New bourse CEO eyes more listings
Photo courtesy Budapest Stock Exchange
The Budapest Stock Exchange is in need of more listings, however, the problem is on the supply and not the demand side, BSE CEO Richárd Végh, elected yesterday, said in an interview in daily Magyar Idők, published today.
The new board of the Budapest bourse, which was elected yesterday, is expected to introduce new incentives designed to help raise the number of companies listing shares on the bourse for a period of at least five years, the CEO told the paper.
He reiterated the words of central bank deputy-governor Márton Nagy – who was named BSE chairman by the board yesterday – that aside from big companies and state-owned firms, SMEs should also be encouraged to list shares on the bourse, Magyar Idők said.
For this, the board is planning to tailor a regulatory environment for SMEs that is transparent and offers defensive mechanisms, the CEO reportedly said. Végh added that the board will review the bourse’s listing category conditions targeting to improve the image of companies whose shares have been floated.
The new leadership is expected to present a new strategy for the bourse by February.
The National Bank of Hungary (MNB) announced earlier that it had acquired a majority stake in the Budapest bourse, and central bank deputy governor Márton Nagy has been put in charge of the bourse. Nagy also said that the MNB is planning to prepare a new strategy for the development of the BSE.
The purchase of the stock exchange is “absolutely unprecedented” and risky, according to Lajos Bokros, the first chairman of the Budapest Stock Exchange after its reopening in 1990 and a finance minister in the mid 1990s. He gave his opinion in a recent Financial Times article.
The BSE said that average daily share turnover of the Budapest bourse saw a 111% rise, up to HUF 10.3 bln, in November, compared to the same month a year earlier, with average daily share turnover up by 45% as compared to the preceding month.
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