HELLENIC EXCHANGE HOLDINGS S.A.: Interview with Mr. Spyros Capralos, President of the Athens Exchange and CEO of Hellenic Exchanges The new hope for the stock exchange associated with your name refers to the opportunities the President can bring to the market associated with its expansion in the neighboring countries. It is not an issue of names, yet people in certain positions do leave their mark. As already stated, our effort concentrates on restoring the lost credibility of the Athens Stock Exchange. Confidence is easily lost but gained back with a lot of effort. The measures taken aim at bringing back Greek investors in the market. Foreign investors are confident; they realize over 50% of transactions and hold more than 35% of the Athens Stock Exchange total capitalization, mainly in FTSE 20 companies where they control almost 45%. Is it possible for this trend to continue and view at some future point in time foreign investors acquiring more than 60% of FTSE20 capitalization, claiming the right of ownership of the Greek large caps? Given that all market participants, the government, the Capital Market Committee, the Stock Exchange, all listed companies, the journalists and the analysts do their job and make right decisions, foreign investors preference on Greek Stock Market will continue, as long as Greek blue chips have growth and profit potentials in southeastern Europe and the rest of the world. You concentrate on top priorities; yet various issues are currently arising and affect the market psychology. Is the summer period suitable for trying to bring investors in the A.S.E.? Daily transactions act as barometer on the market conditions. Greek investors are tired and wish for several changes. Moreover, parallel to our primary goal of restoring confidence on the A.S.E., are our decisions associated with the measures that will lead the market to higher credibility levels. Such measures mainly concern listed companies and organized markets. The Parliament passed a multi-bill along with the bank’s insurance bill, which endorsed proper Market operations, reclassification of companies and changes, performed through the A.S.E. Regulation, towards the right direction. During your tenure what upset you the most regarding violation of transactions? Such violations occur internally in most cases, when I realize not proper operation as an Exchange, as well as with listed companies which, for example, provide inadequate information or even worst when we identified occasions that has been malevolence. The same holds for members of the A.S.E., like for example when securities firms committed offences, using their clients' shares and cash without authorization. Our efforts we aim on making such decisions in order to facilitate the market, improve the quality of our services and primarily reduce the cost of transactions. Since your resumption of duties the derivatives market is rising and derivatives become interesting when prices decline. I am pleased to hear that international institutions, already participating in the market recognize the maturity of the Greek market, find that liquidity has increased. A key market success factor involves increased trading. We are greatly interested, particularly HELEX, in increasing turnover since more than 60% of the company’s revenues come from daily transactions. HELEX revenues are of major importance since such determine profits that are of interest to investors participating in the company. What do you think of the idea to create a "basket" of shares from Balkan companies in the Greek Capital Market? Our goal is to follow that direction, yet I do not know if such idea is feasible, as we need to cooperate in terms of technology and construct indices along with the FTSE that will include shares from other countries. A situation as such could give other dynamics to the Greek market. If the first steps are taken, will dual listing in Greece and Cyprus or Greece and Romania become easier? Is there a legal framework for the above to occur or we need new legal actions? We will proceed with all necessary actions in order to achieve dual listing (as for example Romtelecom), of Greek shipping companies already listed in New York’s Exchanges. We will make all necessary changes in the legal framework and laws and Regulations, as this issue is of major interest to us.
August 08, 2005
