Stock exchange operators setting target figures

With some time left to go until July 3, the official start of the election campaign, the looming fight for the presidential post is making itself increasingly felt. The other day Ukraine’s professional stock exchange operators — members of the First Stock Exchange Trade System (PFTS) — sent an open letter to the presidential candidates. What prompted them to take this step was a desire to hear the contenders’ viewpoint on the place and role of the stock market in Ukraine.

“We have the pleasure of working in a market where last year’s gross sales almost equaled Ukraine’s GDP, where prices of the most liquid shares have skyrocketed and the most attractive joint-stock companies are rising in value, where the circulation of corporate, municipal and state-owned bonds and investors’ circles are expanding, i.e., in a market that reflects the real national wealth generated by society,” the address says.

PFTS experts believe that the future president should be guided by the following reference points: capitalization of the 100 largest joint- stock companies should reach 50% of Ukraine’s GDP, Ukrainian citizens are to keep UAH 5 million-worth of accounts in non-governmental pension funds, and annual real investments attracted by issuing securities should reach 100% of Ukraine’s GDP.

Stock market operators admit that these quantitative targets can only be reached by the introduction of qualitative changes to this market. They believe that it is crucial to bring the corporate management of joint-stock companies into line with existing laws, increase the number of freely-circulating shares of state-run businesses, and create at least three “success stories” that would impress the outside world. These goals are not so simple to achieve. But if the state, business, and society make an effort to do so, this will provide a powerful impetus for increasing the GDP and developing a competitive economy, and will also enable Ukrainians to see the tangible fruits of this policy.

“With this letter, we want not only to put our proposals across but also to express our wish to hear what you are going to do, and how and with whom you are going to act in order to make Ukraine’s stock market the locomotive of our economy during your presidency and thereafter,” concludes the letter approved at the PFTS general meeting.