CSE's New Index To Launch At 1,000

by Lorys Charalamabous, Tax-News.com, Cyprus

04 September 2004

The Cyprus Stock Exchange (CSE) has given further details of its strategic Development Plan 2004-2006, a package of reforms aimed at reviving the fortunes of the troubled institution. A new index based at 1,000 will be launched when the market splits into four sections next week.

Under the plans, the bourse will split into four separate markets on September 6th: Main, Parallel and Alternative markets, with an Investment Companies and Bonds section alongside. The existing 152 listed companies have been divided among the different markets, with 17 companies in the Main market, 20 in the Parallel market, 89 in the Alternative market, and 26 in the Investment companies market.

The CSE is waiting for the House of Representatives to approve a new fee structure which will see fees slashed from the current 1% for legal entities, and 0.6% for individuals, to 0.2% for all.

Its chairman Akis Kleanthous, has suggested that the new proposals will enable a clean break with the past and allow the bourse to “look into the future”. The exchange has never fully recovered from a spectacular crash in 2000 when panic selling sent the index tumbling. from a high of 700 to less than 100.

The CSE's All-Share Index will be made up of companies in the Main and Parallel markets, plus there will be separate indices for each market, and sectoral indices for the banking and tourism sectors.

Main market companies need to have minimum capitalisation of CYP 9m, while Parallel market companies will need a minimum of CYP 4m. Alternative market companies need just CYP 1m in capitalisation.

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