Companies see stock exchange as costly coercion - broker

Commenting on a prolonged trend of companies getting delisted from the Belgrade Stock Exchange (BELEX), Nenad Gujanicic, chief broker at Momentum Securities, says one of the reasons behind this was the fact that "most companies see the stock exchange as a coercion imposed by law that generates unnecessary costs."

14 Februar 2019 16:53

BELGRADE - Commenting on a prolonged trend of companies getting delisted from the Belgrade Stock Exchange (BELEX), Nenad Gujanicic, chief broker at Momentum Securities, says one of the reasons behind this was the fact that "most companies see the stock exchange as a coercion imposed by law that generates unnecessary costs."


The trend has accelerated after the global economic crisis and "changes to domestic regulations that lent a hand to majority owners," Gujanicic told Tanjug.


Following in the footsteps of SMEs, "large companies, which are usually in the form of joint stock companies in orderly economies," are also leaving the stock exchange, he noted.


"Just a small number of them are entertaining the idea of using the market to obtain cheaper funding by accumulating capital, which is the basic function of a stock exchange," he said.


"To be fair, now that the market is dying and registering low volumes, the stock exchange can hardly perform that basic function," Gujanicic said.

top of page