New stock exchange head gets down to business

by Dionisia Tabureguci

 

At the helm...Jinita Prasad

For 27-year-old Jinita Prasad, the euphoria of having been appointed chief executive officer of the South Pacific Stock Exchange (SPSE) is already fading.

After a month on the job, the former associate director of investment bank, Kontiki Capital Limited (KCL), has already zeroed in on the most daunting task before her: how to solve the liquidity problem in the market.

There is no soft diplomacy in her approach to this issue.

It is a point blank discussion on the state of Fiji's fledgling share market where, when she says 'liquidity', what she is really describing is how easily shares could be converted to cash.

The KGF catalyst

Kontiki Growth Fund plans more local investments

by Dionisia Tabureguci

NEW kid on the block at the South Pacific Stock Exchange Kontiki Growth Fund (KGF) has wasted no time in showing that it is here to do business. Late last month, it held its first annual general meeting for shareholders since it started operations in 2005 and it looks like a company shaping up to be a conduit for local businesses to make it to the stock market. In a way, this was to be expected, considering that there are the likes of Jack Lowenstein and John Courtney on its board of directors plus the heavy involvement of Kontiki Capital Ltd as its manager. 

Lowenstein and Courtney are well known market advocates and are also founders of Kontiki Capital Ltd, which acts as advisor and manager to Kontiki Fund Limited (KFL), an open ended managed fund that has heavily invested in SPSE-listed companies. KFL is generally not affordable to Fiji investors because of it requirement of US$25,000 as usual minimum subscription. But now, local investors can participate in KFL through KGF, which had invested 27 percent of its total equity in KFL by December last year. History shows that KFL has had a colourful seven and half year life in terms of returns on investment, and quoted in US dollars, was running on par with returns in both the Australian and US stockmarkets.

27p.c drop in FijiCare profits

Global health care cost blamed

by Dionisia Tabureguci

Health insurance service provider, FijiCare Insurance Limited (FIL), maintained a declining trend of net profits despite a slight improvement in its trading figures and a steady dollar value to incurred claims.
Last month, FijiCare directors released the company's annual report, which showed the company's after-tax profit figure of F$182, 099 for the financial year ended December 31, 2004, a 27 percent drop compared to the same period in 2003.
Apart from factoring in the results of the company's new Medical Centre, which did not do too well in its first year, the low figures were attributed to external factors rather than bad business in a highly competitive local insurance market.

ATH’s colourful trip at the stockmarket

The rise and fall of Amalgamated Telecom Holdings Limited, Fiji’s giant telco

by Dionisia Tabureguci

There is little doubt that Amalgamated Telecom Holdings Limited (ATH) is one of the biggest companies in Fiji with total assets of over $300 million, six subsidiary companies and annual net profit after tax averaging $45 million in the last five years.
And when it comes to companies listed on the South Pacific Stock Exchange (SPSE), ATH is also massive, sometimes making up over 50 per cent of total market capitalization.
A small movement in its share price for instance can have such a huge impact on the market index that it is not unusual for the index to drop if the day’s trading sees a fall in ATH share price despite a good share price performance by other listed companies.

CMDA explores new alternative market for Fiji

An alternative share market to cater for funding needs of Fiji's SMEs

By Dionisia Tabureguci
A NEW share market to facilitate the listing of small and medium sized enterprises has been proposed and is likely to be established at the South Pacific Stock Exchange (SPSE) sometime next year, according to the Capital Markets Development Authority.
Tentatively called the Alternative Investment Market (AIM), the initiative would see the creation of a trading board upon which companies with assets of less than F$5 million may list and have their shares traded.
In an interview with Islands Business Magazine, CMDA chief executive officer Suren Kumar said the project is a response to the need by a greater number of companies in the country for an alternative source of funding.

Stock Exchange chief calls it a day

‘Capital markets need more government assistance’


...Sanjay Sharma, SPSE's outgoing CEO.



Words and photo by Dionisia Tabureguci

SANJAY SHARMA is a few months away from calling it quits in a ballgame that has been both rewarding and frustrating. As outgoing chief executive officer of the South Pacific Stock Exchange (SPSE), he has seen some progress in the development of the country’s capital markets but, he admits, some dreams are going to take a little longer to come true.

On the eve of his departure to greener pastures, Sharma candidly singles out the lack of government commitment to the development of the potentials in the capital markets as the biggest stumbling block in effort put into building up of this section of the economy.