00,000 USD; and c) Company should be profitable for 2 years during the last 3-year period (GSE, 2003). Out of 282 companies, only 2 companies were listed at the GSE in 2001, while only 1 company has been left listed in 2002, after the GSE removed 1 company from the list. Furthermore, the total number of trades and therefore an average number of trades per trading session are also extremely low, as shown in Tab.
4.1.1.4: Table 4.1.1.4 Average Number of Trades per Trading Session
Year
2000
2001
2002
Total Number of Trades
601
1,591
1,343
Number of Trading Sessions
80
102
102
Average Number of Trades per Session *
8
16
13
* Figures are Rounded to the Nearest Integer
Source: GSE
In total, 309 trading sessions have been held during 2000 - 2003 and 3780 trades have been executed during this period. It then follows, that average number of trades per trading session (i.e. per day) is equal to 12. This figure gives some idea about the number of buyers and sellers participating in trades each day. Also note that the total number of the securities admitted for trading at the GSE is equal to 282. All these means that there are virtually no liquid shares at the GSE.
Composite Index . The poor performance of the GSE in terms of all the above-mentioned market indicators indicate that the nature of the composite index would be rather unreliable and would not reflect the true picture of market performance. One solution to the problem is to select only the leading companies (blue-chip companies) and construct the index for these companies. Indeed, such approach is employed by Georgian Investment Bank Galt & Taggart (G & T) Securities LLC, which publishes so-called G & T Blue-Chip Index. This is shown in Fig. 4.1.1.5:
В
Fig. 4.1.1.5 G & T Blue-Chip Index (GEL), 2002
The problems facing GSE . Below is the problem tree describing the set of problems currently facing GSE:
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