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Banking Sector Controls 92 % of DSE Trading in 2010, CEO Says.

Damascus, (SANA)- The number of shareholders in the companies enlisted in the Damascus Securities Exchange (DSE) up till the end of 2010 reached 44900 shareholders, while the number of active traders amounted to 5718 investors, said Chief Executive Officer of the DSE Mohammad Jalilati in a lecture on Saturday.

The top ten of active traders contributed by 27 % of the annual trading volume, and the top fifty by 50 %, while the rest, who count 5668 traders, contributed by 50 %, Jalilati added.

The share prices at the DSE rose by 30 to 80 %, apart from Qatar National Bank, as the value of its share increased up to SYP 1682 until the beginning of last November, three times the opening price.

Jalilati pointed out that the banking sector had took hold of the biggest share of the DSE activities as the values of its transactions hit SYP 8, 387 billion, over 92 % of the total value of capital transactions.

He explained this control in terms of the existence of a strategic partner whose ownership of the capital stock is 49 %, planned to rise up to 60 % due to the focus on direct investment and the fact that the Syrian banks are now considered subsidiaries of the mother banks, therefore, can not be finally traded.

He continued explaining that the share of the average person is 5 % of the capital, while that of the stockholders who own more than 1 % of the shares range between 72 to 95 % of the total shares of banks, noting that only a few number of shares was traded by those stockholders which did not exceed 1.6 % of their total shares.

The ownership of the members of the Board of Directors in all the enlisted banks varied between 51 and 73 % of shares which were traded at a rate of only 0.

7 %, said Jalilati, noting that the actual free shares did not exceed 10 % of the total exported shares, which negatively affected the share turnover, among other reasons.

The DSE Chief Executive pointed out by the end of the lecture that upgrading the performance of the stock market requires the exclusion of the brokerage firms (broker-dealers) from the rates set for the legal personalities provided that they work as market makers to help achieve balance and speed up the fragmentation of the nominal value of shares with the aim to facilitate and increase the trading operations according to the rules of the new companies law No.

29.

Jalilati underlined the importance of speeding up the issuing of the executive instructions of the financial leasing law in order to embark on creating this kind of shareholder companies.

He also stressed the need to speed up the issuing of the investment bank law to enlist those companies in the stock market later.

H.

Said

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Publication:Syrian Arab News Agency (SANA)
Date:Mar 13, 2011
Words:478
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