align=center> 4,354,640
10,862,784
11,418,196
5,103,555
Value of Trades (GEL)
5,892,326
13,077,244
8,401,206
1,398,781
* Apr. - Dec. 2000; ** Jan. - Oct. 2003. p> Source: GSE
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Value Turnover . The value turnover is calculated by dividing the annual value of trades over the total market capitalization in that year. This is shown in Table 4.1.1.3 for years 2001 and 2002:
Year
2001
2002
Value of Trades (GEL)
13,077,244
8,401,206
Market Capitalization (GEL)
184,017,886
218,402,008
Value Turnover
7.11%
3.85%
Source: GSE
Table 4.1.1.3 Value Turnover at GSE
The large part of the total value of trades comes on the trading of the securities of 10 leading companies mentioned in the above. This is shown in Fig. 4.1.1.3:
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Fig. 4.1.1.3 Value of Trades of 10 Leading Georgian Companies
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Liquidity. All the factors considered in the previous paragraphs, ie Low Market Capitalization, low Volume and Value of Trades, and low Value Turnover, all indicate that there is little (or even no) liquidity at the GSE. Indeed, out of 282 companies, whose shares are currently admitted for trading at the GSE, the shares of only 93 companies (ie 33%) were traded in 2002. The shares of the remaining companies were not traded during the year at all. This is shown in Figure 4.1.1.4:
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Fig. 4.1.1.4 Number of Admitted Companies Actually Traded in 2002
Even those companies, whose shares have been traded in the past, do not satisfy the requirements for getting listed at the GSE. The main listing criteria are: a) Company should be functioning for more than 3 years; b) Equity Capital of a company should be greater than 1...
