Written and edited by: Iuliana Manastireanu and: Andreea Albu Operations & Client Services Operations & Client Services Global Securities Services, Romania Global Securities Services, Romania Tel. +40 21 200 1494 · [email protected] Tel. +40 21 200 2678 · [email protected]
Issue 122, June 2011 28
Russia
A new strategy for the banking sector Market Capitalisation RUB 17.8trn The Russian government has defined a new strategy for the YTD Dev. of Market Capitalisation -1.1% development of the Russian banking sector for the period up to 2015. Number of SE Transactions p.m. (MICEX) 8,458,104 YTD Dev. of SE Transactions -9.5% The development programme includes such items as: SE Turnover (MICEX) RUB 6.9trn ■■ Monthly Index Performance (MICEX) -9.2% In the medium term it is proposed to reduce government involvement in capital of Sberbank, VTB and Russian GDP per Capita (2011 in EUR) 9,055 Agricultural Bank. GDP Real 2011 (Change against prev. year in %) 4.3 3-Month Money Market Rate (current in %) 4.48 ■■Legally define the modalities of the national payment sys- Inflation in 2011 (yearly average in %) 9.1 tem. EUR/RUB 40.07 ■■The minimum authorized capital of newly established Russia Upcoming Holidays 13 June banks from 1 January 2012 and the minimum value of internal funds operating from 1 January 2015 amounting Source: UniCredit, National Statistics to RUB 300 mn.
RTS ■■Improvement of access of capital to the banking services Actual 38 Day moving average 200 Day moving average and the Central Bank of Russia (CBR) control of major 2200 acquisitions of shares (stakes) in credit institutions. 2000 ■■Enhance the transparency of credit institutions is expect- 1800 ed, in particular, setting the requirement of disclose the value of their internal funds, as well as the risks taken, the 1600 procedures for their evaluation and management. 1400
1200 Impact on Investors Expected improvements in banking system. 1000 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May
Source: Thomson Datastream
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 9,055 GDP Real 2011e (Change against prev. year in %) 4.3 3-Month Money Market Rate (current in %) 4.48 Inflation in 2011e (yearly average in %) 9.1 EUR/RUB 40.07 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 29 Russia
Requirements to capital of professional market Finance Ministry to place Eurobond participants remain unchanged The Finance Ministry of Russia announced the plans to issue The Federal Financial Markets Service (FFMS) Russia intends a Eurobond maturing in 2018 for the amount of RUR 40 to cancel the increase of minimum requirements to capital bn at 7.125% per annum. Experts believe that such a rate level for professional market participants, leaving them at is too high to the current yield. The previous placement of RUB 35 mn. Eurobonds was in February for the same amount RUR 40 bn.
It will be recalled that by 1 July 2011 the new requirements In February, the Ministry of Finance has made the first syn- should have been come into force – increase of minimum chronous placement on the internal and external markets. capital from 35 to RUR 50 mn. Requirements for own funds Experts believe that the new Eurobond will be traded at of custodians are invited to leave at 60 mn rubles without 7.33% right upon the placement. raising them to 80 mn rubles. FFMS commented plans to cancel capital requirement increase, that such actions should Impact on Investors be pointed only to those market participants who conduct New sovereign debt issue. operations with a high level of risk.
Impact on Investors Simplification of conditions to participants of the market especially in the regions.
Written and edited by: Evgenia Klimova Head of Product & Business Development Global Securities Services, Russia Tel. +7 495 232-5298 · [email protected]
Issue 122, June 2011 30
Serbia
Serbian market posts growth in Q1 Market Capitalisation RSD 899.0bn According to the Serbian Statistics Office’s preliminary cal- YTD Dev. of Market Capitalisation -5.6% culations, the country’s GDP grows 3% year-on-year in real terms in Q1 2011, outdoing previous estimates set to 2.8%. Number of SE Transactions p.m. 514,473 The Statistics Office announced that it would publish the final YTD Dev. of SE Transactions 128.7% official results for Q1 in June 2011. SE Turnover (Belgrade SE) RSD 2.0bn Monthly Index Performance (Belex 15) -1.7% The National Bank of Serbia (NBS) Governor, Mr. Dejan GDP per Capita (2011 in EUR) 4,184 Soskic, announced that the C-Bank expects GDP to expand by 2.8% year-on-year in Q1 2011, taking into account GDP Real 2011 (Change against prev. year in %) 2.7 planned stronger industrial output. After a 3% decrease in 3-Month Money Market Rate (current in %) 13.38 2009, Serbia’s GDP expanded by 1.8% in 2010. Inflation in 2011 (yearly average in %) 9.4 EUR/RSD 96.42 At the same time, the Statistics Office announced that the Upcoming Holidays Serbia none country’s foreign trade deficit widened 9.1% in Q1 2011 compared to the same period 2010 to USD 1.94 bn or 10.3% presented in EUR, giving a total of EUR 1.42 bn. Exports rose Source: UniCredit, National Statistics 32.1% year-on-year, to USD 2.68 bn, while imports went up BELEX15 21.4% to USD 4.63 bn. Actual 40 Day moving average 200 Day moving average 850 The northern Serbian region of Vojvodina posted 35.6% of the total of the country’s exports, while southern and eastern 800 Serbia posted 23.4% and the Belgrade region 20.7%. In terms of country’s imports, Belgrade takes 45.1%, Vojvodina 750 31.2% and western Serbia region 11.9%.
700 Serbian foreign trade structure in Q1 2011 is composed of intermediary products 70.8% of exports and 57% of imports, 650 while consumer goods post 23.3% of exports and 15.2% of imports; equipment consisted of 5.9% of exports and 600 11.1% of imports. Most of the exports were intended for the Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May Italian market, amounting to USD 349.4 mn, then Germany Source: Bloomberg USD 306 mn and Bosnia and Herzegovina, USD 235.4 mn. The largest imports were from the Russian Federation, USD 674.8 mn, followed by Germany USD 424.9 mn and Italy, USD 368.5 mn.
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 4,184 GDP Real 2011e (Change against prev. year in %) 2.7 3-Month Money Market Rate (current in %) 13.38 Inflation in 2011e (yearly average in %) 9.4 EUR/RSD 96.42 Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 31 Serbia
Serbia’s total foreign trade in Q1 2011 increased 25.1% NBS appoints its lead economist year-on-year to USD 7.31 bn or EUR 5.34 bn, giving a total As previously announced, the National Bank of Serbia (NBS) increase of 26.3%. More than half of Serbia’s total foreign Governor Mr. Dejan Soskic appointed Mr. Branko Urosevic, trade balance consists of members of the EU countries, associate professor at the Faculty of Economics of the Uni- followed by the country members of the Central European versity of Belgrade, as lead economist with the NBS. The Free Trade Agreement (CEFTA), with whom Serbia recorded appointment is a part of an on-going effort to transform the a trade surplus of USD 279.4 mn, mainly consisted of agricul- Serbian C-Bank to a Western-style central bank. tural products, iron and steel. Surpluses were also recorded in the region with Montenegro, Bosnia-Herzegovina and Mac- Mr. Urosevic is currently a special advisor for research to edonia. Serbia also posted a trade surplus with the UK. The the NBS governor with previous experience gained at the largest trade gap was recorded with Russia, due to oil and Universitat Pompeu Fabra in Barcelona, Spain, and for US natural gas imports. consultancies McKinsey & Company and KPMG.
The International Monetary Fund (IMF) has committed itself Impact on investors to assist the NBS in its transformation effort, according to Preliminary figures show overall economy growth in Q1 the first announcements from March 2011. 2011, compared to the same period a year ago.
Impact on investors Risk rating downgraded C-Banks lead economist appointed, in the NBS effort to According to the press release, Belgrade-based firm Rating, a transform to Western-style C-Bank. representative of business analytics provider Dun&Bradstreet (D&B) has issued its May 2011 report, keeping Serbia’s DB4d moderate risk rating unchanged, but downgrading Serbia’s rating outlook from stable to negative.
The downgraded outlook is a result of recent political, busi- ness, macroeconomic and other external developments that influence the risk assessment. Due to that fact, the National Bank of Serbia (NBS) and the Association of Serbian Banks (UBS) have determined measures to help companies in debt restructuring, diminishing economy’s liquidity crisis and reducing risk on failed payments to foreign investors and exporters.
D&B advised that the recently failed sale of government’s 51% stake in Telekom Srbija also influenced Serbia’s risk rating outlook, noting that the government now has to find alternative sources of budget gap financing such as issuance of eurobonds, T-Notes, or borrowing from local banks. On the other side, Serbia may still borrow from the International Monetary Fund (IMF), with the repayment terms more favora- ble than the local banks commercial loans
Impact on investors Dun&Bradstreet downgrade Serbia’s country rating, while indicating alternatives for improvement.
Issue 122, June 2011 32 Serbia
Benchmark rate unchanged, monetary policy to IMF discusses pension law changes slowly ease The International Monetary Fund’s (IMF) mission has arrived in The National Bank of Serbia (NBS) kept its key policy rate Belgrade to discuss a new arrangement with Serbian officials. unchanged at 12.5%, considering year-on-year inflation in 2011 to peak in April or May. According to the Serbian Sta- As advised by the press release citing government sources, tistics Office’s data, the official measure of inflation, consumer the delegation will possibly engage in discussion on changes price index (CPI), grew 14.7% year-on-year in April 2011 and amendments to the law on pension and disability insur- which is in line with C-Bank’s expectations. ance. The changes would be gradually implemented from 2015 and would harmonize pension payments with Serbia’s The NBS projected year-on-year inflation to start decreasing current economic environment. Amendments and changes gradually in June and come to its tolerance level in the first would not target people who are already retired. half of 2012. The NBS is targeting inflation of 4.5% plus or minus 1.5 percentage points at end-2011 and 4% plus or The IMF Resident Representative Mr. Bogdan Lissovolik minus 1.5 percentage points at end-2012. The NBS’ Execu- advised that the Serbian side has asked for the new arrange- tive Board estimates that the key policy rate is very close to its ment to start in September 2011. National Bank of Serbia peak in the current cycle, noting that the existing inflationary (NBS) Vice Governor Mr. Bojan Markovic said that the new pressures will cause a very cautious monetary policy easing deal with the IMF would enable Serbia to draw funds exclu- in the coming period. sively in case of unexpected financial difficulties, but also would mean that the IMF is to stand behind the consistency of According to the Serbian Statistics Office, April CPI increased the country’s economic policy as well as to shield the country 1.1% month-on-month, but rose 6.7% year-on-year. Housing from any unexpected risk or unforeseen political situations in prices induced sharpest month-on-month increase, 5.7%. At the upcoming pre-election period. the same time, transportation costs grew 1.5% and health care costs hiked 1.2%. The only decrease recorded was with Impact on investors alcoholic beverages and tobacco prices, 1.6%. Talks on new precautious deal with the IMF in progress, while pension law changes ideas discussed. The next meeting on the benchmark interest rate is scheduled for 9 June 2011.
Impact on investors The NBS keeps key policy rates unchanged and carefully handles monetary policy due to inflation.
Written and edited by: Goran Platiša Senior Corporate Actions and Tax Specialist Global Securities Services, Serbia Tel. +381 11 3028 687 · [email protected]
Issue 122, June 2011 33
Slovak Republic
Slovak banks passed stress tests Market Capitalisation EUR 29.5bn Banks in Slovakia passed the latest stress tests that the YTD Dev. of Market Capitalisation 18.1% National Bank of Slovakia (NBS) carried out in the second half of 2010. NBS supervision department head Vladimir Number of SE Transactions p.m. 480.0 Dvoracek informed that the stress tests that were conducted YTD Dev. of SE Transactions 28.3% by NBS confirmed the fact that the Slovak banking sector SE Turnover (Bratislava SE) EUR 1.8bn is stable. Monthly Index Performance (SAX/BSSE) 1.2% GDP per Capita (2011 in EUR) 13,074 In the macro-stress testing of Slovakia’s financial sector, the Central Bank simulated two scenarios. The first foresaw a GDP Real 2011 (Change against prev. year in %) 3.1 negative development caused by growing doubts about the 3-Month Money Market Rate (current in %) n.a. sustainability of the public finances of selected euro zone Inflation in 2011 (yearly average in %) 4.1 members, which would lead to increased uncertainty on EUR/SKK n.a. financial markets and a drop in foreign demand as a result Upcoming Holidays Slovakia none of declining economic growth. The second scenario was based on rising inflation resulting from excessive growth in
Source: UniCredit, National Statistics commodity prices and loose monetary policy by the Federal Reserve in the United States. SAX Actual 38 Day moving average 200 Day moving average The Slovak banking sector remained stable overall under both scenarios, but the potential negative impact of the second 250 245 was judged to be stronger, said Dvoracek. According to the 240 results of the tests, if the first scenario actually took place 235 four banks would find themselves losing money in 2011 and 230 2012, while in the event of the second scenario six banks 225 would report losses during the same period. 220 215 210 Impact on investors 205 Slovakia banking sector proved to be stable. 200 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May
Source: Thomson Datastream
Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 13,074 GDP Real 2011e (Change against prev. year in %) 3.1 3-Month Money Market Rate (current in %) - Inflation in 2011e (yearly average in %) 4.1 EUR/SKK - Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 34 Slovak Republic
Bratislava Stock Exchange ranking in 1st quarter 2011 Central Securities Depository published annual UniCredit Bank ranked second in total turnover at the Brati- statistics for 2010 slava Stock Exchange (BSSE) in 1s The Central Securities Depository of the Slovak Republic (CDCP) published the annual statistics for 2010 on its web Quarter 2011 reaching EUR 3.650 mn or 26.86% of the page. The statistics released following data: total turnover at BSSE. Broken down to securities classes, UniCredit Bank ranked eighth in turnover in equities with In the course of 2010, CDCP processed 8,296 DVP transfers 0.6% market share and second in turnover in bonds with in the total volume of EUR 9.2 bn and 101,232 FOP transfers 6.31% market share. in the total nominal value of EUR 17.8 bn.
In the first quarter of 2011, the total turnover of transactions The total nominal value of book-entry securities, which were on BSSE amounted to EUR 10.21 bn, (by 115.16% more credited to owner’s accounts, client’s accounts and holder’s than in the same period last year). A total 2,510 of transac- accounts (hereinafter only “accounts”) as of 31 December tions were closed in the said period, including 1,913 share 2010 amounted to EUR 66.28 bn. Out of that the largest transactions and 597 bond transactions. The turnover of part represented shares in total value of EUR 38.7 bn. The share transactions amounted to EUR 154.1 mn (1.51% of value of bonds credited to accounts as of the end of the year the total turnover), whereas the turnover of bond transactions 2010 was EUR 23.2 bn and the value of co-operative units amounted to EUR 10.1 bn (98.49 % of the total turnover). issued at CDCP amounted to EUR 289.4 mn. The number of issues of book-entry shares, issued in CDCP amounted Impact on investors to 2,086. The number of issues of bonds was 363 and the UniCredit Bank affirmed its dominant position on the capi- number of co-operative unites issues was 477. There were tal market. 16 issues of units of the unit trust in a total value of EUR 3.35 mn registered at CDCP as of 31 December 2010. CDCP also registered two issues of government treasury bills and one issue of the National Property Fund; these are presented as other issues, which recorded a value of EUR 4.009 bn.
In the course of the year 2010 CDCP registered 157 new issues of book-entry securities in the nominal value of EUR 17.445 bn. Bond issues represented the largest part of the new issues – EUR 13.1 bn, the value of new share issues totalled EUR 0.345 bn.
From the book-entry securities, kept in the register of the issuer, 313 issues in the total nominal value of EUR 7.917 bn were cancelled during the year 2010.
As of 31 December 2010, CDCP administered an issuer’s register for 1,905 issuers of book-entry securities and list of shareholders for 3.498 issuers of registered shares in paper form.
CSD 2010 Statistics can be downloaded from the following web page: http://www.cdcp.sk/english/
Impact on investors For information purposes only.
Issue 122, June 2011 35 Slovak Republic
Bratislava Stock Exchange trading in April 2011 Equity securities of local companies were bought and sold in In the month of April 2011, the electronic trading system 344 transactions, in which 209,910 share units were traded of the Bratislava Stock Exchange (BSSE) was accessible in a financial volume of EUR 4.25 mn. In comparison with to members in 19 business days. A total of 480 transac- March 2011, there was a noticeable decrease in the number tions were concluded in this period, in which 261,171,592 of concluded transactions (-43.7%), in the amount of traded units of securities were traded in a financial volume of nearly securities (-84.61%) and in the achieved financial volume EUR 1.78 bn. All three indicators decreased in compari- (-92%). An increase was recorded on a year-on-year basis, son with the previous month: the number of transactions by but only in the number of concluded transactions (+16.61%). 39.55%, the amount of traded securities by 11.75% and the In the month under review, electronic order book transac- achieved financial volume by 3.84%. Significant increases tions (EUR 3.4 mn) had an upper hand over negotiated were recorded on a year-on-year basis, however, where the deals (EUR 854,328). A major part of the volume of share achieved volume rose by as much as 439%. transactions (92.9%) was again generated by transactions in the share issues of Tatry mountain resorts and Best Hotel Similar to previous periods, the month of April 2011 saw Properties. negotiated deals dominate over electronic order book (i.e. price-setting) transactions, with the former representing A total of 2,990 transactions, in a financial volume of 99.80% of the total trading volume. A total of 127 negoti- EUR 6.89 bn, have been cumulatively concluded on BSSE ated deals (in a volume of EUR 1.78 bn) were concluded, since the start of the year 2011. It is a 154.7%-increase as opposed to 353 electronic order book transactions (in a against the same period of last year. financial volume of EUR 3.63 mn). Transactions concluded by non-residents in April 2011 repre- Investors continued to concentrate on debt securities in April sented 46.82% of the total trading volume, out of which the 2011, as bond transactions amounted to over 99.76% of the buy side accounted for 45.52% and the sell side for 48.13%. achieved volume. A total of 136 bond transactions were con- cluded in the period under review, in which 260,961,682 units The SAX index ended the month of April 2011 at 247.66 of securities were traded in a financial volume surpassing points, representing a 1.15%-increase on a month-on-pre- EUR 1.77 bn. The amount of traded bonds decreased on a vious-month basis and a 3.96%-increase year on year. month-on-previous-month basis, as did the number of trans- actions and the volume. The exact opposite situation can Impact on investors be regarded in a year-on-year comparison, where all three For information purposes only. indicators increased. Negotiated deals in bonds (in a financial volume of EUR 1.77 bn) again significantly dominated over electronic order book transactions (only EUR 234,578).
Written and edited by: Zuzana Milanova Head of Global Securities Services Global Securities Services, Slovak Republic Tel. +421 2 4950 3702 · [email protected]
Issue 122, June 2011 36
Slovenia
Amended CSD regulations Market Capitalisation EUR 21.8mn The CSD has published changes regarding Regulations on YTD Dev. of Market Capitalisation 1.9% Settlement for on Ljubljana Stock Exchange trades effective as of 22 April 2011. Number of SE Transactions p.m. 7,728 YTD Dev. of SE Transactions -15.4% The Regulations implement following changes: SE Turnover (Ljubljana SE) EUR 25.5mn Monthly Index Performance (SBI TOP) -44.3% 1. A settlement member who does not assure securities on end seller’s account could be temporarily excluded GDP per Capita (2011 in EUR) 18,577 from the settlement system with the beginning of the next GDP Real 2011 (Change against prev. year in %) 2.5 day after the day which follows the maturity to fulfill these 3-Month Money Market Rate (current in %) 1.51 obligations. Inflation in 2011 (yearly average in %) 2.4 Upcoming Holidays Slovenia none 2. CSD and settlement member will consult regarding tem- porary exclusion of CSD member before he is excluded from the settlement system. Source: UniCredit, National Statistics
SBI TOP 3. CSD will enforce responsibility on seller’s settlement member in two cases: Actual 40 Day moving average 200 Day moving average 1000 4. In case seller settlement member does not ensure required 950 quantity of securities on seller’s side on settlement date until 11:00 am, CSD can exercise responsibility of seller 900 settlement member. 850 5. In case seller settlement member does not ensure required 800 quantity of securities on seller’s side on settlement date 750 until 3:00 pm, CSD must exercise responsibility of seller settlement member. 700 Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov Enforcement of responsibility on seller’s settlement member May May means that the CSD must activate the settlement protec- Source: Thomson Datastream tion mechanisms - penalty for late delivery, the buyer´s trade cancellation or »buy-in« procedure.
Deliveries after 11:00 am and up to 3:00 pm on SD shall be an exemption and not a regular way of settlement.
Impact on investors KDD will not impose fines on failing selling members until Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 3.00 pm on SD (currently such fines are charged when Number of SE Transactions p.m. 96000 securities are not delivered by 11.00 am on SD). Deliver- YTD Dev. of SE Transactions 7.107 ies after 11:00 am and up to 3:00 pm on SD shall be an SE Turnover (Zagreb SE) HRK 5977.5 mn exemption and not a regular way of settlement. Monthly Index Performance (Crobex/ZSE) 0.017 GDP per Capita (2011e in EUR) 18,577 GDP Real 2011e (Change against prev. year in %) 2.5 3-Month Money Market Rate (current in %) 1.51 Inflation in 2011e (yearly average in %) 2.4 EUR/RSD - Upcoming Holidays none
Issue 122, June 2011
5/30/2011 9:29 AM 37 Slovenia
PM meets UK investors, announces fresh round of As part of the conference, Pahor met the president of the privatistion European Bank for Reconstruction and Development (EBRD) Slovenia needs foreign investment in virtually all sectors of its Thomas Mirow and first EBRD vice-president Ronald Free- economy to act as an engine of development, Prime Minister man, with whom he discussed cooperation between the Borut Pahor said at a British-Slovenian investment forum in bank and Slovenia. London. He announced the government was planning to sell some state-owned companies that had previously been off Aside from Pahor, Finance Minister Franc Krizanic, Trans- limits to foreigners. port Minister Patrick Vlacic and State Secretary for Higher Education, Science and Technology Joszef Gyorkos were “We want investors not to miss the opportunity...that the on hand to present Slovenia and answer questions from government wants to create by rapidly privatising the assets potential investors. for which it deems that it would be beneficial if they were transferred to private ownership of domestic or foreign inves- The investment conference was also used by the Slovenian tors,” said Pahor. Tourism Board to present opportunities for investing in Slo- venian tourism. The Board said it presented a selection of Addressing the press after the conference, Pahor said that ten potential projects. investors present at today’s conference were pleasantly sur- prised by such a position. “We have witnessed a significant The NKBM bank, which is carrying out a capital injection, was interest of British capital to invest in Slovenia,” he added. represented at the event by its chairman Matjaz Kovacic, who According to the prime minister, the business officials gath- held meetings with several institutional investors to present ered at the event were interested foremost in the advan- them with the issue of new shares. tages Slovenia has to offer in terms of its geopolitical and geographic position and taxes. Slovenia was interesting for Impact on investors investors foremost due to its connections with the Western The business officials gathered at the event were inter- Balkans, its small size and flexibility in adapting to the inter- ested foremost in the advantages Slovenia has to offer in national environment, and its readiness to join the eurozone terms of its geopolitical and geographic position and taxes. countries that are leading the reform drive, he said. Pahor said after the meeting that he had to answer several questions about the outlook for pension reform in Slovenia. “It appears that investors are interested in this not only in the strict sense of whether it will extend years of service and disburden the pension purse, but also in the symbolic sense of whether the Slovenian people are capable of taking tough decisions.”
Written and edited by: Barbara Zajc Senior Relationship Manager Global Securities Services, Slovenia Tel. +386 1 5876 453 · [email protected]
Issue 122, June 2011 38
Ukraine
Net direct investment inflow to Ukraine in Q1 Market Capitalisation (PFTS) UAH 212.2bn increased by 8.4 times YTD Dev. of Market Capitalisation (PFTS) -17.0% According to State Statistics Service the net increase in for- eign direct investment (FDI) in Ukraine in the first quarter of Number of SE Transactions p.m. (PFTS) 6,558 2011 has been estimated at USD 829.3 mn, which is 8.4 YTD Dev. of SE Transactions (PFTS) -88.0% times higher compared to the same figure for the first quarter SE Turnover (PFTS) UAH 9.3bn of 2010. Monthly Index Performance (PFTS) 28.0% GDP per Capita (2011 in EUR) 2,792 According to it, January through March 2011, foreign inves- tors pumped in USD 925.7 mn in direct investment to the GDP Real 2011 (Change against prev. year in %) 5.0 Ukrainian economy, which was 29.1% up in January–March 3-Month Money Market Rate (current in %) 6.50 2010. Inflation in 2011 (yearly average in %) 11.0 EUR/UAH 11.40 Foreign investors simultaneously withdrew USD 260.7 mn, Ukraine Upcoming Holidays 13, 27, 28 June which was 12% down on the first quarter of 2010. The amount of FDI in Ukraine (equity capital) as of 1 April 2011 Source: UniCredit, National Statistics reached USD 45.602 bn, which is 1.9% higher than its value PFTS at the beginning of 2011. FDI per capita was USD 998.1, the Actual 38 Day moving average 200 Day moving average statistics service said. 7250 The total amount of FDI (equity and other capital) as of 1 April 6500 was 52.845 bn, which was 18.2% up at the beginning of the year. 5750
5000 Impact on investors For information purposes. 4250
3500 SSMSC to invigorate stock market development through mini-IPO Jul Apr Jan Oct Jun Feb Mar Dec Aug Sep Nov May May The State Securities and Stock Market State Commission Source: Thomson Datastream (SSMSC) is preparing a project of the implementation of a mini-IPO instrument to invigorate and recover the stock market development in Ukraine.
As per the head of SSMSC the mobility of a huge number of joint-stock companies in Ukraine is slack and accordingly the market is half dead. A mini-IPO is an instrument to push the market. Market Capitalisation HRK 397.2 bn YTD Dev. of Market Capitalisation 2.307 This instrument is planned to be presented in two weeks. Number of SE Transactions p.m. 96000 YTD Dev. of SE Transactions 7.107 Source: Interfax -Ukraine SE Turnover (Zagreb SE) HRK 5977.5 mn Monthly Index Performance (Crobex/ZSE) 0.017 Impact on investors GDP per Capita (2011e in EUR) 2,792 For information purposes. GDP Real 2011e (Change against prev. year in %) 5.0 3-Month Money Market Rate (current in %) 6.50 Inflation in 2011e (yearly average in %) 11.0 EUR/UAH 11.40 Upcoming Holidays none
Written and edited by: Katherine Yevtushenko Relationship Manager Global Securities Services, Ukraine Tel. +38 044 590 1210 · [email protected]
Issue 122, June 2011
5/30/2011 9:29 AM 39
Georgia · Azerbaijan
Georgia Azerbaijan
Financial assistance for Georgia Central Bank of Azerbaijan has raised the refinancing European Parliament has adopted a package of financial rate from 5% to 5.25% aid for Georgia amounting to EUR 46 mn. According to the The Central Bank of Azerbaijan decided to increase the Refi- Georgian government, these funds are intended to reduce nancing rate by 0.25% - to 5.25% on 6 May 2011. Also unemployment in the country, stimulate economic growth the mandatory reserve for liabilities in foreign currency was and export Georgian products. Half of the sum allocated increased from 2 to 3%. in Georgia as a grant, the remaining part as a loan. It is expected that the financial assistance will improve the invest- This is the second refinancing rate increase starting from ment environment in Georgia and will carry out reforms in November 2010. The previous 2% refinancing rate increase the financial sector. was announced effective on 1 March 2011.
Also in early May the World Bank decided to allocate an Impact on investors additional USD 235 mn to Georgia. This amount is intended Decrease of the inflationary pressure to the economy. to sustain economic growth.
Impact on investors Improvement of investment environment.
Written and edited by: Evgenia Klimova Head of Product & Business Development Global Securities Services, Russia Tel. +7 495 232-5298 · [email protected]
Issue 122, June 2011 40
Your Contacts
Regional responsibility Bosnia and Herzegovina Attila Szalay-Berzeviczy UniCredit Bank d.d. Tel. +35 1 301 1910 Global Securities Services [email protected] Zelenih beretki 24 71 000 Sarajevo Pawel Muszalski Bosnia and Herzegovina Tel. +43 50505 57315 [email protected] Lejla Sabljica Tel. +387 33 491 777 Markus Winkler [email protected] Tel. +43 50505 58547 [email protected] Amra Telacevic Tel. +387 33 491 816 Sven Trahan [email protected] Tel. +43 50505 57311 [email protected]
Beata Szonyi Bulgaria Tel. +36 1 301 1924 UniCredit Bulbank AD [email protected] 6 Vitosha Boulevard, 2nd floor Philipp Aschl BG-1000 Sofia Tel. +43 50505 58508 Bulgaria [email protected] Yavor Dojdevski Tel. +359 2 9320 107 [email protected] Austria Veselin Stefanov UniCredit Bank Austria AG Tel. + 359 2 93 20 112 Julius Tandler-Platz 3 [email protected] A-1090 Vienna Austria
Günter Schnaitt Croatia Tel. +43 50505 58501 Zagrebacka Banka d.d. [email protected] Savska 60/IV Michael Slavov HR-10000 Zagreb Tel: +43 50505 58511 Croatia [email protected] Valerija Bezak Thomas Rosmanitz Tel. +385 1 6305 430 Tel. +43 50505 58515 [email protected] [email protected] Snjezana Bruncic Tina Fischer Tel. +385 1 6305 400 Tel. +43 50505 58512 [email protected] [email protected]
Stephan Hans Tel. +43 50505 58513 [email protected]
Issue 122, June 2011 41 Your Contacts
Czech Republic Poland UniCredit Bank Czech Republic a.s. Bank Polska Kasa Opieki SA (short: Bank Pekao) Revolucni 7 Ul. Grzybowska 53/57 CZ-110 05 Prague PL-00-950 Warsaw Czech Republic Poland
Michal Stuchlik Tomasz Grajewski Tel. +420 22121 6770 Tel. +48 22 524 5867 [email protected] [email protected]
Dita Safarova Mariusz Piekos Tel. + 420 221 112 942 Tel. +48 22 524 5852 [email protected] [email protected]
Tomas Vacha Kamil Polak T. + 420 221 216 773 Tel. +48 22 524 5863 [email protected] [email protected]
Marta Boboryk Hungary Tel. +48 22 524 58 61 [email protected] UniCredit Bank Hungary Zrt. Szabadsag ter 5 – 6, 6th floor Krzysztof Pekrul H-1054 Budapest Tel. +48 22 524 5864 Hungary [email protected]
Júlia Romhányi Marek Cioroch Tel. +36 1 301 1923 Tel. +48 22 524 5862 [email protected] [email protected]
Zsanett Lencses Tel. +36 1 301 1920 Romania [email protected] UniCredit Tiriac Bank S.A. Livia Meszaros Ghetarilor Street 23 – 25 Tel. +36 1 301 1921 RO-014106, Bucharest 1 [email protected] Romania
Irina Savastre Kazakhstan Tel. +40 21 200 2670 [email protected] JSC ATF Bank Furmanov Street 100 Viviana Traistaru KZ-050000 Almaty Tel. +40 21 200 2673 Republic of Kazakhstan [email protected]
Vladimir Vassilyev Tel. +7 727 258 3015 (1353) Russia [email protected] ZAO UniCredit Bank Natalya Kolnogorova 9, Prechistenskaya Emb. Tel. +7 727 258 3015 (1232) RU-119034 Moscow [email protected] Russian Federation
Alexander Nazarov Tel. +7 495 258 73 49 [email protected]
Issue 122, June 2011 42 Your Contacts
Serbia Ukraine UniCredit Bank Serbia JSC PJSC UniCredit Bank Omladinskih Brigada 88 14a, Yaroslaviv Val RS-11070 Belgrade UA-01034 Kyiv Serbia Ukraine
Jasmina Radicevic Bohdana Yefremova Tel. +381 11 3028 611 Tel. +380 44 230 3341 [email protected] [email protected]
Goran Platiša Elizaveta Sotnichenko Tel. +381 11 3028 687 Tel. +380 44 590 1208 [email protected] [email protected]
Ganna Sankina Slovakia Tel.: +380 44 590-1209 [email protected] UniCredit Bank Slovakia A.S. Sancova 1/A Katherine Yevtushenko SK-811 04 Bratislava Tel. +380 44 590-1210 Slovak Republic [email protected]
Zuzana Milanova Tel. +421 2 4950 3702 Websites [email protected] gss.unicreditgroup.eu Rastislav Rajninec http://www.unicreditgroup.eu Tel. +421 2 4950 2424 http://www.bankaustria.at [email protected]
Slovenia UniCredit Bank Slovenija d.d. Wolfova 1 SI-1000 Ljubljana Slovenia
Vanda Mocnik-Kohek Head of GSS Slovenia Tel. +386 1 5876 450 [email protected]
Elmedina Garibovi ´c Tel. +386 1 5876 453 [email protected]
Barbara Zajc Tel. +386 1 5876 453 [email protected]
Issue 122, June 2011 43
Disclaimer
The information in this publication is based on carefully selected sources Notwithstanding the above, if this publication relates to securities subject to believed to be reliable but we do not make any representation as to its the Prospectus Directive (2005) it is sent to you on the basis that you are a accuracy or completeness. Any opinions herein reflect our judgement at Qualified Investor for the purposes of the directive or any relevant implementing the date hereof and are subject to change without notice. Any investments legislation of a European Economic Area (“EEA”) Member State which has presented in this report may be unsuitable for the investor depending on implemented the Prospectus Directive and it must not be given to any person his or her specific investment objectives and financial position. Any reports who is not a Qualified Investor. By being in receipt of this publication you under- provided herein are provided for general information purposes only and take that you will only offer or sell the securities described in this publication cannot substitute the obtaining of independent financial advice. Private inves- in circumstances which do not require the production of a prospectus under tors should obtain the advice of their banker/broker about any investments Article 3 of the Prospectus Directive or any relevant implementing legislation concerned prior to making them. Nothing in this publication is intended to of an EEA Member State which has implemented the Prospectus Directive. create contractual obligations on any of the entities composing Corporate & Investment Banking Division of UniCredit Group which is composed of (the Note to US Residents: respective divisions of) UniCredit Bank AG, Munich, UniCredit Bank Austria AG, Vienna, and UniCredit S.p.A., Rome. The information provided herein or contained in any report provided herein is intended solely for institutional clients of Corporate & Investment Banking UniCredit Bank AG is regulated by the German Financial Supervisory Author- Division of UniCredit Group acting through UniCredit Bank AG, New York ity (BaFin), UniCredit Bank Austria AG is regulated by the Austrian Financial Branch and UniCredit Capital Markets, Inc. (together “UniCredit”) in the Market Authority (FMA), the UniCredit CAIB Securtities UK Ltd. is regulated United States, and may not be used or relied upon by any other person for by the Financial Services Authority (FSA) and UniCredit S.p.A. is regulated any purpose. It does not constitute a solicitation to buy or an offer to sell by both the Banca d’Italia and the Commissione Nazionale per le Società e any securities under the Securities Act of 1933, as amended, or under any la Borsa (Consob). other US federal or state securities laws, rules or regulations. Investments in securities discussed herein may be unsuitable for investors, depending Note to UK Residents: on their specific investment objectives, risk tolerance and financial position.
In the United Kingdom, this publication is being communicated on a confi- In jurisdictions where UniCredit is not registered or licensed to trade in securi- dential basis only to clients of Corporate & Investment Banking Division of ties, commodities or other financial products, any transaction may be effected UniCredit Group (acting through UniCredit Bank AG, London Branch (“UCB only in accordance with applicable laws and legislation, which may vary from London”) and/or UniCredit CAIB Securities UK Ltd. who (i) have professional jurisdiction to jurisdiction and may require that a transaction be made in accord- experience in matters relating to investments being investment professionals ance with applicable exemptions from registration or licensing requirements. as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”); and/or (ii) are falling within Article All information contained herein is based on carefully selected sources believed 49(2) (a) – (d) (“high net worth companies, unincorporated associations etc.”) to be reliable, but UniCredit makes no representations as to its accuracy or of the FPO (or, to the extent that this publication relates to an unregulated completeness. Any opinions contained herein reflect UniCerdit’s judgement collective scheme, to professional investors as defined in Article 14(5) of the as of the original date of publication, without regard to the date on which Financial Services and Markets Act 2000 (Promotion of Collective Investment you may receive such information, and are subject to change without notice. Schemes) (Exemptions) Order 2001 and/or (iii) to whom it may be lawful to communicate it, other than private investors (all such persons being referred to UniCredit may have issued other reports that are inconsistent with, and reach as “Relevant Persons”). This publication is only directed at Relevant Persons different conclusions from, the information presented in any report provided and any investment or investment activity to which this publication relates is herein. Those reports reflect the different assumptions, views and analytical only available to Relevant Persons or will be engaged in only with Relevant methods of the analysts who prepared them. Past performance should not be Persons. Solicitations resulting from this publication will only be responded taken as an indication or guarantee of further performance, and no representa- to if the person concerned is a Relevant Person. Other persons should not tion or warranty, express or implied, is made regarding future performance. rely or act upon this publication or any of its contents. UniCredit and/or any other entity of Corporate & Investment Banking Division The information provided herein (including any report set out herein) does not of UniCredit Group may from time to time, with respect to any securities dis- constitute a solicitation to buy or an offer to sell any securities. The information cussed herein: (i) take a long or short position and buy or sell such securities; in this publication is based on carefully selected sources believed to be reliable (ii) act as investment and/or commercial bankers for issuers of such securities; but we do not make any representation as to its accuracy or completeness. (iii) be represented on the board of such issuers; (iv) engage in “market making” Any opinions herein reflect our judgement at the date hereof and are subject of such securities; and (v) act as a paid consultant or adviser to any issuer. to change without notice. The information contained in any report provided herein may include forward- We and/or any other entity of the Corporate & Investment Banking Division of looking statements within the meaning of US federal securities laws that are UniCredit Group may from time to time with respect to securities mentioned in subject to risks and uncertainties. Factors that could cause a company’s this publication (i) take a long or short position and buy or sell such securities; actual results and financial condition to differ from its expectations include, (ii) act as investment bankers and/or commercial bankers for issuers of such without limitation: Political uncertainty, changes in economic conditions that securities; (iii) be represented on the board of any issuers of such securi- adversely affect the level of demand for the company’s products or services, ties; (iv) engage in “market making” of such securities; (v) have a consulting changes in foreign exchange markets, changes in international and domestic relationship with any issuer. Any investments discussed or recommended financial markets, competitive environments and other factors relating to the in any report provided herein may be unsuitable for investors depending on foregoing. All forward-looking statements contained in this report are qualified their specific investment objectives and financial position. Any information in their entirety by this cautionary statement. provided herein is provided for general information purposes only and cannot substitute the obtaining of independent financial advice. Corporate & Investment Banking Division of UniCredit Group
UCB London is regulated, to a limited extent, by the Financial Services Author- UniCredit Bank AG, Munich; UniCredit Bank Austria AG, Vienna and UniCredit ity for the conduct of business in the UK as well as by BaFIN, Germany. S.p.A., Rome UniCredit CAIB Securities UK Ltd., London, a subsidiary of UniCredit Bank Austria AG, is authorised and regulated by the Financial Services Authority. as of 29 March 2010
Issue 122, June 2011 44
Imprint
Statement pursuant to the Austrian Media Act Publisher and Media Owner Corporate & Investment Banking Global Transaction Banking UniCredit Bank Austria AG Global Securities Services Julius Tandler-Platz 3 A-1090 Vienna Tel. +43 50505 0
Information requirements pursuant to the Austrian E-Commerce Act Registered office and postal address Schottengasse 6 – 8 A-1010 Vienna Swift: BKAUATWW Austrian bank code: 12.000 Registered under no. FN 150714p Companies Register at the Commercial Court Vienna Kind of business Credit institution under section 1 (1) Austrian Banking Act Supervisory authority Austrian Financial Market Supervisory Authority (Finanzmarktaufsicht), departments banking supervision and securities supervision Praterstraße 23 A-1020 Vienna http://www.fma.gv.at Membership Austrian Federal Economic Chamber, bank and insurance division Wiedner Hauptstraße 63 A-1040 Vienna http://www.wko.at Austrian Bankers’ Association A-1013 Vienna, p.o.box 132 http://www.voebb.at; Applicable legal regulations Applicable legal regulations are in particular the Austrian Banking Act (“Bankwesengesetz – BWG”, Federal Law Gazette/BGBl. No. 532/1993, with some amendments), the Austrian Securities Supervision Act (“Wertpapieraufsichtsgesetz – WAG”, Federal Law Gazette/BGBl. No. 753/1996, with some amendments) an the Austrian Savings Banks Act (“Sparkassengesetz”, Federal Law Gazette/BGBl. No. 64/1979, with some amendments). VAT identification number ATU 51507409
Issue 122, June 2011