SEE Link indices launched
April 1, 2016 - SEE Link started to calculate today its first two blue chip equity indices, SEE LinX and SEE LinX EWI, in a move to enhance the visibility of regional markets.
The indices are composed of the 10 most actively traded regional companies listed on three participating exchanges: 5 from Croatia, 3 from Bulgaria and 2 from Macedonia.
Both indices have the same constituents: Bulgarian companies Advance Terrafund REIT-Sofia, Sopharma AD-Sofia and Monbat AD-Sofia; Croatian companies Atlantic Grupa d.d., Ericsson Nikola Tesla d.d., Hrvatski telekom d.d., Podravka d.d. and Valamar Riviera d.d.; and Macedonian companies Komercijalna banka AD Skopje and Alkaloid AD Skopje.
SEE LinX index is a market capitalization weighted index adjusted for the free-float of each constituent, while SEE LinX EWI is an equally weighted index with the same constituents.
The base level of each index is set at 100 points and will be calculated in real time in Euro (EUR).
SEE Link indices will create more visibility for regional capital markets as well as more transparency, enabling investors to monitor equity price movements accurately to make investment decisions easier.
SEE Link, an innovative regional platform linking Bulgarian, Croatian and Macedonian bourses supported by the European Bank for Reconstruction and Development (EBRD), became fully operational with the launch of an order-routing system on March 29, 2016.
The network will help integrate domestic stock markets with a combined equity market capitalisation of US$ 30 billion allowing for order routing of almost 400 stocks listed on the three exchanges. The system aims to increase liquidity and improve access for investors and local brokers.
The Belgrade and Ljubljana Stock Exchanges have already confirmed their intention to join the network.
SEE Link is a project started by the Bulgarian, Macedonian and Croatian stock exchanges with the aim of creating a regional infrastructure for trading of securities listed on those three markets. Formalising this cooperation, the three stock exchanges set up SEE Link as a joint company in May 2014, located in Skopje.
The EBRD supported the initial phase of the SEE Link project with a €540,000 grant to introduce an electronic system for order-routing in July 2014. Funding for the project was provided by EBRD donors through the EBRD Shareholder Special Fund. In parallel, participating stock exchanges extended €80,000 to SEE Link. Strengthening local capital markets and encouraging the use of local currencies is one of the EBRD’s priorities in the region. The Bank is aiming to reduce dependence on external sources of financing and to promote the development of domestic sources of finance.