“The stock exchange was a necessity”, Malaj: Potential of developing in the internal market
Economy experts considered the creation of the first private stock exchange in Albania, ALSE, a necessity. Arben Malaj, rector of “Luarasi” University, speaking for SCAN Television, said that unlike previous attempts to create a stock exchange – which was penalized by an informal economy and poor financial statements – ALSE has a great opportunity of success, also because the competence of supervising authorities has improved.
“I believe the necessity has been getting stronger. This is not the first attempt at creating the Albanian stock exchange. At first, it was public – created before the ’96 – and it was tested for a long time to be fully functional. Perhaps, from then, the degree of informality, the poor quality of financial records, the investment in the stock exchange’s managing staff – which will be a focal point – and the competence of supervising authorities must have evolved. And that’s a real challenge, because the capital market must be watched by the financial supervision authority.
Now, this is a private stock exchange, and since the financial supervising authority is assisted by international financial institutions, it will be more functional and preventive. Let’s hope this is the right moment, so that the stock exchange can be functional.
There’s also the right vision, that the bourse will firstly trade government securities and then, gradually, the list of companies to be publicly traded will be ready”.
As for the importance the creation of such a stock exchange has in Albania, Malaj told SCAN, it brings profits to both sides: the company get to expand without increasing its debt, while the investors increase their wallets.
“To private companies, the capital market is very important, because it allows them to raise their activity without growing their debt and without increasing the number of shareholders, which aim at bigger profits, being part of publicly listed companies. Mostly companies with a solid and high financial result get listed in stock exchanges. This way we have a win-win situation for both sides.
Malaj stressed as crucial the need for a good education about the financial market, even among individual investors.
“We’re facing a stock exchange, where potentially a couple of thousands of Albanians would prefer investing in. The proper education, particularly of individual investors, is necessary, because if companies want to invest in it, they’ve got the proper expertise”.
The first Albanian private stock Exchange, ALSE was licensed by the Financial Supervisory Authority on the 3rd of Jyly, this year. ALSE is founded by three shareholders: Credins Bank, with 42.5% of the capital, American Investment Bank, with 42.5% of the capital and AK Invest, with 15% of capital.