| Sheraj Obeyesekere, the recently appointed CEO of the South Pacific Stock Exchange (SPX), shares his insights on the Fijian stock market’s performance in 2024, the strides being made in market development, and the opportunities for regional integration. |
Can you share insights into the Fijian stock market’s performance in 2024?
In terms of market returns, as of early December, the SPX Total Return Index recorded a gain of 4.63% in 2024, while the SPX Equal Weighted Total Return Index posted a gain of 8.34%. It has also been a strong year for dividend declarations by listed companies, with a total of FJD 76 million paid out to shareholders by SPX-listed companies. This marks the highest-ever total annual dividend payout by SPX-listed companies in a single year, underscoring the dedication of our companies to creating value for their shareholders. Notably, 16 out of the 20 listed companies declared dividends in 2024. These developments indicate that the Fijian stock market has provided returns to investors through both capital gains and dividends.
“It has also been a strong year for dividend
declarations by listed companies, with a total of
FJD 76 million paid out to shareholders. This marks
the highest-ever total annual dividend payout…”
On the trading and capital-raising front, 2024 has been an encouraging year. The total annual trading value reached FJD 36 million as of early December, the highest annual value recorded since 2019. Similarly, the number of new investors entering the market in 2024 has been the best since the pandemic.
A breakthrough development in 2024 was the first equity listing since 2019, the listing of SUN Insurance. This marked a pivotal moment as it was the first test of investor appetite for IPOs in Fiji post-pandemic. The company’s IPO was met with a positive response from the investor community, and prior to the public offering, it successfully raised capital through private placements among institutional investors. This dual success highlighted the demand for new listings from both institutional and retail investors.
SPX-listed companies have also offered dividend reinvestment plans, to which investors have responded positively. This further illustrates the confidence shareholders have in these companies and their growth potential.
What are the key developments planned for the stock market in 2025?
Broadening the investor base and attracting greater participation from the public are key objectives for SPX. We aim to achieve this through robust investment promotion and investor education initiatives. Expanding the retail investor base is critical to driving trading activity and liquidity, both of which are pivotal for the long-term growth of our market. Our awareness campaigns and financial literacy initiatives will target the Fijian public using a mix of digital media and traditional outreach, including visits to villages and communities across the country. We are committed to positioning SPX as a market for all Fijians, ensuring that every individual has access to knowledge about stock market investment. We have also identified Fijians living and working abroad as a key investor segment and plan to launch an awareness drive to inform them about opportunities to invest in the Fijian market.
On the regulatory front, SPX will undertake a comprehensive revision of our listing rules. This revision will address the process of how companies issue shares for the first time and operate in the stock market post-listing. Our approach will be progressive, with the aim of ensuring that our listing eligibility criteria and regulations are structured to accommodate modern corporate frameworks. This will enhance SPX’s ability to attract a broader range of companies, both from Fiji and the Pacific region. Beyond modernizing equity and debt structures, the new rules will introduce a framework for listing SMEs and exploring innovative securities like green bonds to meet the growing demand for green financing. We are committed to carrying out this rule revision collaboratively, consulting with stakeholders to ensure the new framework aligns with their needs and supports the capital market’s growth.
Technology upgrades are a priority, with plans to enhance efficiency and accessibility by enabling digitized account opening and launching a mobile app for investors in 2025. These advancements aim to improve the investor experience and strengthen SPX’s position as a technology-driven exchange.
International relations are another focus, with SPX’s participation in the WFE Annual Meeting paving the way for collaborations with global exchanges. These partnerships will align SPX with international standards, with several initiatives to be announced soon.
What potential exist for engaging companies from other Pacific nations to issue shares on Fiji’s stock market?
As one of only two stock markets in the region, Fiji’s stock exchange holds significant potential to provide a framework for corporates in Pacific nations to raise equity or debt-based capital. The Pacific region is home to a diverse array of well-run, reputable, and successful businesses with strong earnings, many of which are well-suited for listing on SPX.
SPX is committed to facilitating the listing of companies from other Pacific nations and has a clear understanding of the framework and technology needed to support regional listings. However, achieving meaningful regional integration requires broad consensus and collaboration. Beyond technology and a capital market regulatory framework, we will actively engage with regional stakeholders on crucial considerations, such as facilitating smooth fund flows, addressing exchange controls, and reaching policy-level agreements between governments. SPX is ready to play a central role in fostering dialogue and aligning interests to achieve common goals that benefit the region’s capital markets.
“SPX is committed to facilitating the listing of
companies from other Pacific nations…”
Recognizing the synergies between our two stock markets, SPX also intends to work closely with the Papua New Guinea Stock Exchange (PNGX). This includes creating a more interconnected regional market that leverages the strengths of both exchanges and expands the scope of investment opportunities for stakeholders across the Pacific.
What is the level of participation by investors from other Pacific nations in the Fijian stock market?
The Fijian stock market already attracts individual and institutional investors from Pacific nations, including provident and mutual funds. Recognizing this existing interest, we are now focused on tapping into it to further increase participation.
To support this, we are streamlining the foreign investor onboarding process to enhance accessibility for non-resident investors. We are also aiming to implement initiatives that encourage greater involvement from Pacific-based investors, further consolidating their presence in our market.
By building on this interest and introducing these measures, SPX aims to strengthen Fiji’s position as a regional investment hub.
How can SPX contribute to attracting global investment funds into Fiji and the Pacific?
Stock markets play a key role in supporting economic development in developing countries by attracting foreign investments. For Fiji, SPX has the potential to directly contribute to growing foreign reserves and boosting the economy by bringing in global portfolio investments from global institutional funds and sovereign wealth funds into Fijian companies.
Attracting these global investors depends on several factors, including the size of the market, the presence of large, listed companies, liquidity levels (how easily shares can be bought and sold), ease of moving funds in and out of the country, and strong risk management practices. Improving in these areas is essential to gaining the confidence of international investors. It’s a gradual process, but one that has long-term benefits. SPX’s ultimate vision is to achieve “frontier market” classification for Fiji’s stock market, which would put us on the map for global investors and significantly increase investment flows into the country.
For investments into Pacific region as a whole, a collaborative approach to capital market development could be highly effective. By showcasing the Pacific markets collectively, we could attract both regional and global investors—not just for stocks, but also for foreign direct investments (FDIs). Promoting the region as a united front helps highlight its combined strengths and opportunities, especially given the smaller size of individual markets.
Finally, what is the outlook for the Fijian Stock Market in 2025?
Building on the positive developments of 2024, we are cautiously optimistic about the Fijian stock market in 2025. Listed companies have shown strong performance, and as market conditions stabilize and economic recovery gains momentum, corporates are well-positioned to continue driving growth. If these trends hold, investors can reasonably expect the continuation of robust dividend declarations.
We believe our awareness initiatives will drive new investor participation, contributing to increased trading activity. Furthermore, with interest rates staying at lower levels, shares could become an increasingly attractive option for investors looking for regulated opportunities that have the potential to deliver higher returns compared to fixed-income investments.
The successful IPO in 2024 has renewed confidence in the IPO market, and we are optimistic about seeing further activity in 2025, with 2–3 listings already in the pipeline, which would be significant for our market. These new listings will bring greater diversity and depth to the market,
offering investors a broader range of opportunities.
“…new listings will bring greater diversity and depth
to the market, offering investors a broader range of
opportunities.”
Looking ahead, the development initiatives we have discussed are expected to make significant progress in 2025. These efforts will enhance SPX’s service offerings, strengthen the value proposition for stakeholders, and support closer integration with our Pacific counterparts—an exciting prospect for the region’s collective market growth. While challenges may persist, these initiatives provide a strong foundation for continued progress, and we look forward to a year of steady advancements.
For further information or to share your views, feel free to contact the SPX CEO at sheraj@spx.com.fj
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