Development of the stock market in fiji

Development of the stock market in fiji

By: neozzz On: 17.07.2017

Outgoing chief executive officer Jinita Prasad says a lot of progress has been made at the SPSE.

development of the stock market in fiji

I will be completing nine years at SPSE in March this year, having worked in the industry for almost 15 years. My job is great because I have enjoyed the work itself and I know that I am helping people to secure their own financial futures, companies to expand and improve their operations and the country to develop.

I have worked closely with SPSE staff members and stakeholders over the past few years to make progress on a number of fronts including investor education, regulatory framework and tax stimulus.

Through effective investor education programs, interest in the stock market has progressively built up over the years despite majority of the public being extremely risk averse. The SPSE brand and profile has boosted over the years to where it stands as a recognisable brand with investors and the business community.

A strengthened regulatory framework has also been put in place over time to provide the much-needed confidence not only to investors but also to companies that are looking to raise capital through the market.

Technological advancements such as the electronic trading platform and more recently targeted automation of settlement processes and upgrading of the registry system are bound to further boost the stock market development.

Another major highlight of this job has been securing important tax incentives for the stock market to make both listing and trading very attractive for companies and investors. A 10 per cent corporate tax rate for companies that list on the stock exchange and tax exemptions on gains made from any restructure done in the process of listing is now making a number of companies genuinely consider listing. Similarly for investors, there is no capital gains tax or income tax applicable for gains made from trading in shares allowing them to enter or exit at any time.

The stronger regulatory framework, heightened investor interest, and Government's commitment to consistent enforcement of tax laws address all the concerns that companies have shared in the past about impediments to listing.

We are one of the world's smallest exchanges with a relatively small investing population that does not have a long investment history. Lack of self-confidence combined with cultural and societal obligations have slowed the spread of the culture of saving and investing in Fiji.

Investing in stocks - Fiji Times Online

Similarly, companies have been taking the "wait and see approach" until now to take advantage of all that the SPSE has to offer, resulting in very few new listings over the past years.

This result has been unfortunate not only because these companies could benefit from public listing but also because it restricts the choices that investors have. Previously, another major hurdle for the market was the uncertainty created from inconsistent application of laws where potential issuers and investors have been discouraged to participate in the stock market.

However, clarity has been provided by Fiji Revenue and Customs Authority on these matters to encourage new listings and increased trading going forward.

I have been part of the capital markets industry long enough to witness different development phases and will always be proud of being part of the team that took it through its initial stages. My passion to further develop the stock market also arose from my interest in finance and investment which was boosted after having worked for a Fiji-based investment bank previously.

development of the stock market in fiji

Being in charge of growing a small industry is quite a challenge which also drives me to have interest in this field. The SPSE, despite its small size, has developed significant capacity to serve a wider investing public.

South Pacific Stock Exchange - Home

We have focused on providing better information, better education, and more value for listed companies. During my term at the SPSE, the organisation witnessed some significant changes including infrastructure upgrade, corporate rebranding, obtaining various Government incentives and revision of stock market rules and regulations. New market indicators have also been developed and introduced to measure market movement, trends and investor sentiments such as indices, order flow analysis and soon to be launched investor profiling.

development of the stock market in fiji

Investment is simply getting your money to earn more money for you. Investment is important because it helps you build your wealth overtime making your financial goals attainable. It also helps you hedge against inflation as your investment in shares are most likely to rise when cost of goods and services are on the rise.

Depending on each individual, future financial goals may vary but the fact remains that the financial decisions we make today will significantly affect the lifestyles we lead in the future. It is important to start thinking about your future now by ensuring a good retirement fund.

South Pacific Stock Exchange - About SPSE

However, it is also important to note that all investments involve some degree of risk. The reward for taking on risks is the potential for a greater return. If you have a financial goal with a long-term horizon, you may make more money by carefully investing in higher risk assets, such as shares as they may be volatile in the short term but generally outperforms other investment products over a longer period of time.

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