Cyprus stock exchange turns to Middle East for new listings

— Wants ASE to block new dual listings from Cyprus

 

The Cyprus Stock Exchange is in negotiations with the stock exchanges of Egypt, Jordan and Dubai with a view to attract new listings, while at the same time it is asking the Greek stock market authorities to reject applications from Cyprus for a dual listing of stocks on both the CSE and ASE.

CSE Chairman Georgos Koufaris and CSE Director General Nontas Metaxas had extensive talks with officials from the Athens Stock Exchange and its Chairman Spyros Kapralos in the Greek capital yesterday.

The two sides expressed their satisfaction at the smooth way with which the common trading platform between the ASE and CSE is operating, a year after it was launched.

 

— Halt to dual listings

 

The Cypriot bourse officials appear to have won a major concession from Athens not to agree to dual listings by Cypriot firms, on the argument that it risks losing interest and volume to the more competitive and innovative ASE.

Cyprus’ most widely held stocks, Bank of Cyprus and Marfin Popular Bank, which account for over 65% of total CSE market capitalization and on average account for 70% of daily traded volume are also listed on the ASE and both are ASE/FTSE20 constituent stocks. Hellenic Bank, the third largest and active stock was also reported to have shown a keen interest to seek a second listing on the ASE.

ASE Vice Chairman S. Lazarides told Greek reporters on the sidelines of the meetings that the ASE has agreed to “decline such applications from CSE listed companies.”

 

— Expansion drive

 

Separately, Kapralos revealed that ATHEX will participate in the upcoming sale of a majority stake in the Ljubliana Stock Exchange. The sale is expected to be completed by January. Hellenic Exchanges is also keen to take a stake in the Bulgarian bourse, if there is decision for its privatization.

Moreover, two new remote members will be present in the Athens Stock Exchange in January, 2008, while press reports suggest that during the first quarter of the year the number of remote members will rise to four. For these members (which reportedly are major international American and European firms) either their approval is pending from the Capital Commission or they are in the stage of their connection with the Athens Stock Exchange.

These developments are in line with the company’s strategy for regional expansion.

 

— Road shows

 

Nine CSE listed companies, namely Bank of Cyprus, Marfin Popular Bank, Hellenic Bank, SFS Group, Tsokkos Hotels, Louis, Ocean Tankers, Logicom and Cyprus Trading Corporation took part in an investor road show organised jointly by the CSE and the ASE in Athens on Tuesday.

Koufaris said the presentations were very successful and are part of the drive to attract additional institutional investor interest from Greece to Cyprus. He also referred to discussions on the issue of custodians and the CSEs efforts to convince custodians to increase trading on the CSE, adding that technical problems in the past that had hampered such activity have been resolved.

The CSE also wants to draw on the experience of Greece in setting up selective derivatives products.