Capital market boost
27 April, 2019, 9:28 am
AN alliance between the South Pacific Stock Exchange and its New Zealand counterpart aims to further develop the capital markets in Fiji by considering opportunities for collaboration with NZX.
The memorandum of understanding was signed by the SPSE and NZX yesterday and marked an important step in bringing the two stock exchanges together.
SPSE chief executive officer Krishika Narayan said there were a number of potential areas that would benefit from the partnership, such as introduction of new products in the capital market, sharing of expertise, improving computer and technology synergies, establishing a mechanism to facilitate inter-market investment flows, and providing investors access to different investment options.
Ms Narayan said the MOU would open up the local market for entities listed on the NZX to invest in Fiji and vice versa.
She said through the MOU local entities would have the opportunity to list on the NZX, expanding their chance to a wider and diverse market. The SPSE sees this as an opportunity to attract more entities to list on the stock exchange.
“We see this as an opportunity to attract more companies to list and we are also trying to attract NZ companies that have a presence in Fiji — focusing not just on listed entities but also with different types of products that come with it,” she said.
Meanwhile the SPSE seeks to facilitate staff secondments to explore ways to share knowledge. NZX chair, James Miller said that
“NZX was pleased to have extended its relationship with the South Pacific Stock Exchange, and is committed to working together to encourage greater awareness and participation of our financial markets in the region”.
Mr Miller said the MOU would open up the respective markets to new investments and provide local businesses the opportunity to access new markets and capital, including technology exchange.
New Zealand High Commissioner to Fiji Jonathan Curr said the partnership brought the two exchanges together and signalled an evolving and expanding economic relationship.
SPSE chairperson Dr Nur Bano Ali said that in January, SPSE entered into a similar agreement with Colombo Stock Exchange (CSE) from Sri Lanka and yesterday’s signing further crystallised their vision to develop a vibrant capital market in Fiji.