By RACHNA LAL
The South Pacific Stock Exchange (SPSE) is anticipating to entice more private companies for listing this year.
This follows the reduction of corporate tax rate to 10 per cent across the board for all companies listed on the stock exchange from this year.
It envisages taking the full advantage of the various incentives in place with an endeavor to make the capital markets in Fiji the preferred capital markets centre in the South Pacific region.
South Pacific Stock Exchange chief executive, Jinita Prasad, in the 2013 Stock Market Report said the ideal companies would be those who have come to a stage where listing is the ideal next step.
Benefits of stock exchange
She said the capital markets can be used as a means to further strengthen their capital flows, level of good governance practices and an elevation to another level of their development cycle by going public.
“The SPSE has always sought to provide companies an attractive avenue to raise capital, investors a range of investible products, and positive benefits to Fiji’s economy,” Ms Prasad said
“In order to promote this market development and with the consideration from the Fijian Government, the 2014 National Budget announcement provides companies and the public with an enhanced framework for realising SPSE’s goals.
“The incentive on reduced corporate tax rate of 10 per cent across the board to companies listed on the SPSE signals to companies a clear benefit in joining the SPSE’s official list.
“Moreover, investors will appreciate that any gains from trading of shares on the stock exchange will be exempt from Income Tax and Capital Gains Tax for residents.”
Ms Prasad said the exemption from Capital Gains Tax also extends to non-residents.
Furthermore, all consequential gains arising from any restructure, reorganisation or amalgamation of private companies for the purpose of listing on the stock exchange will be exempt from any taxes.
Awareness for investors
Meanwhile, Ms Prasad said investor awareness was a crucial channel which paved the way forward to increase the liquidity of our market.
“This remains critical to gaining confidence about saving and investing,” she said.
“As such, the stock exchange continues to regularly adjust its investor education programmes in ways that are attentive to the needs of potential as well as existing investors.
“In July 2013, the stock exchange launched a new investor initiative called Smart Investing Sessions.
“These sessions are advanced level seminars targeting people who have already attended the basic investment seminars organised by SPSE.
“With the additional knowledge attained during these sessions, investors could take a further step getting into the rhythm of investing in the stock market.”
Major Highlights of 2013 Trading
- January: Trading remained slow – only six listed stocks witnessed trades
- February: Various larger parcels getting executed in certain listed companies during which FMF Foods Limited (FMF) was the most active in terms of volume traded while Paradise Beverages Fiji Limited (PBF) stood as the most active security in terms of value traded. Amalgamated Telecom Holdings Limited (ATH) and Fijian Holdings Limited (FHL) witnessed the most number of trades in February.
- March: Fijian Holdings Limited announced the acquisition of FHL Media Limited (previously known as Yasana Holdings Limited) which was initially owned by iTaukei Affairs Board and 14 Provincial Councils.
- April: FHL Media Limited acquired more shares in ATH and Pacific Green Industries (Fiji) Limited (PGI).
- May: FHL Media Limited sold its 6.71 per cent shareholding in RB Patel Group Limited (RBG) which resulted in a substantial shareholding change for RBG. Following the trade, FHL Media Limited’s shareholding reduced to 3.09 per cent with BSP Life (Fiji) Limited, after acquiring part of FHL Media Limited’s holding, increase
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South Pacific Stock Exchange chief executive Jinita Prasad.
d its shareholding to 7.22 per cent in the company.
- June and July: First batch of FHL’s bi-annual dividend re-investment trades getting executed. And in June, FijiCare Insurance Limited (FIL) witnessed a special crossing transaction whereby Aequi- Libria Associates Insurance Broker Ltd acquired 8.56 per cent of Kontiki Fund Limited’s shareholding.
- August: VB Holdings Limited (VBH) witnessed a substantial change in shareholding whereby FHL Trustees Ltd ATF Fijian Holdings Unit Trust acquired 5.61 per cent shares in the company. Moreover, Fiji Television Limited (FTV) also saw 2.43 per cent of its outstanding shares exchanging hands when an existing institutional investor sold off its holding.
- September: FHL Media Limited acquired the entire shares of its parent company, FHL’s 5.31 per cent holding in FTV.
- October: Trading slowed.
- November: ATH was the most active stock in terms of number of trades and quantity traded.
- December: Trading remained active partly because of the execution of the second bi-annual dividend re-investment trades for FHL.
