Ukrainian experts are painting varied pictures of the state of the country’s fund markets. Yet, while operators cite considerable growth on one hand, officials are pointing at the need to make changes in legislature to provide a portfolio-investor friendly environment on the other.
Thus to facilitate this expansion, both sides agree investor rights must be bolstered.
Speaking at the “Viva la Revolucion” Investment Conference, John Suggitt, the Executive Director of the Kiev-based investment company Concorde Capital, says that during 2004 the Ukrainian fund market tripled its trade volume and achieved a record high of 260.13 in December. The growth of trade volume up to UAH 7.7bn, as well as considerable PFTS (First Securities Trading System) capitalization and a 170.33 % improvement in the S&P/IFCF-Ukraine rating are important development indicators. At the same time Suggitt confesses that the development has been substantionally hindered by the lack of legislature defending minority shareholders and other problems.
The Vice-Chairman of the parliamentary Budget Committee, Valeriy Asadchev, claims that in fact there is no proper fund market in Ukraine. Though evaluating the current market differently than Suggitt, Asadchev also thinks that Ukraine needs to introduce strong legislative protection for minority shareholders.
While acknowledging the Ukrainian stock market’s current predominantly speculative nature, John Suggitt mentioned that the radical revaluation of stocks by enterprises in 2004 enabled his company to function on the stock exchange while avoiding speculative schemes. His optimistic vision of the Ukrainian stock market is grounded on the results of Concorde Capital’s operations.
Speaking on the policy measures required to speed up stock market development and to attract foreign investment, Suggitt emphasized the importance of dialogue among investors, government officials and business elites in resolving problems. The first step towards improving the situation was taken by Concorde Capital along with the Ukrainian Parliament, in initiating the “Viva la Revolucion” Investment Conference. The event aims at setting the stage for direct dialogue among all parties of the investment process.