tailieunhanh - Assessment of an Emerging Stock Market: The Case for Fiji’s Stock Market

The general trend is one of fluctuations between 1996 and 2005. However, the volume and value of shares traded in 2005 is higher than 1996. From 1996 to 1998 there was an increase in the volume as well value of trade but then in the year 1999 there was a decline in both the value and volume of trade. Then the first quarter of 2000 showed some active trading at the South Pacific Stock Exchange but after that the trading level decreased. The volume of shares traded decreased by 36% compared to the 1999 trade but the value of shares. | International Research Journal of Finance and Economics ISSN 1450-2887 Issue 6 2006 EuroJournals Publishing Inc. 2006 http Assessment of an Emerging Stock Market The Case for Fiji s Stock Market Rajni Mala School of Accounting and Finance Faculty of Business and Economics University of the South Pacific Suva Fjii Islands Email. mala_r@ Tel. 679 3232181 Michael White School of Accounting and Finance Faculty of Business and Economics University of the South Pacific Suva Fjii Islands Tel 679 3232543 Abstract Stock market is seen as a very significant component of the financial sector of any economy. It is also seen as playing a vital role in the mobilization of capital in many of the emerging economies. Consequently this paper focuses on Fiji s stock market . the South Pacific Stock Exchange SPSE and its development. The study looks at how SPSE has developed from the time of its formal establishment. It also looks at some of the current impediments affecting its development and provides some possible suggestions. The market trends in terms of stock market size volume and value of trade market capitalization market liquidity market concentration and number of listings were considered. The findings show that the SPSE is still at an early stage of its development path and the market indicators have not been very encouraging. The study finds that the Fiji s stock market size is quite small and is characterized by poor liquidity with high market concentration. It contends that if the stock market in Fiji needs to be developed then the current challenges facing the stock market really need to be addressed and the market players need to be more focused with policies that will lead to the stock market development. Keywords Emerging stock market Stock market size Volume and value of trade Market capitalization Liquidity Market Concentration Listing Introduction The financial system of any economy is seen to .