Pleass, Kontiki top examples to follow

Fiji’s securities exchange cited two entities as examples the rest of the group should follow, after revelations of lower-than-expected applications for new listings.

Pleass Global Limited and Kontiki Finance Limited continued to offer its shareholders dividend reinvestment plans, collectively reinvesting $1.27 million into additional shares in 2023, South Pacific Stock Exchange said.

“Through such corporate actions, listed entities take advantage of the listing platform,” executive director Gaynesh Rueben said.

“The SPX encourages other listed entities to adopt similar action, as this empowers shareholders, promotes greater stock market participation, engagement and enhances share liquidity.

“Such initiatives enable both shareholders and listed entities to leverage its publicly listed status.”

Unfavourable market conditions led to delays and lower than expected applications for new listings, which spilt over on the anticipated trading statistics, Mr Rueben said.

"Despite the challenges, the South Pacific Stock Exchange Group performed relatively well during the year, driven by positive market activities, to achieve an overall market capitalization of $3.34 billion, an increase of 6.47 per cent compared to 2022," Mr Rueben said.

The total stock market return for the year was 8.04 per cent, which he said reflected investor maturity and awareness, characterized by a long-term investment strategy focused on entering low and existing high.

Investor confidence was growing, as share prices increased amid market growth recovery, he said.

“In 2023, despite uncertainties, 161 new investors entered the Fijian stock market,” Mr Rueben said.

“By December 31, 2023, the number of investors holding shares in listed securities had risen slightly to 20,433, compared to 2022.

Increase Clientele for Registry and Trustee Services

The exchange’s trustees limited two modes of trustee services are in the form of;

(i) Trustee services for Energy Fiji Limited (EFL); and

(ii) Trustee services for wholesale corporate bonds.

The South Pacific Securities Trustees Limited provides services for:„ Energy Fiji Limited (EFL); and „ Fijian Holdings Limited (FHL) wholesale corporate bond since appointment in December 2022.

But since Fijian Holdings tested the strength of wholesale corporate bond, no other company has risen to take on similar risk.

“The SPX is also working closely with other potential entities to take advantage of this type of capital raising to issue corporate bonds and take advantage of the wholesale corporate bond platform,” Mr Rueben said.

Since the upgrade of its IT platform, the exchange implemented  a web-based trading platform with advanced trading capabilities and industry standard protocols, he said.

“This transition includes enhanced security features, and aligns our trading engine with those of Namibia Stock Exchange and New Zealand’s Stock Exchange (NZX), ensuring modernity and relevance,” Mr Rueben said.

Feedback: frederica.elbourne@fijisun.com.fj