The Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, symbolically rang the trading bell yesterday at the Tripoli headquarters of Libya’s Stock Market. The gesture announced the resumption of trading, after a nine-year hiatus, at both the Tripoli HQ and the Benghazi branch.
The ringing of the bell took place in the presence of the Undersecretary of the Ministry of Economy and Trade, Suhail Shiha, the Chairman of the Stock Market Authority, Mahmoud Wafa, the Chairman of the Market’s Board of Directors, Bashir Ashour, and its General Director, Ahmed Karoud.
Aldabaiba counting on the Stock Market to fill the void
At the ceremony, Aldabaiba confirmed in his speech that the Libyan financial market will achieve, through the return of trading operations on listed companies and institutions, the required transparency and provide options and opportunities in the long term that even banks do not provide, in addition to contributing to doubling local production and filling the general budget deficit.
Resumption of trading will have significant positive impact
Speaking exclusively to Libya Herald, the Director General of Stock Market, Ahmed Karoud, said the announcement of the return of trading in the market will have a significant positive impact on traded companies and publicly traded institutions in particular and the local economy in general. It will, he continued, restore confidence in economic institutions in Libya and open the way for investment of money in a way that is safe and sustainable through the buying and selling of shares.
It allows citizens to put their money in optimal investment and opens the way for investors to contribute to increasing the capital of traded entities and achieves profits and gains according to strict financial controls and standards, he added.
The Stock Market had continued some activities
Karoud said that the financial market did not stop completely during the past years, but rather continued the operations of underwriting to establish companies and banking institutions and others and register them in the financial market, while stopping work only on buying and selling listed companies. Additionally, it continuing to subscribe to raise the capital of some entities registered in the market, as well as distributing the profits of listed companies to shareholders. He said, after the opportunity arose, it was announced that trading sessions for their shares would resume in the market.
Benghazi Stock Market will resume in January
Karoud stressed the return of trading sessions in Benghazi next January, as procedures were completed to connect the systems between Tripoli and Benghazi in a safe manner using high-quality technologies, which will contribute to the ten financial brokerage companies carrying out their work in buying and selling shares on behalf of traders and corporate investors and individuals.
Trading will raise value of shares
The General Director believes that resuming trading in the financial market will raise the value of the shares of listed entities. It will also contribute to achieving financial stability for them and achieve the opening of doors to finance stalled projects, as well as small and medium-sized enterprises that suffer from the absence of financing from banks. It will also reduce the burdens on the state’s economy and consolidate the culture of trading among Libyans, making them partners with their money in successful enterprises.
Legislation provides adequate protection
Regarding the legislation related to the management of the financial market and the extent of its protection for shareholders, Karoud said that the legal environment that defined the jurisdiction of the Libyan financial market provides adequate protection for both listed companies and shareholder traders. It also obliges all listed companies to apply international accounting standards with the principles of governance, transparency and disclosure.
It is worth noting that the Libyan Stock Market closed trading in Tripoli and Benghazi in mid-2014 due to the unstable political and security conditions in the country.
