Page 37 - IB December 2024

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
Nitin Gandhi – Chairperson of the size of the market, the presence of large listed companies, liquidity levels
South Pacific Stock Exchange (how easily shares can be bought and sold), ease of moving funds in
(SPX)
The SUN Insurance Listing Ceremony was officiated in August 2024 by His Excellency Ratu and out of the country, and strong risk management practices. Improving
Wiliame Katonivere, who served as the President of Fiji at the time.
in these areas is essential to gaining the confidence of international
standards, with several initiatives to be announced soon. 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

What potential exist for engaging companies from other Pacific stock market, which would put us on the map for global investors and
www.spx.com.fj
nations to issue shares on Fiji’s stock market? significantly increase investment flows into the country.
(+679) 330 4130
As one of only two stock markets in the region, Fiji’s stock exchange For investments into Pacific region as a whole, a collaborative approach
info@spx.com.fj holds significant potential to provide a framework for corporates in Pacific to capital market development could be highly effective. By showcasing
nations to raise equity or debt-based capital. The Pacific region is home the Pacific markets collectively, we could attract both regional and global
Stock market Sheraj Obeyesekere – CEO of to a diverse array of well-run, reputable, and successful businesses with investors—not just for stocks, but also for foreign direct investments
the South Pacific Stock Exchange strong earnings, many of which are well-suited for listing on SPX. (FDIs). Promoting the region as a united front helps highlight its combined
From Promise to Progress: Shaping SPX is committed to facilitating the listing of companies from other Pacific strengths and opportunities, especially given the smaller size of individual
(SPX)
nations and has a clear understanding of the framework and technology
markets.
needed to support regional listings. However, achieving meaningful
Stock Market Transformation in Fiji regional integration requires broad consensus and collaboration. Beyond Finally, what is the outlook for the Fijian Stock Market in 2025?
Building on the positive developments of 2024, we are cautiously
technology and a capital market regulatory framework, we will actively
optimistic about the Fijian stock market in 2025. Listed companies have
engage with regional stakeholders on crucial considerations, such
as facilitating smooth fund flows, addressing exchange controls, and shown strong performance, and as market conditions stabilize and
reaching policy-level agreements between governments. SPX is ready to economic recovery gains momentum, corporates are well-positioned to

Sheraj Obeyesekere, the recently appointed CEO of the South Pacific Stock Exchange play a central role in fostering dialogue and aligning interests to achieve continue driving growth. If these trends hold, investors can reasonably
common goals that benefit the region’s capital markets. expect the continuation of robust dividend declarations.
(SPX), shares his insights on the Fijian stock market’s performance in 2024, the strides
We believe our awareness initiatives will drive new investor participation,
being made in market development, and the opportunities for regional integration. “SPX is committed to facilitating the listing of contributing to increased trading activity. Furthermore, with interest rates

companies from other Paci c nations...” staying at lower levels, shares could become an increasingly attractive
option for investors looking for regulated opportunities that have the
Can you share insights into the Fijian stock market’s performance What are the key developments planned for the stock market in potential to deliver higher returns compared to fixed-income investments.
in 2024? 2025? Recognizing the synergies between our two stock markets, SPX also The successful IPO in 2024 has renewed confidence in the IPO market,
In terms of market returns, as of early December, the SPX Total Return Broadening the investor base and attracting greater participation from the intends to work closely with the Papua New Guinea Stock Exchange and we are optimistic about seeing further activity in 2025, with 2–3
Index recorded a gain of 4.63% in 2024, while the SPX Equal Weighted public are key objectives for SPX. We aim to achieve this through robust (PNGX). This includes creating a more interconnected regional market listings already in the pipeline, which would be significant for our market.
Total Return Index posted a gain of 8.34%. It has also been a strong investment promotion and investor education initiatives. Expanding the that leverages the strengths of both exchanges and expands the scope of These new listings will bring greater diversity and depth to the market,
year for dividend declarations by listed companies, with a total of FJD retail investor base is critical to driving trading activity and liquidity, both of investment opportunities for stakeholders across the Pacific. offering investors a broader range of opportunities.
76 million paid out to shareholders by SPX-listed companies. This marks which are pivotal for the long-term growth of our market. Our awareness What is the level of participation by investors from other Pacific

the highest-ever total annual dividend payout by SPX-listed companies in campaigns and financial literacy initiatives will target the Fijian public nations in the Fijian stock market? “...new listings will bring greater diversity and depth
a single year, underscoring the dedication of our companies to creating using a mix of digital media and traditional outreach, including visits to the market, o ering investors a broader range of

value for their shareholders. Notably, 16 out of the 20 listed companies to villages and communities across the country. We are committed to The Fijian stock market already attracts individual and institutional
declared dividends in 2024. These developments indicate that the Fijian positioning SPX as a market for all Fijians, ensuring that every individual investors from Pacific nations, including provident and mutual funds. opportunities.”
stock market has provided returns to investors through both capital gains has access to knowledge about stock market investment. We have also Recognizing this existing interest, we are now focused on tapping into it
and dividends. identified Fijians living and working abroad as a key investor segment and to further increase participation. Looking ahead, the development initiatives we have discussed are
plan to launch an awareness drive to inform them about opportunities to To support this, we are streamlining the foreign investor onboarding expected to make significant progress in 2025. These efforts will enhance
“It has also been a strong year for dividend invest in the Fijian market. process to enhance accessibility for non-resident investors. We are SPX’s service offerings, strengthen the value proposition for stakeholders,
declarations by listed companies, with a total of On the regulatory front, SPX will undertake a comprehensive revision of also aiming to implement initiatives that encourage greater involvement and support closer integration with our Pacific counterparts—an exciting

FJD 76 million paid out to shareholders. is marks our listing rules. This revision will address the process of how companies from Pacific-based investors, further consolidating their presence in our prospect for the region’s collective market growth. While challenges
market.
issue shares for the first time and operate in the stock market post-listing.
the highest-ever total annual dividend payout...” Our approach will be progressive, with the aim of ensuring that our By building on this interest and introducing these measures, SPX aims to may persist, these initiatives provide a strong foundation for continued
progress, and we look forward to a year of steady advancements.
listing eligibility criteria and regulations are structured to accommodate strengthen Fiji’s position as a regional investment hub.
On the trading and capital-raising front, 2024 has been an encouraging modern corporate frameworks. This will enhance SPX’s ability to attract a For further information or to share your views, feel free to contact
year. The total annual trading value reached FJD 36 million as of early broader range of companies, both from Fiji and the Pacific region. Beyond the SPX CEO at sheraj@spx.com.fj
December, the highest annual value recorded since 2019. Similarly, the modernizing equity and debt structures, the new rules will introduce a
number of new investors entering the market in 2024 has been the best framework for listing SMEs and exploring innovative securities like
since the pandemic. green bonds to meet the growing demand for green financing. We are SPX-LISTED COMPANIES
A breakthrough development in 2024 was the first equity listing since committed to carrying out this rule revision collaboratively, consulting with
2019, the listing of SUN Insurance. This marked a pivotal moment as stakeholders to ensure the new framework aligns with their needs and
supports the capital market’s growth.
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 Technology upgrades are a priority, with plans to enhance efficiency
community, and prior to the public offering, it successfully raised capital and accessibility by enabling digitized account opening and launching a
through private placements among institutional investors. This dual mobile app for investors in 2025. These advancements aim to improve
success highlighted the demand for new listings from both institutional the investor experience and strengthen SPX’s position as a technology-
and retail investors. driven exchange.
SPX-listed companies have also offered dividend reinvestment plans, International relations are another focus, with SPX’s participation
to which investors have responded positively. This further illustrates in the WFE Annual Meeting paving the way for collaborations with Start your investment journey today—contact a licensed stockbroker: FHL Stockbrokers (+679 9929 898),
the confidence shareholders have in these companies and their growth global exchanges. These partnerships will align SPX with international Fiji Stockbrokers (+679 8798 134), or Kontiki Stockbroking (+679 9922 923)
potential.
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Islands Business, December 2024 37