THE SLOVAK stock market ground to a halt on March 22, reporting no activity whatsoever.
"The Bratislava Stock Exchange did not report any transaction on its floor during the whole session; this has happened for the first time in its history," director general Maria Hurajová told the daily SME.
Brokers say the recent switch from the Securities Centre to the new Central Securities Depository (CDCP) caused the complications.
According to brokers, the new system for the registration of securities and the settlement of the transactions was insufficiently prepared.
Though the depository has granted membership to 11 entities, only the brokerage company RM-S Market was licensed to offer services. It was the only company to have signed a contract with the CDCP. Other entities refused to sign contracts, claiming the CDCP had not met the conditions necessary for them to offer their services.
The banks will demand an amendment to the contract.
Out of over 500 securities issues, not a single security was transferred on the stock exchange on Monday. Thus the official share index, SAX, remained at Friday's level of 180.6 points.
Every day without trade harms the stock exchange since it is deprived of its main revenues - income from trading, claims Hurajová.
The CDCP operates on a membership principle and it shelters brokerage companies and banks licensed to negotiate securities.
Compiled by Beata Balogová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
23. Mar 2004 at 9:56