South Pacific Stock Exchange exceeds F$1 billion mark

The South Pacific Stock Exchange (SPSE) has exceeded the F$1 billion mark during the financial period ending 30 June 2006, thus creating history.

A total of 3.8 million shares exchanged hands on the trading floor during the year, an increase of 65.8% compared to the same period last year. Consideration for shares traded totalled F$9.4 million, almost double the F$4.9 million consideration last year.

To compete with lower interest rates being offered during the most part of the financial period to June 2006, a lot of businesses opted for debt options to finance their expansion projects rather than equity.

However, with the situation on interest rates reversed now with these rising, a number of businesses will now seriously consider raising funds through the equity market.

Over the year, the total return from companies listed on the SPSE averaged 24.2% with a dividend yield of 3% and capital growth of 21.2%. 13, out of 16 companies listed, declared and paid dividends with a total of F$40.8 million distributed to shareholders during the period.

Institutional investors will continue to have a major impact on the level of activity in the market and the increase in private equity and venture capital projects by some of these institutions will promote listing in years to come as these institutions look for exit strategies or objective valuations of their investments.

Note from GV : For those considering listing on the SPSE, our company, Gilbert & Samuels Company Limited, can assist with preparing your listing application and all submissions required to the regulatory authority, the Capital Markets Development Authority. To contact us, e-mail gilbert@connect.com.fj or call telephone +679 3396427.