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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007FEDERATION OF EURO-ASIAN STOCK EXCHANGESOsman BirsenPresident of FEAS & Chairman andCEO of the Istanbul Stock ExchangeThroughout 2006, the FEAS region haspersevered with a strong desire forcontinued growth in world economiesas seen in 2005.This year, FEAS is celebrating its 12thanniversary.For the third year running, FEAS has producedtwo semi annual reports in April and October.As you will remember, the initial and continuedaim of transitioning from an annual to semiannual publication is two-fold. First, throughproviding two publications rather than just one,the market performances of FEAS membersare reflected in an updated fashion. Second,the environments (both political andeconomic), within which those marketsoperate, are brought to the attention of thereaders more timely and concisely.Throughout the first half of 2007, the FEASregion has persevered with a strong desire forcontinued growth in world economies as seenin 2006. The performance of the securitiesmarkets in the first half of 2007 is displayed inthe consolidated regional statistics on theadjoining pages. The individual statistics ofeach of our members are available in themember profile section.The Federation, as a globally recognizedregional institution, is growing and maturingtogether with its members towards its goals.Founded 11 years ago by 12 regionalexchanges, FEAS now has a total number of32 stock exchange members from 29 differentcountries and 8 affiliate members.FEAS is growing in membership withadditional Securities Exchanges and Affiliates.FEAS welcomed the new membership of theBelarusian Currency and Stock Exchange andthe affiliate membership of Central SecurityDepository of Iran at its 12th GeneralAssembly meeting held in Sharm El Sheikh,Egypt on November 3rd 2006.As we have now completed our twelfth year ofoperation, most of you are well aware of ouraccomplishments to date. Those that wereparticularly noteworthy are; the implementationof the FEAS Data Center (FDC) to standardizeand promote cross market statistics and theinitiation and planned implementation (2007)of the FEAS Index for better visibility and forthe movement toward cross border trading.There were special activities that promoted thegrowth of stock exchange operations such asbilateral visits, training programs, the jointISE/FEAS development project andinternational associations with organizationssuch as the World Bank, World Federation ofExchanges (WFE) and the Organization forEconomic Cooperation and Development(OECD).To date, FEAS has jointly hosted 3 meetingsand one conference in 2007; one of which wasthe Working Committee Meeting held in Kiev,Ukraine, jointly hosted by the Ukrainian StockExchange, in June FEAS jointly hosted aconference titled Growing Capital Markets,Today for Tomorrow, in Budva, Montenegrowith the Montenegro Stock Exchange. Then,in July FEAS hosted the Media Task Force fora meeting in Istanbul, Turkey. In September2007, FEAS jointly hosted the 13th GeneralAssembly Meeting in Belgrade, Serbia with theBelgrade Stock Exchange; the second AffiliateMember Meeting, in addition to a WorkingCommittee Meeting and Executive CommitteeMeeting, were also held in Belgrade.FEAS is striving to place greater importanceon regional development over the next 5 years.Our continued commitment to our 5-yearstrategic plan is designed to achieve theobjectives specified within the mission of theFederation and to attain a greater role in thecompetitive global market environment. Ourfocus over the next 5 years will be on the areaof promoting corporate governance, facilitatingtimely disclosure, achieving effectivedissemination of information, attaining regionalconvergence in listing requirements,settlement, trading rules and software, creatinggreater awareness and visibility for the region’sstocks and investment opportunities,promoting the listing of ‘investment grade’companies in the region’s markets andcreating linkages among the region’sintermediaries, data providers, settlement andcustody institutions and stock exchanges,while encouraging cooperation amongsecurities commissions.Looking at the individual future outlook of ourmarkets, as covered in the member profilepages, one can see that there continues to bework toward the challenges of membermarkets in providing competitive and viablefinancing options to both the government andprivate sectors, while enhancing operationsthrough technology and expanding services tomarket participants. The effort continues tofocus on the areas of increased transparencythrough expense in infrastructure anddeveloping regulations to promote strongercorporate governance.I would like to take this opportunity to extendmy heartfelt thanks for their contributions to:Auerbach Grayson and Company Inc., FinansAsset Management, Is Investment, Fortis,OMX, Quartal Flife and Tayburn Kurumsal formaking this publication possible. We hope thatyou will take a moment to visit our contributorsection in the FEAS website at www.feas.organd read their articles in the following pages.In closing, I want to commend the efforts of allour Task Force members in achieving ourregional objectives through their commitmentand the Secretariat for its success inmaintaining our cohesive organization. As weclose our 12th year anniversary, I am happy tosay that our formula for achievement will beapplied toward our development for the future.PAGE 3

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007FEDERATION OF EURO-ASIAN STOCK EXCHANGESWORKING COMMITTEEDuring the Working Committee Meeting thatwas held in Kiev, Ukraine on May 3-4th 2007reports were given by all of the task forcesincluding Media, Regional Indices, MarketPrinciples and Corporate Governance, AffiliateMembers, FEAS Data Center and XBRL..Updates were also provided by the Secretariaton the status of the Semi Annual Report,Revenue and Expense Analysis, BilateralInitiatives, Draft Financial Report and the 2007Calendar of Events. Recommendations to theExecutive Committee included ideas forpossible areas of cooperation with the WorldFederation of Exchange and outsourcing theimplementation of the FEAS Data Center.The next working committee meeting will beheld in May the location is yet to bedetermined.Task ForcesIn 2005, a decision was taken to combine thetwo working committees into one and to form,12 Task Forces to carry out the mandates ofthe Executive Committee. Since then, someTask Forces have completed the tasksassigned to them and some new task forceswere formed, there remain the following TaskForces which are listed below:Task Force 0404 – Media (Led by MuscatSecurities Market)Following the Media Task Force meeting heldon 3 May 2007 in Kiev, the TF participantsagreed on the following issues:1. Media Gathering will continue prior toGeneral Assembly meetings2. It is important to invite journalists membersto be present at the FEAS meetings to coverthe events in their media in order to increasethe awareness of the Federation and thehosting exchange.3. The preparations for the Media Gathering inBelgrade, Serbia prior to GA will be startedearly June with the help of the neighbormember countries such as Zagreb, BanjaLuka, Sarajevo and Montenegro.4. Possible meeting in Istanbul regardingMedia. It will be open to all FEAS members.Venue and date to be determined.5. Muscat Securities Market Forum will beheld in Muscat in November 2007. Eachparticipating exchange will give presentationto introduce themselves; students, investorswill be invited in order to increase theawareness. This type of forums will be heldonce a year in different countries in order tohelp investment in the region.Task Force 0406 – Regional Indices (Ledby Tehran Stock Exchange)The Task Force has conducted a surveyamong FEAS members for the creation of theindex and is in the final negotiations with DowJones Indices on the Index Agreement. TheIndex is intended to be launched in 2007.Task Force 0411 – Market Principle(Led by Istanbul Stock Exchange)In conjunction with the World Federation ofExchange’s effort to update their marketprinciples, FEAS members worked tocontribute ideas and information to this end.The Task Force has updated the MarketPrinciples to make it inclusive of both WFEand FEAS ideas. This new document wasproposed and approved at the GeneralAssembly in Shiraz, Iran in September andnow is a section of the FEAS Rule Book.Task Force 0412 – Corporate Governance(Led by Karachi Stock Exchange)All members in the FEAS region, place astrong emphasis on good CorporateGovernance. A task force was created toprovide a vehicle for inforto update theinformation contained in the CorporateGovernance section of the Rule Book and toinform all member stock exchanges ofinternational regulations and practicesregarding corporate governance. TheBucharest Stock Exchange hosted aconference on Corporate Governance in Juneof 2005 and FEAS jointly hosted roundtablemeetings with the OECD on February 15-16,2006.Task Force 0501 – Affiliate Members (Ledby ISE Settlement and Custody Bank,Takasbank)Affiliate members have designed and are inthe process of implementing both new webpages on the FEAS web site and new pagesin the FEAS Semi Annual Report. The secondAffiliate Task Force meeting was held in Cairoon October 31st. The members discussedabout the newly published leaflet “GlobalRecommendations and Standards onClearing and Settlement Issues”. It wasdecided to expand the last section of “GlobalRecommendations and Standards onClearing and Settlement Issues” bydeveloping FEAS Affiliate Recommendations.Task Force 0502 – FDC Implementation(Led by Istanbul Stock Exchange)The database has been upgraded to allowmore space to add additional FEASmembers. The FDC will be instrumental in thedevelopment of the FEAS Index so this year agroup from FEAS and the Istanbul SE willtravel to member exchanges in order toimplement the FEAS Data Center at theirrespective exchanges.Task Force 0503 – XBRL (Led by AbuDhabi Securities Market)XBRL: Extensible Business ReportingLanguage is a language for the electroniccommunication of business and financialdata, it provides benefits in the preparation,analysis and communication of businessinformation. It offers cost savings, greaterefficiency and improved accuracy andreliability to all those involved in supplying orusing financial data. The efforts of this taskforce will go toward promoting and educatingmembers about XBRL.Task Force 0504 – Research – (Led by theIstanbul Stock Exchange)This task force will bring members together towork on joint research projects of generalinterest for FEAS members that willconsolidate their experiences and knowledge.This Task Force has recently conducted astudy on Initial Public Offerings, and the reportwill be available in the near future.2007 Mandates:• Publication and Distribution of the SemiAnnual Report in March/April andSeptember/October• Hold a conference with Issuers, Brokers &Mutual Fund Managers in conjunction with thelaunching of the FEAS Index• Completion of the ongoing RevenueAnalysis from 2001 through 2005.• The Ukraine Stock Exchange will host the2007 Spring Working Committee Meeting.• The Montenegro Stock Exchange will host aconference in early.• The Belgrade Stock Exchange will host the13th Annual General Assembly Meeting and16th Executive Committee Meeting in Serbiaon September 6-9th 2007.• Takasbank will host a Fund ManagersSeminar in September in Istanbul, Turkey.• The Serial Seminars for members of themedia will continue.PAGE 5

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007FEDERATION OF EURO-ASIAN STOCK EXCHANGESOFFICIAL 2006 STATISTICSTotalVolume(US$ millions)AverageDailyVolume(US$ millions)STOCKSTotalVolume(# millions)AverageDailyVolume(# millions)TotalVolume(US$ millions)BONDSAverageDailyVolume(US$ millions)TotalVolume(# millions)AverageDailyVolume(# millions)TotalVolume(US$ millions)OTHERAverageDailyVolume(US$ millions)TotalVolume(# millions)AverageDailyVolume(# millions)MarketCapitalization(US$ millions)Jul-06 32,915.15 1,555.20 15,894.20 752.03 24,237.81 1,156.30 1,497.17 71.42 157,607.75 7,506.21 109.72 5.66 582,938.10Aug-06 35,918.99 1,622.33 15,933.95 751.18 29,205.69 1,328.46 22,312.86 1,014.39 156,414.28 7,109.81 137.65 6.16 626,682.76Sep-06 32,749.92 1,564.97 14,865.40 714.94 31,371.28 1,495.77 15,282.78 727.84 155,493.35 7,411.79 261.12 13.86 613,787.46Oct-06 33,820.60 1,866.23 15,545.66 853.26 34,035.67 1,731.73 14,439.97 685.96 151,241.38 7,933.08 119.15 6.66 668,585.90Nov-06 35,242.01 1,635.18 17,331.23 813.17 34,071.06 1,572.93 14,637.28 696.98 157,252.05 7,165.99 180.44 8.28 655,137.46Dec-06 32,649.54 3,563.24 14,970.31 786.55 28,702.52 1,435.53 24,776.02 1,304.15 139,305.77 6,671.57 265.23 14.34 688,866.74Jan-07 36,645.58 1,868.03 19,384.08 1,148.64 42,844.98 2,109.28 195,164.80 9,290.21 141,580.62 7,067.08 108.96 5.55 738,744.29Feb-07 47,544.58 2,421.90 26,978.85 1,572.15 39,545.24 1,974.12 27,884.01 1,362.39 135,445.48 6,775.90 129.57 6.49 718,102.59Mar-07 39,504.75 1,863.23 29,384.92 1,914.47 38,880.58 1,822.48 34,194.84 1,692.67 164,003.23 7,488.69 179.72 8.56 778,972.82Apr-07 53,004.67 2,603.74 32,976.55 1,987.10 37,355.85 1,841.31 26,234.90 1,268.74 148,954.18 7,439.81 118.33 6.60 828,415.54May-07 61,079.66 2,704.42 25,424.62 1,451.15 40,253.04 1,931.04 19,691.66 937.83 164,003.23 7,863.92 627.82 28.92 869,395.25Jun-07 48,509.90 2,344.89 33,367.92 2,070.81 44,102.07 2,105.97 65,505.37 3,126.73 170,245.37 8,111.80 165.63 8.99 904,569.34Total 489,585.34 25,613.35 262,057.70 14,815.46 424,605.79 20,504.92 461,621.66 22,179.28 1,841,546.69 88,545.67 2,403.35 120.09STATISTICAL COMPARISON 2003 THRU YTD 2007 FEAS REGIONSTATISTICSYTD 2007 % CHANGE OVER2003 2004 2005 2006 YTD 2007 2006 2005 2004 2003# Companies Traded 7,653.0 8,003.0 8,348.0 9,057.0 9,343.0 3.2% 11.9% 16.7% 22.1%Market Capitalization US$ Millions) 229,310.4 377,279.6 638,040.9 690,454.7 904,569.3 31.0% 41.8% 139.8% 294.5%Total Volume (US$ Millions-Stocks) 209,328.0 273,616.4 467,902.8 505,163.7 162,594.2 -67.8% -65.3% -40.6% -22.3%Total Volume (# Shares Millions-Stocks) 59,229.5 69,760.0 309,083.6 225,759.2 91,769.1 -59.4% -70.3% 31.5% 54.9%Average Daily Volume (US$ Millions-Stocks) 849.5 1,101.6 1,846.2 2,047.4 2,558.9 25.0% 38.6% 132.3% 201.2%Average Daily Volume (# Shares Millions-Stocks) 240.8 280.4 1,586.8 915.7 1,823.9 99.2% 14.9% 550.5% 657.5%Total Volume (US$ Millions-Bonds) 170,925.0 314,833.5 429,310.8 380,662.4 121,711.0 -68.0% -71.6% -61.3% -28.8%Total Volume (# Millions-Bonds) 45,351.0 101,093.7 116,592.2 176,705.0 111,431.9 -36.9% -4.4% 10.2% 145.7%Average Daily Volume (US$ Millions-Bonds) 683.6 1,258.0 1,695.8 1,523.5 1,930.4 26.7% 13.8% 53.5% 182.4%Average Daily Volume (# Millions-Bonds) 180.8 401.3 466.2 711.9 1,775.7 149.4% 280.9% 342.5% 882.0%Total Volume (US$ Millions-Other) 711,623.3 1,101,717.2 1,403,074.3 1,825,351.1 499,304.0 -72.6% -64.4% -54.7% -29.8%Total Volume (# Millions-Other) 1,894.8 1,981.7 1,835.0 1,991.2 911.8 -54.2% -50.3% -54.0% -51.9%Average Daily Volume (US$ Millions-Other) 2,846.5 4,372.3 5,525.9 7,277.6 7,811.6 7.3% 41.4% 78.7% 174.4%Average Daily Volume (# Millions-Other) 8.4 8.0 7.4 8.4 15.5 84.3% 108.5% 92.8% 85.1%YTD 2007-FEAS REGION VOLUME BY TYPEYTD 2007-FEAS REGION VOLUME BY TYPEStocksBondsOtherStocksBondsOther19%14%21%16%67%63%NUMBER OF COMPANIES TRADED VS MARKET CAPITALIZATION(US$ millions)Market Cap1,000,000800,000600,000400,000200,00002003 2004 2005Companies Traded200610,0008,0006,0004,0002,0000YTD 20072007-ANNUALIZED RETURN ON INDEXTop-20/MongoliaBET/RomaniaKSE 100/KarachiBSE/BulgariaBahrainKazakhstanIraq/IraqLSE 25/LahoreGP/MuscatKSE Index/KyrgyzISE 100/IstanbulAl Quds/PalestineCASE 30/EgyptBelex15/SerbiaADSM/Abu DhabiASE/AmmanB.I./MacedoniaTEPIX/TehranCROBEX/ZagrebTASIX/UzbekistanBIFX/SarajevoMOSTE/Montenegro-0.9-1.2-2.3-2.4-2.6-2.9-4.73-5.66.66.34.33.63.32.972.21.91.91.00.40.2BIRS/Banja Luka -15.1Indices are adjusted for currency fluctuations.(Formula: 1+(return)=((1+%chg. index)/(1+%chg. currency))23.033.6PAGE 8

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007IS INVESTMENTWhat are the advantages of Private Equityinvestments and recent PE investmentsin Turkey?Efsane CamManager, Mergers and AcquisitionsIs InvestmentWhat are the Advantages ofPrivate Equity?Private equity provides long-term, committedshare capital, to help the companies grow andsucceed. The companies which are looking tostart up, expand, buy into a business, buy out adivision of the parent company, turnaround orrevitalize a company, private equity could be agood solution. Obtaining private equity is verydifferent from raising debt or a loan from alender, such as a bank. Lenders have a legalright to interest on a loan and repayment of thecapital, irrespective of the success or failure.Private equity is invested in exchange for astake in the company and, as shareholders; theinvestors’ returns are dependent on the growthand profitability of the business.Private equity backed companies have beenshown to grow faster than other types ofcompanies. This is made possible by theprovision of a combination of capital andexperienced personal input from private equityexecutives, which sets it apart from other formsof finance. Private equity can help the seller toachieve the ambitions for the company andprovide a stable base for strategic decisionmaking. The private equity firms will seek toincrease a company’s value to its owners,Private EquityMedium to long-term.Committed until “exit”.Provides a solid, flexible, capital base to meet futuregrowth and development plans of the company.Good for cash flow, as capital repayment, dividendand interest costs (if relevant) are tailored to thecompany's needs and to what it can afford.The returns to the private equity investor depend onthe business' growth and success. The moresuccessful the company is, the better the returns allinvestors will receive.If the business fails, private equity investors will rankalongside other shareholders, after the banks andother lenders, and stand to lose their investment.If the business runs into difficulties, the private equityfirm will work hard to ensure that the company isturned around.A true business partner, sharing the risks andrewards, with practical advice and expertise (asrequired) to assist the business success.without taking day-to-day management control.Although the seller may have a smaller share ofthe company, within a few years the seller willbenefit from the rapid growth of the companymore than the previous structure.Private equity firms often work in conjunctionwith other providers of finance and may be ableto help the company to put a total fundingpackage together for the business.The Advantages of Private Equity over SeniorDebtA provider of debt recollecting its investmentback by interest and capital repayment of theloan and it is usually secured either on businessassets or the shareholders’ personal assets. Asa last resort, if the company defaults on itsrepayments, the lender can put the businessinto receivership, which may lead to theliquidation of any assets. A bank may inextreme circumstances even ask for liquidationof the company to secure the receipt of itsfunding. Debt, which is secured in this way andwhich has a higher priority for repayment thanthat of general unsecured creditors is referredto as “senior debt”.By contrast, private equity is not secured on anyassets although part of the non-equity fundingpackage provided by the private equity firmSenior DebtShort to long-term.Not likely to be committed if the safety of the loan isthreatened. Overdrafts are payable on demand; loanfacilities can be payable on demand if the covenantsare not met.A useful source of finance if the debt to equity ratiois conservatively balanced and the company hasgood cash flow.Requires regular good cash flow to service interestand capital repayments.Depends on the company continuing to service itsinterest costs and to maintain the value of the assetson which the debt is secured.If the business fails, the lender generally has firstcall on the company's assets.If the business appears likely to fail, the lender couldput the business into receivership in order to safeguardits loan, and could make the shareholders personallybankrupt if personal guarantees have been given.Assistance available varies considerably.may seek some security. The private equity firm,therefore, often faces the risk of failure just likethe other shareholders. The private equity firm isan equity business partner and earns back itsinvestment by the company’s success,generally achieving its principle return throughrealizing a capital gain through an “exit” whichmay include:• Selling the shares to another investor (suchas another private equity firm)• A trade sale (the sale of company shares toanother)• Selling their shares back to the management• The company achieving a stock market listingAlthough private equity is generally provided aspart of a financing package, to simplifycomparison we compare private equity withsenior debt.Private Equity Compared to Senior DebtIt can be clearly concluded that private equityinvestments not only a source of fund, but alsoa substantial opportunity for creating extrasynergies in the globalizing business world likepartnerships for companies.PE Investments in the World and Turkey• After 2001, US Venture Capital and PrivateEquity Funds has been steadily increased.• Compared to 2004, EU Private Equity fundscreated was increased by 100% in 2005,reaching to EUR 4.25 billion• Between 2002 and 2005, Europe VentureCapital Capital and Private Equity Fundscompounded annual growth rate was 21.2%.Realized Investments’ (compounded annualgrowth rate was 8.64%.• The first attempts at private equity andventure capital activities in Turkey were madeunder state authority in the 1980s. However,the real private equity and venture capitalactivities began with the investments offoreign private equity/venture capital funds inTurkey.• The first attempts to arrange legal issuessurrounding venture capital activities in Turkeywere undertaken in 1993 and a CapitalMarkets Board (CMB) Decree dated 6 July1993 enabled venture capital companies tobe established in the form of InvestmentTrusts.• In 2006 nearly 10% of the total M&A deal iscompleted by the PE funds in Turkey with thehelp of domestic and international privateequity funds’ increasing interest• Is Venture Capital Fund is the biggest localprivate equity fund in Turkey, founded on5 October 2000. so far has realized 7investments and 2 exits. It is the only one thathas realized 2 exits in Turkey.• The table on page 11 summarizes themajor PE funds and their investmentsrealized in Turkey.PAGE 10

SEMI ANNUAL REPORT OCTOBER 200745,0004,50070,00011,000Total accumulated PE and realized PEinvestments in the US40,00035,00030,00025,00020,00015,00010,0005,00004,0003,5003,0002,500Total PE fundsaccumulated in the2,000 US (Million Euros)30,0001,500 Total PE investmentsrealized in the US20,0001,000 (Million Euros)500Total number of PE10,000investments realizedin the US002001 2002 2003 2004 2005 2001 2002 2003 2004 2005Total accumulated PE and realized PEinvestments in Europe60,00050,00040,00010,50010,0009,5009,0008,5008,000Total PE fundsaccumulated in Europe(Million Euros)Total PE investmentsrealized in Europe(Million Euros)Total number of PEinvestments realizedin EuropePrivate Equity Funds Origin Investments Year Investment Amount SectorIs Venture Capital Turkey 1. Probil 2002 USD 3.2 million Systems Integrator2. ITD 2002 USD 1.85 million Systems Integrator3. Cinemars 2003 USD 11.5 million Cinema Chain4. Nevotek 2003 USD 3 million Internet Protocols Solutions5. Step 2004 USD 3.5 million Carpet and Home Accessories6. Tuyap 2005 USD 7 million Fair Services7. Beyaz Filo 2006 USD 4 million Fleet RentalAIG Blue Voyage USA 1. Galatasaray 2000 USD 20 million Sports Club2. AFM 2001 USD 5 million Cinema Chain3. For You 2006 USD +20 million Cosmetics StoreTurkven/Advent Turkey / USA 1. UNO 2003 USD 8 million Floured Products2. Intercity 2004 USD 5 million Fleet Rental3. Trendtech 2005 USD 3 million Value Added Mobile Services4. Digiturk 2005 Not Disclosed Digital Broadcasting5. Pronet 2006 USD 4.2 million Security Services6. Roma Plastik 2006 USD 70 million PlasticsBedminster USA 1. Hedef Filo Kiralama 2006 Not Disclosed Fleet RentalKobi Venture Capital Turkey 1. Butek Makine 2006 USD 0.9 million Machinary Production2. Makim Makine 2007 USD 2 million Machinary ProductionVakif Venture Capital Turkey 1. Teknoplazma 1996 USD 0.5 million Technology2. Inova Teknoloji 1999 USD 0.5 million Biotechnology3. Ortadogu Yazilim 2000 USD 3.2 million SoftwareRecent Private Equity Activities in TurkeyVenture Capital Invested In Sector Year Investment AmountCitigroup Venture Capital International Beymen Branded Textiles 2007 USD 48 million (30%)Citigroup Venture Capital International Boyner Department Store 2007 USD 145 million (50%)KOBI Venture Capital Makim Makine Machinery Production 2007 USD 2 million (38%)KOBI Venture Capital Butek Makine Automobile Machinery Production 2006 USD 900,000 (45%)Goldman Sachs - Babcock & Brown TAV Airport Improvement and Management 2006 USD 315 millionBedminster Capital Hedef Fleet Fleet Rental 2006 Not Disclosed (100%)Citigroup VC ve Partners in Life Sciences Biofarma Pharmaceuticals 2006 Not Disclosed (USD 200-245 million)Credit Agricole Index Bilgisayar Computer Hardware 2006 USD 241 million (98%)Turkven/Advent Roma Plastik Plastic Covering 2006 USD 70 million (58%)ADM Capital Dardanel Food 2006 Not Disclosed (15%)ADM Capital Isiklar Holding Construction Materials 2006 Not Disclosed (20%)Ilab Holding Gittigidiyor.net Internet Portal Services 2006 Not DisclosedIlab Holding Kariyer.net Internet Portal Services 2006 Not Disclosed (68%)Docar (The International Investor) Renty A.S. (Esas Holding) Fleet Rental 2006 USD 13 millionFiba Capital Enda Enerji Holding A.S. Energy 2006 USD 2.5 million (2.5%)The International Investor Adabank Finance 2006 YTL 45.1 millionRenty (Esas Holding) Docar (TII) Fleet Rental 2006 USD 13 millionTexas Pacific Group Mey Icki Alcohol Beverages 2006 USD 810 million (LBO, 90%)Islamic Development Bank, Global Investment House TAV Airport Improvement and Management 2006 USD 150 millionBankcroft Standart Profil Automobile Spare Parts 2006 USD 90 million (LBO, 100%)AIG Blue Voyage Fund For You Pharmacy / Supermarket 2006 USD 20+ millionTurkven/Advent Pronet Security Services 2006 USD 4.2+ millionIs Venture Capital Beyaz Fleet Rental 2006 USD 4 millionTiger Global Investment Partners Mynet Internet Portal Services 2006 Not Disclosed (35%)Tiger Global Investment Partners Lift Medya Media 2006 Not DisclosedProvidence Digiturk Digital Broadcasting 2005 USD 250 million (40%)Fiba Capital M1 Tepe Alisveris Merkezleri Shopping Center 2005 Not DisclosedIs Venture Capital Tuyap Fair Services 2005 USD 7 millionTurkven/Advent Trendtech Value Added Mobile Services 2005 USD 3 millionAccess Turkey Capital Group Olgun Celik Automobile Spare Parts 2005 Not DisclosedThe International Investor Docar Fleet Rental 2005 USD 25 millionCONTACT INFORMATIONFor International Markets Contact Name Mr. Ilkay Dalkilic E-mail idalkilic@isyatirim.com.trFor Turkish Markets Contact Name Ms. Caglan Yazici E-mail cyazici@isyatirim.com.trFor Almaty/Kazakhstan Rep. Office Contact Name Mr. Cengiz Macun E-mail cmacun@isyatirim.com.tr Website www.isinvestment.comPAGE 11

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007FORTISBANKING AND INSURANCE BEYONDFRONTIERS: FORTISYvan De CockCEOFortis, being one of the 20 financial giants ofEurope in commercial, retail and privatebanking with its 56,000 experts in 55 countriesall over the world, has also been operating inTurkey since 2005. With its two corecompetences - banking and insurance - Fortisaims to serve customers better. Makingcustomers’ lives easier and providing addedvalue to businesses, Fortis offers a widerange of products and services.Aiming to rank among the top Europeanfinancial institutions, Fortis intends to achieveit through organic growth, supplemented withselective acquisitions and strategicpartnerships.Here is a brief look at the history of one of theEuropean’s financial giants.Fortis back to the days...12th December 1990 was a memorable day:AMEV/VSB in the Netherlands and AG Groupin Belgium signed an agreement to becomeone of the largest financial institutions inEurope, with a total of 20,000 employees. Thenew financial services provider was namedFortis; a Latin word meaning strong, steadfastand determined. AG Group had held a strongposition in the Belgian insurance market;AMEV in both the Dutch and internationalinsurance market and VSB, a savings bank,was quite successful in the Dutch retailmarket.Banking activities have been strengthenedover the years as several banks have beenacquired. It began in 1993, with a controllinginterest in Belgium's ASLK-CGER bank.In 1997, Fortis acquired the Netherlandsbasedmerchant bank MeesPierson. Thisacquisition significantly strengthened Fortis'private, corporate and investment bankingactivities and provided it with many moreasset management customers.In 1998, Fortis took over the prestigiousBelgian Generale Bank.Since 2000, ASLK-CGER, Generale Bank,VSB Bank and MeesPierson (with theexception of MeesPierson Private Banking)have been integrated and are operating underthe same banner - as Fortis. In 2000, Fortisalso increased its 53% stake in BanqueGénérale du Luxembourg to 97.73% of theshare capital. This strengthened Fortis' overalpresence in the Benelux region. Two yearslater, Fortis acquired 100% of Intertrust Group.Intertrust is active in trust and companymanagement and has since been mergedwith MeesPierson.In 2001, ASR Verzekeringsgroep N.V. andFortis announced the merger of ASR andAMEV Nederland N.V. As a result Fortisbecame the biggest insurer in the Beneluxregion and the Netherlands' second-largestinsurer operating through intermediaries.AMEV, Stad Rotterdam and Woudsend arecurrently being fully integrated into one newbusiness, to operate under the name FortisASR.Outside the Benelux, many joint ventures andalliances have been formed in Fortis' 15-yearhistory. In Europe, Fortis has entered into jointventures with one of Spain's largest banks, "LaCaxia" and with Banco Comercial Português(BCP), Portugal's biggest privately-ownedbank. Fortis has also ventured into Asia inrecent years; a joint venture with Malaysia'sbiggest financial services group Maybank, alife insurance partnership with the ChinaInsurance Group, and a strategic alliance withHaitong Securities in Shanghai. Last year italso entered into a partnership with MuangThai in Thailand.As announced on July 4th, 2005, Fortisacquired full ownership of 89.34% of theshares of Disbank from majority shareholders.Further to the approval of the transaction byall the relevant Turkish regulatory andgovernmental authorities, Fortis has alsocompleted the public bid and acquired fullownership of 93.3% of the shares of Disbank.FORTIS TURKEY IN 2006Retail BankingCRM applications in place facilitated furtheradvances in the segmentation of customers.These applications focus on asset-based(deposits, bonds and mutual funds) and unitbasedproducts (standing orders, insuranceand overdraft facilities).New and innovative products like ‘IdealMarriage’ and ‘Ideal Baby’ aimed at differentlife cycles of our customers met with greatdemand while new and structured campaignsin ‘Ideal Card’ increased its customeractivation levels. On the consumer financeside, the ‘loan campaign for civil servants’attracted immense attention for its featureslike ‘no guarantors’ and ‘three monthspayback postponement.’ Moreover, consumerfinance’s cross-sell strategy resulted in thetripling of the amount of outstanding in cashloans. The increase in Ideal Card’soutstanding balance outperformed the marketaverage.The customer-focused bancassurancepartnership on the insurance side wasdeveloped further, effectively integrating thebank with Fortis Pensions and Life Insurance.Cross-selling between the bank and insurancechannels was intensified, with branch staffreferring potential pension customers to thefinancial advisors.The already strong branch network wasfurther enhanced with the addition of 40 newbranches, bringing the total number ofbranches up to 225.SMEsPursuing an active strategy towards helpingSMEs achieve strong growth, Fortis continuedits support for enterprises. The results wereoutstanding as Fortis enhanced its specialrelationship through integrated product andservice packages as well as its loyaltyprogram for SMEs, the Dynamic Step.Fortis’ range of products and services forSMEs were expanded throughout 2006. As aresult, 32,000 new SME customers joined theranks of Fortis. Of particular interest was theIdeal Entrepreneur Package, an extendedrange of products and services designedexclusively for the needs of SMEs. TheDynamic Step, which provides queuingprivileges in the branches, fee & commissiondiscounts as well as free-of-charge servicesalso created value for SME customers.The new agreements signed within thecontext of ‘Entrepreneur Support Loans’brought in thousands of new customersthrough 99 professional associations.The share of SMEs in our loans portfolioreached to 33%, testament to the differenceFortis creates in the segment where theaverage ratio is still below 10%.PAGE 12

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Commercial and Private BankingCommercial Banking has some 5,600customers in Turkey. Private Bankingoperations, commenced in 2005, obtainedpromising results in its first year towardsachieving its aim to pursue Fortis’ overallstrategy in this segment.Relationship was deepened with customers inthis segment via the ‘Prime Banking’ conceptproviding benefits to customers according tothe depth of their relationship with the bank. Areal estate financing team was also set up andtrade finance capabilities were enhancedExtension of the international Business Centernetwork to Turkey with the opening of 12 newBusiness Centers in high-potential areas inTurkey, covering over 90% of the country’sforeign trade and over 80% of loan anddeposit volumes also proved to be a wisestrategy in its first year of operation. Three ofthe new Turkish Business Centers have startedoperating as ‘Fortis Houses’, at which privatebankers work alongside relationship managersfrom Commercial Banking.A number of specialized financial services –including leasing, factoring, global cashmanagement and trust – have also beendeployed to the new Business Centers.Merchant Banking & AssetManagementMerchant Banking operated with six businesslines and 163 full-time employees in 2006. Itsorganization, fully integrated with Fortis,provides it with a competitive edge, enablingMerchant Banking to leverage favorablemarket conditions at the beginning of 2006 asprivatization and Mergers & Acquisitionsactivity continued to intensify. Global MarketsGroup has absorbed the effect of marketturmoil which has started at end of 2nd Q of2006 with good management. MerchantBanking acted as a lead arranger in many highprofile transactions.• The Corporate & Institutional Banking teamhad key roles in several landmark deals in2006.• With its extended skill base, Global Marketscontinued dealing in local and internationalproduct structures with increasing complexity.• Fortis is one of Turkey’s 12 primary fixedincomedealers and ranks among the topbanks in terms of foreign currency andEurobond transactions.• The Corporate Finance Capital Marketsteam co-lead the public equity offerings ofTHY and Coca Cola.• Fortis Securities continue to serve themarket with more than 29,000 retail clients, ofwhom 95% trade online.• The GEPF team executed several highlyvisible mandates and completed deals intargeted areas such as mining and Treasuryguaranteed transactions.• A local ALF franchise was set up in 2006.• A local GSFG franchise will be operational inthe first half of 2007.Alternative Distribution ChannelsInternet BankingAt Fortis, Internet Banking services weredesigned to meet the diverse needs of bothindividuals and companies. During 2004,Internet Banking System was completelyrenewed for faster and easier use. 3,840million financial transactions were made onlinethrough Internet branch.Telephone BankingFortis’ Telephone Banking Service at 444 0144 can be accessed 24 hours a day and 365days a year. In addition to regular bankingservices, trained and experienced customerrepresentatives also provide information andsupport services. Customers can either talk tothe customer representatives for their bankingneeds or use the voice response system toobtain extensive information.ATM and KiosksAccording to the last years’ statistics, Fortisserved its customers through 268 ATMs and100 kiosks. The time availability of the bankATMs was 96%.CONTACT INFORMATIONCall Center 444 0 144Website www.fortis.com.trPAGE 13

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007OMXMarkus GerdienPresident Market TechnologyThe markets in the FEAS region experiencefast and strong economic progress, and thesecurities markets are important enablers intheir development.DEVELOPING AN EFFICIENTSECURITIES MARKETThe markets within the Federation of Euro-Asia Stock Exchange Exchanges (FEAS) areexpanding fast and there is a strong drive torapidly develop the securities markets.It might be tempting to push for a fastdevelopment process and try to mirror keyfeatures of an exchange in a mature market.However, a mature market exchange modelmay be too advanced for an emerging marketstructure and by pushing ahead with thismodel there is a large risk of combining oldroutines and simple processes with a newadvanced market model. The exchange couldface problems utilizing the advancedfunctions and products, and it risks becomingout of synch with the rest of the market.A typical example of this could be setting up aderivatives market without adequate liquidityin the underlying market.OMX believes that it is possible to enable thesmooth development of emerging securitiesmarkets by focusing on a number of keyissues. It is of the utmost importance to beaware of and adapt to the developmentphases of the local market, and also take intoaccount the development of all stakeholdersin the securities value chain.Today, most of the FEAS memberorganizations have approximately ten years ofhistory as independent securities markets.The markets in this region experience fast andstrong economic progress, and the securitiesmarkets are important enablers in theirdevelopment. But still some securitiesmarkets have remaining issues which affecttheir efficiency. Some common issues are:• Low liquidity• Underdeveloped infrastructure andtransparency of the stock market• Low free float ratio and centralizedownership• Lack of diversification among investors• Regulation not aligned with the fastdevelopment of the financial market• Market infrastructure not corresponding tothe needs of the securities marketThere are many ways to approach theseissues. Some common questions are: Wheredo we start? How do we prioritize among allplanned and ongoing initiatives? What isimportant when?An easy way to answer many of thesequestions might be to choose an exchangewith a mature and well functioning securitiesmarket as a role model and try to learn fromits experiences. Such a model could provideguidance for advanced trading technology, apackage of strict rules and regulations,advanced products and instruments etc. Butthe result will in many cases be disappointingas the expected results may not materialize.The key insight is to understand thatimproving the liquidity in a market requires theentire transaction chain to work well together.Participants of the market, (members, issuers,etc…), as well as central bodies, (CentralBank, FSA etc...), and the marketplace itself,(exchange, CSD); all need to be aligned todevelop an efficient securities market.Another potential problem resulting from animmediate implementation of an advancedmodel is the different development phases ofan emerging market and a mature market.Most of the emerging markets are in the midstof an “awareness phase”, (see graph below),with the critical focus on educating retailinvestors and institutional investors on thesecurities market. The focus of the maturemarkets, however, is to grow the marketfurther and to expand cross-border activities,generating demand for more advancedsolutions.Maturity,VolumeStep EStep DStep CStep BPHASE 1 PHASE 2 PHASE 3 PHASE 4Established necessaryconditionsStep ACreate awarenessand investmentopportunitiesCreate criticalinvestor massGrow market andexpand cross -borderTimeFigure 1. The OMX definition of the fourdevelopment phases of a securities market.PAGE 14

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007In conclusion, a fast implementation of anadvanced mature market exchange modelcan be harmful to the long term developmentof an emerging market as it may result ininefficiencies along the entire securities valuechain. Moving too fast could result in definingstrict rules and regulations that aremisinterpreted by the market and becomeimpossible to fulfil. Another example is thatthe exchange develops too advancedproducts that the market does notunderstand.Based on experience from working with ourown markets and consultancy assignmentswithin emerging markets, OMX recommendsthe following steps to enable the smoothdevelopment of emerging markets:• Understand which development phase yourmarket is in. Identify the bottlenecks and themost essential development steps for thisphase to improve market efficiency.• Learn from others. But adapt and simplifyexisting models and theories to fit the localmarket. Harmonize with internationalstandards where possible and explain the keymarket differences to international investors.• Clarify the roles and responsibilities of themarket stakeholders, understand the keydrivers, and address the entire value chain inthe development work.• Build transparency and trust to secure bothdomestic and international confidence in themarket.These recommendations increase theprobability of improving securities marketefficiency, and facilitate prioritization andaccomplishment of development initiatives.About OMXOMX is a leading expert in the exchangeindustry. Through the Nordic Exchange inCopenhagen, Stockholm, Helsinki, Iceland,Riga, Tallinn and Vilnius, OMX offers accessto approximately 80 percent of the Nordic andBaltic securities market. Our integratedtechnology solutions span the transactionchain enabling efficient securitiestransactions. With more than 60 customers inover 50 countries, OMX is the world’sforemost provider of marketplace solutions forexchanges, clearing organizations and centralsecurities depositories. OMX is a NordicLarge Cap company in the Financial sector onthe OMX Nordic Exchange. For moreinformation, please visit www.omxgroup.comNo. 1 in marketplace solutionsWidely known for our electronic tradingplatforms, OMX provides world leadingtechnology solutions across the transactionchain. Our systems and services aredesigned to help exchanges, clearingorganizations and central securitiesdepositories meet the extreme demands ofthe securities industry with efficiency andflexibility.OMX leverages its expertise to developsolutions that are in sync with today’s fastevolving financial markets and changingtechnology standards. We offer systems,systems support, operational services, andadvisory services that promote efficientsecurities transactions.Through advisory services OMX offersbusiness insight gathered by people in theexchange industry, delivered by people withinthe exchange industry. The advisory teambrings together:• Exchange and securities industryprofessionals• Industry technology experts• Management consulting professionalsOMX is working world-wide, advising clientsfrom the entire value chain. Projects are run inboth mature markets and emerging markets.CONTACT INFORMATIONContact Name Mr. Adam Kostyal E-mail adam.kostyal@omxgroup.com Website www.omxgroup.comPAGE 15

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AUERBACH GRAYSON & COMPANY, INC.Today, the Auerbach Graysonnetwork extends to over 100countries.Jonathan L. AuerbachManaging DirectorDavid S. GraysonManaging DirectorA PIONEER IN OPENING UPTHE EMERGING AND FRONTIERMARKETS TO INSTITUTIONALINVESTORSAuerbach Grayson is a global institutionalbrokerage firm, with headquarters in NewYork, that has carved out a unique place inthe expanding world of cross-borderinvestment.Rather than follow traditional Wall Streetpractice and establish international branchesin the largest financial centers, AuerbachGrayson’s founders had the idea ofestablishing a multi-country network ofpartnerships with local securities firmsaround the globe–one firm per country.Today, the Auerbach Grayson networkextends to 102 countries. Through its localbrokers, the New York-based firm canexecute trades for its U.S. institutional clientsin virtually every stock market in the world.No other firm can match AuerbachGrayson’s global scope and reach.When Jonathan Auerbach and DavidGrayson founded Auerbach Grayson in1993, their timing couldn’t have been better.International investing was poised for rapidgrowth. But in order to succeed, they neededto create a business model that wouldoutflank the large, established Wall Streetfirms.The Important Local ViewpointRealizing that local, English-language marketresearch was being developed rapidly byenterprising national firms in many countries,the Auerbach Grayson founders saw theiranswer in forming loyal partnerships andcreating a local broker network. “We do nothave branches, we have roots,” commentsDavid Grayson in explaining the value ofAuerbach Grayson’s connections withestablished local brokers that specialize inclose and constant coverage of companiesin their own countries.Indeed, the ability to produce in-depthcompany research is probably the mostimportant requirement for a national firm thatwants to join the Auerbach Grayson network.“Basic to the Auerbach Grayson idea,” saysJonathan Auerbach, “was to bring to ourinstitutional clients in America the local pointof view, rather than the global point of view.“We are strong proponents of ‘bottom up’research, therefore. Our clients,” he adds.“prefer to pay close attention to eachindividual company, rather than to thegeneral outlook of the local markets, andwell-established local brokers are the bestpeople to give them this information.”Access To U.S. InstitutionalInvestorsFrom the local broker’s point of view, therationale for joining the Auerbach Graysonnetwork can best be described, perhaps, bythis statement from a new member: “Ouragreement with Auerbach Grayson, giving usaccess to institutional investors in the U.S.and around the world, is an important step inexpanding and diversifying the shareholderbase of the country’s publicly-tradedcompanies.”Fourteen years after Auerbach Grayson’sfounding, the firm continues to respond toever-increasing interest in cross-bordertrading and, during the past 12 months,reached the 100 mark in networkmembership. New partners have includedBank Standard of Azerbaijan, Correval S.A.of Colombia and Asia Securities Limited ofSri Lanka.A Global Markets PioneerAuerbach Grayson is now widely recognizedas a pioneer in the opening up emergingand frontier markets to U.S. institutionalinvestors, and the firm regularly ranks amongthe top global brokers rated by NelsonInformation, a division of Thomson Financial.Along with network expansion has comeincreasing sophistication in the array ofservices offered by Auerbach Grayson andits broker partners. Fixed-income instrumentsand derivatives are also now traded inaddition to equities, while hedging andarbitrage strategies are also provided, toenhance and diversify client services.Auerbach Grayson is a member firm in theUnited States of the National Association ofSecurities Dealers (NASD) and the SecuritiesInvestor Protection Corporation (SIPC).CONTACT INFORMATIONContact Name Ms. Danielle Papagni E-mail dpapagni@agco.com Website www.agco.comPAGE 16

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ATOS EURONEXT MARKET SOLUTIONSKen TregidgoAEMS Global Head of StrategyWe understand that at the heart of every ITexpenditure decision-making process liesthe critical question of how to gain accessto leading and reliable technology at thebest possible cost, whilst minimizing anypotential risk to the business.AEMS is the leading provider of IT solutionsfor the financial markets.Our clients range from some of the world’slargest derivatives exchanges to a range ofmedium sized emerging market exchanges;from investment banks requiring trading frontends right through to settlement systemsand supervisory products.We currently support over 20 exchangeclients around the globe–including Amman,Muscat and Tehran Stock exchanges–fromour platform in Europe, with the majority ofour resources based in London and Paris.Our ambition is to service our clients locallyby establishing platforms in the US, Asia andthe Middle East. This year we haveestablished offices in Dubai and Hong Kongand we expect the forthcoming mergerbetween NYSE and Euronext to provide anopportunity for us to establish a USoperation.We understand that at the heart of every ITexpenditure decision-making process lies thecritical question of how to gain access toleading and reliable technology at the bestpossible cost, whilst minimizing any potentialrisk to the business. This is where AEMS canhelp.AEMS has been focused on providingexchanges with low cost, low latency andhigh capacity technology solutions. A criticalchallenge facing exchanges is whether tooutsource their technology and takeadvantage of the efficiencies AEMS bringsfrom our offering of core, proven technologysolutions or, whether to build the technologythemselves.The former allows them to focus onmanaging their business and differentiatingthemselves on price, performance, productoffering and quality of service, the lattertakes time and considerable investment.Set this against a backdrop of ever-evolvingbroker demands for lower cost tradingalternatives and continual regulatory changeand the outsourcing solution is compelling.AEMS is working with clients to bring theadvantages of our advanced platforms,superior price/performance and internationalexpertise to bear.We are actively seeking to work with clientsto create long-term relationships to createJV's or other commercial models so thatregional centres can be created to allow anumber of exchanges to share costs,improve competitiveness and join a widerglobal trading community.AEMS’ is committed to continued investmentin our technology and ensuring that itcontinues to offer the solutions exchanges,clearing houses, banks and intermediariesrequire driven by ever-more demandingmarket participant requirements.CONTACT INFORMATIONContact Name Mr. Abdel Nadjem E-mail abdel.nadjem@aems.net Website www.aems.netPAGE 18

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TAYBURN KURUMSALThe privilege of serving our clients is whatshapes our mission…Ediz UsmanPartner & Client Relations DirectorTayburn Kurumsal (Tayburn Corporate) andTayburn Tasarim (Tayburn Design) provide acomplete line of creative, integrated corporatecommunication products and services tailoredaccording to its clients’ needs.Tayburn GroupWith 28 years of experience in international aswell as European markets, Tayburn is thebiggest corporate communication company inScotland and the tenth biggest in the UnitedKingdom. It has been 13 years since we beganblending Tayburn's know-how with our ownknowledge of the local market and putting themto work in the service of clients. For more than adecade we have developed and offeredproductive, high-quality, and creative solutionsfor some of Turkey's leading companies in theareas of annual reports, branding, design, newmedia, advertising, and marketing.Thanks to our expert team, to the knowledgeand experience acquired on our own andthrough Tayburn, to our customer focus, and toour innovative and creative approach to service,we are today Turkey's most sought-after serviceprovider in the corporate communicationsegment. Our service area as Tayburn Kurumsaland Tayburn Tasarim is not limited to Turkey.Because of our world-class know-how andquality of service, we are also called upon byclients operating in Europe and in neighboringcountries. Our own technological infrastructuremakes it easy for us to provide such clients withfast, comprehensive service too.Professional approach to businessOne notion defines the reason for our existenceand our mission: Enable our clients to establishand maintain accurate, sustainable, and highyieldcommunication with their target audiencesby means of our high added value products andservices.With our professional approach to business,our national and international marketknowledge, and our global experience incorporate communication we transform thismission into reality for our clients.Since the day we commenced operations, wehave been doing business and taking pride inthe knowledge that we have been consistentlysuccessful in the face of Turkey’s rapidlychanging and developing market conditionsand, what’s even more important, that we havebeen providing solutions that precisely serve ourclients’ needs.Branding: High-profile corporate andconsumer brands…In the areas of:• Creating• Developing• Defining and maintaining standardsfor our clients’ corporate and consumer brands,our brand-related activitiesconsist of:• Designing logos and emblems• Developing corporate identities from A to Z• Launching and relaunching brands• Consultancy services.Reporting and investor relations: Printed andonline corporate reporting andcommunicating with investors…Our activities in the area of reporting and investorrelations consist of the turnkey design anddelivery of:• Printed annual reports• Electronic (CD) annual reports• Web-based annual reports• Corporate websites• Investor relations websites• Foreign language copywriting and editingservices• Road show presentationsas well as similar products and services thatenable our clients to establish and maintaintimely, precise, uninterrupted, and transparentcommunication with:• Investors• Shareholders• Creditors• Business partners• Customers• Employees• Society at large.High added value services ininvestor relationsUnderlying all investor relations is the need tocommunicate corporate information accuratelyand clearly to investors, shareholders, creditors,employees, business partners, and society atlarge. Speed and transparency are of theutmost importance in investor relations today.It is vitally important for publicly-held companiesto keep abreast and quickly comply with therequirements of national and internationalregulations (Capital Markets Board, SarbanesOxley, NYSE, LSE, etc). Providing truthfulinformation at the right time and in a format thatis easy to understand and to access heads thelist of the objectives of everyone involved ininvestor relations in today’s world. TayburnKurumsal offers clients in Turkey all the productsand services that they need in the area ofinvestor relations.Compliance with national regulatoryagenciesTayburn keeps a close watch on any changesthat may be made by the Banking Regulationand Supervision Agency or the Capital MarketsBoard in the legal framework in the rulesgoverning corporate reporting and investorrelations and immediately incorporates theminto its products and services. Tayburn doesthis in order to ensure that its reporting andinvestor relations products and services arealways in full compliance with the currentrequirements of regulatory bodies. We alsoprovide clients with consultancy services onfundamental and related issues as well.Marketing: Satisfying marketing needs in theproduct/service-consumer cycle…Our activities under the heading of marketingconsist of a providing all the advertising,promotional, and corporate communicationproducts and services that our clients mayneed such as:• Advertising campaigns• Corporate information films• Advertising films• Announcements (national and international)• Web-based solutions• Brochures• Information kits• Electronic presentations• Calendars and date books.Copywriting and editing services: Conveyingyour message clearly and to the rightaudience…Tayburn prepares and edits text in Turkishand other languages to ensure that its clients’messages are conveyed to their target audiencesclearly and effectively. We provide high addedvalue corporate communication services in thefollowing languages:• Turkish• English• French• German• Italian• Spanish• Russian(Other languages are available on request.)CONTACT INFORMATIONContact Name Mr. Ediz Usman E-mail info@tayburnkurumsal.com Website www.tayburnkurumsal.comPAGE 20

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007FINANS ASSET MANAGEMENTFinans Asset Management has played a pioneer role in the assetmanagement industry in Turkey in many aspects.Finans Asset Management was established on8 September 2000, as the 8th portfoliomanagement company in Turkey. Havingtargets and services differing than itscompetitors, the company manages open-endand closed-end mutual funds of FIBA group,Discretionary Portfolios offered to private andinstitutional clients along with the first index,sector, style and commodity Exchange TradedFunds in Turkey.Finans Asset Management has played apioneer role in the asset management industryin Turkey in many aspects. The companylaunched the first theme dedicated fundmanagement concept with generic naming.Finans Asset Management also launched thefirst “Investor Risk Profiler” for Turkish MutualFund investors. Global direct exposure was alsooffered for Finans Asset Management investors.Finans Asset Management, adopts strategiesaiming at increasing its product mix with newmutual funds and investing in foreign markets, aunique feature among its competitors. Anotherpioneering project of the Company has been toestablish the first and only asset managementbranch that started its operations in Ankara in18 June 2004.With an innovative strategy, the Company’smost important project in 2004 was the firstExchange Traded Fund of Turkey. Being one ofthe fastest growing asset-class globally,Exchange Traded Funds are based on trackingthe performance of an underlying index or anasset mix.Sponsored by Finansbank and managed byFinans Asset Management, Dow Jones Istanbul20 Exchange Traded Fund, was founded inaccordance with highest internationalstandards. The product is based on “DowJones Turkey Titans 20 Index”, which isdeveloped and disseminated by a globallyrecognized index provider, Dow Jones Indexes.Dow Jones Istanbul 20 ETF allows investors togain direct exposure to largest and most liquid20 blue-chips listed on the Istanbul StockExchange.Dow Jones Istanbul 20 offers many advantagesto investors. DJIST offers institutional investorsthe ability to gain exposure to the TurkishCapital Markets with a single transaction. DowJones Istanbul 20 ETF has 20 components,which are the largest and most liquid names ofthe Istanbul Stock Exchange. DJIST fund sharescan be easily acquired through the IstanbulStock Exchange. Institutional investors can alsocreate or redeem through the Takasbanksystem.CONTACT INFORMATIONDJIST offers liquidity for institutional investorsthrough creation-redemption process. Due tocreation-redemption capability, DJIST volumeon the Istanbul Stock Exchange does not equalto liquidity. An ETF that is based on a liquidindex can facilitate good executions even if theETF itself trades infrequently. DJIST shares arepriced continuously during the day on theIstanbul Stock Exchange. Intra-day NAV is alsodisseminated by the fund manager every 15seconds during trading hours of the ISE.Continuous pricing allows intra-day liquidity forinvestors. Efficient intra-day pricing leads tominimal deviation from Net Asset Value of thefund. DJIST offers diversification as it consistsof largest and liquid blue-chips of Turkey.Dow Jones Istanbul 20 ETF eliminates thesingle stock risk. DJIST makes liquidity andcompany risk manageable. Dow Jones Istanbul20 ETF can either be used to diversify the entireportfolio and/or complete the investmentstrategy as a core holding. Investors maydevelop various investment strategies usingDow Jones Istanbul 20 ETF such as CoreHolding, Cash Equitization, Portfolio Transitionsand Completion Strategies.Finans Asset Management also launched thefirst sector Exchange Traded Fund in Turkey.Non-Financial Istanbul 20 (NFIST) tracks Non-Financial Istanbul 20 Index. Non-FinancialIstanbul 20 ETF allows investors to gain directexposure to top 20 industrial and service sectorstocks listed on the Istanbul Stock Exchange.The Turkish Capital Market is heavily dominatedby financial sector stocks. Financial sectorcompanies weigh 40% of Dow Jones Istanbul20 ETF. Foreign investors can’t take theadvantage of non-financial stocks’ performancedue to lower liquidity and lack of investmenttools. Also, ISE Industrial Index underperformedthe ISE Financial index by 24% in the last fiveyears. ISE Industrials Index returned only 246%in YTL terms while ISE Financial Index soared304% during the same period. For thesereasons, NFIST was launched by FinansPortfoy, manager of Dow Jones Istanbul 20ETF, the first and the only ETF in Turkey.NFIST is based on the first and the onlynon-financial blue chip index in Turkey.Non-Financial Istanbul 20 Index is calculated,maintained and disseminated by Dow JonesIndexes, one of the leading index providers inthe world. Non-Financial Istanbul 20 Index hasthe same characteristics with Dow Jones TurkeyTitans Index; UCITS compliance, annual review,3-month weight adjustments, real-timedissemination. NFIST is developed ininternational standards and has the know-howsupport from American Stock Exchange,operational support from Takasbank.SMIST, the first style Exchange Traded Fund,followed NFIST in August 2006. SMIST offersinstitutional investors the ability to gainexposure to top 25 Turkish Smaller Companiesstocks with single transaction. The indexcomponents are the most liquid smallercompanies on the Istanbul Stock Exchange.SMIST shares are priced continuously duringthe day and intraday NAV is disseminated bythe fund manager every 15 seconds duringtrading hours of the ISE SMIST offersdiversification, eliminating the single stock riskand makes liquidity and company riskmanageable.GOLDIST, launched in September 2006, wasanother brand-new product for the Turkishinvestment community, further illustrating FinansPortfoy’s innovative structure and granting asupreme place in the competition. GOLDISTallows investors to invest in bullion Gold bygrams, offering direct exposure to theperformance of Gold at the lowest cost; aunique characteristic compared to the othergold related products in the country.FBIST which in on the way to be listed on theIstanbul Stock Exchange in the coming months,will also be the first fixed income exchangetraded fund in Turkey. FBIST enables investorsto get exposure to the changes in interest ratesin an efficient and simple way.Quant Fund, with the application of theproprietary computer model, was launchedin December 2006 and is the first quantitativefund in Turkey. Quant fund makes its tradesbased on the recommendations of the model,eliminating the human factor at all. As thecomputer model practically makes all thedecisions, the fund offers investors thecomplete risk management, objective analysis,elimination of human-based errors, andthorough risk-return analysis. Also, examinationof a much larger universe of stocks, lowerexpense ratio than those of comparable activelymanaged funds, and superior risk control areamong the other obvious advantages of thefund.Finans Asset Management aims to improveits performance through new strategies,increase its market share through newproducts, maintain growth in DiscretionaryPortfolio Management, and include new mutualfunds covering the entire risk preferences ofinvestors while increasing its product mixthrough new Exchange Traded Funds.Contact Name Mr. C. Ozgur Guneri E-mail ozgurg@finansportfoy.com Website www.finansportfoy.comPAGE 22

QUARTAL FLIFE

QUARTAL FLIFE

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007STOCK EXCHANGE PROFILESAbu Dhabi Securities Market 26UAE Economy 28Amman Stock Exchange 30Jordan Economy 32Armenian Stock Exchange 34Armenian Economy 36Bahrain Stock Exchange 38Bahrain Economy 40Baku Interbank Currency Exchange 42Azerbaijan Economy 44Baku Stock Exchange 46Banja Luka Stock Exchange 48Bosnia and Herzegovina Economy 50Belarusian Currency and Stock Exchange 52Belarus Economy 54Belgrade Stock Exchange 56Serbian Economy 58Bucharest Stock Exchange 60Romanian Economy 62Bulgarian Stock Exchange 64Bulgarian Economy 66Cairo and Alexandria Stock Exchanges 68Egyptian Economy 70Georgian Stock Exchange 72Georgian Economy 74Iraq Stock Exchange 76Iraq Economy 78Istanbul Stock Exchange 80Turkish Economy 82Karachi Stock Exchange 84Pakistan Economy 86Kazakhstan Stock Exchange 88Kazakhstan Economy 90Kyrgyz Stock Exchange 92Kyrgyz Economy 94Lahore Stock Exchange 96Macedonian Stock Exchange 98Macedonian Economy 100Moldovan Stock Exchange 102Moldovan Economy 104Mongolian Stock Exchange 106Mongolian Economy 108Montenegro Stock Exchange 110Montenegro Economy 112Muscat Securities Market 114Oman Economy 116Palestine Securities Exchange 118Palestine Economy 120Sarajevo Stock Exchange 122State Commodity & Raw Materials Exchange of Turkmenistan 124Turkmenistan Economy 125Tehran Stock Exchange 128Iran Economy 130Tirana Stock Exchange 132Albanian Economy 134“Toshkent” Republican Stock Exchange 136Uzbekistan Economy 138Ukrainian Stock Exchange 140Ukrainian Economy 142Zagreb Stock Exchange 144Croatian Economy 146PAGE 25

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ABU DHABI SECURITIES MARKETThe market capitalization of the companieslisted on ADSM during the first half of 2007was US$ 95.7 billion.Rashid Al BloushiActing Director GeneralAt the first half of 2007 ADSM had 64companies listed, whereas, the number oflisted companies at the first half of 2006was 59. The index increased from 2999.66during the first half of 2006 to 3,544.65during the first half of 2007.The value of trading increased from US$13.5 billion (AED 49.7 billion) in 2006 ascompared to US$ 14 billion (AED 51.5billion) in 2007, an increase of 3.7%. Thisincrease was a result of the increase in thenumber of trades to 18.3 billion in the firsthalf of 2007 as compared to 7.0 billion forthe same period in 2006. The tradingvolume was executed via 465,936 trades inthe first half of 2007 as compared to473,186 trades for the same period of 2006.The daily average value of trading in the firsthalf 2007 increased to US$ 110 million(AED 405 million) compared to US$ 91million (AED 337 million) in 2005 during thesame period. There were 127 trading dayscompared to 147 days during the sameperiod of 2006. The daily average of tradedshares also rose to approximately 143million shares as compared to 47 millionshares in 2006.The market capitalization of the companieslisted on ADSM during the first half of 2007was US$ 95.7 billion (AED 351.5 billion) ascompared to US$ 93.8 billion (AED 344.4billion) during the same period of 2006indicating an increase of 2.1%.HISTORY AND DEVELOPMENTTrading securities in the United ArabEmirates dates back to the early 1960swhen public shareholding companiesstarted to exist. It was a generic andhaphazard era with a securities marketcreated and operated by the mediation ofbrokerage firms.Trading in such an unstructured environmenthad created flaws and imbalances in themarket, especially with the absence of aproper mechanism to conclusivelydetermine the value of securities, theabsence of supervision and control ofbrokerage firms as well as the lack oftransparency and disclosure by the tradedcompanies.This tremulous situation had an adverseimpact in establishing fair policy forevaluating securities, and resulted in severefluctuations in the market. In view of thischaos values of most of the shares wereoverstated leading to consequences andheavy losses to the investors.Taking the above facts into consideration,the issue of regulating the securities marketbecame significantly important with a view toits crucial role in the domestic economy.Plans have been set up to organize themarket in order to ensure integrity andsmoothness of trading and the movementsof prices based on the power of supply anddemand and the information disclosed bythe listed companies. Within this framework,intensive efforts resulted in the promulgationof Law No. (4) of 2000 concerning theestablishment of the UAE Securities &Commodities Authority and theestablishment of securities market.FUTURE OUTLOOK• Continue activities to support growth inlistings, turnover and liquidity:• Encourage listing of family companiesand foreign companies• Increase system capacity to cope withgrowing market volumes• Enhance IT processes and informationdistribution• Enhance market standards in the areas of:• Implement corporate governancestandards and principles• Capital adequacy and the surveillanceof brokers• Introduce broker education andqualification• Further enhance registry and CSDservices• Expand the Bond Market• Link trading with other internationalsecurities markets• Strengthen regulations and rulesincluding:• Commercial and capital market law• Securities Regulation• Develop ADSM rules for listing, brokersand tradingPAGE 26

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ABU DHABI SECURITIES MARKETOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 755.35 35.97 742.01 35.33Feb-07 1,559.68 77.98 2,066.19 103.31Mar-07 1,224.51 58.31 1,457.06 69.38Apr-07 1,615.40 73.43 1,737.78 78.99May-07 4,629.50 201.28 5,476.69 238.12Jun-07 4,234.98 211.75 6,788.13 339.41TOTAL 14,019.42 109.79 18,267.86 144.09BondsJan-07 0.08 0.004 0.003 0.0001Feb-07 0.01 0.001 0.04 0.002Mar-07 0.02 0.001 0.09 0.004Apr-07 0.49 0.02 1.98 0.09May-07 0.03 0.001 0.09 0.004Jun-07 0.34 0.017 0.0011 0.0001TOTAL 0.97 0.01 2.20 0.02OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 81,796.84 2,980.00Feb-07 83,876.66 3,090.91Mar-07 77,370.78 2,884.00Apr-07 83,346.95 3,052.74May-07 96,144.08 3,578.00Jun-07 95,693.43 3,545.00CONTACT INFORMATION5,0004,5004,0003,5003,0002,5002,0001,5001,00050004,000 100,0003,500 90,0003,00080,00070,0002,500 60,0002,000 50,0001,500 40,0001,00030,00020,000500 10,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Saeed Khaouri E-mail skhaouri@adsm.co.ae Website www.adsm.co.aePAGE 27

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ABU DHABI SECURITIES MARKETECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentPolitical stability appears assured during thenear term. This favorable forecast has beenunderpinned by the smooth transfer of powerfollowing the death of the emir of Dubai,Sheikh Maktoum bin Rashid al-Maktoum, inearly 2006 and the death of the president ofthe UAE and ruler of Abu Dhabi, Sheikh Zayedbin Sultan al-Nahyan, in late 2004. SheikhZayed had been president of the UAE since itsfoundation and ruler of Abu Dhabi since 1966,raising the prospect that his demise couldhave been destabilizing. However, powertransferred smoothly to the long-serving crownprince, Sheikh Khalifa, who has firmlyestablished his authority as the new ruler.Sheikh Khalifa enjoys support from within theruling families of the seven emirates, and mostUAE nationals appear satisfied with family rulein the country, particularly at a time of high oilprices and rising public largesse.The UAE's pro-Western orientation will notchange, although the government remainsconcerned over some aspects of US policy inthe region, particularly its strong support ofIsrael in the recent conflict in Lebanon, as wellas its management of the situation in Iraq andthe prospect of full-scale civil war there. It isalso very uneasy about the possibility of USmilitary action against neighboring Iran.This latter development would have particularlyharmful consequences for both the politicaland the economic future of the UAE. TheUAE's pro-US stance is out of step withregional popular opinion (and, to an extent,domestic sentiment too), which is hostile to USpolicy in the Middle East. Although theeconomy has ridden out regional conflict inrecent years, its geographical proximity to Iranmakes it more likely that it will experiencenegative repercussions from any conflict there.The federal economy and planning minister,Sheikha Lubna al-Qassimi, will continue topromote a progressive economic agenda, builtaround economic liberalization, diversificationand enhancing the role of the private sector.With support from Sheikh Khalifa thegovernment is also expected to take steps topromote foreign investment further, includingthe possible abolition of the sole agency lawand regulations that restrict foreigners tominority stakes in local firms. However, thesemeasures will be hotly contested by prominentlocal families with business interests. Therehas already been lobbying against thepossible revocation of the commercialagencies law, which grants UAE companieslocal monopolies to distribute imported goods.In August 2006 the federal governmentscrapped the monopoly distribution rights forsome essential goods, mainly food items, butit now appears unlikely that any furthersignificant dilution of the commercial agencieslaw will be forthcoming–at least in the nearterm.Economic PerformanceIt is forecasted that the UAE economy willexpand by an average annual rate of around7% in real terms. Industrial growth will be themainstay of the overall expansion,underpinned by continued–albeit modest–rises in oil production. Growth in non-oilindustrial output will be perhaps an equallyimportant direct driver, however, as investmentin manufacturing and heavier industrialprojects (focused mainly on energy-intensivesectors such as petrochemicals and metals)brings new capacity on stream and thecompetitiveness of UAE exports is bolsteredby the weakness of the US dollar, particularlyin 2007. Both domestic andforeign investment in new projects areexpected to remain strong, and capitalspending on real estate and infrastructureschemes (including new roads and highprofileprograms such as the Dubai metroproject and airport expansion) will also stayhigh. The services sector should also attractsubstantial investment. Current demand forservices is likely to pick up, led by the tourismindustry, especially in Dubai. Continued rapidgrowth in the population, fuelled largely byincreases in the size of the expatriateworkforce, will also underpin robust domesticdemand.Inflation has picked up over the past 18months, as the surge in domestic demand hasgenerated price pressures, particularlyin real estate and some parts of the servicessector. This has begun to drive up wagedemands in the private sector. The weaknessof the dollar is also adding to inflationarypressures. Official data show that price growthaveraged around 6% in 2005. However, theofficial data are indicative only of the pricetrends experienced by the minority Emiratipopulation, which continues to benefit from arange of subsidies on core goods andservices.There is little prospect of a change in theexchange-rate regime, and the UAE dirhamis expected to remain pegged to the USdollar at the current value of Dh3.67:US$1.Confidence in the peg remains high, bolsteredby the Central Bank of the UAE's long trackrecord of maintaining the dollar value of thedirham and its absolute commitment toholding the peg in place.** The Economic Intelligence Unit Ltd., October 2006Key Information ContactsAbu Dhabi Chamber of Commerce and Industry www.abudhabichamber.aeCentral Bank of UAE www.uaecb.gov.aeMinistry of Finance and Industry www.uae.gov.ae/mofiMinistry of Planning www.uae.gov.ae/mopMinistry of Economy and Commerce www.uae.gov.ae/moec2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)IndustryAgricultureServicesPrivate consumption Fixed investment Government consumptionChange in stocks Exports of goods & services Imports of goods & services50.646.52.9100806040200-2044.111.121.31.289.3-40-60-80-66.0PAGE 28

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ABU DHABI SECURITIES MARKETUAE ECONOMIC CHARTS AND TABLES2005 (a) 2006 (b) 2007 (c) 2008 (c)Real GDP growth (%) 8.2 (b) 8.9 7.0 6.5Consumer prices (% change) 12.5 (b) 13.5 10.5 7.5Budget balance (% of GDP) 7.9 9.3 8.5 7.9Merchandise exports (FOB) (US$ billion) 126.5 132.9 139.2 145.8Current-account balance (% of GDP) 20.6 15.8 12.7 9.2(a)(b)(c)Source: Economist Intelligence Unit, Country Risk Service.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 10.4 8.3 6.3 6.1 5.4 5.3Consumer price inflation (av; %) 10.0 8.0 7.0 5.5 4.0 3.0Budget balance (% of GDP) 13.9 13.4 12.4 10.8 9.6 8.3Current-account balance (% of GDP) 17.9 12.3 8.2 6.2 4.0 3.2Exchange rate Dh:US$ (av) 3.67 3.67 3.67 3.67 3.67 3.67Exchange rate Dh:[euro] (av) 4.59 5.00 4.91 4.75 4.63 4.642005-PRINCIPAL EXPORTS (FOB)(US$ millions)Crude oil 43.5Re-exports 38.02004-PRINCIPAL IMPORTS (CIF)(US$ millions)Machinery & electrical equipment 12.4Precious stones & precious metals 10.4Vehicles & other transport equipment 6.42005-MAIN DESTINATION OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)JapanSouth KoreaChinaUKUSAThailandIndiaOtherIndiaOther25.69.35.89.99.79.65.18.961.954.2The Economic Intelligence Unit Ltd., November 2006PAGE 29

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AMMAN STOCK EXCHANGEASE started a new project to build JordanNational Financial Center with expectedcost of US$ 100 million.Jalil TarifChief Executive OfficerIn the year 2007, the ASE started a newproject to build Jordan National FinancialCenter. His Majesty King Abdullah II laid thefoundation stone for this project. This centerwill contain: the ASE, Securities DepositoryCenter, Financial Studies Center, Brokers’Offices, Investors’ Gallery, and many otherfacilities. The expected cost for this project isexpected to reach US$ 100 million.At the international level, the ASE is on courseto becoming a full member of the WorldFederation of Exchanges (WFE) after fulfillingrequirements of adopted by the WFE. In othervein, the ASE and London Stock Exchange(LSE) have signed a co-operation agreementto formalize the existing strong ties betweenthe two exchanges. The agreement willprovide a mechanism of long term cooperationand foster the development ofchannels of communication and a continuingrelationship between the LSE and the ASE forthe mutual benefit of the financial servicesindustry in the United Kingdom and Jordanand will assist in the maintenance of orderlymarkets in securities on the markets operatedby each party.In the technical side, a contract for EUR 2.5million was recently signed with AtosEuronextMarket Solutions (AEMS) to upgrade the ASEtrading system to NSC V900 and introduce anew surveillance system called ARAMIS to theJordan Securities Commission. The newsystem is fully Linux environment. It is worthmentioning that this system applied in majorstock exchanges. This system will be moreflexible to implement market rules and willhighly improve system capacity and lowerlatency.The Internet trading will be introduced at theASE this year. All provisional testing has beenconducted and, once the JSC passes thelegislation, Internet trading in ASE will beenforced.To enhance the international exposure, theASE in cooperation with LSE, held a JordanCapital Markets Day in London. This day wasa great opportunity for Jordanian companiesto raise funds and attract foreign investments.Around 40 investment managers representingthe largest funds managers in the UK thatinvest in the Middle East and North Africaattended the day.Also in the year 2007, the ASE has startedimplementing a new marketing and promotionstrategy based on three main fields:Awareness, Marketing and Media. Theimplementation of this strategy will continue inthe coming few years. Part of this strategy is toeducate the public about how to invest andhow to deal with the disclosures andinformation provided by capital marketsinstitutions. In this regard, the ASE held aseries of awareness lectures to the public whoare interested in dealing with securities.HISTORY AND DEVELOPMENTThe ASE was established in March 1999 as anon-profit, private institution with administrativeand financial autonomy. It is authorized tofunction as an exchange for the trading ofsecurities. The Exchange is governed by aseven-member board of directors. A CEOoversees day-to-day responsibilities and reportsto the board. The ASE membership iscomprised of Jordan’s 65 brokerage firms.The history of securities trading in Jordan tracesits origins back to the 1930s. In 1976, theAmman Financial Market was established tocreate a regulated trading market. Morerecently, as part of Jordan’s move to upgrade itscapital market, a Securities Law was enacted in1997 separating the supervisory and legislativeroles from those of exchange operations. As aresult, the Jordan Securities Commission (JSC)was created in 1997, the ASE and the SecuritiesDepository Center (SDC) were established in1999. The JSC supervises the issuance of andtrading in securities and monitors and regulatesthe market. The SDC oversees clearing andsettlement and maintains ownership records.To provide a transparent and efficient market,the ASE implemented internationally recognizeddirectives regarding market divisions and listingcriteria. It also adopted procedures forimproving regulatory effectiveness.The ASE is charged with:• Providing companies with a means of raisingcapital by listing on the ASE,• Encouraging an active market in listedsecurities based on the effective determinationof prices and fair and transparent trading,• Providing modern and effective facilities andequipment for trading, the recoding of tradesand dissemination of prices,• Monitoring and regulating trading,coordination with the JSC as necessary, toensure compliance with the law, a fair marketand investor protection,• Setting out and enforcing a professional codeof ethics among its member directors and staff,• Ensuring the provision of timely and accurateinformation of issuers to the market anddisseminating market information to the public.On 26 March 2000, the ASE launched anautomated order-driven Electronic TradingSystem. The new system is in compliance withinternational standards and takes into accountthe G-30 recommendations. This system alsooffers brokers immediate access to stock pricesand orders and enables members to traderemotely. On May 2006, the ASE activated thenew version of the electronic trading system(NSC V2+), which comes as part of efforts tomeet the increasing needs of the JordanianCapital Market and in order to raise the capacityof the current electronic trading system toaccommodate the increase in the daily tradingvolume.FUTURE OUTLOOKThe ASE will embark on a number of keyprojects that will ensure maintaining the leadthat the ASE has amongst Arab and regionalstock exchanges. These projects can besummarized as follows:• Establish Jordan National Financial Center.This center will contain: the ASE, SecuritiesDepository Center (SDC), Financial StudiesCenter, Brokers’ Offices, Investors’ Gallery, andmany other facilities. The external design of thebuilding is inspired from the Siqq of Petra whichis considered an ancient symbol in Jordan’shistory. The Center total area is around 86thousand m 2 with a building area around 52thousand m 2 .• Upgrade the ASE Trading System. In thisregard a contract was signed with AtosEuronextMarket Solutions and GL Trade for EUR 2.5million. The new trading system is V900 and isfully Linux environment. It is to mention that thissystem applied in major stock exchanges. Thissystem will be more flexible to implement marketrules and will highly improve system capacityand lower latency.• Demutualization of the ASE. The ASE isnegotiating with alliances to supportdemutualization process. The ASE shall becomeshareholding company totally owned by theGovernment as a first step. In the second stepthe Government will sell a stake to financialinstitutions, brokerage firms, internationalinstitutions, public, and other parties.PAGE 30

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AMMAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 1,174.88 61.84 267.36 14.07Feb-07 2,167.66 108.38 413.90 20.69Mar-07 1,630.14 77.63 347.74 16.56Apr-07 1,069.17 50.91 275.01 13.10May-07 1,188.70 51.68 345.80 15.03Jun-07 1,430.71 71.54 614.66 30.73TOTAL 8,661.27 70.33 2,264.47 18.36BondsJan-07 2.50 0.13 0.0005 0.00003Feb-07 0.35 0.02 0.0001 0.000003Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.35 0.02 0.0001 0.000005Jun-07 0.0 0.0 0.0 0.0TOTAL 3.20 0.05 0.0007 0.000011OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 32,999.13 6,145.66Feb-07 35,071.65 6,543.70Mar-07 33,142.72 6,148.70Apr-07 32,361.97 5,970.90May-07 22,567.20 5,831.06Jun-07 31,570.99 5,761.00CONTACT INFORMATION2,5002,0001,5001,00050007,000 40,0006,000 35,0005,00030,0004,00025,00020,0003,00015,0002,00010,0001,000 5,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Sami Hattab E-mail shattab@ase.com.jo Website www.exchange.joPAGE 31

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AMMAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentKing Abdullah II upon ascending to thethrone following his father's death in 1999,has provided re-energized economicleadership. King Abdullah, II bin Al-Husseinhas proven to be a steadfast proponent ofan invigorated program of economic reformsthat includes privatization, structural andprocedural changes that attract foreigninvestment and enable foreign debtrestructuring and reduction. He also believesthat efforts should be continued to build amodern Jordan that provides its men andwomen with opportunities for a decent lifeand ensures that the gains of developmentare distributed equally among the people.King Abdullah belongs to a new generationof Western-educated Arab leaders. Theking's political agenda has been focused oneconomic revival, greater political openness,social justice and equality, in order to clearlyplace Jordan actively on the regional andinternational map. While keeping the warmties with the West nurtured by his father, hehas succeeded in improving ties with Syriaand the Palestinians and cementing linkswith Saudi Arabia and Kuwait.Economic PerformanceThe real GDP growth by end of 2006 was6.0% compared to 7.2% for 2005.The decline was due to the decrease in theextraction industries and non-profit servicesproducers sectors. By November of 2006,exports reached US$ 4.65 billion. Jordanconducts its monetary policy with a fixed pegto the US dollar and believes that its tradeperformance indicates that policy stillprovides for good internationalcompetitiveness of its exports. In the pastfew years, it has also resulted in virtualstability in the price level with inflation asmeasured by both the GDP deflator and theCPI. Meanwhile, CPI inflation at the end ofthe year 2006 was 6.3%, compared with3.5% in 2005. As for the fiscal policyperformance, re-estimated figures indicatean increase of 22.2% in domestic revenuesby the end of 2006 as compared to the year2005, and a rise of 10.2% in publicexpenditures, putting the fiscal deficit at 4.5%of the GDP.Jordan's main export commodities arephosphates, fertilizers, potash, agriculturalproducts and textiles. Its main importsinclude crude oil, machinery, transportequipment, food, live animals andmanufactured goods. By end of November2006, exports (exports and re-exports) grewby 19.7%, and imports increased by 9.2%.Foreign direct investment (FDI) has beenincreased steadily in recent years, by the endof 2006, it reached US$ 2.9 billion comparedto US$ 1.1 billion for the year 2005. Jordan'sgross international reserves have been risingsteadily over the past several years, and atthe end of 2006, these reserves stood atmore than US$ 6.1 billion, equivalent to thevalue of seven months' merchandise imports.Privatization has moved along quite well. Thecenterpiece of the program was the sale of alarge minority ownership in Jordan Telecomto France Telecom. Recently, thegovernment sold another part of its stake inJordan Telecom to some institutionalinvestors and to the public and offered new10% of the company’s shares through anIPO. Also the government sold 37% of itsstake in the Jordan Phosphate Mines andsold 80% of the Royal Jordanian Investment.Many projects are in the pipeline such asJordan Post Company, Jordan MillsCompany, and Jordan Agricultural Marketingand Processing Company. Furthermore,many privatization actions are taking place inthe field of aviation, power, transportation,and mining.** Information provided by the Amman Stock ExchangeKey Information ContactsJordan Securities Commission www.jsc.gov.joSecurities Depository Center www.sdc.com.joJordan Investment Board www.jordaninvestment.comArab Monetary Fund www.amf.org.aeMinistry of Finance www.mof.gov.joCentral Bank of Jordan (CBJ) www.cbj.gov.joNational Information Center www.nic.gov.jo2006-CONTRIBUTION OF MAJOR SECTORS IN THE GDP (%)Manufacturing Transport & Communications Financials & BankingTrade, Restaurant & Hotel Net Taxes ConstructionsGovernment Services Others15.718.6 16.3GROWTH OF INVESTMENT AND GDP(%)504030GDIGDP9.09.62010013.05.012.8-10-2097 98 99 00 01 02 03 04 05 06PAGE 32

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AMMAN STOCK EXCHANGEJORDAN GDP/EMPLOYMENT BY SECTOR OF ORIGINSector % GDP % EmploymentAcriculture 2.7% 6.4Industry 23.1% 25Services 74.1% 68.6JORDAN MONEY SUPPLY, INTEREST RATES ANDFOREIGN EXCHANGE RESERVES1998 1999 2000 2001 2002 2003 2004 2005Money Supply M1 (dinars-millions) 1,613.9 1,777.1 2,026.7 2,119.7 2,316.2 2,919.8 3,192.9 4,061.3Money Supply M2 (dinars-millions) 6,026.3 6,747.6 7,434.7 7,866.1 8,419.1 9,465.7 10,571.4 1,236.4Growth Rate M1 -1.7% 10.1% 14.0% 4.6% 9.3% 26.1% 9.4% 27.2%Growth Rate M2 8.1% 12.0% 10.2% 5.8% 7.0% 12.4% 11.7% 17.0%Interest Ratesdeposit rates 8.3% 7.9% 6.6% 5.2% 4.0% 2.8% 2.5% 3.5%lending rate 12.9% 12.7% 11.4% 10.5% 9.9% 8.9% 7.6% 8.1%Foreign Exchange Reserves (US$ millions) 1,750 2,629 2,763 2,578 3,495 4,739.5 4,824.1 4,743.9Exchange Rate Period Average (dinars/US$) 0.709 0.709 0.709 0.709 0.709 0.709 0.709 0.709Annual % Growth 0 0 0 0 0 0 0 0* End of June 2007GROWTH OF EXPORTS AND IMPORTS(%)INFLATION(%)ExportsImportsGDP deflatorCPI50403020100-10097 98 99 00 01 02 03 04 05 06-1 97 98 99 00 01 02 03 04 05 067654321EXPORT AND IMPORT LEVELS(US$ millions)CURRENT ACCOUNT BALANCE TO GDP(%)ExportsImports12,00010,0008,0006,0004,0002,000097 98 99 00 01 02 03 04 05 06151050-5-10-15-2097 98 99 00 01 02 03 04 05 06*All data before 2004: The Economic Intelligence Unit Ltd.All data after 2004: CBJ website and IMF expectationsPAGE 33

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ARMENIAN STOCK EXCHANGEYermonya VardevanyanChairman of the Observers’ BoardIn April 2007, the OMX Group, the leadingexpert in the exchange industry, the CentralBank of Armenia and the Government ofArmenia signed a letter of intent regardingacquisition of the Armenian Stock Exchangeand the Central Depository of Armenia.The first half of 2007 was made remarkable byone of the most significant events in thehistory of Armex. In April, 2007, the OMXGroup, the leading expert in the exchangeindustry, the Central Bank of Armenia and theGovernment of Armenia signed a letter ofintent regarding acquisition of the Armex andthe Central Depository of Armenia. Armex andthe Central Bank of Armenia have beenworking together with OMX for over a year andwe believe that this acquisition is an importantstep towards achieving our long-term goals forthe Armenian capital market.In the first half of 2007 the equities tradingvalue was US$ 0.94 million, while thecorporate bonds market reflected - US$ 0.27million. In H1 2007 the issuers’ increasinginterest in the corporate market was noted:early in 2007 listing of new corporate bondstook place, with one of them at the highestbonds listing tier (A-bond). Besides, severallarge companies of the Armenian businesssphere also expressed a willingness to issuecorporate bonds and Armex already startedcooperation with them.In H1 2007 a long-anticipated market-makerinstrument was introduced to the exchangetrading and two of the Armex members weregranted the market-maker status of corporatebonds. That allows us to assume that thesechanges will contribute toward the furtherdevelopment of exchange trading and theincreasing of its liquidity.The FX market remains the most active inArmenia. Starting from the beginning of thisyear until present a value equal to US$ 259million and EUR 0.958 million was traded. Thisdata once more proves that Armenia has greatpotential for capital market development andthat Armex has a crucial role in this process.Armex sees the introduction of the secondarytrading in government securities as one of itsprimary goals for 2007. Collaboration with thestakeholders of the process, including banksand licensed dealers, is currently underway,and the task is scheduled for completion byearly Q4, 2007.Of course, Armex will carry on with its effortsaimed at facilitating further development of theexchange market. These include improvementof the structure and accessibility of corporateinformation disclosed to the public, as well asthe fostering of corporate governancepractices among listed companies. Bearing inmind the significant 13% economic growth thatArmenia demonstrated in 2006, Armex intendsto do its best to have the local capital marketplay an efficient and sustainable role in thefuture development of the country.HISTORY AND DEVELOPMENTArmenian Stock Exchange (Armex) is thesuccessor of the Association of SecuritiesMarket Participants, which was established inArmenia in 1997. In December 2000, it wasrenamed as the Armenian Stock Exchange,and on 13 February 2001 officially registeredby the Securities Commission of the Republicof Armenia as a self-regulatory organizationpursuant to the Law of the Republic of Armenia“On Securities Market Regulation”.Armex is the only stock exchange registered inArmenia. As a voluntary association of broker(dealer) companies and a self-regulatoryorganization, Armex approves rules andregulations covering its core activities,including listing, trading, informationdisclosure, as well as rules of professionalethics. The self-regulation principle provideseach member company with equal rights toparticipate in the management of the stockexchange. The supreme management body ofArmex is the General Meeting of Members,which elects the Observers’ Board. The latterelects the Chairman and appoints the ChiefExecutive Officer of the Exchange.Armex is subject to regulation by the state. TheSecurities Commission of the Republic ofArmenia has been the competent stateauthority to regulate the activities of the capitalmarket, including the stock exchange, inArmenia. Starting 1 January 2006, theregulatory and supervisory powers of theCommission were transferred to the CentralBank of Armenia.Since 15 November 2005, foreign currencytrading was introduced on Armex, which isconsidered to be an important step towardsthe further development of the exchangemarket in Armenia. On 14 December 2005, thefirst publicly traded corporate bonds werelisted at Armex, which considered to stimulatethis market segment and expand thediversification of instruments traded at Armex.The Armenian Stock Exchange and the CentralBank of Armenia has been working togetherwith OMX Group, the leading expert in theexchange industry, for over a year and on 27April 2007, OMX Group, the Central Bank ofArmenia and the Government of Armeniasigned a letter of intent regarding acquisition ofthe Armenian Stock Exchange and the CentralDepository of Armenia. This acquisition is animportant step towards achieving our long-termgoals for the Armenian capital market.FUTURE OUTLOOKIn 2007, Armex plans to:• Complete the demutualization process andchange its status to a joint-stock company;• Fully integrate into the OMX Group throughthe acquisition of Armex’s 100% shares by theOMX and in perspective become a part ofdesigned NASDAQ OMX Group;• Introduce trading in government bonds;• Introduce new enhanced mechanisms forclearing and settlements in FX market;• Expand regional and internationalcooperation, and;• Develop and introduce capital adequacyrequirements for exchange membercompanies.Ameria InvestArmex member, business consultingand law firmwww.ameria.amPAGE 34

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ARMENIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 0.01 0.0005 0.02 0.0008Feb-07 0.003 0.0002 0.02 0.001Mar-07 0.02 0.0009 0.02 0.0007Apr-07 0.41 0.02 0.05 0.002May-07 0.0001 0.000003 0.00002 0.000001Jun-07 0.47 0.02 0.06 0.003TOTAL 0.90 0.01 0.16 0.001BondsJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0007 0.00004 0.00001 0.0Jun-07 0.27 0.01 0.009 0.0004TOTAL 0.27 0.01 0.01 0.0002OtherJan-07 28.35 1.42 0 0Feb-07 24.40 1.22 0 0Mar-07 32.00 1.524 0 0Apr-07 46.52 2.33 0 0May-07 36.03 1.80 0 0Jun-07 81.4794 3.88 0 0TOTAL 248.78 2.03 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)MONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 60.87 n/aFeb-07 63.54 n/aMar-07 61.65 n/aApr-07 61.53 n/aMay-07 63.33 n/aJun-07 112.79 n/aCONTACT INFORMATION0.500.450.400.350.300.250.200.150.100.050.00120100806040200Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Armen Melikyan E-mail amelikyan@armex.am Website www.armex.amPAGE 35

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ARMENIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitical and Economic PerformanceThe president, Robert Kocharian, does notbelong to any political party but has shownconsiderable political dexterity in cementinghis authority. This was demonstrated inparticular by his appointment of AndranikMarkarian (leader of the Republican Party ofArmenia?RPA?until his death from a heartattack in March 2007) as prime minister in May2000. This brought a former political rival intothe government, and ensured the RPA'ssupport for many of the president's initiatives.The RPA reaffirmed its position as Armenia'smost influential political party in aparliamentary election on 12 May 2007, inwhich it won 64 of the 131 seats in theNational Assembly, up from 40 in the outgoingparliament. As of the middle of May, SerzhSarkisian looked set to be reappointed primeminister. He had been elevated to this positionin April, following the death of Mr Markarian.Armenia's current president, Mr Kocharian,won the election in 2003. He is constitutionallyineligible to stand again when his term endsin early 2008. His most likely successor isMr Sarkisian, whose victory seems all themore probable following the RPA's strongperformance in the 2007 parliamentaryelection. Prospects for a strong oppositionshowing in the 2008 presidential electionare slim, although Mr Baghdasarian orMr Hovannisian might be successful in rallying sufficient support to at least present acredible challenge to Mr Sarkisian.Assuming a comparatively favorable finalassessment of the election by the internationalobservers, Western pressure on Armenia'sauthorities is likely to ease. The US and the EUhad warned the government that thecontinuation of aid programs woulddepend on the conduct of the poll. Inparticular, the disbursement of US$ 236 millionfrom the US Millennium Challenge Accounthinged on the election, as did a deepening ofArmenia's participation in the EU's EuropeanNeighborhood Policy. Both seem secure in thewake of the election, and the risk of asuspension of financial assistance from thesebodies now appears low.Economic PerformanceThe structure of Armenia's economy hasaltered greatly since the early postindependenceyears, with sectors such asconstruction and services replacing industryand agriculture as the main contributors toGDP. In 2006 construction provided thelargest share of GDP, contributing 27% of thetotal, up from just 8% in 1998. Constructionwas also the leading contributor to Armenia'seconomic growth in 2006, accounting for 8percentage points of the country's 13.3%annual growth. Extensive financing frominternational sources has funded new roadsand refurbished cultural and educationestablishments. In addition, the construction ofnew apartment blocks and offices, particularlyin the capital, Yerevan, is driving the boom inthe sector.The services sector now accounts for around40% of GDP, with telecommunications, retailtrade and catering growing strongly in recentyears. Competition in the telecoms sector hasincreased following the licensing of a secondmobile provider in late 2004, and the entry ofthe Russian company Vimpelcom into themarket through its purchase in November2006 of Armentel, the main services provider.Retail trade and catering have benefited fromrising household incomes and higher numbersof tourists.The rate of consumer price rises hasdecelerated in 2007 compared with thesecond half of 2006, and year-on-year inflationwas the slowest for nine months in March, at4.4%. The loosening fiscal stance will be themain source of inflationary pressure in theshort term, and compensation payments forthe savings lost during the hyperinflation of theearly post-independence years will also pushthe rate of price rises upwards. The effect ofhigher gas prices on the consumer pricebasket will be muted, owing to governmentsubsidies. This will contribute to gradualdisinflation, with annual average inflationslowing to around 2% by 2008.The dram will appreciate against the US dollarin both nominal and real terms in 2007-08,owing to further robust inflows of overseasremittances and other private transfers. Thecurrency will also undergo a real effectiveappreciation, owing to a more rapid rate ofinflation in Armenia than in many of its majortrading partners. This will raise concernsamong the country's exporters at the potentialloss of competitiveness in overseas markets.We forecast an average annual exchange rateof Dram353.1:US$1 this year andDram329.9:US$1 in 2008.The National Statistical Service has slightlyrevised its national accounts data for 2005 and2006, and now reports annual real GDPgrowth of 13.9% and 13.3%, respectively.The double-digit expansion has continuedinto 2007, with the economy growing by 11.1%year on year in the first quarter. Growth isbecoming more broad-based, with servicessectors such as trade, transport andcommunications making strong contributions.A robust expansion in construction continuesto fuel growth. We anticipate average annualreal GDP growth of around 9% in 2007-08.** The Economist Intelligence Unit Ltd., July 2007Key Information ContactsCentral Bank of the Republic of Armenia www.cba.amCentral Depository of Armenia www.cda.am2005-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%)2005-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)Construction Agriculture IndustryTrade Transport & communicationsOtherPrivate consumption Government consumption Gross fixed investmentChange in stocks Net exports of goods & services Statistical discrepancy18.821.718.710.524.75.680706050403020100-10-2076.010.629.30.4-13.0-3.3PAGE 36

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ARMENIAN STOCK EXCHANGEARMENIAN ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)GDP at market prices (Dram billions) 1,362.5 1,624.6 1,907.9 2,244.0 2,657.1GDP (US$ billions) 2.4 2.8 3.6 4.9 6.4Real GDP growth (%) 12.9 13.9 10.5 14.0 13.3Consumer price inflation (av; %) -1.8 2.8 8.0 0.6 2.9Population (m) 3.2 3.2 3.2 3.2 3.2Exports of goods (FOB) (US$ millions) 513.8 696.1 738.3 1,004.9 1,037.5Imports of goods (FOB) (US$ millions) 882.6 1,130.2 1,196.3 1,592.8 1,916.0Current-account balance (US$ millions) -147.9 -189.4 -161.6 -193.2 -254.0Foreign-exchange reserves excl gold (US$ millions) 415.6 502.0 547.8 669.5 1,071.8Exchange rate (av) Dram:US$ 573.4 578.8 533.5 457.7 416.0(a) Actual. (b) Economist Intelligence Unit estimates.National Statistical Service of the Republic of ArmeniaECONOMIC FORECAST SUMMARY2004 (a) 2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 10.5 14.0 13.3 8.0Consumer prices (% change) 8.0 0.6 2.9 2.8Consolidated budget balance (% of GDP) -2.3 -2.0 -2.8(b) -2.8Merchandise exports (US$ millions) 738.3 1,004.9 926.9(b) 1,035.0Exchange rate (Dram:US$1) 533.5 457.7 416.0 414.32005-PRINCIPAL EXPORTS (FOB) (%) 2005-PRINCIPAL IMPORTS (CIF) (%)Precious or semi-precious stones & metalsPrepared foodstuffs Mineral productsBase metalsOtherPrecious or semi-precious stones & metals Mineral productsMachinery & equipment Prepared foodstuffs Other33.216.59.99.619.312.95.034.512.846.32005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)GermanyNetherlandsBelgiumRussiaBelgiumRussiaOtherGermanyUkraineOther13.712.812.263.713.58.07.815.67.045.7(1) National Statistical Service of the Republic of Armenia(2) The Economic Intelligence Unit Ltd., October 2006PAGE 37

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAHRAIN STOCK EXCHANGERasheed Mohammed Al-MarajChairmanThe capital market sector in the Kingdom ofBahrain has witnessed the beginning of anactive move in the primary market as someIPOs took place and were well received.GCC countries have made balanced growthduring 2005 enhanced by the increase of oilprices which supported the policy of GCC todiversify its sources of income, develop thenon-oil sectors, improve the infrastructureand rationalize national current accounts,balance of payments and state budgets.On the Capital Markets front, all bourseshave recorded strong gains enhancing theinvestors' confidence with the unprecedentedlevels recorded by most indices during 2005.The Kingdom of Bahrain has continued itsefforts to enhance the investmentenvironment in order to increase thecontribution of the private sector in theeconomic development process, in a waythat increases the competitiveness of theBahrain's economy to attract investmentsand reflects the improvement of Bahrain'scompetitive position in many reports thatwere released by international ratingagencies concerned with monitoring theperformance of economies worldwide.The signing of the Free Trade Agreement(FTA) with the United State of America isconsidered one of the most important eventsto Bahrain economy during 2005. Theagreement is expected to open a newhorizon of mutual cooperation with thebiggest economy in the area of trade andinvestments. It will also improve andenhance the business environment inBahrain, especially the non-tax environmentthat Bahrain enforces on income and capitalgains.Similar to other GCC countries, the CapitalMarket Sector in the Kingdom of Bahrain haswitnessed the beginning of an active move inthe primary market as some Initial PublicOfferings (IPOs) took place and were wellreceived in a way that reflected the high levelof liquidity available locally and regionally.Based on its strategy to develop the CapitalMarket sector, the Bahrain Monetary Agency(BMA) and Bahrain Stock Exchangeassigned the World Bank to prepare acomprehensive study to develop the capitalmarket sector in the Kingdom of Bahrain.A Memorandum of Understanding (MOU)was signed by the Bahrain Monetary Agencyand Bahrain Stock Exchange to coordinate,put in practice and implement directives andinstructions issued by BMA which relate tothe capital market sector until the issuing ofthe Central Bank Law.HISTORY AND DEVELOPMENTIt was back in 1920 that the first branch of acommercial bank (Standard Chartered Bankthen Eastern Bank) opened its doors inBahrain, the first to do so in the region, inorder to facilitate the business community atthat time. By 1957, Bahrain had its firstpublic shareholding company, the NationalBank of Bahrain. However, it was not untilthe late 1970s and early 1980s that Bahrainrealized there was a growing need for anorganized stock market, due to the growthprovided by the oil price boom in the region.As a result, the Government, in cooperationwith the International Finance Corporation(IFC), prepared a feasibility studyhighlighting the importance of establishingan official stock market in Bahrain. So in1987, Amiri Decree No. 4 was issued,establishing the BSE, which officiallycommenced operations on 17 June 1989with 29 companies listed on the Exchange.FUTURE OUTLOOKDuring the year 2007, new listings areexpected to take place on Bahrain StockExchange (BSE) which will provide moreinvestment opportunities for investors andcreate more activity in the exchange. Moreeffort will be put into establishing BSE as aregional hub for listing and trading of mutualfunds. BSE is also looking for morecooperation with other markets to open newhorizons of cooperation in order to gain andexchange experience and expertise.PAGE 38

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAHRAIN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 27.39 1.44 14.13 0.74Feb-07 50.25 2.51 28.88 1.44Mar-07 31.46 1.50 18.93 0.90Apr-07 44.64 2.13 18.83 0.90May-07 91.57 0.0 75.44 0.0Jun-07 108.48 5.42 68.15 3.41TOTAL 353.79 2.17 224.36 1.23BondsJan-07 0.0 0.0 0.0 0.0Feb-07 1.01 0.06 0.004 0.0002Mar-07 0.49 0.02 0.002 0.0001Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 1.50 0.01 0.006 0.0001OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 20,452.01 2,152.06Feb-07 20,357.43 2,144.22Mar-07 20,470.18 2,159.78Apr-07 19,966.22 2,106.70May-07 21,897.08 2,310.81Jun-07 22,828.95 2,409.271201008060402,5002,0001,5001,00025,00020,00015,00010,000205005,000000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Ali Mansoor E-mail amansoor@bahrainstock.com Website www.bahrainstock.comPAGE 39

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAHRAIN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe year 2006 has witnessed remarkablechanges whereby new political reforms werelaunched. One of the most significant formsof political reform was that parliamentaryelections were held. In February 2002, thefirst poll took place where, for the first time inthe Gulf, women were allowed to vote andstand for elections. After their opposition tojoin the elections in 2002 and before thesecond parliamentary election took place, anopen debate was held between all politicalsocieties in the Kingdom of Bahrain whichfinally led to their participation in theelections. In 2006, the elections gainedgreater support and acceptance where themajority of people (73%) participated.Accordingly, more cooperation between thegovernment and political opposition is likelyto generate better future prospects. The firstfemale women in the Gulf was elected to jointhe parliament from the 221 candidates vyingfor seats in the Assembly consisting of 40members.Bahrain's foreign policy is dominated by theneed to maintain strong relations with allGCC countries and neighboring countries inthe Gulf. In addition, Bahrain's close ties withthe US have been underlined by a bilateralfree-trade agreement (FTA), which came intoeffect in 2005 and was the first signedbetween the US and a Gulf state.Bahraini policymaking will focus ondiversifying the economy away from oil andstrengthening the role of the private sector.As a small non-OPEC oil producer with littleleeway to increase production, thegovernment is aware of the country'svulnerability to swings in global oil prices–given that some 80% of export andgovernment income comes from oilearnings– as well as to the whims of SaudiArabia, which remains a strong political forceas well as an important provider of economicsupport.Economic PerformanceBahraini real GDP growth is expected to besupported by favorable local and regionaleconomic conditions, in part a result ofhistorically high oil prices. These areexpected to give the government sufficientleeway to maintain above-trend levels ofgrowth in public expenditure, as it seeks toaddress social concerns. In addition, high oilprices will also continue to benefit theBahraini financial sector–the largestcomponent of the country's economy–as theresulting strong local and regional liquidityhas led to rising bank deposits and greaterfinancing opportunities. High levels ofconstruction activity, as work on large-scaleprojects such as the Bahrain FinancialHarbor continues, will also underpin growth.The government is also expected to pressahead with the liberalization of utilities, whichshould promote more rapid inflows of foreigninvestment. Although oil output is forecast toremain stable, export growth will be buoyedby the upgrade of the state-owned BahrainPetroleum Company, which should becompleted in 2007. Import volumes willremain high as Bahrain sources inputs forthese projects from abroad, which will serveto restrain overall economic expansion.Nevertheless, real GDP growth of 6.7% isexpected in 2007, which will slow slightly, to6%, in 2008 as the regional boom begins tosoften amid lower oil prices.Consumer price inflation is expected toaverage 3% in 2007, similar to the estimatedrate in 2006, and then to fall slightly, to 2.1%,in 2008 as growth begins to slow. Bothfigures are well above the 2001-05 averageof 1%, reflecting the impact of strongdomestic demand growth combined withsupply bottlenecks (particularly inconstruction). However, inflation remainsrelatively low by world standards, reflectingboth extensive government subsidies andthe inflows of expatriate labor that help toalleviate upward pressure on wages.Nonetheless, anecdotal evidence wouldseem to imply considerably higher inflationlevels than data from recent years indicate,suggesting that the present consumer priceindex basket does not fully capture pricepressures in the economy. Shouldgovernment plans to introduce a levy on theemployment of expatriate workers beimplemented, this would add to wage costswith knock-on effects for consumer prices.** The Economist Intelligence Unit Ltd., October 2006Key Information ContactsBahrain Monetary Agency http://www.bma.gov.bh/cmsrule/bmaindex.jspMinistry of Finance http://www.mofne.gov.bh/English/eindex.aspBahrain Government http://www.bahrain.gov.bh/Economic Development Board http://www.bahrainedb.com/2005-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)2004-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (b)Crude oil & natural gasFinance Public administrationTransport & communicationsPrivate consumption Public consumption Gross fixed capital formationManufacturingTradeOtherExports of goods & services Import of goods & services Stocks12.513.09080706082.464.224.610.0504042.025.26.28.5302010017.021.61.1PAGE 40

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAHRAIN STOCK EXCHANGEBAHRAIN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (b)GDP at market prices (BD billions) 3.0 3.2 3.6 4.2 5.0GDP (US$ billions) 7.9 8.4 9.7 11.2 13.4Real GDP growth (%) 4.6 5.2 7.2 5.6 7.8Consumer price inflation (av; %) -1.2 -0.5 1.6 2.3 2.6 (a)Population (millions) 0.7 0.7 0.7 0.7 (b) 0.7Exports of goods (FOB) (US$ millions) 5,5576.9 5,794.4 6,631.7 7,518.6 10,024.5Imports of goods (CIF) (US$ millions) 4,3058.5 5,012.5 5,657.2 6,484.6 7,946.3Current-account balance (US$ millions) 227.1 -50.5 200.8 415.2 1,575.0Foreign-exchange reserves excl gold (US$ millions) 1,352.1 1,385.1 1,427.4 1,583.8 1,875.8Total external debt (US$ billions) 3.0 (b) 3.8 (b) 4.6 (b) 6.1 (b) 6.8Debt-service ratio, paid (%) 4.4 (b) 5.5 (b) 5.4 (b) 5.6 (b) 6.3Exchange rate (av) BD:US$ 0.376 0.376 0.376 0.376 0.376 (a)(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 7.6 6.7 6.0 5.7 4.7 4.4Consumer price inflation (av; %) 3.3 2.5 1.8 1.5 1.3 1.0Budget balance (% of GDP) 9.6 6.7 4.6 1.9 -0.1 -1.0Current-account balance (% of GDP) 12.5 10.2 8.4 3.3 1.5 1.1Exchange rate BD:US$ (av) 0.4 0.4 0.4 0.4 0.4 0.4Exchange rate BD:[euro] (av) 0.5 0.5 0.5 0.5 0.5 0.5Central Bank of BahrainThe Economic Intelligence Unit Ltd., September 20062005-PRINCIPAL EXPORTS (a)(US$ millions)Mineral products (incl oil) 7,960.4Base metals 1,296.8Textiles 113.82005-PRINCIPAL IMPORTS (CIF)(US$ millions)Mineral products (incl oil) 4,543.6Machinery & appliances 425.26Transport equipment 165.952005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)Saudi ArabiaSouth KoreaUSAJapanUAEOtherJapanGermanySaudi ArabiaUSA UKOther27.510.710.060.69.37.247.96.54.66.73.55.5(a) Central Bank of Bahrain (Bahrain Monetary Authority previously).(b) IMF, International Financial Statistics. (c) IMF, Direction of Trade Statistics.PAGE 41

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU INTERBANK CURRENCY EXCHANGEFarkhad AmirbekovGeneral Manager of BBVBOne more important mission, which hashad a long preparation is the gradualtransformation of Baku as the financialcenter of region. In my opinion, for thispurpose there are many preconditions.The BBVB work is directed toward becomingan integrated part of a market economy andin particular the development of the financialmarket of Azerbaijan. Today, the BBVB isfocused on the development of internationallinks for the accelerated development of theAzerbaijan financial market.One of the most important directions of thisdevelopment is through the BEST tradingsystem which allows for electronic trade forthe monetary needs of the market.The introduction of “a currency swap”operation has given banks the new toolof management for working with currentliquidity. The BBVB aspires to increase, firstof all, the number of participants in trading,the quantity of trading financial tools all thewhile trying to develop technicalopportunities in trading and clearingsystems.The BBVB gives special importance torealize the complex strategy of corporatemanagement in conditions of the impressiveeconomic growth of Azerbaijan and furtherthe increase in demand for financial services.One more important mission, which hashad a long preparation is the gradualtransformation of Baku as the financial centerof region. In my opinion, for this purposethere are many preconditions.HISTORY AND DEVELOPMENTThe Central Bank of Azerbaijan and the fourbiggest state banks of Azerbaijan Republicfounded the Baku Interbank CurrencyExchange (Baki Banklarasi Valyuta Birjasi-BBVB) on 26 July 1993 and this year itmarks a decade from the moment of thestart of activity in the financial market. Fromthe beginning of the activity one of thecentral financial institutions of the country,the BBVB is today for the business public ofAzerbaijan an original symbol of economicreforms. Using the advanced informationtechnologies and being based onsuccessful experience in the creation of theuniversal trading platforms, the BBVB has,based on volumes of trades and number offinancial tools become the largest exchangeinstitute in the Caucasian region.The purposes of the BBVB are as follows:• to set up regular exchange trading to carryout currency operations;• to determine the market exchange rate ofthe Azerbaijan currency (manat) to foreigncurrencies;• to create a mechanism for inter-statesettlements;• to maintain management and informationservices for currency operations;• to settle transactions made at the BBVBboth in national and foreign currencies;• to organize and carry out exchangetrading and auctions with interbank credits;• to conduct exchange trading with futures.MAJOR HISTORICAL DATES18 October 1991Declaration of Independence of theAzerbaijan Republic15 August 1992Putting in circulation nationalcurrency–Manat21 June 1993Establishment of the BBVBPAGE 4226 August 1994Beginning of regular exchange trading in thecurrency market31 March 1995First credit auction of the National Bank atthe BBVB20 September 1996First t-bill auction22 January 1997First exchange trading in the BBVB StockDepartment30 August 1997Beginning of trading in the OrganizedInterbank Currency Market (OICM)25 September 1997First trading in the OICM by means ofuniversal trading e-network of the BBVB17 December 1997Corresponding emerging marketmembership status in FIBV6 March 1998Signing in Baku Protocol on cooperation ofBBVB with Istanbul Stock Exchange2 October 1998Full member of FEAS (Istanbul)24 February 1999Membership in the Azerbaijan CommercialChamber (Baku)14 December 1999Membership in the Azerbaijan CommercialBanks Association (Baku)20 April 2000Co-founder and membership in theInternational Association of CIS Exchanges(Moscow)3 July 2001Signing in Moscow Arrangement onstrategic cooperation of BBVB with theMICEX (Moscow Interbank CurrencyExchange)27 March 2002Start of e-system of trades on Interbankcredits-the Organized Interbank CurrencyMarket9 July 2002Start of Bourse E-System of Trades (BEST)24 November 2003Signing in Almati agreement on mutualcooperation of the BBVB with theKazakhstan Stock Exchange16 June 2004Signing in Baku agreement on mutualcooperation of the BBVB with the BulgarianStock Exchange16 June 2005Start of the tool-currency swap in BEST1 January 2006Technical transition of BEST system forusing denominated manatFUTURE OUTLOOKIn 2007, the BBVB plans include:• Modernization and reorganization of theBBVB website;• Development of settlement and clearingservices, in particularly software formanagement of banks trading limits oncredit and the currency markets;• Improvement of the risk managementsystem in realization of clearing operations;• Further increasing professional skills of theExchange’s personnel;• Development of modern corporategovernance principles;• Introduction of the International system infield of GAAP (General Accepted AccountingPrinciples);• Implementation of a new trading system;and• Expansion of external contacts withinternational and regional organizations.

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU INTERBANK CURRENCY EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aBondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-07 121.10 6.73 0.1211 0.0067Feb-07 130.95 6.55 0.1309 0.0065Mar-07 50.48 3.16 0.0505 0.0032Apr-07 128.84 6.14 0.1288 0.0061May-07 35.96 1.71 0.036 0.0017Jun-07 219.03 11.53 0.219 0.0115TOTAL 686.4 0.28 0.69 0.0003MarketCapitalization(US$ millions)IndexMONTHLY OTHER VOLUME(US$ millions)7-YEAR STOCK VOLUME(US$ millions)Jan-07 n/a n/aFeb-07 n/a n/aMar-07 n/a n/aApr-07 n/a n/aMay-07 n/a n/aJun-07 n/a n/a250200150100500Jan Feb Mar Apr May Jun2,0001,8001,6001,4001,2001,00080060040020000001 02 03 04 05 06CONTACT INFORMATIONContact Name Ms. Aynur Bayramli E-mail aba@bbvb.org Website www.bbvb.orgPAGE 43

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU INTERBANK CURRENCY EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentMr. Aliyev is expected continue to consolidatehis authority during the 2007-08 period,thereby ensuring that he is in a strong positionfrom which to contest the next election, due byOctober 2008. Azerbaijan's growing oil wealthwill enable Mr. Aliyev to increase expenditureon wages and infrastructure–thereby allowinghim to claim that he is distributing the benefitsof the oil boom–and to maintain the patronagenetwork that rewards loyal members of thepolitical elite for their support.Azerbaijan will continue to balance its foreignpolicy orientation, seeking to maintain stablerelations with the West while developingmilitary and economic ties with Russia andkeeping relations with Iran stable. Prospectsfor a resolution of the conflict with Armeniaover the disputed region of Nagorny Karabakhare slim, following the failure of two rounds ofpresidential talks in 2006 to reach consensusover a framework peace agreement.The government's principal economic policychallenge will be to maintain macroeconomicstability during a period of rapid economicgrowth. Budgetary spending on welfare andinfrastructure projects will rise, with the aim ofalleviating poverty. In conjunction with a largeincrease in foreign-currency inflows from oilexports, the rise in government expenditurerisks sparking acceleration in inflation. Officialdebt, both domestic and external, will remainlow, but the issuance of domestic debt willincrease as a way of mopping up excessliquidity linked to hard-currency inflows.Greater reliance on hydrocarbons resourceswill adversely affect the structure ofAzerbaijan's economy. Together withincreasing concerns about the businessenvironment, the weak banking sector andpoor legal framework, the growingdependence on hydrocarbons will exacerbatethe differences between the oil and non-oilsectors.Azerbaijan's growth prospects are closelylinked to oil prices, with the oil sector providingaround 90% of total export earnings (on abalance-of-payments basis) and more than40% of GDP in 2005. Strong oil demand fromrapidly growing countries in Asia and aslowdown in supply from both Russia andother non-OPEC producers has pushed thecost of Brent crude upwards in 2006. Thesefactors, together with continued tension in theMiddle East and delays in bringing newproduction facilities on stream, will keep oilprices high in 2007, when the average price isexpected to be unchanged year on year. In2008 an increase in crude output is likely toresult in a slight fall in oil prices, with Brentexpected to average US$ 66/b.Economic PerformanceSurging oil output and export volumes aresupporting Azerbaijan's economic growth.Crude oil is being exported from the Azeri-Chirag-Guneshli (ACG) offshore oilfields toWestern markets through the BTC pipeline,which links Azerbaijan with the MediterraneanSea. Gas exports from the Shah Deniz fieldare expected to come on stream before theend of 2006, which will provide a further boostto economic growth. Development of thehydrocarbons industry will continue to havespillover effects in sectors such astelecommunications, transport andconstruction, and the rehabilitation ofinfrastructure–much of it financed by oilreceipts–will also drive growth. These factorswill ensure that the economy continues toexpand rapidly, although base-period effectswill result in a steady deceleration in real GDPgrowth from an estimated 33% in 2006 to17.5% in 2007 and around 10% in 2008.The main factors fuelling consumer priceinflation will be the rapid growth in budgetexpenditure and continued strong foreignexchangeinflows associated with the oil andgas sector. Robust private consumption,owing to sharply rising wages in the oil and oilrelatedsectors, will also exert inflationarypressure. In response, the authorities willtighten monetary policy slightly and allow themanat to appreciate. However, because of thedominance of foreign currency in the moneysupply, and a continuing lack of publicconfidence in the manat, the strengthening ofthe local currency will have only a limitedimpact on inflation.Hard-currency inflows from oil exports willstrengthen the manat in both nominal and realeffective terms in 2007-08. The National Bankof Azerbaijan (NBA, the central bank) willattempt to sterilize foreign-currency inflowsthrough the sale of t-bills and the use ofAzerbaijan's overseas oil fund, the State OilFund of the Republic of Azerbaijan (SOFAZ).However, the amount of short-term paperinvolved will be small. Azerbaijan's rate ofinflation will remain high compared with thoseof its trading partners, and this will produce areal effective appreciation of around 17%between end-2006 and end-2008.** The Economist Intelligence Unit Ltd., October 2006Key Information ContactsNational Bank www.nba.azState Committee for Securities www.scs.gov.azMinistry of Finance www.maliyye.gov.azNational Depository Center www.mdm.azMinistry of Economic Development www.economy.gov.az2004-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%)2004-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)IndustryServicesPublic consumptionPrivate consumptionAgricultureOtherGross fixed investmentNet exports of goods & services29.3605057.253.24050.411.230201011.49.10-10-20-30-23.9PAGE 44

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU INTERBANK CURRENCY EXCHANGEAZERBAIJAN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (Manat billions) 5.3 6.1 7.1 8.5 11.9GDP (US$ billions) 5.7 6.2 7.3 8.7 12.6Real GDP growth (%) 9.9 10.6 11.2 10.2 26.4Consumer price inflation (av; %) 1.5 2.8 2.1 6.7 9.6Population (millions) 8.1 8.2 8.3 8.3 8.4Exports of goods (FOB) (US$ millions) 2,078.9 2,304.9 2,624.6 3,743.0 7,649.0Imports of goods (FOB) (US$ millions) 1,465.1 1,823.3 2,723.1 3,581.7 4,349.9Current-account balance (US$ millions) -51.9 -768.4 -2,020.9 -2,589.2 167.4Foreign-exchange reserves excl gold (US$ millions) 725.0 720.5 802.8 1,075.1 1,177.7Total external debt (US$ billions) 1.3 1.5 1.7 1.9 2.1 (b)Debt-service ratio, paid (%) 5.5 6.3 7.0 5.8(c) 3.8 (b)Exchange rate (av) Manat:US$ 0.93 0.97 0.98 0.98 0.95(a) Actual. (b) Economist Intelligence Unit estimates. (c) Economist Intelligence Unit forecasts.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 33.0 17.5 10.4 8.3 8.0 7.0Consumer price inflation (av; %) 8.0 8.6 8.5 7.1 5.6 5.4General government balance (% of GDP) 1.1 1.0 0.3 0.1 -1.9 -2.5Current-account balance (% of GDP) 14.3 25.1 24.6 14.8 9.3 7.4Exchange rate Manat:US$ (av) 0.89 0.85 0.81 0.77 0.73 0.71Exchange rate Manat:[euro] (av) 1.12 1.15 1.08 1.00 0.93 0.892005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Oil productsTransportFood industryChemicals MetalsOtherMachinery & equipmentMetals Food productsOil productsTransportOther76.87.53.33.02.4733.311.911.610.610.022.62005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)Italy Georgia GermanyIndonesia Turkmenistan OtherRussiaTurkeyGermany UKChina Other30.39.46.66.317.19.17.46.16.35.341.151.1The Economic Intelligence Unit Ltd., August 2006PAGE 45

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU STOCK EXCHANGEIn 2006, trade volumes have grown on allinstruments on the BSE compared to theprevious year.Khayal AbdinovChairmanThe end of 2006 was marked by severalimportant events in the history of the BakuStock Exchange (BSE) as well as thefinancial markets of Azerbaijan on the whole.Particularly, since May of 2006 interbankrepo transactions have been carried out onthe BSE; up to that point, repo transactionswere conducted on the scheme “NBA-bank”and “bank-NBA” (NBA – National Bank ofAzerbaijan). Regarding this instrument itshould also be noted that since July of 2006interbank repo operations have beenconducted with t-bills issued by the Ministryof Finance of Azerbaijan Republic.In 2006, trade volumes have grown on allinstruments on the BSE compared to theprevious year. For example, while in 2006 thetotal turnover on all instruments on the BSEcame to US$ 1.3 billion. The 2005 analogousindicator was 2.56 times less than the 2006figure–US$ 0.49 billion. When consideringthe total volume on each instrument tradedon the BSE, we have the following picture: in2006 t-bills US$ 102.1 million, notesUS$ 784.5 million, corporate bondsUS$ 36.2 million, stocks US$ 78.7 million; in2005 t-bills US$ 63.8 million, notesUS$ 205.9 mililon, corporate bondsUS$ 2.5 million, stocks US$ 43.3 million.All aforementioned facts show that the Azerifinancial market is developing and the keyimportance of the Baku Stock Exchange inthis development is growing from year toyear.HISTORY AND DEVELOPMENTThe establishment of a stock exchange wasa necessary step in the creation of amodern stock market in Azerbaijan. Due toits geopolitical location Azerbaijan is animportant regional center of businessactivity. In this respect the availability of astable and developed securities marketplays a substantial role in the raising ofinvestors' confidence in the economy ofAzerbaijan and the region.The shareholders of the BSE are leadingAzeri and foreign banks and investmentcompanies. The share of one shareholder inthe capital of the BSE is equal toUS$ 61,250. The supreme decision-makingauthority of the BSE is the GeneralShareholders Meeting.The trading floor of the BSE is equipped with30 computerized trading stations, 18 ofwhich belong to the shareholders of theExchange. The other 12 are available fornew members.Legal bodies (banks, investment funds,broker firms) involved in professionalactivities in the securities market with speciallicense from the State Committee forSecurities under the auspices of thePresident of the Azerbaijan Republic canbecome members of the BSE.FUTURE OUTLOOKIn 2007, the BSE plans to apply manyinnovations to its trading activity. Next year anew trading-settlement complex is expectedto be applied. Currently the BSE isconducting negotiations with foreigncompanies specializing in this sphere.The Azeri securities market generallybecomes more and more attractive, andtherefore in 2007 it is envisaged that issuersfrom the non-financial sector will enter themarket.Another important event for the Azerigovernment securities market is thepreparation of the program for theplacement of middle- and long-termgovernment bonds. This program iscurrently being discussed with thegovernment. The expected parameters ofthese bonds will be: a turnover period 1-5years, an issue volume–US$ 100 million, thetype of bonds will be coupon bonds,discount bonds, deep discount bonds.Next year transaction volumes on NBA’snotes and Ministry of Finance’s t-bills areforecasted to grow. Aiming to increaseliquidity of the government securities market,the BSE is working on the mechanisms ofpartially and completely unsecuredtransactions, marginal trading and deferredsettlements.PAGE 46

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BAKU STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 33.67 3.37 0.02 0.002Feb-07 6.23 0.62 23.09 2.31Mar-07 5.46 0.50 1.53 0.14Apr-07 19.54 1.09 10.50 0.58May-07 85.83 4.52 53.74 2.83Jun-07 29.40 1.73 4.96 0.29TOTAL 180.13 1.97 93.84 1.03BondsJan-07 131.72 11.97 0.54 0.05Feb-07 122.82 7.22 0.61 0.04Mar-07 143.14 10.22 0.60 0.04Apr-07 175.03 9.21 0.78 0.04May-07 250.31 11.92 0.97 0.05Jun-07 257.26 13.54 1.10 0.06TOTAL 1,080.28 10.68 4.60 0.05OtherJan-07 40.54 4.50 0.18 0.02Feb-07 39.07 5.58 0.17 0.02Mar-07 69.06 9.87 0.30 0.04Apr-07 84.22 9.36 0.37 0.04May-07 140.83 7.82 0.61 0.03Jun-07 80.29 4.23 0.35 0.02TOTAL 454.02 41.36 1.97 0.18MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME(US$ millions)VOLUME BY TYPE(%)StocksBondsOtherJan-07 n/a n/aFeb-07 n/a n/aMar-07 n/a n/aApr-07 n/a n/aMay-07 n/a n/aJun-07 n/a n/a9080706050403020100Jan Feb Mar Apr May Jun261163CONTACT INFORMATIONContact Name Mr. Kamran Aliyev E-mail k.aliyev@bse.az Website www.bse.az* Please refer to page 42 for the Azerbaijan country report.PAGE 47

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BANJA LUKA STOCK EXCHANGEMilan BozicCEOAs a result of improvement of the financialdisclosure, the participations of foreigninstitutional investors have significantlyincreased, which indicates theinternationalization of the BLSE market.2004 was a year of significant improvement inthe Banja Luka Stock Exchange (BLSE) marketperformance. The BLSE obtained an importantrole in the transitional processes in Bosnia andHerzegovina. The most important results arerelated to an increase in turnover, whichamounted to US$ 65.3 million, showing anincrease of 50% in comparison with 2003.During 86 trading days in 2004 there were over80,000 transactions concluded, which is 300%more than in 2003. Significant progress wasalso made in regard to the structure ofturnover. More than 45% of total turnover wasachieved on the official market, which is aconsequence of admitting to this marketsegment 3 companies and 13 PrivatizationInvestment Funds (PIFs). Total marketcapitalization also increased from US$ 522.7million on 31 December 2003 to US$ 1.3billion on 31 December 2004. More than 60%of the above mentioned amount is related tothe official market.During 2004, two BLSE indices were created.The Stock Exchange Index of The Republic ofSrpska (BIRS), which includes 10 companieswith the largest market capitalization, indicatedan increase of 15% for an 8 month period.Total return on BIRS for this period was over20%. The Privatization Investment Funds Index(FIRS) includes 13 shares of PrivatizationInvestment Funds (PIFs). FIRS increased from1 September to 31 December 2004 by 85%.Positive growth indicates increasing investor’sinterest and confidence in the BLSE, which islargely due to the BLSE’s promotional andeducational activities.As a result of improvement of the financialdisclosure requirements (financial statementsfor PIFs are disclosed on a monthly basis), theparticipation of foreign institutional investorshas significantly increased, which indicates theinternationalization of the BLSE market. We areespecially proud of the increasing number ofsmall local investors, which indicates thesuccess of the BLSE in educational activities.This has not been an easy task, bearing inmind that almost all citizens had a reason notto believe in new things such as investing incapital markets, because of the frozen savingaccounts issue.An important result during 2004 wasparticipation in the privatization of more than60 state owned companies. Finally, the BLSEbecame a full member of FEAS in November2004.Note: Please note that there is a differencebetween BLSE reported numbers in themessage from the CEO and the FEAS statisticsbased on auction for state owned capital andblock transactions reported to BLSE which arenot included in the FEAS statistics.HISTORY AND DEVELOPMENT15 July 1998 The adoption of the Law onSecurities provided the necessary legalframework to establish the capital market of theRepublic of Srpska.04 May 2000 The National Assembly of theRepublic of Srpska appointed the first membersof Republic of Srpska Securities Commission.26 February 2001 Established Central Registryof Securities.09 May 2001 Eight banks and one companytrading in securities signed the Contract thatestablished the BLSE.09 August 2001 Republic of Srpska SecuritiesCommission issued working permit to the BLSE.29 November 2001 The first equity from theprivatization program was registered in theCentral Registry of Securities (CRHOV).05 March 2002 Signed contract on transfer oflicense between the Directorate for Privatizationand the BLSE that provided BLSE with electronictrading system (BTS) developed by the LjubljanaStock Exchange (LJSE).14 March 2002 The first BLSE trading sessiontook place, involving six members that traded 20listed securities.12 November 2002 The BLSE purchased 7% ofstocks of the Central Registry of Securities.12 September 2002 The law on takeover cameinto force.30 September 2002 The BLSE and the LJSEsigned memorandum on cooperation andexchange of information.10 December 2002 A contract on regionalcooperation in field of education and financialmarkets was signed at the Belgrade StockExchange.24 January 2003 The first session of the ListingCommission took place and stocks of 13Privatization Investment Funds admitted to theofficial market of the BLSE.11 February 2003 The first transactionsconcluded with shares of PIFs.24 April 2003 Shares of Telekom Srpske a.d.Banja Luka and Banjaluka pivara a.d. BanjaLuka were listed on the free market of the BLSE.30 April 2003 Bobar Bank a.d. Bijeljina became10th member of the BLSE.20 August 2003 The first auction for stateowned capital took a place on the BLSE.23 September 2003 Shares of Rafinerija uljaa.d. Modrica were listed on the official market ofthe BLSE as the first company listed on officialmarket in BiH.30 October 2003 The BLSE presented Internetportal www.sem-on.net (project of exchange ofinformation between seven Exchanges from theregion).01 June 2004 The BLSE established BIRS,consisted of 9 companies and 2 banks.07 June 2004 First bond in BiH (Slateks Slatina)listed on the market of the BLSE.01 August 2004 The FIRS was introduced.FIRS included shares of 13 PIFs from Republicof Srpska.17 September 2004 On the 10th GeneralMeeting of the FEAS held in Novigrad, Croatia,the BLSE was accepted in full membership ofFEAS.30 May 2005 Shareholders Assembly of theStock Exchange appointed new Managing andnew Supervisory Board.03 October 2005 Continuous Trading Methodintroduced for shares listed on the officialmarket of the BLSE.16 November 2005 Third regular revision ofboth indexes was made and structure of theindexes did not changed28 December 2005 Listing of ElektroprenosBanja Luka shares on the Free Market–the endof process of listing shares from the PowerUtility System of the Republic of Srpska.29 December 2005 On the BLSE recorded anew highest value on the amount of BAM at60,532,673.20 March 2006 Introduction of continoustrading in shares from the Free Market whichfulfill the liqidity criteria17 May 2006 First International Conference ofthe BLSE was held.FUTURE OUTLOOKIn 2006 the BLSE plans to:• initialize creation of national corporategovernance standards;• introduce new market instruments such aslong term governments bonds issued on thebasis of the frozen savings;• install a new web information portal, which willenable investors to access a large scope ofdata, such as the macroeconomic situation inBosnia and Herzegovina, trading information,financial statements and ownership structure ofthe listed;• encourage listing of successful localcompanies on the official market;• continue with educational and promotionalactivities; and• further develop methods of continuoustrading with listed securities.PAGE 48

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BANJA LUKA STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 20.77 1.22 43.20 2.54Feb-07 57.70 3.04 152.50 8.03Mar-07 72.51 3.30 131.02 5.96Apr-07 70.14 3.69 66.95 3.52May-07 41.33 2.18 45.34 2.39Jun-07 22.19 1.06 25.29 1.20TOTAL 284.64 2.41 464.30 3.94BondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 0.04 0.002 0.0007 0TOTAL 0.04 0.002 0.0007 0.0OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 5,897.87 2,135.39Feb-07 8,681.60 2,658.17Mar-07 9,649.47 3,073.42Apr-07 10,065.62 3,330.69May-07 8,821.10 2,882.60Jun-07 7,885.90 2,493.64CONTACT INFORMATION807060504030201003,500 12,0003,000 10,0002,5008,0002,0006,0001,5001,0004,0005002,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Ms. Slavisa Riscovic E-mail blberza@blic.net Website www.blberza.comPAGE 49

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BANJA LUKA STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitic and Economic EnvironmentThe nationwide elections held on October 1sthave shifted the balance of power betweenpolitical parties in Bosnia and Herzegovina(BiH), but have failed to break the pattern ofethnically divisive politics, and may evenhave reinforced it. The three traditionallyethnic nationalist parties–the SerbDemocratic Party (SDS), the CroatianDemocratic Union of BiH (HDZ BiH) and themostly Bosnian Muslim Party for DemocraticAction (SDA)–have emerged weakened fromthe elections. The main winners were thenominally moderate parties: the SNSD in theRS, and the SzBiH in the Federation.However, both the SNSD and the SzBiHprospered by running on an ethnic agendaduring an election campaign that was tenseand at times inflammatory.EU representatives and the BiH authoritiesagree that talks on an SAA between BiH andthe EU have proceeded smoothly from atechnical perspective. However, progresshas been slow in meeting many of thecriteria for an SAA, including those on policereform, co-operation with the InternationalCriminal Tribunal for former Yugoslavia(ICTY) in The Hague, reform of the publicadministration, and passing laws on highereducation and broadcasting. The upcomingreport of the European Commission on BiH'sprogress in meeting EU requirements istherefore expected to be highly critical of thelocal authorities, so that the agreement willalmost certainly not be signed until 2007. Inthe light of current concerns within the EUover the pace of future enlargement, BiH'spath towards membership is likely to besignificantly longer than those of the mostrecent new EU entrants. Membership ofNATO's Partnership for Peace (PfP) programcontinues to be delayed by inadequate cooperationwith the ICTY.Negotiations with the IMF over a new standbyarrangement have been on hold for sometime. However, given the negativeconsequences that would ensue from an IMFwithdrawal, and with the elections out of theway, we expect the authorities to work withFund representatives to resolve theirdifferences over the fiscal position andconclude a new agreement at some point.Economic PerformanceRecent rapid growth in imports of investmentgoods will strengthen the country's exportbase, and significant export-orientedcapacity has come on stream in the pastyear. The recent expansion of consumerborrowing should keep household spendingbuoyant in 2006 and push real GDP growthto an estimated 5.3%. Credit growth is likelyto slow in 2007-08, which, along with publicsectorwage restraint, is likely to weakendomestic demand growth. However, stronglyrising investment is expected to keep annualreal GDP growing at around the same paceas in 2006, although the potential for politicalinstability presents some risk to this forecast.The introduction of VAT led to a sharp spikein price growth in both entities in early 2006,and inflation remained well above trendlevels in the first half of the year. A slowdownin inflation is anticipated in both entitiestowards the end of 2006 as the impact ofVAT dissipates and base-year effects takehold, although annual average inflationisexpected in both entities to be severalpercentage points higher than in 2005. In2007-08 the absence of any further taxincreases, together with more modest wagegrowth, will see inflation ease in both theFederation and the RS.The marka is pegged to the euro at a rate ofKM1.96:[euro]1. Low inflation in BiH hastempered the pace of real effectiveappreciation in previous years, althoughrising inflation in 2006 and a weakening USdollar in 2006-07 will see the real effectiveexchange rate appreciate by about 4% in2006 and by 2% next year. The markaappears to be considerably overvalued,although the likelihood of a change inexchange-rate regime over the forecastperiod is remote. The Central Bank of Bosniaand Herzegovina (CBBH) maintains sufficientreserves to cover the whole of its monetaryliabilities. Its free reserves–that is, thoseabove and beyond these liabilities–remainrelatively low, despite strong growth in recentyears. However, the chances of a speculativeattack on the marka are also low.** The Economic Intelligence Unit Ltd., October 2006Key Information ContactsBosnia and Herzegovina Council of Ministers www.vijeceministara.gov.baMinistry of Foreign Affairs of Bosnia and Herzegovina www.mvp.gov.baDirectorate of European Integration www.dei.gov.baCentral Bank of Bosnia and Herzegovina www.cbbh.baRepublic of Srpska Government www.vladars.netForeign Trade Chamber of Bosnia and Herzegovina www.komorabih.comRepublic of Srpska Securities Commission www.khov-rs.orgCentral Registry of Securities www.crhovrs.org2005-SHARE IN GROSS VALUE ADDED (%) (a)2003-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (b)ServicesAgricultureIndustry (c)Private consumption General government consumptionExports of goods & services Import of goods & services65.724.59.8100908070605040302010091.722.3 25.159.1PAGE 50

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BANJA LUKA STOCK EXCHANGEBOSNIA ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)GDP at market prices (KM billions) 11.6 12.3 14.6 15.7 17.9GDP at market prices (US$ billions) 5.6 7.1 9.3 10.0 11.5Real GDP growth (%) 5.3 4.4 6.2 5.0 5.3Retail price inflation (av; %) 0.4 0.6 0.4 4.5 8.2Population (million) 3.9 3.9 3.9 3.9 3.9Exports of goods (FOB) (US$ millions) 1,110 1,478 2,087 2,580 3,500Imports of goods (FOB) (US$ millions) -4,449 -5,637 -6,656 -7,534 -8,250Current-account balance (US$ millions) -1,190 -1,637 -1,784 -2,087 -1,730International reserves (US$ millions) 1,321 1,796 2,408 2,531 2,700Total external debt (US$ billions) 2.5 2.6 3.2 3.4(b) 3.9Exchange rate (av) KM:US$ 2.08 1.73 1.58 1.57 1.56(a) Actual. (b) Economist Intelligence Unit estimates.FACTS AND FORECASTS2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 5.3 (c) 5.6 5.8Federation retail prices (%) 2.5 2.8 2.9RS retail prices (%) 3.4 3.9 3.8Current-account balance (% of GDP) -20.6 (c) -16.2 -12.9Exchange rate (KM:$1) (d) 1.57 1.57 1.462005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Base metalsMineral productsMachineryMineral productsWood & wood productsChemicalsOtherFoodstuffsChemicalsOther14.210.714.510.08.19.426.440.616.249.92005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)CroatiaSerbia and MontenegroCroatiaGermanyItalyGermanyOtherSerbia and MontenegroItalyOther15.514.420.513.116.910.211.39.039.649.5(a) In real terms. (b) Economist Intelligence Unit estimates. (c) Not including construction.The Economic Intelligence Unit Ltd., October 2006PAGE 51

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELARUSIAN CURRENCY AND STOCK EXCHANGEPavel TsekhanovichChairman of the BoardBeing the unique centre of exchangetrading in the Republic of Belarus, theBCSE is empowered to trade differentfinancial instruments, such as currencyvalues & all types of securities.Being the unique centre of exchange trading inthe Republic of Belarus, the BelarusianCurrency and Stock Exchange (BCSE) isempowered to trade different financialinstruments, such as currency values and alltypes of securities.The constantly increasing trade turnover at theBCSE demonstrates the possibility of theBCSE to perform in the near future its maintask–to form a powerful and stableinfrastructure of an organized market focusedon the ultimate investor.Functions of the BCSE• Organization of exchange trading in foreigncurrencies, futures and securities• Clearing Center in Belarusian settlementclearing system• Settlement Depository for corporatesecurities and municipal loan bonds• Registration of OTC transactions withcorporate securities and Private HousingChecks “Zhilje”We render such Information service as• On-line information products providingcurrent information about trading sessions ondifferent exchange market sectors• Periodical information products on the baseof primary stock exchange information data onseparate financial market sectors• Information products based on Internettechnology (Web-site www.bcse.by is a keyelement of the system of informationdisclosure with information on the currency,stock and futures markets).HISTORY AND DEVELOPMENTThe Belarusian Currency and Stock Exchange(BCSE) was established on the basis of thestate-run Interbank Currency Exchange in29 December 1998 as a non-profit, publiccompany with administrative and financialautonomy. Having obtained the license topursue exchange activities and the depositarylicense, the exchange began to organize tradingin the main segments of the financial market ofBelarus (the currency market, the governmentsecurities market, the market of the NationalBank’s bonds, the corporate securities market,the market of bonds of local loans and themarket of bills of exchange).In 1999, the BCSE developed first listing criteriato provide a transparent and efficient market.The Exchange is governed by a five-memberboard of directors. The highest body is thegeneral meeting of stockholders, managerialbody is the Supervisory Board (8 members).The BCSE membership is comprised of 29banks, 64 brokerage and dealer firms and 5individuals.The Interbank Currency Exchange wasestablished 4 March 1993 by 18 leadingbusiness banks as a closed-type joint-stockcompany. Its main task was organizing tradingin foreign currencies. On 24 March 1993, firsttrades in the Russian ruble were held in theelectronic trading system. In 1995, the NationalBank of Belarus granted the Interbank CurrencyExchange the right to organize the purchaseand sale of futures on foreign currency andother financial assets.On 24 September 1996 the Interbank CurrencyExchange was made a subdivision of theNational Bank, in which capacity it organizedtrading in foreign currencies for 2 years. In 1997,the Interbank Currency Exchange was grantedthe right to organize the secondary market ofgovernment securities (except for registeredprivatization vouchers) and the securities of theNational Bank.First electronic government securities tradeswere carried out at the Interbank CurrencyExchange on 16 January 1998.The BCSE is aimed at:• minimizing risks and transaction charges fromcapital formation in the organized market;• providing transparency of transactions;• protecting investors’ legal rights and theirinterests;• implementing programs on financial resourcesformation necessary for their development;• developing state monetary and credit policymarket mechanisms;• creating necessary conditions for the effectivecontrol function of the State.FUTURE OUTLOOKThe BCSE will continue the development of itsmain segments such as futures, stock andcurrency market.The BCSE tasks can be summarized as follows:• to raise competitive capacity, quality andquantity of services rendered by the BCSE;• to increase the efficiency of exchangecurrency, stock and futures market functioning;• to contribute to the effective settlement andclearing system formation, that service mainsegments of the organized financial market;• to provide the Belarusian financial market withinformation transparency;• to assist in realization of state investmentprograms and other projects aimed atdeveloping financial markets;• to promote integration processes betweenRussian and Belarusian financial systems;• to create program and technical infrastructurefor electronic documents circulation in theorganized market;• to develop our own program and technicalbase, to implement modern computertechnologies into the exchange.Particularly, developments in the futures marketimplies increasing the range of futures market,introducing commodity and interest futures andoptions quotations. The stock marketdevelopment implies introducing new rules forsecurities trades defining conditions and orderof conducting transactions with all kinds ofsecurities at the BCSE, their program andtechnical realization, Internet tradingdevelopment, and working out an automatedlisting system.The currency market development impliestrading modes («double auction», «call (forward)transactions») increased, organizing SWAPmarket and conversion operations. Informationproducts and technological development impliesimproving of the information systems, programand technical, and telecommunicationinfrastructures, creation of a reserve computercenter, introducing systems of cryptographicinformation security and electronicdocumentation circulation.PAGE 52

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELARUSIAN CURRENCY AND STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 0.001 0.0001 0.0007 0.00003Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.01 0.0007 0.0004 0.00002May-07 0.05 0.002 0.090 0.004Jun-07 0.67 0.032 0.091 0.004TOTAL 0.74 0.01 0.18 0.001BondsJan-07 180.94 8.62 3.97 0.19Feb-07 177.06 8.85 3.98 0.20Mar-07 226.62 10.79 5.09 0.24Apr-07 256.41 13.50 5.74 0.30May-07 149.51 6.80 3.36 0.15Jun-07 332.18 15.82 7.52 0.36TOTAL 1,322.73 10.73 29.67 0.24OtherJan-07 0.0008 0.00004 0.0 0.0Feb-07 0.001 0.00004 0.0 0.0Mar-07 0.0008 0.00004 0.0 0.0Apr-07 0.0009 0.00004 0.0 0.0May-07 0.0008 0.00004 0.0 0.0Jun-07 0.001 0.00004 0.0 0.0TOTAL 0.005 0.00004 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY BOND VOLUME(US$ millions)MONTHLY INDEXJan-07 n/a 112.71Feb-07 n/a 113.18Mar-07 n/a 113.41Apr-07 n/a 113.52May-07 n/a 114.25Jun-07 n/a 114.38CONTACT INFORMATION350300250200150100500120100806040200Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name MS. Olga Blusson E-mail blusson@bcse.by Website www.bcse.byPAGE 53

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELARUSIAN CURRENCY AND STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentHaving won a third consecutive term in officein the March 19th presidential election,Alyaksandar Lukashenka will continue todominate the political scene beyond2006-07. Although the opposition gatheredmore momentum during the electioncampaign than was expected, the authorities'tough measures will ensure that it remains atthe margins of political life, particularly as theLukashenka administration will take furthersteps to stifle independent political opinion.It has already equipped itself with alegislation and judicial system that allows itto do so in a seemingly legal way.The EU and, in particular, the US willcontinue to criticize the Lukashenkaadministration's poor human rights recordand to call for political reforms. However, asdemocratic reforms are incompatible with Mr.Lukashenka's goal of staying in power for theforeseeable future, calls for politicalliberalization will go unheeded. It is thereforelikely that the EU's position will becomeprogressively harder and eventuallyconverge with that of the US. Relations withthe US have deteriorated further in recentmonths and are unlikely to recover without achange in leadership in Belarus.World GDP growth is expected to average anextremely robust 5.3% in 2006, measuredusing purchasing power parity weights.Weighted import demand growth in Belarus's20 largest markets is forecast to average12.5% annually in 2006-07. Real GDP growthin Russia, which is still by far the single mostimportant export destination for Belarus, willremain well above 5% annually. The EU isgrowing at a much more moderate pace,although it is still accelerating. Moreimportant, with respect to exports to the EU,is that world oil prices will remain high byhistorical standards, reflecting supplyproblems and geopolitical concerns aboutIran's nuclear program.Economic PerformanceEconomic growth is expected to moderate,as most of the factors underpinningeconomic expansion in recent years areunlikely to persist. Oil prices, which haveprovided windfall export earnings to Belarus,are expected to remain high but are not likelyto continue to rise as they have in recentyears. Real currency appreciation and risinggas input prices will reduce externalcompetitiveness. Import demand forBelarusian goods in Russia is unlikely toincrease, and Russian firms will put pressureon Belarusian suppliers in the Russianmarket. GDP growth of 8.8% is expected thisyear, a rate that will fall to 6% in 2007.The Belarusian rubel has strengthenedslightly against the US dollar so far in 2006,and the National Bank of Belarus (NBB, thecentral bank) is planning to keep the rateroughly stable against the US currency innominal terms throughout 2007. In linewith gradually widening trade imbalancesand growing concerns over externalcompetitiveness. Although the currencyunion with Russia planned for 2006 has beenpostponed, the idea will not be abandonedaltogether. With negotiations over currencyunion ongoing, the NBB will allow onlygradual nominal depreciation against theRussian ruble.Imports will continue to grow strongly, withdomestic demand for consumer andinvestment goods remaining strong, and thegovernment's import suppression measuresremaining only partly effective. Moreover, theprice paid for Russian gas will push upimport costs further. On the export side,Belarus will still benefit from high world oilprices, but is unlikely to see any more sharpincreases in these prices (which have helpedto push up sales to western Europe in recentyears). An additional concern for Belaruscomes from signs of slowing growth inRussian demand for Belarusian exports.In 2006 the current-account is expected toreturn to deficit, which is forecast to expandto more than 5% of GDP in 2007.** The Economic Intelligence Unit Ltd., September 2006Key Information ContactsPresident of Belarus www.president.gov.by/en/Council of Ministers www.government.by/en/eng_news.htmlMinistry of Foreign Affairs www.mfa.gov.by/eng/index.php?id=2&d=contacts/linksBelarusian Telegraph Agency (National Source of Information) www.belta.by/en/2005-MAIN ORIGINS OF GROSS DOMESTIC PRODUCT (%)Transport & communications Trade & cateringIndustry Agriculture Construction Other2005-MAIN COMPONENTS OF GROSS DOMESTIC PRODUCT (%)Private consumption Public consumption Gross fixed investmentIncrease in stocks Net exports of goods & services27.49.79.07.57.06050403053.227.92019.639.41001.7 1.0PAGE 54

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELARUSIAN CURRENCY AND STOCK EXCHANGEBELARUS ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (BRb billions) 17,173 26,138 36,565 49,992 63,679GDP at market exchange rate (US$ billions) 12.4 14.6 17.8 23.1 29.6Real GDP growth (%) 4.7 5.0 7.0 11.5 9.2Consumer price inflation (av; %) 61.1 42.6 28.4 18.1 10.3Population (mid-year; millions) 10.0 9.9 9.8 9.8 9.8Exports of goods (FOB) (US$ millions) 7,334 7,965 10,073 13,917 16,095Imports of goods (FOB) (US$ millions) -8,141 -8,879 -11,329 -15,983 -16,623Current-account balance (US$ millions) -394 -311 -424 -1,043 469Reserves excl gold (US$ millions) 391 619 595 749 1,137Exchange rate (official; av; BRb:US$) 1,390.0 1,790.9 2,051.3 2,160.3 2,153.8(a) Actual.ECONOMIC FORECAST SUMMARY2004 (a) 2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 7.2 6.4 6.0 5.5Consumer prices (% change) 10.9 12.7 10.3 9.1Budget balance (% of GDP) 4.1 7.5 (c) 3.9 2.8Merchandise exports (US$ billions) 183.45 245.26 269.50 291.45Exchange rate (Rb:US$1) 28.8 28.3 28.5 28.1(b) The Economist Intelligence Unit Estimates2005-PRINCIPAL EXPORTS (FOB) (%) 2005-PRINCIPAL IMPORTS (CIF) (%)Mineral productsChemicals & rubberMachinery & equipmentFood & agricultural raw materialsOtherMineral productsChemicals & rubberMachinery & equipmentFood & agricultural raw materialOther20.315.08.333.622.912.335.410.72120.52005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)RussiaUKPolandUkraineNetherlandsGermany OtherRussiaItalyGermany Poland UkraineUSA Other59.314.36.74.83.93.759.39.07.72.91.81.27.07.3The Economic Intelligence Unit September 2006PAGE 55

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELGRADE STOCK EXCHANGEGordana DostanicManaging DirectorIn the first half of 2007 total turnoverrocketed and stood at RSD 97,361 billion,only 3,222 billion less than the total of lastyear’s turnover.In H1 2007 total turnover rocketed and stood atRSD 97,361 billion, only RSD 3,222 billion lessthan the total turnover of 2006. Moreover, in H12007 the number of transactions of 170,422exceeded the figures for the whole of 2006 by28,923 transactions, clearly indicating a surge ofdomestic individual investors and their interestfor securities, and bringing ease to the foreigninvestors’ participation in trading to around 40%.Total market cap soared from RSD 843.2 billionin January to RSD 1,451.8 billion at the end ofH1 2007.The BELEXline, successor of the first Serbianindex BELEXfm, launched on 3 May 2007 withthe intention to illuminate and offer a clearerpicture of broad market movements, on the lasttrading day in June reached 4,456.21 pts,posting a 66.13% increase as compared to thebeginning of the year.The BELEX15, the leading index of the BSE,followed, from the start of 1.688,09 pts at thebeginning of the year it climbed up to 2,835.52pts on the last trading day in June, posting a63.28% rise, regardless of the correction bothindexes had experienced during May and June2007. The BELEX15 and BELEXline indexessurged during April hitting all-time highs of3,304.64 pts and 5,007.34 pts, respectively, on 3May 2007, followed by their volatile movementduring the next two months, with thepredominant downward trend, losing more than13% and 10% of their values, respectively.H1 2007 was very dynamic, and it is going to beremembered for several important events thathave changed the face of the Serbian capitalmarket and further streamed the course of theBSE operations, lifting its visibility and presenceon the global market:• On 7 March, the BSE and Vienna StockExchange launched the Serbian Index createdon the basket of Serbian stocks traded on theBSE. This new index (SRX-Serbian TradedIndex), produced by the Vienna Stock Exchange,tracks the 8 largest and most liquid stocks onthe BSE, and it is calculated in EUR, US$ andRSD.• On 4 April, we welcomed the first company tothe Regulated Market. The Tigar Corporationfrom Pirot listed its shares on the officialpremium Listing A of the BSE. Tigar Corporation,holding about 4% of the world's tire market, hasmet extremely high and selective requirementsfor coming to the BELEX's premium market.• On 8 June, the BSE and Bayerische HypoundVereinsbank AG Munich signed the IndexLicense Agreement, on the basis of which thebank issued BELEX15 Open End-IndexCertificate and listed it at the stock exchanges inFrankfurt and Stuttgart.• The BSE continued with its extensiveeducational activities on organizing vast coursesfor general and professional public, as well forits employees.HISTORY AND DEVELOPMENTThe Belgrade Stock Exchange (BSE) wasoriginally founded in 1894, on 21 November butthe first transactions were made in January 1895.The last meeting was held on 4 April 1941. TheStock Exchange was closed in 1953, as anunnecessary and wasteful institution.The BSE was refounded in 1989, as a “YugoslavCapital Market”. In 1992, the BSE officially got it’sname back, continuing the tradition of the oldstock exchange, which was one of the biggestSouth European stock exchanges. The keyevents in the latest history are:• In September 2002 Republic of Serbia Bondstrading began;• In December 2002 the First InternationalConference was held;• In September 2003 expositions in honour of110 years of the BSE were held.• In September 2003 the Second InternationalConference was held and the project ofInformational Platform of the SEE StockExchanges was introduced;• In March 2004, remote trading was launched;• In September 2004, the BSE achieved fullmembership in FEAS;• In October 2004 continuous trading of stockshas begun;• In November 2004 the Third InternationalConference was held. The 110th anniversary ofthe BSE was celebrated;• In December 2004, BELEXfm index has beenlaunched;• In February 2005, the BSE became anassociate member of FESE;• In March 2005, BELEX.info service waslaunched;• In May 2005 the data distribution via DataFeed has begun;• In October 2005 the BELEX15 index has beenintroduced;• In November 2005 the Fourth InternationalConference “Preserving Integrity and Efficiencyof the Capital Market” was held;• In January 2006 new website was launched;• In April 2006 various training courses werestarted;• In April 2006 MoU was signed with the IFC toestablish cooperation in improving corporategovernance in Serbia;• In September 2006 BELEX RSS Feed servicewas launched;• In November 2006 the Fifth InternationalConference “Where are the ExchangesHeading?” was held;• In March 2007, the Vienna SE and Belgrade SEannounced the launch of the new Serbian IndexSRX (Serbian Traded Index);• In April 2007, the Belgrade SE launched itsnew general equity index BELEXline, successorof the BELEXfm index which was terminated;• In April 2007, first company listed its shares onthe official premium Listing A-Tigar Corporationfrom Pirot;• In June 2007, Bayerische Hypo- undVereinsbank AG issued BELEX 15 Open End-Index Certificate, listed at the Frankfurt SE andStuttgart SE.FUTURE OUTLOOKIn the second half of 2007 the Belgrade StockExchange will:• Finalize the project of redesigning the tradingplatform, complying with FIX Protocol;• Further develop the BELEX Listing for betterhandling of securities;• Refine the BELEX Reporting and DataWarehouse to allow more comprehensive andinstantaneous access to trading data andstatistics;• Upgrade the BELEX RSS service withadditional content;• Further upgrade existing services (BELEX.info,BELEX Data Feed) for end-users in order toenhance their efficiency;• Monitor the BELEX Rules and their application,in order to eliminate possible problems andimprove securities’ liquidity;• Continue to motivate companies to list theirshares on the Official Market (A or B) andexplore possibilities for introducing newsecurities and other instruments to the market;• Sign contracts with additional data vendors;• Continue with the existing and introduce newtraining programs for public and media coveringthe financial market;• Maintain and enhance communication with theBelgrade SE Members, and activities inpresenting the Exchange to the general public inSerbia and abroad;• Improve media coverage of stock exchangeactivities;• Edit and publish new editions andpublications;• Further develop human resources;• Take an active part in international meetingsand events organized by FEAS, FESE and otherinternational organizations and organize severalinternational and regional meetings, like 13thFEAS General Assembly, 5-9 September 2007,and 14th Sports Tournament of Exchanges ofCentral and SE Europe, 7-9 September 2007,with the aim to promote multi-level internationalcooperation; and• Organize the 6th International AnnualConference in 15-16 November 2007.PAGE 56

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELGRADE STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 166.35 9.24 2.22 0.12Feb-07 180.76 9.51 3.05 0.16Mar-07 300.74 13.67 4.51 0.20Apr-07 371.05 19.53 4.62 0.24May-07 263.42 12.54 3.78 0.18Jun-07 153.68 7.32 1.94 0.09TOTAL 1,436.0 12.0 20.1 0.17BondsJan-07 13.69 0.76 10.57 0.59Feb-07 32.74 1.72 25.05 1.32Mar-07 21.11 0.96 15.94 0.72Apr-07 21.96 1.16 16.25 0.86May-07 24.56 1.17 18.17 0.87Jun-07 59.01 2.81 44.01 2.10TOTAL 173.1 1.43 130.0 1.07OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.00 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 11,344.78 1,976.13Feb-07 12,211.16 2,179.33Mar-07 17,456.46 2,849.35Apr-07 22,063.16 3,283.62May-07 22,194.94 2,897.70Jun-07 22,306.82 2,824.62CONTACT INFORMATION4003503002502001501005003,500 25,0003,00020,0002,5002,000 15,0001,50010,0001,0005005,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Ms. Svetlana Cerovic E-mail svetlana.cerovic@belex.co.yu Website www.belex.co.yuPAGE 57

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELGRADE STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSCountry ReportAnother reformist coalition, led by the primeminister, Vojislav Kostunica, and including theDemocratic Party (DS), the Democratic Partyof Serbia (DSS) and its ally New Serbia (NS),and the G17 Plus, was formed in May afterprotracted negotiations following Serbia'sparliamentary election on January 21st. Thelast-minute deal averted a potential politicalcrisis in Serbia. However, the longevity of thenew government is in question given the keydifferences separating the parties and deeppersonal animosities among the majorplayers.The new reformist coalition is expected topursue similar economic and foreign policiesto the previous administration, and will aim toimprove Serbia's EU integration prospects.The government received a boost in mid-Junewhen the EU restarted talks with Serbiatoward a stabilization and associationagreement (SAA). However, the antienlargementmood in the EU, and thepossibility that the EU, or some of itsmembers, will be party to divesting Serbia ofpart of its territory if Kosovo becomesindependent, will complicate Serbia'sprogress towards membership. EUrecognition of an independent Kosovo wouldsour relations and make it extremely difficultfor Serbia to fulfill the conditions required forEU integration, including the demand that itco-operate fully with the International CriminalTribunal for former Yugoslavia (ICTY) in TheHague.The new government has an experiencedeconomic team, but reforms could behamstrung by the extremely poor personalrelations between some of the leadingplayers. They include Bozidar Djelic, thedeputy prime minister in charge of EUintegration, and Mladjan Dinkic, the ministerfor the economy and regional development.There is a possibility of a fresh arrangementwith the IMF. However, there is a risk that thetwo sides will disagree over the pace ofstructural reforms; the sale of the state oil andgas monopoly, Naftna Industrija Srbije (NIS);and the National Investment Plan (NIP)initiated by the previous government.Nevertheless, the IMF will continue to have aninfluence and EU membership ambitions willhelp to keep economic policy on track.Real GDP growth of 6.5% is forecasted in2007, with annual growth rates averagingabout 5.5% in 2007-11. Average retail priceinflation is expected to decelerate towards 4%by 2011. The current-account deficit willremain large, at more than 13% of GDP in2007, and will fall only gradually, to around10.5% of GDP in 2011.** Information provided by the Belgrade Stock Exchange.Key Information ContactsNational Bank of Serbia: www.nbs.yu/export/internet/english/Securities and Exchange Commission: www.sec.sr.gov.yuCentral Securities Depository and Clearing House: www.crhov.co.yuMinistry of Economy and Regional Development: www.mpriv.sr.gov.yu2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)2004-COMPONENTS OF SOCIAL PRODUCT (%) (ab)ServicesIndustryAgriculturePrivate consumption Public consumption Gross fixed investmentIncrease in stocks Exports of goods & services Imports of goods & services61.913.58079.2604024.6200-2020.514.2-0.613.8-40-27.0PAGE 58

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BELGRADE STOCK EXCHANGEBELGRADE ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)GDP at market prices (RSD billions)(b) 1,020.1 1,171.6 1,431.3 1,750.0 (c) 2,085.0 (c)GDP at market prices (US$ billions) 15.9 20.4 24.4 26.0 (c) 31.2 (c)Real GDP growth (%) 4.2 (c) 2.5 (c) 8.4 (c) 6.2 (c) 5.7 (c)Retail price inflation (av; %) 21.4 11.7 9.8 17.3 12.7Population (m)(b) 7.5 7.5 7.5 7.4 (c) 7.4 (c)Exports of goods (FOB) (US$ millions) 2,412.0 2,477.0 3,897.0 4,647.0 6,487.0Imports of goods (FOB) (US$ millions) 6,320.0 7,324.0 10,944.0 10,210.0 12,715.0Current-account balance (US$ millions) -1,731.0 -1,928.0 -2,922.0 -2,088.0 -3,653.9Foreign-exchange reserves excl gold (US$ millions) 2,165.0 3,410.4 4,095.8 5,597.7 11,638.9Total external debt (US$ billions) 11.2 13.6 14.1 15.5 19.6Debt-service ratio, paid (%) 7.2 (c) 12.0 (c) 16.9 (c) 18.9 (c) 34.6 (c)Exchange rate (av) RSD:US$ 64.19 57.44 58.69 67.21 66.88(a) Actual. (b) Excludes Kosovo. (c) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 5.7 6.5 6.0 5.5 5.0 4.7Retail price inflation (av; %) 12.7 5.6 5.9 5.5 4.9 4.3Budget balance (% of GDP) 0.5 -0.5 -1.0 -0.5 0.0 0.5Current-account balance (% of GDP) -11.7 -13.4 -12.8 -11.9 -11.3 -10.6Exchange rate RSD:US$ (av) 66.88 60.09 60.96 64.81 68.15 69.56Exchange rate RSD:[euro] (av) 83.97 81.05 83.97 85.55 87.06 87.652006-PRINCIPAL EXPORTS (FOB) (%) (a)2006-PRINCIPAL IMPORTS (%) (a)Manufactured goodsFoodMachinery, apparatus & transport articlesManufactured goodsMiscellaneous manufactured articlesOtherMineral fuels & lubricantsOther16.614.420.819.737.631.425.6 33.92006-MAIN DESTINATION OF EXPORTS (%) (a)2006-MAIN ORIGINS OF IMPORTS (%) (a)Italy Bosnia & HerzegovinaGermany Russia OtherRussiaItalyGermanyChina Other16.414.416.39.58.49.95.959.24.859.9(a) Excludes Kosovo. (b) Social product (SP) differs from GDP in that it excludesThe Economic Intelligence Unit Ltd., October 2006PAGE 59

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BUCHAREST STOCK EXCHANGEStere FarmacheGeneral Manager & CEOAlthough during the 2006 the number ofBVB listed companies slightly diminished,the year end saw a capitalization ofEUR 21.4 billion, with almost 40% higherthan the previous year.2006 was a very special for Bucharest StockExchange (BVB) featured by institutional andmarket positive changes: admission as a fullFESE member and a substantial increase inturnover and market capitalisation.Although during the 2006 the number of BVBlisted companies slightly diminished, theyear end saw a capitalization of EUR 21.4billion, almost 40% higher than the previousyear. This substantial growth in the marketcap was determined by the rising trend ofthe stock prices. 2006 market capitalizationrepresented 25% in 2006 GDP.Stirred by the high market volatility, the BVBindices continued their rising trend in 2006.The last trading day of 2006 broughtsignificant increases in the indices values,compared to the end of 2005: 22.2% forBET, 28.5% for BET-C, 32.4% for BET-FI and23.9% for ROTX. The indices followed thetrend of the region and consolidated duringthe second half of the year.Another step in the development of the BVB,was the listing of the first international bondsissue. This was a World Bank issue, RONdenominated with total value of RON 525million (approximately EUR 150 million).The significant value of this offer and thesuccess of it proved that some of the fearsof the local authorities towards the listing ofgovernment debt instruments are, somehow,unfounded.On the institutional side, the BVB adoptedthe new “Code” as market operator,containing all new BVB regulations, whichbecame effective in November 2006.The new code brought significant changesregarding the listing structure and alsoimposed measures to improve the liquidityand transparency of the market. The codealso contains the legal framework forimplementation of short selling and marginpurchases.All these measures played a significant rolein the evaluation process that Federation ofEuropean Securities Exchanges (FESE).The result of it was full FESE membershipfor the BVB.HISTORY AND DEVELOPMENTTrading in equities in Romania dates back to1882, a year after the legal framework waspassed. The market was very thin and fromthe beginning official trading was soonsubstituted by off-exchange trading.However, with the exception of the two worldwars and the economic depression, themarket grew to significant levels reaching, interms of listed securities, 56 shares (banks,oil, mining, industrial, and insurance andtransportation companies) and 77 fixedincome securities, in 1935.The peak was reached in 1938 but after theend of the Second World War, in 1948, thestock market was left without any publiccompanies due to the nationalization of theentire economy. After almost 50 years, theBVB could be re-opened again.In 1994, the Romanian Parliament passed thefirst capital market law, setting up the legalframework for the creation of the new andmodern capital market. The NationalSecurities Commission, the BVB, brokeragecompanies, and the National Associationof Brokerage Houses have been set upbased upon the provisions of this law.The BVB was re-established in April 1995,and the first trading day took place on 20November. The most recent law, the CapitalMarket Law 297/2004, harmonizes the locallegislation with EU Directives regarding thecapital market.Institutional changes also took place duringthe Stock Exchange’s 11 years of operation.Set up in the beginning as a public interestinstitution, in 2005 the BVB went through aprocess of demutualization, and the 67intermediaries, members of the BVB, becamethe shareholders in the newly set-up jointstock company.From the beginning, trading has beenperformed in a dematerialized environment.Exchange operations have been conductedexclusively through the electronic systemssince the re-establishment of the Exchange,which included for more than ten years in theregistry, clearing and settlement operations.FUTURE OUTLOOKThe BVB continued in 2006 its hard workin changing the market structure and thelegislation to become a more accessible,transparent and fair market-oriented.The results were seen at the end of the year,when the market capitalization represented25% of the GDP with an increase of almost40% compared to 2005.We also expect the positive evolution tocontinue in 2007, and hope that the liquidityof the market to place between EUR 15-18million of average daily turnover and marketcapitalization to represent about 30% of GDP.The BVB strategic development plan has nowpassed to the implementation stage, throughthe new BVB Code, which includes the legalframework for introduction of derivatives,short selling and margin purchases. Some ofthe targets for 2007 are:• introduction of the trading platform forderivatives, by summer of this year,• implementing trading operation on shortsale, margin purchases and securitiesborrowing,• listing new instruments like governmentsecurities, warrants, ETFs, mortgage-backedsecurities,• listing of the major utility companies, someof them still state-owned,• listing of the “Property Fund”, a major fundcreated to compensate the damages of thenationalization process,• promotion the structured products issuedon BET, and;• playing a more active role in the region.PAGE 60

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BUCHAREST STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 442.35 21.06 1,327.00 63.19Feb-07 415.78 20.79 1,355.64 67.78Mar-07 456.84 20.77 967.70 43.99Apr-07 379.35 19.97 755.37 39.76May-07 547.83 24.90 973.25 44.24Jun-07 561.73 26.75 897.68 42.75TOTAL 2,803.88 22.37 6,276.63 50.28BondsJan-07 33.58 2.58 0.21 0.02Feb-07 8.22 2.74 0.06 0.02Mar-07 8.22 0.37 0.06 0.003Apr-07 6.12 2.04 0.14 0.05May-07 124.20 124.20 3.02 3.02Jun-07 0.23 0.04 0.01 0.001TOTAL 180.58 22.00 3.50 0.52OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.03 0.006 391.7 78.3Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.03 0.01 391.70 78.34MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 30,025.62 2,503.38Feb-07 30,708.76 2,556.00Mar-07 30,851.63 2,555.99Apr-07 33,891.37 2,710.00May-07 32,656.47 2,686.03Jun-07 37,847.38 3,138.646005004003002001003,5003,0002,5002,0001,5001,00050040,00035,00030,00025,00020,00015,00010,0005,0000Jan Feb Mar Apr May Jun00Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Ms. Adriana Tanasoiu E-mail adriana.tanasoiu@bvb.ro Website www.bvb.roPAGE 61

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BUCHAREST STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe main short-term political issue forRomania is whether the fractious governmentcoalition will stumble on until the nextscheduled parliamentary election in late 2008or whether there will be an early election in2007. Relations between the two seniorparties in the ruling coalition, the center-rightNLP and the center-left DP, are unlikely toimprove, especially as senior figures in theDP are increasingly vocal in their publiccriticisms of their coalition partners. But asthe EU does not appreciate the “back stage”or “front” battles between coalition parties,they may remind the Romanian officials thatthe Post-Accession Program is much moreneeded for the country itself rather than thepolitical scandals.The European Commission recommended inits September 26th report that Romania andBulgaria be admitted to the EU at the start of2007. Although the Commission's conclusionis only a recommendation to the EU memberstates, in practice it all but guarantees thatthe two south-east European states will jointhe EU in January 2007. However, Romaniaand Bulgaria will continue to be subject tomonitoring and controls even after formalaccession, in order to ensure thatcommitments made during accessionnegotiations are fulfilled.Strong growth in Romania in recent yearshas been underpinned by generally soundmacroeconomic management, significantdisinflation and structural reform. However,macroeconomic stability and growthprospects are threatened by the authorities'failure to address the risks posed by anoverheating economy and a growing currentaccountdeficit. This failure was reflected inthe breakdown of Romania's precautionarystand-by agreement with the IMF in October2005 (the agreement expired in July 2006)and the most recent warnings from an IMFstaff visit in October 2006. Excess demand,driven by a pro-cyclical fiscal policy, risingemployment and strong wage and creditgrowth, is pushing the annual currentaccountdeficit above 10% of GDP.Economic PerformanceReal GDP forecasts for 2007 and 2008 havebeen revised upwards to 6% and 5.2%,respectively (from 5.7% and 5% previously),after estimated growth of 7% in 2006.However, stronger growth will be at theexpense of worsening macroeconomicimbalances. Real GDP rose by 7.4% year onyear in the first half of 2006, driven byextremely strong domestic demand.Consumption is being driven by a procyclicalfiscal policy, strong real wagegrowth, surging credit expansion and risingemployment. Fiscal policy will continue to beexpansive after EU accession, and theapproach of the next election will delay anytightening of fiscal or wage policies. Thesetwo factors will contribute to continued highlevels of private consumption and investmentactivity in 2007-08. However, the NBR'srestrictive monetary policy will eventually startto have an impact on household borrowingand spending habits. Although the NBRseems to have understood that placing toomany restrictions on the local banks in orderto be tight on crediting, will not put the localbanks on the same grounds as their Westerncounterparts, leading to unfair competition.Therefore, they will leave to the banks to settheir own terms of crediting, but meeting thegeneral prudential conditions. Investmentactivity will continue to be the main engine ofgrowth, as new and modernized productionfacilities come on stream, large publicinvestment projects get under way andRomania continues to receive large inflowsof FDI. It is expected that the FDIs to exceedUS$ 8.5 billion in 2007, the third one in the“Emerging Europe” after Turkey and Russia.A number of factors have resulted in fasterthan expected disinflation in the thirdquarter of 2006, including the delayedimplementation of the government'sinfrastructure spending program, the centralbank's monetary policy tightening, delays inscheduled increases in administered pricesand sharp falls in food prices. Headlineinflation fell to 5.5% in September, from 7.1%in June and 8.4% in March, and to 4.8% inOctober. At the end of the year, the NBRhit the target (5%) and got even a betterresult 4.9% The Central Bank maintained itsforecast for year-end inflation in 2007 to 4%and issued a strong warning about upsidepressures, including rapid growth inaggregate demand.Higher interest rates, the full liberalizationof the capital account and a generallypositive view of Romania's prospects afterEU accession will stimulate speculativecapital inflows in 2007-08. These could resultin further significant real appreciation, acostly sterilization of the inflows, or somecombination of the two. Following anaverage real effective appreciation of 17.7%against a trade-weighted basket ofcurrencies in 2005, the ROL is expected toappreciate in real terms against the samebasket by 5.7% in 2006.** The Economist Intelligence Unit Ltd., July 2006.Key Information ContactsNational Securities Commission www.cnvmr.roMinistry of Public Finance www.mfinante.roNational Bank of Romania www.bnro.ro2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesIndustryAgriculture & forestryPrivate consumption Public consumption Gross fixed investmentChange in stocks Exports of goods & services Imports of goods & services54.935.08075.260402012.323.433.510.10-20-0.4-40-60-44.0PAGE 62

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BUCHAREST STOCK EXCHANGEROMANIA ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)GDP at market prices (Lei billions) 151.5 197.6 246.4 283.0 324.3GDP (US$ billions) 45.8 59.5 75.5 97.1 114.2Real GDP growth (%) 5.1 5.2 8.4 4.1 6.9Consumer price inflation (av; %) 22.5 15.3 11.9 9.0 6.8Population (million) 21.8 21.7 21.7 21.6 21.6Exports of goods (FOB) (US$ millions) 13,876 17,618 23,485 27,730 33,001Imports of goods (FOB) (US$ millions) -16,487 -22,155 -30,150 -37,348 -46,478Current-account balance (US$ millions) -1,536 -3,456 -6,382 -8,312 -12,451Foreign-exchange reserves excl gold (US$ millions) 6,125 8,040 14,616 19,872 26,081Total external debt (US$ billions) 16.7 22.6 30.0 36.4 (b) 42.8Debt-service ratio, paid (%) 19.0 16.9 17.1 16.9 (b) 17.2Exchange rate (av) Lei:US$ (c) 3.31 3.32 3.26 2.91 2.84(a) Actual. (b) Economist Intelligence Unit estimates. (c) The redenomination of the Romanian leuon 1 July 2005 entailed the dropping of four zeroes: one new leu (RON) = 10,000 old lei (ROL).ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 7.0 6.0 5.2 4.6 4.6 3.7Consumer price inflation (av; %) 6.6 5.6 5.1 4.1 3.2 3.0General government budget balance (% of GDP) -1.5 -3.0 -3.0 -2.8 -2.3 -2.2Current-account balance (% of GDP) -10.0 -11.5 -11.4 -10.4 -9.4 -8.6Commercial bank lending rate (end-period; %) 13.8 14.0 12.0 11.0 9.0 8.0Exchange rate Lei:US$ (av) 2.84 2.70 2.77 2.79 2.80 2.77Exchange rate Lei:[euro] (av) 3.55 3.68 3.70 3.61 3.53 3.502005-PRINCIPAL EXPORTS (FOB) (%) 2005-PRINCIPAL IMPORTS (CIF) (%)Textiles & productsMachinery & transport equipmentMachinery & transport equipmentMinerals fuels, lubricants, etcBase metals & productsMinerals & fuelsOtherTextiles, clothing & footwearChemicals, plastics & rubberOther17.614.723.415.518.910.211.07.537.843.42005-MAIN DESTINATION OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)ItalyGermanyGermanyItalyFranceEU25FranceEU2519.214.015.514.07.98.367.662.2The Economic Intelligence Unit Ltd., October 2006PAGE 63

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BULGARIAN STOCK EXCHANGEBistra IlkovaCEOThe BSE’s market capitalization grew 82%in the last 12 months to EUR 8 billion(currently it represents 33% of the GDP),while both indices–SOFIX and BG40–increased respectively by 48% and 50%.2006 was a very good year for the Bulgariancapital market. This is the fifth year in row inwhich the Bulgarian Stock Exchange (BSE)registered a very good performance. TheBSE’s market capitalization grew 82% in thelast 12 months to EUR 8 billion (currently itrepresents 33% of the GDP), while bothindices–SOFIX and BG40–increasedrespectively by 48% and 50%.I believe that in 2007 our stock market willsustain the upward trend. We expect apositive effect from Bulgaria’s entry into theEuropean Union. Many private companieshave declared their wish to be listed on theBSE and that is why we expect a muchhigher number of IPO’s this year. Attractingnew listings remains our major goal, as wellas increasing the liquidity on the market.We plan to organize road-shows around thecountry to popularize the capital market.Another important task for us is setting up anew segment on the BSE for small andmedium-sized companies, which are thebackbone of our economy.An important achievement for us was thecompletion of the EXTRI project–the systemfor electronic disclosure of information. It waslaunched in January 2007 and is among thevery few such systems, which are inoperation in Europe. By using the electronicsignature all issuers will be freed of theenormous paper work that they had toproduce for their quarterly reports and otherdocumentation, required by the law.The positive expectations for 2007 are alsolinked to the new opportunities that will becreated as a result of the strategicpartnership that the BSE will enter into withone of the leading European exchanges orgroups of exchanges through the sale of its44% state-owned stake. All participants onthe market support the integration efforts ofour management and the government.We plan to continue the fruitful co-operationwith international organizations andespecially with FEAS, which in the past yearshas assisted us in our development andmodernization.HISTORY AND DEVELOPMENTThe first Stock Exchange Act was adopted in1907 and regulated the structure andoperations of stock and commoditiesexchanges. The Securities, Stock Exchanges& Investment Intermediaries Act was adoptedin July 1995, which led to a process of stockexchange consolidation. In July 1997, thepresent BSE was established. In accordancewith the requirements of the new law, aSecurities & Stock Exchange Commissionwas set up.On 9 October 1997 the Commission officiallylicensed the BSE. The first trading session onthe regulated market took place on21 October 1997. By the end of 1999 therewere 32 companies listed on the OfficialMarket and about 1,000 companies admittedfor trading on the Free (OTC) Market as aresult of the mass privatization program.On 6 December 2001 the Commissionofficially licensed the BSE to organize anUnofficial Market, which replaced the FreeMarket and set clear rules for regulation of allcompanies traded on the Exchange.In December 1999 a new Public Offering ofSecurities Act was adopted by the Parliament.The law is aimed at providing protection forinvestors and creating prerequisites for thedevelopment of a transparent capital marketin Bulgaria with criteria similar to those ofthe EU.The Securities & Stock Exchange Commissionwas first renamed the National SecuritiesCommission, but in March 2003 it wasreplaced by a new supervisory body–the Financial Supervision Commission (FSC).More than just a name change, the movepulled together the regulation of a number offinancial (non-banking) sectors under onebody. The regulatory changes during the yeardirectly improved conditions for investors andissuers, as well as underlined thegovernment’s commitment to encouragewider overall development of the capitalmarkets.FUTURE OUTLOOKThe BSE will have to cope with newchallenges in 2007 arising from Bulgaria’s EUentry on January 1st. As all other capitalmarket institutions, the BSE will also have tofully comply and harmonize its Rules &Regulations with the European legalstandards.It is expected that many European investmentfunds will show interest in the Bulgarian stockmarket, which is good for the business as awhole.In January 2007 the new electronicinformation disclosure system EXTREE will belaunched. It was developed by the BSE’ssoftware experts and will be the firstoperational system of this kind in Central andEastern Europe.Attracting new listings will remain a major goalfor the Exchange. A series of road-shows andregional roundtable discussions on thebenefits of being a publicly traded companywill be organized in 2007.A new segment on the BSE–for small andmedium sized companies–is in the planning.The work has advanced and there is a goodchance that by the end of the year we willhave the contours of this segment.Work will also continue on the preparation forthe launching of a derivatives market a goalthe BSE hopes to reach in 1-2 years.PAGE 64

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BULGARIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 277.73 13.23 46.33 2.21Feb-07 299.71 14.99 43.85 2.19Mar-07 204.59 9.30 45.63 2.07Apr-07 113.21 5.66 29.88 1.49May-07 438.03 21.90 75.24 3.76Jun-07 278.74 12.67 56.68 2.58TOTAL 1,612.01 12.96 297.62 2.38BondsJan-07 31.89 1.52 0.03 0.002Feb-07 17.77 0.89 0.02 0.001Mar-07 15.26 0.69 0.01 0.001Apr-07 14.16 0.71 0.01 0.001May-07 11.74 0.59 0.01 0.001Jun-07 25.43 1.16 0.02 0.001TOTAL 116.25 0.93 0.11 0.001OtherJan-07 6.32 0.30 16.49 0.79Feb-07 17.93 0.90 21.47 1.07Mar-07 8.08 0.37 12.18 0.55Apr-07 3.63 0.18 8.56 0.43May-07 6.90 0.34 15.68 0.78Jun-07 8.82 0.40 14.06 0.64TOTAL 51.68 0.42 88.45 0.71MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 11,629.83 1,339.46Feb-07 12,546.94 1,304.78Mar-07 12,450.60 1,278.19Apr-07 12,329.06 1,273.59May-07 12,863.16 1,335.53Jun-07 14,306.42 1,411.61450400350300250200150100500Jan Feb Mar Apr May Jun1,6001,4001,2001,000800600400200016,00014,00012,00010,0008,0006,0004,0002,0000Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Panteley Karassimeonov E-mail bse@bse-sofia.bg Website www.bse-sofia.bgPAGE 65

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BULGARIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe main recent change in Bulgaria's politicallandscape has been its accession into the EUat the start of 2007. The local landscape istransforming too. Although President GeorgiParvanov was the clear and expected victorywith a record 76% of the vote in the October2006 presidential elections, the shock came inthe form of a second-place victory by theultranationalist Ataka Party, much to the chagrinof many EU enthusiasts. Meanwhile theMovement for Rights and Freedoms (DPS), aparty formed mainly of Bulgaria's Turkishcommunity, retains a strong presence. Lowturn-out was a concern, but many analystsbelieve this was a result of many votersbelieving there was little point in casting a ballotas the outcome was a foregone conclusion. Tothe future, with such a clear and strongmandate, Parvanov can concentrate onbringing Bulgaria in line with its EU neighbourseconomically.Bulgaria's economy is doing well–2006 markedthe ninth successive year of growth since the1996-1997 financial crash. Consumption andGDP are growing; investment, both foreign andoverseas, is breaking records, thanks, in part,to EU accession; unemployment levels, thoughstill high in relative terms, are falling; andimports and exports are continuing to increaseat a robust rate. In the future, Bulgaria'spolicymakers will have to negotiate the balancebetween caution and growth. Meanwhile thereis debate over when Bulgaria will join theEurozone–estimates differ between 2010 and2012.The Bulgarian banking market is coming of age,as the country's banks, predominantly ownedby foreign players, mature and almost 100%banking penetration is reached. Although thiswill lead to deceleration, the injection of EUfunds into various sectors will require cofinancingfrom banks, keeping the sector ingood health. Meanwhile by the end of 2008Bulgarian banks are set to comply with Basel IIregulations. Nearly all of the larger banks areclose to compliance, but smaller banks willneed to up their capital or they could be forcedto seek mergers with larger banks.This could be the year in which Bulgaria'smarket reaches maturity, with some big initialpublic offerings taking place and exchangeofficials engaged in a hearty promotional driveof the two-tiered Bulgarian Stock Exchange(BSE) across the country. Meanwhile thegovernment is looking to divest itself of itssignificant stake in the bourse, with plans to sellit to a more affluent European exchange. KaolinAD and First Investment Bank have recentlygone under the hammer while CorporateCommercial Bank also enjoyed a successfuloffering.Bulgaria's insurance sector is maturing, with anumber of foreign investors setting up shopand consumers beginning to recognize theimportance of life insurance. The market isdominated by general and third party liabilitymotor insurance; followed by home insurance;then life. The pensions segment is blossoming,and the strong economy is expected to fueldemand for export insurance. Meanwhileinsurance the company Euroins is taking thebrave step of entering the European market.Development is taking place across allsegments of Bulgaria's transport sector, with EUaccession promising to provide a major boost.Although Bulgaria's energy sector is not aslarge as some of its neighbors, the communistera endowed it with a well-situated, sizeable oilrefinery and infrastructure in place to takeadvantage of Russian gas, of which it is in theideal geographical location to transport. Andwhile it possesses only small amounts of gasand oil, it does harbor a respectable amount ofcoal. Bulgaria's electricity sector is movingforward at a quick pace, with reform andprivatization advanced by regional standards,some major investment projects are goingahead and a second nuclear power plantplanned at Belene on the Danube–all factorswhich should enable Bulgaria to maintain itsrecent role as south-Eastern Europe's keyexporter of power.The sun is shining on Bulgaria's tourism sector,and entrance into the EU looks set to ensure abright future, with increased exposure aidingthe industry. The sector is now worth EUR 2billion, up 3.5% from 2005, employing roughly140,000 people.Although Bulgaria's construction sector isthriving, the pace of growth in the industry,which has seen rapid expansion over the pastdecade, is slowing, due to rising materials andlabor costs squeezing margins across theboard.The telecom and IT sector is burgeoning- andthere is still room for further growth. To thefuture, the issues affecting the telecom industrylooks set to be required improvements inlegislation, strengthened regulations convergingwith EU norms and the advent of numberportability, while broadband is seen as apotential growth area. Bulgaria's IT sector is welldeveloped, with salaries climbing to WesternEuropean levels.Despite suffering a number of difficulties inrecent years, such as severe flooding andwarmer than average temperatures, theagriculture sector remains a bright spot in theBulgarian economy, contributing 7% to GDP in2006 and with the promise of an influx of EUfunding, in particular from the special accessionprogram for agriculture and rural development(SAPARD), to the tune of EUR 444 million thusfar.** The Economic Intelligence Unit Ltd., July 2007 and theBulgarian Stock ExchangeKey Information ContactsFinancial Supervision Commission www.fsc.bgCentral Depository www.cdad.bgBulgarian National Bank www.bnb.bgMinistry of Finance www.minfin.government.bgNational Statistical Institute www.nsi.bg2006-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2006-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesIndustryAgriculture & forestryPrivate consumption Public consumption Gross fixed investmentChange in stocks Exports of goods & services Imports of goods & services60.08.531.59080706077.264.083.050403026.220109.45.70PAGE 66

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007BULGARIAN STOCK EXCHANGEBULGARIA ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)GDP at market prices (Lv billions) 32.3 34.5 38.3 41.9 49.1GDP (US$ millions) 15,621.9 19,974.3 24,331.3 26,718.6 31,516.7Real GDP growth (%) 4.5 5.0 6.6 6.2 6.1Consumer price inflation (av; %) (b) 5.8 2.3 6.1 5.0 7.3Population (millions) 7.8 7.8 7.7 7.7 7.6 (c)Exports of goods (FOB) (US$ millions) 5,354.1 7,081.4 9,931.2 11,776.4 15,064.1Imports of goods (FOB) (US$ millions) 7,012.6 9,657.3 13,619.1 17,267.2 21,873.5Current-account balance (US$ millions) -319.0 -1,022.2 -1,671.1 -3,304.7 -5,009.8Foreign-exchange reserves excl gold (US$ millions) 4,407.0 6,291.0 8,776.0 8,040.5 10,965.0Total external debt (US$ billions) 11.5 13.0 15.0 16.8 26.5 (c)Debt-service ratio, paid (%) 16.3 9.8 14.0 30.8 15.2 (c)Exchange rate (av) Lv:US$ 2.070 1.730 1.573 1.570 1.558(a) Actual. (b) Non-seasonally adjusted. (c) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2004 (a) 2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 5.7 5.5 6.1 5.8Consumer prices (% change) 6.1 5.0 7.3 5.0Budget balance (% of GDP) 1.7 2.3 3.6 3.0Merchandise exports (US$ billions) 9.85 11.75 14.86 18.65Exchange rate (Lv:US$1) 1.57 1.57 1.56 1.462006-PRINCIPAL EXPORTS (FOB)(US$ millions)Clothing & footwear 2,060Iron & steel 1,132Other metals 2,178Chemicals, plastics & rubber 7902006-PRINCIPAL IMPORTS (CIF)(US$ millions)Crude oil & natural gas 4,078Textiles 1,806Machinery & equipment 2,080Chemicals, plastics & rubber 1,4892006-MAIN DESTINATIONS OF EXPORTS (%) 2006-MAIN ORIGINS OF IMPORTS (%)ItalyTurkeyGermanyRussiaGermanyGreeceOtherItalyTurkeyOther10.311.69.89.017.412.58.86.159.355.2The Economist Intelligence Unit Ltd, July 2007PAGE 67

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CAIRO & ALEXANDRIA STOCK EXCHANGESMaged Shawky SourialChairmanOur new vision is to be a World-ClassEgypt-based Exchange: the Premier CapitalMarket in the Middle East & North AfricaRegion.In a year of accelerated economical andpolitical developments, CASE has continued toimprove its position in terms of benchmarkperformance by concluding the first half of year2007 with a positive increase of 12% in theCASE 30 benchmark index for the Egyptianmarket. Furthermore, our core trading businesshas performed very well whereby volumes havealmost doubled compared to the same periodof last year trading.Two major decisions were taken during thisperiod which have further enhanced marketliquidity and pushed the market to its highestlevels over the last 18 months. These are: thereduction of the settlement period to (T+2) forall listed securities, followed by the decision toremove price limits on the 100 most activelisted companies, which both have set theEgyptian market to be one of the few emergingmarkets applying such approach.From another perspective, the market haswitnessed growth in equities trading, whichwas increased by the active participation ofinternational and retail customers. Foreigninvestors now constitute more than thirtypercent of our daily business volume onaverage and continue to grow on an annualbasis, which is way ahead of the neighboringmarkets and proves the openness of ourmarket.Our new vision is to be a World-Class EgyptbasedExchange: the Premier Capital Market inthe Middle East & North Africa Region. CASEhas devised three key strategies to achieve thisvision; to establish a credible organization thatis ready for privatization in two to three yearsperiod; to build a reliable market; and to createa customer-oriented market. Our strategic plan,which was issued to our key stakeholders,shows in detail how we aim to achieve thoseobjectives.CASE will shortly introduce its new amendedlisting rules, which will not only reinforcecorporate governance and disclosurestandards, but it will make it much easier forforeign blue chip companies to list on CASE.Furthermore, we have added to our leadershipin technology by choosing the OMX Group, todeliver our next generation trading system,which is expected to be implemented in 2008.The new system will provide CASE with a newtrading platform that deals in cash andderivative markets, which will help CASE tointroduce new products such as structuredproducts, ETFs, futures, options etc.CASE will continue its successful and currentlymuch demanded educational programs incollaboration with more universities in Egypt inorder to enhance investor education.From a global standpoint, CASE is still the onlyArab Exchange that is a full member of theWorld Federation of Exchanges. Furthermore,the Chairman of CASE chairs the AfricanSecurities Exchanges Association and is theVice Chairman of the Federation of Euro-AsianExchanges, all of which attest to CASEexcellence.HISTORY AND DEVELOPMENTThe Egyptian Stock Exchange is comprised of twoexchanges: the Cairo and Alexandria StockExchanges (CASE), which are managed by thesame Chairman and Board of Directors that sharethe same trading, clearing and settlementsystems. The Alexandria Stock Exchange wasofficially established in 1888 followed by Cairo in1903 with 97 listed companies. The twoExchanges were outperforming throughout the1940s and 1950s, when the Egyptian StockExchange ranked fifth in the world. Nevertheless,the socialist regime and the nationalization policyadopted by the government in the early 1960s,have diminished the role of Egypt’s private sectorand likewise the activities of the Exchanges, whichremained dormant for 3 decades.In consistency with Egypt’s new era of economicreform and restructuring undertaken in 1991, therole of CASE was re-activated in 1992, with theissuance of the Capital Market Law no.95 of 1992,issued by the Capital Market Authority, which laidthe regulatory framework for the financialintermediaries; brokers, fund management firms,venture-capital firms, underwriters, investmentbanks, etc. During this year, 656 companies werelisted and available on the trading floor.One automated trading system was to link bothExchanges in 1994, which facilitated theimplementation of the privatization program thathad started in the same year leading to anotherpush in the revival of the Egyptian Stock Market. Anumber of IPOs of the state-owned companieswere executed through CASE.PAGE 68Starting 1997, as the importance of the CASE wasassured–as a proper regulated platform forcompanies to raise capital and for investors toshare in companies’ profits–the number of issuedand listed shares kept on increasing, whichattracted both retail and institutional investors tothe market, leading to higher trading activities.During 2007, the Egyptian government gavespecial attention to the development andmodernization of the Egyptian market to be themain gateway for investment in the MENA regionand to be on par with international standards.CASE has set a plan since mid 2004 to undertakedevelopment at all levels in the Exchange;legislative, regulatory and technological, whichaccelerated at a faster pace during H1 2007.Committed to undertake development at all levels,two important decisions were taken during H12007. The first one was reducing the settlementperiod for all securities to T+2 instead of T+3; astep that has further enhanced market activity andliquidity. Second, removing the price limits on the100 most active companies in the market, whichhas also had its positive impact on the marketliquidity and depth and has helped in reducingprice manipulation on those companies.On the other hand, enhancing corporategovernance practices in the Egyptian market wasalways on top of the agenda, whereby newcorporate governance rules have been formulatedfor non-listed brokerage firms, aiming atenhancing their efficiency and lowering the tradingrisk. New listing rules are also being finalized,which includes a separate chapter aboutcorporate governance for listed companies, withan applying or explain approach.As a step towards ensuring market fairness andinvestor’s protection, a new article was added tothe executive regulations of the Capital MarketLaw concerning the mergers and acquisitions inthe Egyptian market, which was set according tointernational standards.More developments are still in the pipeline,whereby H2 2007 is expected to witness theestablishment of the first SMEs Exchange in theRegion. Additionally, the Exchange Traded Fundsare expected to be launched before end of 2007,to be followed by derivatives in 2008. Thesedevelopments are expected to promote theactivity of Egyptian market, which has beenperceived as one of the most developedemerging markets during the past 3 years.FUTURE OUTLOOK• Continuous development of the regulatoryinfrastructure to increase the quality of servicesand to ensure investor protection.• Implementation of a Securities Lending andBorrowing System by the CASE in collaborationwith MCDR.• Launching of a number of new markets, such asmarkets for ETFs, sukuks and derivatives.• Initiating the establishment of the first SME’sExchange in the region, which should beintroduced during 2007, aiming at providing asolid financing source as well as opening newinvestment opportunities for investors interested infast growing companies.

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CAIRO & ALEXANDRIA STOCK EXCHANGESOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 3,009.54 158.40 609.20 32.06Feb-07 3,006.30 150.32 802.23 40.11Mar-07 3,632.30 172.97 909.74 43.32Apr-07 2,363.81 131.32 558.93 31.05May-07 4,340.36 197.29 939.89 42.72Jun-07 5,096.99 254.85 1,060.13 53.01TOTAL 21,449.3 177.5 4,880.1 40.4BondsJan-07 152.08 8.00 1.66 0.09Feb-07 254.14 12.71 1.36 0.07Mar-07 373.58 17.79 1.98 0.09Apr-07 618.23 34.35 3.33 0.19May-07 444.36 20.20 2.44 0.11Jun-07 470.98 23.55 2.82 0.14TOTAL 2,313.4 19.4 13.6 0.11OtherJan-07 127.77 6.72 70.14 3.69Feb-07 270.04 13.50 81.82 4.09Mar-07 420.65 20.03 137.69 6.56Apr-07 177.34 9.85 90.26 5.01May-07 522.72 23.76 589.37 26.79Jun-07 226.15 11.31 124.57 6.23TOTAL 1,744.7 14.2 1,093.8 8.7MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 88,424.98 6,675.81Feb-07 96,906.14 7,165.06Mar-07 96,130.65 7,191.90Apr-07 97,397.59 7,428.00May-07 103,715.27 7,769.63Jun-07 105,580.17 7,803.41CONTACT INFORMATION6,0005,0004,0003,0002,0001,00008,000 120,0007,000100,0006,0005,00080,0004,000 60,0003,00040,0002,0001,00020,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Ms. Nevine Mansour E-mail nmansour@egyptse.com Website www.egyptse.comPAGE 69

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CAIRO & ALEXANDRIA STOCK EXCHANGESECONOMIC AND POLITICAL DEVELOPMENTSWithin the framework of the economic andpolitical reform program undertaken by thegovernment since 2004, the Egyptianeconomy has continued its acceleration duringthe first quarter of year 2007 realizing a growthrate of 7.2%, compared to a target growth rateof 8% during 2007/2008. As a result, Egyptwas chosen by the Economic Reform Forumof the World Bank among the seven bestcountries in the world taking effective steps foreconomic reform and enhancing theinvestment climate to eliminate any obstaclesor any investment barriers, placing Egypt to bethe only country chosen in the Middle Eastand North Africa region.For the first time, foreign investments inflowsto Egypt have reached an amount of US$ 9.4billion over the first 9 months of 2006/2007,which is almost double the recorded figureduring the same comparable period of lastyear.Additionally, the increasing investment flowstogether with the US$ 3.3 billion surplus in thecurrent account balance over the period (July-March 2007) have pushed the balance ofpayments to realize a surplus for the third yearin a row, amounting to US$ 3.1 billion duringthe first 9 month of the FY 2006/2007.On the monetary front, the Central Bank ofEgypt continued adopting its transparent,proactive and flexible monetary policy in orderto ensure price stability necessary to sustaineconomic growth. In that respect, the CBEdecided to maintain its overnight deposits andlending rates -corridor rate- at 8.75% and10.75%, respectively, during the first half of2007, as inflationary pressures started to easeup, with expectations to reach around 7% to8% during this year.Moreover, foreign reserves surpassed theUS$ 28 billion threshold, reaching US$ 28.56billion at the end of June 2007 (the highestever),resulting in strengthening the localcurrency position and maintaining theexchange rate at around LE 5.7/ US$.From another perspective, the Egyptiangovernment continued its efforts to reduce theoverall budget deficit, with expectations todecline to 6.9% of the GDP in FY 2006/2007down from 8.2% during last fiscal year.In light of the above mentioned developments,Fitch Ratings has upgraded Egypt’s foreigncurrency rating from stable to positive.Key Information ContactsMinistry of Finance www.mof.gov.egMinistry of investment www.investment.gov.egCentral Bank of Egypt www.cbe.org.egCapital Market Authority www.cma.gov.egMisr for Clearing, Depository and Central Registry www.mcsd.com.eg2005/06-ORIGINS OF GROSS DOMESTIC PRODUCT (%)Manufacturing Mining (incl oil & gas) Agriculture OtherTrade General government Transportation & communication2004/05-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)Private consumption Government consumption Gross fixed investmentExports of goods & services Imports of goods & services Changes in stocks15.514.1806071.417.010.99.84020012.318.731.326.46.3-20-40-33.7PAGE 70

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CAIRO & ALEXANDRIA STOCK EXCHANGESEGYPT ECONOMIC CHARTS AND TABLES2001/02 2002/03 2003/04 2004/05 2005/06GDP at market prices (LE billions) 378.9 417.5 485.3 538.5 617.7GDP (US$ billions) 85.1 80.3 78.8 89.6 107.4Real GDP growth (%) 3.2 3.2 4.1 4.5 6.8Consumer price inflation (av; %) 2.4 3.2 4.9 11.4 4.2Population (million)** 66.6 68.0 69.3 70.0 71.3Exports of goods (US$ millions) 7,121 8,205 10,453 13,833 18,455*Imports of goods (US$ millions) -14,637 -14,820 -18,286 -24,193 -30,441*Current-account balance (US$ millions) 614 1,943 3,418 2,911 1,752*Net international reserves (US$ millions) 14,147 14,809 14,781 19,302 22,931Total external debt (US$ billions) 28.7 29.4 29.9 28.9 29.6*Debt-service ratio, paid (%) 7.1 7.7 8.5 9.3 10.3*Exchange rate (av) LE/US$ 4.45 5.20 6.16 6.01 5.75* Provisional** Excluding Egyptians living abroadECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010Real GDP growth (%) 5.8 6.0 5.5 5.3 5.1Consumer price inflation (av; %) 5.1 4.3 4.1 3.9 4.1Budget balance (% of GDP) -10.1 -9.7 -8.2 -7.2 -7.0Current-account balance (% of GDP) 2.4 2.6 3.0 3.0 2.9Commercial banks' lending rate (av; %) 12.1 12.8 13.0 12.5 11.5Exchange rate E£:US$ (av) 5.75 5.73 5.78 5.80 5.802005/06-PRINCIPAL EXPORTS(US$ millions)Petroleum products (including crude oil) 9,241Aluminium, iron & steel products 668Cement, orgaic & inorganic chemical substances 523Raw cotton & cotton textiles 373Ready-made clothes 3512005/06-PRINCIPAL IMPORTS(US$ millions)Petroleum products (including crude oil) 5,359iron & steel products 1454Wheat 888Spare parts and accessories for cars 827Pharmaceuticals 6272005/06-MAIN DESTINATIONS OF EXPORTS (%) 2005/06-MAIN ORIGINS OF IMPORTS (%)EUUSAArab CountriesEUUSAAsian CountriesAsian CountriesOtherArab CountriesOther30.618.811.537.114.611.39.037.69.020.5The Economic Intelligence Unit July 2006PAGE 71

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007GEORGIAN STOCK EXCHANGEGeorge LoladzeChairman of the Supervisory BoardIt is our strong belief that the principles oftransparency and disclosure underlying theoperation and development strategy of theGSE, are the unquestionable guaranty ofour success.The year 2006 was a landmark one for theGeorgian Stock Exchange (GSE), due to theunprecedented increase of the basic tradefigures compared with previous years,reflecting the overall revitalization of theeconomy in the wake of the “Rose Revolution”of 2003.In the end of November, 2006 Bank of Georgia(GSE: BOG), the company has been listed atthe GSE since 2001, concluded a successfulIPO at the London Stock Exchange MainMarket and through issuance of GDRs raisedcirca US$ 160 million. The bank is the firstGeorgian company ever and the second bankfrom the CIS since 1999 listed on the LondonStock Exchange.It is our strong belief that the principles oftransparency and disclosure underlying theoperation and development strategy of theGSE are the unquestionable guaranty of oursuccess. The GSE will continue promoting thepolicy to encompass all different sectors of theGeorgian capital market, and we will gladlycooperate with all actors, who strive for theeconomic development of Georgia.HISTORY AND DEVELOPMENTEquity securities first appeared in Georgia in1991 after the declaration of independence thatsignaled the beginning of market-orientedreforms. A vast majority of the newlyestablished joint-stock companies were ownedby a rather small number of privateshareholders and trading in these shares wasrelatively inactive. With the launching of theMass Privatization Program in 1994,approximately 1,300 state-owned enterpriseswere organized as joint-stock companies,creating about half a million individual privateshareholders. However, during a five-yearperiod (1994-1999), the lack of an appropriatelegal framework and organized marketinfrastructure seriously impeded the secondarytrading of these shares and any over-thecountermarket activity was nearly nonexistent.The Georgian Stock Exchange (GSE) wasfounded in 1999 by a group of Georgiansecurities market professionals, leading banks,investment and insurance companies. Today itis the only organized securities market inGeorgia. Designed and established with theassistance of the United States Agency forInternational Development (USAID) andoperating within the legal framework ofcorporate and securities laws drafted with theassistance of American and German experts,the GSE can assert that it is designed andoperated to comply with “global bestpractices” and offers an attractive investmentenvironment to foreign investors.To promote the concept of self-regulation, theGSE membership adopted new rules. Afterapproval of these rules by the NationalSecurities Commission of Georgia, the GSEwas officially recognized as a self-regulatoryorganization (SRO) and received a stockexchange license in January 2000.The GSE utilizes an automated trading facility.Thousands of securities can be traded by itsmembers from the workstations at the GSEfloor or remotely from their offices. The GSEadopted the platform employed by the Russiantrading system (RTS) in Moscow. However,RTS–as an excellent informationalcommunicationsystem–was significantlymodified to ensure those requirements outlinedunder the GSE trading rules reflected thepeculiarities of Georgian securities market.Official trading at the GSE began in March2000. The number of companies admitted fortrading at the GSE trading system increasedgradually and by the end of 2004 reached 277.Practically all of these companies are formerstate owned and operated companiestransformed into joint-stock companies andthen privatized. The growing but still low tradevolumes reflect the nascent stage of theGeorgian capital market and the level ofdevelopment of the Georgian economy.In 2002, as a result of active cooperation withthe National Securities Commission and theMinistry of State Property Management, theSpecial Privatization Auctions commenced atthe GSE. In 2003 the GSE started tradinggovernment securities.2004, was a landmark year for the GSE, due tothe unprecedented increase in basic tradingfigures compared with previous years,reflecting the overall revitalization of theeconomy in the wake of the “Rose Revolution”of 2003.In the end of November, 2006 Bank of Georgia(GSE:BOG), the company has been listed atthe GSE since 2001, concluded a successfulIPO at the London Stock Exchange MainMarket and through issuance of GDRs raisedcirca USD160 million The bank is the firstGeorgian company ever and the second bankfrom the CIS since 1999 listed on the LondonStock Exchange.FUTURE OUTLOOKIn 2007 the GSE plans to:1. Make important changes in its tradingsystem and trading rules so as to increase theefficiency of trading and increase the liquidityof the market:• intensify the trading process. In particular,the trading sessions will be conducted on dailybasis and/or time period of the tradingsessions will be extended;• implement a remote trading system forbrokerage companies;• establish electronic links between securitiesmarket participants (stock exchange, centraldepository, brokerage companies, banks,securities registrars)• increase the efficiency of the governmentsecurities trading on the stock exchange;• introduce partially guaranteed trading ofsecurities;2. Launch a new web-site for the GSE, whichalong with traditional statistics will provide acorporate reports database for the companieswho are admitted to the trading system. Inaddition, the creation and publication of acompany database will allow companies topublish their annual, semi-annual and currentreports which are required by law and thusimprove disclosure standards and corporatetransparency.PAGE 72

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007GEORGIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 0.78 0.10 4.96 0.62Feb-07 10.44 1.30 8.81 1.10Mar-07 1.38 0.17 0.37 0.05Apr-07 0.91 0.11 0.48 0.06May-07 1.58 0.13 2.94 0.25Jun-07 11.13 0.62 3.86 0.21TOTAL 26.21 0.41 21.42 0.38BondsJan-07 0.003 0.0003 0.005 0.0006Feb-07 0.005 0.0006 0.0001 0.0Mar-07 0.002 0.0002 0.0000 0.0Apr-07 0.0004 0.0001 0.0000 0.0May-07 0.03 0.002 0.0005 0.0Jun-07 0.005 0.0003 0.0001 0.0TOTAL 0.04 0.001 0.01 0.0001OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME(US$ millions)MONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 1,044.84 n/aFeb-07 1,144.77 n/aMar-07 1,129.34 n/aApr-07 1,213.16 n/aMay-07 2,265.02 n/aJun-07 2,609.05 n/aCONTACT INFORMATION1210864203,0002,5002,0001,5001,0005000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mrs. Ekaterine Katamadze E-mail info@gse.ge Website www.gse.gePAGE 73

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007GEORGIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitical and Economic BackgroundGeorgia is a lower middle income country witha population of approximately four and a halfmillion people and a gross national incomeper capita of US$ 1,764 in 2006 (GNI, Atlasmethod). During Soviet times, Georgiaexported agricultural and energy-intensiveindustrial products to the Soviet Union andwas a popular tourist destination for theregion. After independence in 1991, theeconomy collapsed due to a civil war and theloss of both the preferential access to formerSoviet Union markets and large budgettransfers from Moscow. Output fell by 70%and exports by 90%, the worst decline sufferedby any transition economy.The conflicts in Abkhazia and South Ossetia,regions within Georgia seeking independence,took a significant toll, with about 300,000people displaced, much physical capitaldestroyed, important trade routes disrupted,and the new government's authority in largesegments of its territory undermined to thisday. In addition, the spillover from the conflictin Chechnya has weakened Georgia's controlof the Pankisi Gorge and surrounding territory,where there has been rampant smuggling,extortion, and kidnapping. Georgia's economyhas been buffeted ever since by internalfragmentation, droughts, and the 1998financial crisis in Russia.Georgia is resource rich. Its location on the"Silk Road" between Europe and Asia hasmade it a transit conduit for goods beingshipped through the Caucasus. Georgia'sBlack Sea coast, mountains, and rich culturalhistory offer strong tourist potential. Otherattributes include an educated labor force,widespread land ownership, and a longtradition of entrepreneurship.Georgia has a natural resource base thatoffers strong economic growth potential.Fertile land and a favorable climate enablediverse agricultural production, including arange of fruits and vegetables, livestock, dairyproducts, nuts, and tea. The country has along history of viticulture, and some 500varieties of grapes are cultivated. Recentinvestments in oil exploration have indicatedsignificant oil and gas potential. Other physicalresources include manganese, iron, coal,copper, gold, granite, limestone, marble, andmineral waters. Dense forests cover one thirdof the country, and numerous fast-flowingrivers offer good hydropower potential.In November 2003, many Georgians took partin a peaceful and democratic uprising knownas the "Rose Revolution," spurred by rampantcorruption and a failing state. The newgovernment under the leadership of PresidentSaakashvili focused on restructuring power,uprooting corruption, stabilizing the economy,and bringing order to the budget. In the 3years since, Georgia has made rapid strides infighting corruption, public sector reform and inproviding an enabling environment for privatesector development.Building on these accomplishments, thegovernment is now focusing on deeperinstitutional reform as well as morefundamental infrastructure improvementsdesigned to pull Georgia into the 21st centurythrough accelerated economic growth,substantial job creation, and a full-scaleassault on poverty and corruption. This yearGeorgia was named the year's number onereformer in the World Bank's 2007 "DoingBusiness Survey”.The Georgian economy is expected to haveweathered the impact of the blockadeimposed by Russia in 2006 relatively well, asvery large inflows of foreign direct investment(FDI) have largely offset the shutting down ofGeorgia's main export market, and areexpected to underpin the economy again in2007. Some indicators raise the spectra ofoverheating, although the banking systemlooks sufficiently well regulated to weathersuch a risk. During the last years, interest oflarge foreign banks toward Georgian bankingmarket increased significantly. In 2006 theshare of foreign investments in the total capitalof commercial banks equaled 58% (10 out of17 commercial banks have foreign investors).The construction of an oil pipeline from theCaspian Sea to a Black Sea terminal at Supsa(in Georgia) is bringing in substantial foreigninvestment. Construction of two new pipelinesacross Georgia increased its role as astrategic crossroad for hydrocarbon transit inthe Caspian region. As for the industrialsector, it is less developed and mainlyincludes manufacturing of transportequipment, electric motors, iron & steel,airplanes, chemicals and textiles. Theindustrial and mining sectors togethercontribute around 27% to the GDP. The mostdynamic sector is the services industry(particularly hotels, restaurants, transport andtelecommunications) and contributes morethan 55% to the GDP.In 2007 the Fitch Rating increased thesovereign rating of Georgia to BB-. Fitch gavethis high rating to Georgia due to successfulstructural reforms, reduction of corruption,high rate of economic growth, growth of directand foreign investments, reduction of foreigndebt and strong support of internationalcommunity. It is worth noting that despiteRussian embargo in 2006 and increasedpotential risk Georgia still maintained B+rating with S&P.* Information provided by the Georgian Stock ExchangeKey Information ContactsNational Securities Commission of Georgia www.nscg.gov.ge (under construction)National Bank of Georgia www.nbg.gov.geMinistry of Finance of Georgia www.mof.geGeorgian Central Securities Depository www.gcsd.ge (under construction)Georgian Securities Industry Association www.gsia.ge (under construction)Georgian Corporate Directors Association www.gcda.ge2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesIndustryPrivate consumptionPublic consumptionAgricultureGross fixed investmentNet exports of goods & services26.7706066.855.15018.2403026.3201012.60-10-20-17.8PAGE 74

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007GEORGIAN STOCK EXCHANGEGEORGIA ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (Lari billions) 6.7 7.5 8.6 9.8 11.6GDP (US$ billions) 3.2 3.4 4.0 5.1 6.4Real GDP growth (%) 4.8 5.5 11.1 5.9 9.3Consumer price inflation (av; %) 4.6 5.6 4.8 5.7 8.2Population (millions) 4.7 4.6 4.6 4.5 4.5Exports of goods (FOB) (US$ millions) 496.1 601.7 830.5 1,092.5 1,472.4Imports of goods (FOB) (US$ millions) -1,045.6 -1,084.7 -1,466.7 -2,008.6 -2,686.3Current-account balance (US$ millions) -211.7 -221.4 -374.8 -425.7 -750.7Foreign-exchange reserves excl gold (US$ millions) 159.4 197.6 190.7 382.9 473.2Exchange rate (av) Lari:US$ 2.07 2.20 2.15 1.92 1.81(a) ActualECONOMIC FORECAST SUMMARY2004 (a) 2005 (b) 2006 (b) 2007 (b)Real GDP growth (%) 6.3 8.0 10.0 8.0Consumer prices (% change) 5.7 8.2 7.6 5.8Budget balance (% of GDP) -3.0 -2.7 -2.8 -2.4Merchandise exports (US$ billions) 1.09 1.36 1.55 1.76Exchange rate (Lari:US$1) 1.917 1.813 1.790 1.760(b) The Economist Intelligence Unit Estimates2005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Ferro alloys, copper & goldOil, gas & electricityAutomotivesFerrous waste & scrap, iron & steelWineOtherTubes & pipesOther13.39.79.417.167.6727.23.72005-MAIN DESTINATION OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)Russia Turkey AzerbaijanTurkmenistan Armenia OtherRussia Turkey AzerbaijanUkraine Germany Other14.111.49.417.89.615.48.88.78.34.645.246.7The Economic Intelligence Unit Ltd., July 2006PAGE 75

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007IRAQ STOCK EXCHANGETaha Ahmed Abdul SalamCEOThe important issue for the year 2006 wasthe signing of the agreement between ISXand OMX to provide the market withELECTRONIC SYSTEMS (Equator & HorizonSYSTEMS).Iraq Stock Exchange (ISX) introduced a specialindex in October 2004 which closed inDecember 2004 at 64.996 points, January 2006at 38.209 points and December 2006 at 25.288points.The ISX held approximately 92 sessions in 2006compared with 94 sessions in 2005. The totaltrading volume for the year of 2006 reachedUS$ 101 million, a decrease of 59% whencompared with the year 2005. The total tradedshares in 2006 were 57,974 million shares, anincrease of 4% when compared with the year2005. The total numbers of transactionsreached in 2006 was 38.6 thousand.In 2005, the number of the listed companiesreached 85 companies compared with (80)companies in 2004. The number of listedcompanies in 2006 increased to reach (93).During first half of 2006, ISX has organized anumber of training courses such as the trainingcourse of agent brokers and training coursesfor investors. These training courses include theteaching of Trading in ISX and FinancialStatements. The ISX publishes a specialnewspaper called the Capital Market. Publishedin Arabic, the Capital Market covers all financialevents which happen within the ISX and thelisted companies. The Iraq Stock Exchangepublishes its information in the websitewww.isx-iq.net.The ISX has successfully joined FEAS(Federation of Euro-Asia Stock Exchanges),which held its annual meeting in Shiraz onSeptember 21st, 2005. Also, ISX hassuccessfully joined the Union of Arab StockExchange in June 2006.The important issue for the year 2006 was thesigning of the agreement between ISX andOMX to provide the market with ELECTRONICSYSTEMS (Equator & Horizon SYSTEMS).And the first travel program was realized bysending 7) employees from the IT departmentto Amman, Jordon for training with IBM. Ourplan is to be live with the E-Trading by April2007.Iraq Stock Exchange is still a small market butwe are doing our best to transform it to meet orexceed the standards in the region.HISTORY AND DEVELOPMENTFor the period of 1992-2003 the BaghdadStock Exchange was operating and waswell known.The previous Baghdad Stock Exchange wasestablished by the law No. 24 in 1991.The market was related to the government andit was able to list (113) of different companies,some private and others from the mixed sector.During that period especially in 2003, themarket had gained an annual trading volumeexceeding,US$ 17.5 million. But this market was closedby a decision of its Governing Council on19 March 2003.Establishment of Iraq Stock ExchangeOn 18 April 2004 the temporary law No. 74 wasissued, it gave the authority to establish twoimportant capital development bodiesconcerning financial sectors,they are:A. ISXB. Iraq Security Commission (ISC).Meaning of ISXThe ISX is an entity capital market not relatedor powered by the government.It is directed by a Board of nine membersrepresenting different economical sectorsof investments called the BOG.The market is the place where the investments,exchange stocks, purchasing and selling aredone. It is considered one of the channels inwhich funds can flow between persons andcommissions through different sectors thatmay help to mobilize and develop financingand financial channels in order to givereadiness for different investments.Goals of the ISXa) to operate and regulate its members and tolist companies in a manner that is consistentwith the goal of protecting investors andpromoting investor confidence in the market.b) to promote the interests of investors inefficient, reliable, competitive, transparent andhonest markets.c) to organize and facilitate fair, efficient andorderly transactions in securities, including theclearance and settlement of such transactions.d) to regulate its members’ dealings insecurities-related services and transactionsand define the rights and obligations of partiesconcerned and the means to protect their legalinterests.e) to assist in capital-raising for companieswhich either are listed, or which desire to list onthe Exchange.f) to engage, as appropriate, in investoreducation programs to educate potentialinvestors about opportunities for investments atthe Exchange.g) to collect, analyze and publish statistics andinformation necessary to achieve the goalsstipulated in this Law.h) to establish and support contacts with thestock exchanges of Arab and internationalmarkets that may be beneficial to thedevelopment of the Exchange.i) to undertake other services and activitiesnecessary to support its objectives.FUTURE OUTLOOK• list more companies as they meet listingrequirements,• participate in conferences and internationalsymposiums,• initiate development and training programs incooperation with other exchanges, especially inthe Middle East,• install and begin operating the automatedelectronic trading system in May 2007• assist in the eventual privatization of stateowned enterprises,• issue a new Securities Law in cooperationwith the Iraqi Securities Commission,• hold meetings and symposiums withfinancial investment companies and investors,• publish trading data and information aboutthe ISX to encourage investment in Iraq,• open new branches (Trading halls ) In Erbiland Basrah, that will be electronically linked tothe ISX in Baghdad,• contract with a satellite channel to sharetrading session information to all investors,and;• obtain permission from the Iraqi SecuritiesCommission for foreign investment on the ISX.PAGE 76

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007IRAQ STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 2.87 0.36 2,219.10 277.39Feb-07 4.43 0.55 2,616.46 327.06Mar-07 9.38 1.17 6,354.99 794.37Apr-07 7.48 0.83 5,888.89 654.32May-07 5.06 0.56 4,909.92 545.55Jun-07 7.11 0.89 5,845.61 730.70TOTAL 36.35 0.73 27,834.98 554.90BondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 1,427.19 25.9Feb-07 1,464.38 26.29Mar-07 1,618.70 28.75Apr-07 1,466.04 26.6May-07 1,349.87 24.97Jun-07 1,516.63 25.88CONTACT INFORMATION10987654321030 1,800251,6001,40020 1,200151,00080010 600540020000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Jimmy Afham Toma E-mail jimmy-aham@yahoo.com Website www.isx-iq.netPAGE 77

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007IRAQ STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe Iraqi government has worked aggressivelyto disengage sectarian violence being wagedby Iraqi militias for political and territorialadvantages. Although there have beenchallenges in the overall reconciliation processthere are still many outstanding issues thatwould need to be addressed before a formalreconciliation is rendered.It is the increasing belief that there will be areduction in the violence if the reconciliationefforts are taken seriously. Local territoryconflicts are expected to continue, asopposed to larger scale secessionistmovements. As long as there is continuedcommitment to the political process, there willcontinue to be strides made to assure thecountry does not fracture. Oil productiongrowth will be dependant upon security,investment and new refining capabilities. Thenew oil investment law, scheduled to bepassed in December, is expected to have apositive influence on additional fundallocations for the petroleum industry.The efforts of the Iraq government to maintaina political process are of continuedimportance to the overall climate of Iraq.Despite difficulties on domestic issues, allsects continue to work together to debatedifferences and negotiate through obstaclesas well as participate in national reconciliation.The national reconciliation is one mainobstacle in diminishing the ongoing violence.Kurdistan has been in negotiations with thegovernment to have Kirkuk merge into theirautonomous region. These negotiations havebeen continuous with no finalized results todate. Disputes over territories remained afocal point for political and sectarian parties.While some territorial disputes are moredrastic than others, these disputes will not beenough to initiate a clear division of thecountry.Iraq' primary economic objective has been toincrease oil output on a sustainable basis fromthe 2005 average of 1.8 million barrels per day(b/d) to the current capacity level of 2.2 millionb/d. The overall target range for the next 3-5years is expected to be 3-3.5 million b/d. Theyear to date output evaluation shows amarked improvement considering disruptionssuch as sabotage, low investment andlogistical issues in both capacity and exportsupply. Currently, all oil extracted within Iraqhas not been accounted for, due to the pooraccounting of production and lack of an oilmetering system, which has been suggestedby the International Advisory and MonitoringBoard for Iraq. While Iraq has plentiful oilreserves, price controls have resulted inshortages of refined products and have fueledthe black market supply. Continuing to meetproduction targets will be essential to gainmuch needed funding necessary to achievethe politically vital goal of ensuring the stableprovision and expansion of basic services.Economic PerformanceGiven the ongoing security problems in 2007,oil output is expected to rise modestly.Additionally, government spending ondevelopment will be constrained by securitycosts, corruption and the non-oil sector willcontinue to be blighted by the lack of securityand the slow pace of construction and funddisbursement. As a result, real GDP growth in2007 will be around 3%. In 2008 this will pickup only slightly, rising to 4%, as oil outputincreases remain modest and inherentconstraints on the non-oil economy remain.It is of note that foreign direct investmentamounts to less than 1% of the country's GDPwhile 70% of Iraq's GDP is derived from oilrevenues.Average inflation for 2007 was down to 54%.This is mainly due to the recent availability ofdata for the second quarter of this yearindicating a sharp rise in the inflation, inaddition to anecdotal accounts of strong risesin much of the country. These have partlyreflected the recent easing of fuel subsidies.However, with the expectation that the fuelsubsides will remain in place, for the shortterm, and given the rise in value of the dinar,inflation should be constrained from risingmore sharply. Although the cost of importedgoods have risen strongly in 2007, these risesare expected to decline markedly in 2008,helping to ease Iraqi inflation to a forecasted40%.The Central Bank of Iraq (CBI) is committed tomaintaining what has become a de facto pegto the US dollar. With the apparent resort toforeign-exchange "rationing" (under otherguises) in some instances in the CBI's dailycurrency auctions, the average official rate wasdown to NID1,228:US$1 since the first quarterof 2007. However, in December 2007 theCentral Bank began raising the value of thedinar to offset the rising inflation. The CentralBank appears reluctant to use its largeaccumulated gross foreign-exchange reserves(of US$12.2 billion at end-2005) to satisfy thedollar demand, the (CBI) has raise localcurrencyinterest rates to stem the pressure onthe dinar and lower inflation.** The Economic Intelligence Unit Ltd., October 2006 and theIraq Stock ExchangeKey Information ContactsIraq Association of Securities Dealers: www.iasd-iq.orgIraq Central Bank: www.cbiraq.orgPAGE 78

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007IRAQ STOCK EXCHANGEIRAQ ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP (US$ billions) 18.9 19.0 12.7 25.5 30.6Real GDP growth (%) -8.2 -14.2 -35.3 46.5 1.5Consumer price inflation (av; %) 16.4 26.3 36.3 31.7 31.6Population (millions) 25.8 26.6 27.3 28.1 28.8Exports of goods (FOB) (US$ millions) 16,457.0 12,218.8 (b) 9,711.1 (b) 16,863.0 (b) 23,032.0Imports of goods (FOB) (US$ millions) 11,152.0 9,817.3 (b) 9,933.5 (b) 19,731.0 (b) 20,154.0Current-account balance (US$ millions) 1,786.1 -2,173.0 (b) -2,635.6 (b) -20,285.0 (b) -7,451.0Total external debt (US$ billions) 111.8 112.5 111.1 109.1 96.4Debt-service ratio, paid (%) 0.0 (b) 0.0 (b) 0.0 (b) 1.0 0.0Exchange rate (av) NID:US$ 0.310 (c) 0.310 (c) 0.310 (c) 1,469.0 (c) 1,487.0 (c)(a) Economist Intelligence Unit estimates. (b) Actual. (c) International Financial Statistics, December 2006.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009Real GDP growth (%) 46.5 -3.0 2.1 5.5Consumer prices (% change) 31.7 33.0 30.0 25.0Merchandise exports (US$ billions) 16.86 24.03 27.14 25.69Merchandise imports (US$ billions) 21.30 23.43 24.14 24.98Exchange rate (NID:US$1) 1,453 1,469 1,477 1,4702005-MAIN DESTINATION OF EXPORTS (%) (a)2005-MAIN ORIGINS OF IMPORTS (%) (a)USAEUCanadaSyrian Turkey EUBrazilKoreaOtherUSAJordanOther50.723.15.73.73.521.517.211.913.323.55.320.62005-MAIN TRADING PARTNERS (%)USATurkeyEU SyriaCanadaOther20.611.610.534.23.519.6The Economic Intelligence Unit Ltd., October 2006Euro stat (Statistical Office of the European Communities)PAGE 79

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ISTANBUL STOCK EXCHANGEOsman BirsenChairman & CEOIn 2006, there were 13 new listings on theISE Stock Market. The market capitalisationof 316 ISE traded companies reachedUS$ 163.8 billion at the end of 2006.The Turkish economy has grown by a third sincethe 2001 crisis. Extensive macro-economic andstructural reforms have helped to increaseconfidence, reduce risk premia, and stimulatedomestic and foreign investment. However, Turkeywas seriously affected by the decline in the riskappetite of the international financial markets inearly 2006, which led to a currency turmoil andrising interest rates as foreign investorstemporarily withdrew from emerging markets.This stemmed mainly from the concerns that USinterest rates would rise more than previouslyexpected. For the Turkish economy, the mainchallenges that remain to be addressed are,1) to further strengthen the fiscal and monetaryinstitutions in order to make the economy moreresilient to shocks, 2) to accelerate the pace ofreform in labor, product and agricultural marketsand in the social security and education systems.The impressive package of fiscal consolidationand institutional reform that has been appliedsince the 2001 crisis has created a strongfoundation for economic growth. As a result of thisprogram, GDP growth rate has been strong andstable, inflation has fallen, and the public debtburden has been reduced significantly. On theother hand, the current account deficit remainslarger than expected.In 2006, the decisive implementation of acomprehensive economic program has helpedTurkey significantly improve its macroeconomicsituation. The ongoing process of EU accessionand the signing of a new Stand-By arrangementwith the IMF for the period of 2005-2008 havecreated two strong anchors for increasing Turkey’sgrowth potential and improving a betterfunctioning market economy.As far as the Istanbul Stock Exchange (ISE) isconcerned, some of the ISE member brokeragehouses, banks and some ISE traded companieswere bought by foreign investors through takeovers,mergers and acquisitions. Consequently,the share of foreign banks in the Turkish bankingsector increased.As of the end of 2006, the ISE-National 100 Index,the main stock market index on the ISE,decreased by 6.1% in US$ terms compared to thevalues at the end of 2005. The stock market totaltraded value increased to US$ 229.6 billion by13.8% as of the end of 2006, compared to the endof 2005. The average daily traded value stood atUS$ 919 million at the end of 2006.In 2006, there were 13 new listings on the ISEStock Market. The market capitalisation of 316ISE traded companies registered a slight increaseto reach a level of US$ 163.8 billion at the end of2006 compared to the previous year. Six ETFs(Exchange Traded Fund) are traded on the ISE asof the end of 2006.The net equity investment in Turkey by foreignportfolio investors in 2006 was registered atUS$ 1,143 billion; representing 65% of the freefloatingshares as of end-2006.The ISE Bonds and Bills Market, on the otherhand, was also quite hectic; the average dailytrading volume increased by 18% in 2006 toreach US$ 8,130 million.The ISE starts the year 2007 with new projectsincluding the launch of an “opening session” forthe Stock Market. The opening session will consistof three phases, namely; Opening (08:30-09:50),Order Entry (09:30-09:50) and Opening Process(09:50-10:00). The Disclosure Automation Project,which will enable traded companies to directlydisclose information using Internet technologiesand digital certificates, is planned to be put intouse in 2007.HISTORY AND DEVELOPMENTIn 1981, the Capital Market Law was enacted andone year later, the Capital Markets Board wasestablished. In October 1983, the Parliamentapproved the Regulations for the Establishmentand Operations of Securities Exchanges, whichpaved the way for the establishment of the IstanbulStock Exchange (ISE), formally inaugurated on 26December 1985.Currently, there are three markets operating at theISE; the stock market, the bonds and bills marketand the foreign securities market. The ISE providesa fair and transparent environment for trading of awide variety of securities namely, stocks, exchangetraded funds, government bonds, Treasury bills,money market instruments (repo/reverse repo),corporate bonds and foreign securities.As of the end of June 2007, 103 out of 104members have been provided with remote accessto the stock market trading systems. During thesame period, the number of orders sent bymembers via Ex-API (Express ApplicationProgramming Interface) terminals reached 99% ofall orders, with the number growing steadily.Trading on the bonds and bills market is alreadycarried out remotely.In 1989, the foreign exchange regime wasamended to allow non-residents to invest in Turkishsecurities, making the Turkish stock and bondmarkets open to foreign investors without anyrestrictions on the repatriation of capital and profits.The ISE was recognized as a “Designated OffshoreSecurities Market” by the U.S. Securities andExchange Commission in 1993 and wasdesignated as an “appropriate foreign investmentmarket for private and institutional Japaneseinvestors” by the Japan Securities DealersAssociation in 1995. Likewise, the ISE has beenapproved by the Austrian Ministry of Finance as aregulated market in accordance with theregulations of the Austrian Investment Fund Act in2000.As a result of all these developments, foreigninvestors now account for a substantial volume ofdaily trading and hold around 70.5% of the publiclyheldstocks in their portfolios.The ISE currently owns 32.6% of the ISE Settlementand Custody Bank (Takasbank), 30% of the CentralRegistry Agency and 18% of the Turkish DerivativesExchange (TURKDEX). On the international level,the ISE has participations in the Kyrgyz and BakuStock Exchanges with stakes of 24.5% and 5.55%,respectively.FUTURE OUTLOOK• The International Bonds Market within the ISEForeign Securities Market provides a transparentand secure trading environment for listed TurkishSovereign Eurobonds and has been active since 16April 2007. The Market is open from Monday toFriday and transactions take place between 09:30-12:00 and 13:00-17:00 on business days.• The ISE will make some changes in the StockMarket trading hours. The new trading hours willcome into effect as of 7 September 2007.According to the new arrangement the openingsession of the first session will be reduced 15minutes and continuous trading will be extended 15minutes, as to continuous trading will take placebetween 09:45-12:00. As of 7 September 2007, thesecond session will be extended half an hour andwill take place between 14:00-17:00.• The ISE has launched “the opening session” forthe Stock Market starting from 7 February 2007.• The joint and central surveillance project of theCapital Markets Board and the ISE, which allowsreal time surveillance to be carried out electronicallyand more efficiently, is in progress.• The Disclosure Automation Project, which willenable traded companies to directly discloseinformation using Internet technologies and digitalcertificates, is being tested. With the new system,financial statements, explanatory notes, specialsituations and other information submitted by thecompanies will be received electronically in line withthe information security standards and bedisclosed to the public by electronic means.• The ISE is coordinating the reinforcement ofcooperation among the Organization of IslamicConference (OIC) Member States’ stock exchangesforum. Technical Committee and InformationTechnology (IT) Committee work on the possibleareas of cooperation.PAGE 80

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ISTANBUL STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 19,627.62 981.38 8,173.14 408.66Feb-07 22,172.03 1,108.60 9,850.52 492.53Mar-07 20,627.54 937.62 9,801.99 445.55Apr-07 23,211.96 1,160.60 10,843.77 542.19May-07 23,644.59 1,028.03 9,208.05 400.35Jun-07 16,753.44 797.78 6,562.89 312.52TOTAL 126,037.18 1,002.33 54,440.35 433.63BondsJan-07 28,101.68 1,405.08 0.0582 0.0029Feb-07 22,740.30 1,137.01 0.0498 0.0025Mar-07 26,209.03 1,191.32 0.0566 0.0026Apr-07 20,426.82 1,021.34 0.0411 0.0021May-07 24,886.06 1,082.00 0.0477 0.0021Jun-07 24,751.62 1,178.65 0.0452 0.0022TOTAL 147,115.50 1,169.24 0.2986 0.0024OtherJan-07 134,780.09 6,739.00 0.050 0.0025Feb-07 130,099.19 6,504.96 0.049 0.0024Mar-07 157,831.53 7,174.16 0.059 0.0027Apr-07 142,596.81 7,129.84 0.052 0.0026May-07 172,204.24 7,487.14 0.059 0.0026Jun-07 159,234.65 7,582.60 0.055 0.0026TOTAL 896,746.52 7,102.95 0.32 0.0026MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 172,118.82 1,696.60Feb-07 175,002.21 1,707.44Mar-07 186,493.39 1,842.28Apr-07 193,309.62 1,925.20May-07 218,184.73 2,082.33Jun-07 221,689.46 2,102.0425,00020,00015,00010,0002,5002,0001,5001,000250,000200,000150,000100,0005,00050050,000000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Eren Kiliclioglu E-mail dis@imkb.gov.tr Website www.ise.orgPAGE 81

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ISTANBUL STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentTurkey has significantly improved itsmacroeconomic situation by the decisiveimplementation of a comprehensive economicprogram with the backing of a single partygovernment. The policy combination followedsince 2002 based on tight fiscal and monetarypolicies and a flexible exchange rate regimehave led to an outstanding improvement in keyeconomic variables. Structural reforms infinancial markets together with a radicalprogress in policy framework and institutionaladvancement paved the way to sustainablehigh growth which enhanced prospects forTurkey’s eventual membership to theEuropean Union (EU).Turkey has implemented a range of economic,political and social reforms in an effort to meetEU requirements. The ongoing process of EUaccession and the signing of a new Stand-Byarrangement with the IMF covering the periodof 2005-2008 have created two strong anchorsfor increasing Turkey’s growth potential andimproving a better functioning marketeconomy.As a result of the EU pre-accesion process,Turkey’s economic legislation has beenprogressively aligned with the main policiesand standarts of the EU which furtherstrengthened the macroeconomicenvironment.Economic PerformanceFollowing the GNP growth rate of 6% achievedin 2006, the Turkish economy grew by 6.7% inthe first quarter of 2007. The growth wasmainly driven by the construction sector andindustry sector, which grew by 16.2 % and7.5% respectively in the first quarter of 2007.On the expenditure side, public sectorconsumption and investment expendituresmade the highest contribution to growth.Public sector consumption rose by 9% andpublic sector investments increased by 9.3%.As of May 2007, exports and imports reachedUS$ 40.5 billion and US$ 62.6 billion,respectively, exports registering an increase of26.1% and imports registering an increase of16.2% compared to the January-May period of2006. Accordingly, the rate of imports coveredby exports stood at 64.7 percent as of May2007.The year-on-year consumer price indexdecreased to 8.6 percent as of the end-June2007, from 10.12 percent as of June 2006. Theyear-on-year producer price index decreasedto 2.89 percent as of the end-June 2007, from12.52 percent as of June 2006.The consolidated budget registered a deficit ofYTL 5.9 billion as of the end-June 2007bringing the year to date primary surplus toYTL 21 billion. Total revenues increased by12.8% to YTL 94.8 billion and totalexpenditures increased by 23.4% to YTL 100.7billion as of the end-June 2007 compared tothe same period of 2006.January–June 2007, privatization grossrevenues were recorded as US$ 3.5 billion.January–June 2007, “Tobacco, TobaccoProducts, Salt and Alcohol Enterprises Inc.”,“Turkish Electricity Distribution Inc.”, “TDCIDeveci Iron Mine”, “Karadeniz Bakir‹sletmeleri” “Mersin Port”, “Real Estate inIstanbul”, “Sumer Holding BUMAS” and“T.Halkbankasi” were privatized.As of the end-June 2007, the ISE-National 100Index, the main stock market index on the ISE,increased by 32.8 percent in YTL terms andincreased by 60 percent in US$ termscompared to the values at the end of June2006. The ISE National-100 Index increased toa level of 47,093.7 in YTL terms (2,102.04 onUS$ basis) at the end of June 2007 from35,453.31 (1,315.23 on US$ basis) at the endof June 2006. The stock market total tradedvalue decreased to YTL 172.4 billion by 9.5%on YTL basis and decreased to US$ 126billion by 8.6% in US$ terms as of the end ofJune 2007 when compared to the same periodof 2006. The average daily traded value stoodat YTL 1.37 billion (US$ 1 billion) as of theend-June 2007.The market capitalization of 322 ISE tradedcompanies increased to a level of YTL 289billion (US$ 221.7 billion) as of the end-June2007 compared to YTL 201.2 billion (US$128.3 billion) at the end of June 2006. SevenETFs (Exchange Traded Fund) are traded onthe ISE as of the end-June 2007.The net equity investments within the publiclyheld portion of the ISE traded companies byforeign portfolio investors has been registeredat around US$ 49.7 billion as of the end-June2007 representing 70.5% of the total custodybalance of the stocks.The turnover in public debt securities on YTLbasis, transacted on the Outright Purchasesand Sales Market, decreased by 5.1% to YTL201.5 billion and in US$ terms by 5% to US$147.1 billion in January-June period of 2007,compared to the same period of 2006. TheRepo/Reverse Repo Market turnover on YTLbasis decreased by 0.9% to YTL 1,224 billionand increased by 1.3% in US$ terms to US$896.7 billion in the same period. The averagedaily traded value in the Outright Purchasesand Sales Market and the Repo/Reverse RepoMarket stood at YTL 11.3 billion (US$ 8.3billion) as of the end-June 2007.During the January-June period of 2007, 8companies and one Exchange Traded Funds(ETFs) offered their stocks for the first time topublic and started to be traded on the ISEStock Market. As of the end-June 2007, theamount of funds raised by the IPOs of 8companies was US$ 2.8 billion.** Information provided by Istanbul Stock ExchangeKey Information ContactsCapital Markets Board of Turkey www.cmb.gov.trISE Settlement and Custody Bank Inc.(Takasbank) www.takasbank.com.trCentral Registry Agency Inc.of Turkey www.mkk.com.trThe Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.trThe Turkish Derivatives Exchange (Turkdex) www.turkdex.org.trPAGE 82

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ISTANBUL STOCK EXCHANGETURKEY ECONOMIC CHARTS AND TABLES2001 2002 2003 2004 2005 2006 2007GDP at market prices (YTL millions) 178,412 277,574 359,763 430,511 487,202 576,322 129,906 (1)(Revised)GDP (US$ millions) 145,573 184,400 241,300 300,578 361,470 400,046 91.989 (1)(Revised) (Revised) (Revised)Real GDP growth (%) -7.5 7.9 5.8 8.9 7.4 6.1 6.8 (1)(Revised)Consumer price inflation (av; %) 68.5 29.8 18.4 9.3 7.7 9.7 8.6 (2)(Revised)(Revised)Population (millions) 69.3 70.3 71.3 72.3 73.3 74 NAExports (US$ millions) 31,334 36,059 47,253 63,167 73,476 85,526 40,483 (3)(Revised) (Revised) (Revised)Imports (US$ millions) 41,399 51,554 69,340 97,540 116,774 138,581 62,555 (3)(Revised) (Revised) (Revised)Exports/imports ratio 75.7 69.9 68.2 64.8 62.9 61.7 64.7(Revised)(Revised)Current-Account Balance (US$ millions) 3,392 -1,521 -8,036 -15,601 -22,603 - 31,896 -15.833 (3)(Revised) (Revised) (Revised) (Revised) (Revised) (Revised)Foreign exchange reserves (US$ millions) 18,879 27,069 33,991 36,006 50,518 60,845 68,252 (2)(Revised)Total external debt (US$ billions) 113.6 129.7 144.3 160.8 168.8 207.4 213.4 (1)(Revised) (Revised) (Revised) (Revised)Debt-service ratio, paid (%) 40 46.5 38.5 27 32 30 14 (2)(Revised)(Revised)Exchange rate (av) YTL:US$* 1.2214 1.5027 1.4957 1.4208 1.3401 1.4285 1.3683 (2)(Revised)(1) January-March 2007* Information provided by Istanbul Stock Exchange(2) January-June 2007(3) January-May 2007PAGE 83

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KARACHI STOCK EXCHANGEM. A. LodhiManaging DirectorIt is expected that size of the market interms of volume and market capitalizationwill increase further, thus attracting bothlocal and foreign portfolio investment in thecountry.The Karachi Stock Exchange continued toperform well in 2007. The KSE 100 Indexclosed at 10510.28 points on August 31, 2006with a market capitalization of around US$58.7 billion. On July 13, 2007 Karachi StockExchange (KSE) has achieved anothermilestone as the KSE 100 Index touched at alltime high of 14202 points with the marketcapitalization of around US$ 69 billion. DuringJan – Aug 2007, 12 new companies listed theirshares worth over US$ 820 million. In July2007 under GOP privatization policy theshares of Habib Bank Ltd offered to thegeneral public amounted to Rs.517.5 millionhaving listed capital of Rs.6.9 billion. TheExchange also listed 3 debt instruments ofRs.6.5 billion (equivalent to approximatelyUS$ 107.4 million). The average daily turnoverof shares was 270 million as compared to 262million shares. The daily average value ofshares was US$ 396 million as compared to522 million last year.The economy has delivered yet another yearof solid economic growth of 7% against 6.6%;the country’s real GDP grew at an averagerate of 7.5% per annum during last four years.The high growth trajectory has been madepossible by the robust performance ofagriculture, industrial and service sector.However, inflationary pressure in the economy,mainly emanating from high international oilprices and increased domestic demand ofvarious commodities, led to a rise in interestrates. The per capita income has increasedfrom US$ 833 (in 2005-2006) to US$ 925. Thetotal investment as percentage of GDP hasincreased from 21.7% to 23% of GDP.Pakistan has successfully issued US$ 750million 10 years sovereign bond which wasoversubscribed by 7 times as foreign investorsshowed their full support and confidence inPakistan’s policies and the investment friendlyatmosphere in the country. The country offersmany lucrative investment opportunities.During July-May 2007 foreign directinvestment of US$ 4.5 billion against US$ 3.2billion of corresponding period last year.The stock market’s strong performance isattributable to the impressive growth in theprofitability of the listed sectors in general andthe Banking, Cement, oil & Gas, Fertilizer andautomobile sectors in particular. TheGovernment polices on privatization andliberalization also contributed to the positivemarket performance. In view of the growingfuture demand, and the expected entry of theprivate of sector into the new ventures createdby the government and also the government’saggressive privatization policy additionalinvestment is anticipated. Moreover, with thegreatly improved and far more efficient tradingsystems at the Exchange complemented bysound risk management and stringentregulatory framework, the prospects of theKarachi Stock Exchange are full of promise.HISTORY AND DEVELOPMENTKSE came into existence on 18 September1947. It was later converted and registered asa company limited by guarantee on 10 March1949. As many as 90 members were licensedat that time, only half a dozen were active asbrokers. Initially, only five companies werelisted with a paid-up capital of Rs. 37 million(US$ 0.62 million). As of August 31, 2007,ordinary shares of 656 companies were listedwith the market capitalization of around US$58.7 billion having listed capital of US$ 10.5billion.The Karachi Stock Exchange was declared as“The Best Performing Market of the World” inthe year 2002, by international magazine“Business Week” and a US newspaper “USAToday” on registering increase of 112% in theKSE 100 Index.In 1991 the secondary market was opened toforeign investors on an equal basis with localparticipants. This measure, along with a policyof privatization, has resulted in rapid growth ofthe market since 1991. Privatization has beenadopted as a philosophy, and activities thatwere previously reserved for the public sectorhave now been opened to the private sector.On July 13, 2007 Karachi Stock Exchange(KSE) has achieved another milestone as theKSE 100 Index touched at all time high of14202 points and on August 31, 2007 indexclosed at 12214 points. The record-breakingperformance of the KSE during the last sevenyears is attributed to the positive andconsistent policies of the governmentespecially on privatization and liberalizationand a number of measures implemented bythe Exchange.The KSE has taken a number of measures toincrease investor’s confidence by making theExchange more transparent and introducedmodern technology in order to convert themarket into a truly modern and efficient one. Inthis regard on August 2007 T+2 settlementsystem was introduced in place of T+3. Riskmanagement system based on VaR wasimplemented from Dec 2006, UIN registrationhas been implemented from August 01, 2006,pre trade verification system was alsoimplemented, Internet based trading has alsostarted from December 6, 2004. To improveliquidity in the capital market and replacing theCarry over Transactions (COT or Badla)completely Continuous Funding system (CFS)was introduced and implemented with effectfrom August 22, 2005. In addition, corporategovernance is now the part of KSE’s listingregulation. Transparency has been enhancedwith the implication of quality audits, quarterlyfinancial reports and timely dividend payouts.FUTURE OUTLOOKThe Karachi Stock Exchange is determined toremain one of the growing investmentinstitutions not only within the country butglobally as well. The future projects include:• Demutualization of the Exchange,• Introduction of new derivative products in linewith international standards, such as indexfutures, options, etc.,• Futures Contracts with options of cashsettlement,• Improved I.T. infrastructure including settingup of BCP & DRS,• Cross Border Listings,• Investors’ education and enhancing theirawareness; and• Strengthening of the reform process.PAGE 84

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KARACHI STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 8,968.68 472.04 4,280.89 225.31Feb-07 14,636.79 770.36 7,157.86 376.73Mar-07 8,384.33 399.25 4,782.61 227.74Apr-07 11,196.31 533.16 6,984.77 332.61May-07 12,359.44 561.79 755.53 34.34Jun-07 14,197.17 676.06 8,894.01 423.52TOTAL 69,742.72 568.78 32,855.66 270.04BondsJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 1.02 0.05 0.01 0.0006Apr-07 1.65 0.079 0.02 0.001May-07 0.0 0.0 0.0 0.0Jun-07 0.03 0.001 0.0003 0.00002TOTAL 2.70 0.06 0.03 0.0008OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 50,656.81 11,272.33Feb-07 50,280.77 11,179.97Mar-07 50,507.35 11,271.59Apr-07 59,415.28 12,369.70May-07 62,292.99 12,961.00Jun-07 66,436.66 13,772.46CONTACT INFORMATION16,00014,00012,00010,0008,0006,0004,0002,000014,000 70,00012,000 60,00010,000 50,0008,000 40,0006,000 30,0004,000 20,0002,000 10,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Mohammed Yacoob Memon E-mail gm@kse.com.pk Website www.kse.com.pkPAGE 85

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KARACHI STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentGeneral Musharraf will continue to dominatethe political scene, although his position isbecoming more insecure. General Musharraf,who came to office in a military coup in 1999,retains the power to dismiss parliament andthe prime minister (and thereby impose fullmilitary rule) in his capacity as chairman ofthe National Security Council, and his firmcontrol over the army and its corpscommanders remains his ultimate guarantorof power. However, the opposition is severelycritical of his rule, and has been campaigningaggressively for a return to full democracy.Despite being weak, it is gaining inpopularity.Historically acrimonious relations betweenPakistan and its long-standing military rival,India, have been slowly improving since a lowin 2002. Despite setbacks and negativestatements released by both sides to themedia, relations should continue to improve.Most importantly, all-out war is likely to beavoided (although skirmishes in border areaswill continue). However, bilateral relations in2006 have been far from smooth. In July2006 India's commercial capital, Mumbai,was hit by a series of bombs that killed over200 people, and in late September the city'spolice stated that the attack had beenplanned by Pakistan's Inter-ServicesIntelligence (ISI) agency and carried out byoperatives of a militant group, Lashkar-e-Toiba. Nevertheless, reinforcing the view thatbilateral relations are maturing is the fact that,despite the July attacks, India and Pakistanpledged to continue peace talks on thedisputed territory of Kashmir. Indeed, a thirdround of foreign-secretary level talks (aimedat improving dialogue over the issue ofterrorism) that were cancelled following thebombings will take place in mid-November.Moreover, India's prime minister, ManmohanSingh, told reporters on October 20th that hehad accepted an invitation, made by GeneralMusharraf in September, to visit Pakistan.(The timing has yet to be agreed.)International oil prices and domestic inflationare high at present, and could underminemacroeconomic stability and economicgrowth prospects. Action to stem the risingtrend in consumer price inflation came late.This lack of timely action, coupled with anoverheating of the economy, is the mainsource of economic policy risk in 2007-08.Pakistan's policymakers have in the past fewyears created an environment within whichthe private sector has begun to thrive. Thesepolicy measures include substantialprivatization, reforms in the banking and utilitysectors, and efforts to reduce red tape.Economic PerformanceThe rate of real GDP will slow from 6.6% in2006/07 to a still respectable 6.1% in2007/08. Growth will be driven by thecontinued expansion of textile production andother manufacturing output. The strength ofthe industrial sector will in turn stimulategrowth in services output, particularly in thecommerce, trade and transport sub sectors.Agricultural growth will also remain fairlyhealthy. Indeed, the improving outlook for themonsoon season has resulted in an expectedimprovement; real GDP figures in 2006/07 arebeing raised from 6.4% last month to 6.6%currently–growth in the agricultural sector isnow expected to be more buoyant in thatyear.Inflationary pressures remain the biggestthreat to economic growth. Monetarytightening by the central bank in July willassist in controlling consumer price inflation.Year-on-year inflation fell from a peak rate of11.1% in April 2005 to 6.2% in April 2006, buthad risen to 8.1% in October. Part of thereason for the persistence of inflationarypressure in 2006 is that wholesale priceinflation has remained high; it averaged 8.7%year on year in the first ten months of 2006.Nevertheless, this masks a gradual decliningtrend, as year-on-year wholesale priceinflation has decelerated from 9.1% in June to6.7% in October. A slowdown in domesticdemand growth and an improvement in foodsupplies will also contribute to a fall ininflation, partly offsetting some of the upwardpressure on domestic prices caused by highinternational oil prices. On balance,consumer price inflation is expected toaverage 7% in 2007 and then slow to 5.5% in2008.The Pakistan rupee's average exchange rateis estimated at PRs60.4:US$1 in 2006. It isforecast to depreciate to an average ofPRs62.8:US$1 in 2007 and PRs64.1:US$1 in2008, largely as result of the wideningcurrent-account deficit. Nevertheless, inflowsof foreign aid, remittances from Pakistanisworking overseas and a broader weakness ofthe US dollar in the international foreignexchangemarket are expected to continue tosupport the rupee. The rate of the currency'sdepreciation against the US dollar could,however, be faster if the domestic politicalsituation deteriorates or if international oilprices come under renewed upwardpressure.** The Economic Intelligence Unit Ltd., July 2006Key Information ContactsGovernment of Pakistan www.pak.gov.pkMinistry of Finance www.finance.gov.pkPrivatization Commission www.privatisation.gov.pkState Bank of Pakistan www.sbp.org.pkSecurity and Exchange Commission of Pakistan www.secp.gov.pk2004/05-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)Services Agriculture Mining & manufacturingElectricity, gas & water supply Construction2004/05-COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (a)Private consumption Government consumption Fixed investment & StockbuildingImports of goods & services Exports of goods & services53.421.620.22.52.380706050403020100-10-2080.07.816.9 15.3-19.9PAGE 86

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KARACHI STOCK EXCHANGEPAKISTAN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (PRs billions)(b) 4,163 4,402 4,823 5,533 6,548GDP (US$ billions) (b) 71.2 71.5 82.3 96.2 110.7Real GDP growth (%) (b) 2.6 3.2 5.0 6.4 7.8Consumer price inflation (av; %) 3.1 3.3 2.9 7.4 9.1Population (million) 144.6 147.7 (c) 150.7 (c) 153.7 (c) 156.4 (c)Exports of goods (FOB) (US$ millions) 9,131.0 9,832.0 11,869.0 13,297.0 15,383.0Imports of goods (FOB) (US$ millions) -9,741.0 -10,428.0 -11,978.0 -16,693.0 -21,560.0Current-account balance (US$ millions) 1,878.0 3,854.0 3,573.0 -817.0 -3,463.0Foreign-exchange reserves excl gold (US$ millions) 3,640.0 8,078.0 10,941.0 9,799.0 10,033.0Total external debt (US$ billions) 31.7 33.7 35.9 35.7 38.9 (c)Debt-service ratio, paid (%) 24.7 17.9 16.0 21.2 10.3 (c)Exchange rate (av) PRs:US$ 61.93 59.72 57.75 58.26 59.51(a) Actual. (b) Fiscal years ending June. (c) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%; fiscal years ending Jun 30th) 6.6 6.6 6.1 6.1 5.8 5.9Consumer price inflation (av; %) 7.9 7.0 5.5 5.0 5.1 5.6Budget balance (% of GDP; fiscal years ending Jun 30th) -4.3 -4.6 -4.0 -3.4 -3.4 -3.3Current-account balance (% of GDP) -4.5 -4.9 -4.9 -3.9 -4.2 -4.1Short-term interest rate (av; %) 8.6 8.7 7.8 7.0 7.0 7.0Exchange rate PRs:US$ (av) 60.4 62.8 64.1 66.1 67.6 68.6Exchange rate PRs:¥100 (av) 51.9 59.8 65.7 69.2 72.3 74.72004/05-PRINCIPAL EXPORTS (ab)(US$ millions)Cotton fabrics 1,863Knitwear 1,632Bedwear 1,450Cotton yarn & thread 1,058Rice 9332004/05-PRINCIPAL IMPORTS (ab)(US$ millions)Machinery & transport equipment 5,956Mineral fuels etc 4,295Chemicals 3,604Manufactures 2,258Food & live animals 1,0872004/05-MAIN DESTINATION OF EXPORTS (%) (a)2004/05-MAIN ORIGINS OF IMPORTS (%) (a)USAUAEUKSaudi ArabiaChinaUAEAfghanistanGermanyOtherUSAJapanOther24.07.612.38.96.255.98.35.27.64.87.052.2(a) Fiscal years ending June 30th. (b) Customs basis.The Economic Intelligence Unit Ltd., November 2006PAGE 87

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KAZAKHSTAN STOCK EXCHANGEAzamat JoldasbekovPresidentWith new reforms, KASE hopes to furtherdevelop Kazakhstan’s securities marketand contribute to the overall economicdevelopment of the country.Kazakhstan Stock Exchange (KASE) hasrecently elaborated 2007-2010 developmentstrategy aimed at becoming successfulcommercial organization. According to thisstrategy, KASE will undergo operational andstructural changes devoted tocommercialization and capitalization of thestock exchange itself. The SE will register as acommercial company, launching an IPO andimplementing a more aggressive marketingcampaign.To promote further development KASErecently established three new departments:Business Development Department, PublicRelations Department and Department ofInternational Relations. These departmentswill focus on elaborating and implementingstrategies to further develop KASE’s businessoperations, interaction with public and press,as well as international relations andconstructive business cooperation with equitymarket players around the globe.With new reforms, KASE hopes to furtherdevelop Kazakhstan’s securities market andcontribute to the overall economicdevelopment of the country. As of July 2007KASE trading volumes increased 2.5 times ascompare with the same period last year. Theoverall volume achieved US$ 178.8 billion.Turnover of repo transactions in compare tothe same period last year increased 67.2%and constitutes 66.2% of all transactions.Turnover in the securities market sectorreached US$ 5.0 billion, though it is only 2.8%of total KASE turnover.HISTORY AND DEVELOPMENTKASE (formerly the Kazakhstan InterbankCurrency and Stock Exchange) was foundedon November 17, 1993 as a closed-end jointstockcompany, on the basis of an earlierestablished Center of Interbank CurrencyTransactions (Currency Exchange) of the StateNational Bank. The main stimulus to createKASE was the introduction of the nationalcurrency, the Kazakhstan tenge, on 15November 1993.Starting in November 1995, KASE begantrading state T-bills. In November 1996, itreceived its securities trading license from theNational Securities Commission (NSC).As a result of a proposal tendered by thegovernment in December 1996, KASE waschosen as a model exchange to trade thesecurities of the largest enterprises ofKazakhstan.In September 1997, a closed joint-stockcompany, the Almaty Financial InstrumentsExchange, separated from KASE. Twoexchanges resulted from the adoption of thelaw “On Securities Market” in March 1997 withthe provision that a stock exchange could onlyoperate in securities. However, on April 1, 1999a merger took place between KASE and theAlmaty Financial Instruments Exchange(AFINEX), thus making KASE the onlyorganized market in Kazakhstan.In 2001 KASE became a shareholder of theKyrgyz Stock Exchange.The most important event of 2003 was thepassage of new two laws that determine thelegal infrastructure of the stock market – thelaw "On joint stock companies" and the law "Onsecurities market" that substituted the laws ofprevious years. In October, 2003 KASE with itsnew subsidiary company "eTrade.kz" LLPlaunched the "eTrade.kz" project. The purposeof the project was the organization of aninternet-trading system to carry out theoperations with the financial instrument atKASE.At the beginning of 2004 the KASE will changeorganization-legal structure from a "closed jointstock company" to a "joint stock company" as aresult of the newly implemented changes in theaforementioned law “On joint stockcompanies”.In 2006, creation of a regional financial centerin Almaty with the aim of the equity marketdevelopment and the integration with theinternational fund market gives newopportunities for the stock exchange andequity market as a whole. Kazakhstan StockExchange is legislatively determined as thespecial trade floor of the regional financialcenter of Almaty.FUTURE OUTLOOKThe Kazakhstan Securities MarketDevelopment Program adopted by theKazakhstan government determined the maindirections for further development of the equitymarket in Kazakhstan. This program alsoestablished and prioritized program tasksdirectly related to the activities of theKazakhstan Stock Exchange (KASE).With reference to the governmental programKASE has elaborated 2007-2010 DevelopmentStrategy – a comprehensive document thatdescribes organizational and structuralreforms, lists priority areas and phasedapproach, linking identified performancefactors with strategic initiatives and projectsdesigned to develop and optimizeorganizational activities.The essence of the strategy is further growthand development of “the Kazakhstan StockExchange as a leading regional financialmarket that enables investors from all over theworld to trade a wide variety of financialproducts with minimal calculated risksaccording to the world’s best practices, as wellas benefit from other accompanying servicesof the Kazakhstan Stock Exchange.”Kazakhstan Stock Exchange has identified thefollowing areas of development:• Commercialization and corporate structure• Membership development• Financial instruments• Listing• Information availability about issuers ofsecurities and their activities• Technologies• Calculations• Regulating and supervising functions of theStock Exchange• Tariff policy• Marketing and Public Relations• Location of the Stock Exchange• Organizational structure and HumanResources• Financial operations of the Stock Exchange.CapitalizationPAGE 88

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KAZAKHSTAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 206.88 9.85 89.45 4.26Feb-07 212.63 10.63 10.97 0.55Mar-07 374.00 18.70 20.05 1.00Apr-07 348.54 16.60 183.36 8.73May-07 486.97 23.19 59.28 2.82Jun-07 2,931.03 139.57 401.99 19.14TOTAL 4,560.04 36.42 765.10 6.08BondsJan-07 13,800.94 657.19 19,339.50 920.93Feb-07 14,678.96 733.95 20,782.96 1,039.15Mar-07 11,024.47 551.22 30,431.16 1,521.56Apr-07 14,829.47 706.17 22,361.29 1,064.82May-07 13,915.22 662.63 18,328.72 872.80Jun-07 17,307.52 824.17 64,513.56 3,072.07TOTAL 85,556.59 689.22 17,5757.19 1,415.22OtherJan-07 6,388.67 304.22 n/a n/aFeb-07 4,814.12 240.71 n/a n/aMar-07 5,544.90 277.25 n/a n/aApr-07 5,896.46 280.78 n/a n/aMay-07 7,130.26 339.54 n/a n/aJun-07 10,318.56 491.36 n/a n/aTOTAL 40,092.98 322.31 n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 61,252.94 2,535.63Feb-07 63,524.68 2,562.05Mar-07 64,263.77 2,646.91Apr-07 65,464.50 2,555.26May-07 63,017.04 2,561.73Jun-07 67,421.82 2,699.89CONTACT INFORMATION3,0002,5002,0001,5001,00050003,000 70,0002,500 60,0002,00050,00040,0001,50030,0001,00020,000500 10,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Babenov Bolat E-mail bolat@kase.kz Website www.kase.kzPAGE 89

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KAZAKHSTAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe president, Nursultan Nazarbayev, hasdissolved the lower house of parliament andcalled an election for August 18th, some twoyears earlier than scheduled. Mr Nazarbayevhas said that the election is necessary toenable recently approved constitutionalamendments, which ostensibly increase thelegislature's authority, to come into effect.However, the president is likely to emergestronger from the election, given his party'sdominance of the political scene and theweakness of the opposition. Fiscal policy isset to loosen a little, but the budget deficit willbe small and easily financed. Consumerprices are forecast to rise by around 8% onaverage in both 2007 and 2008, despiteefforts by the NBK, the central bank, tocombat inflation. Strong domestic demand,particularly in terms of investment, will supportannual average real GDP growth in 2007-08 ofaround 9%. The current-account deficit willrise to around US$ 5.8 billion (4.8% of GDP)by 2008, owing to a combination of softeningoil prices and high income debits.Mr Nazarbayev's long-standing strategy to2030 will continue to drive economic policy,with the aim of making Kazakhstan one of the50 "most competitive" countries in the world.This is to be achieved through economicmodernisation, diversification and a "modern"social policy.Economic PerformanceWorld oil prices will average US$63/barrel in2007-08, benefiting the major oil exporters inthe Commonwealth of Independent States(CIS), including Russia–Kazakhstan's maintrade partner. Continued strong demand andan aggressive OPEC policy will maintainprices at high levels, and a host of geopoliticalrisk factors will present mainly upside risks tothe Economist Intelligence Unit's forecast. In2007 Kazakhstan will also benefit from acontinued rally in base metals prices, owing toa drawdown of inventories, resilient demandand supply-side difficulties. However, slowingworld GDP growth will dampen demand forindustrial raw materials from 2008, when asharp downturn in prices is likely. Risingglobal interest rates present a risk to ourgrowth forecast for Kazakhstan, owing to thegrowing reliance of the banking sector onexternal borrowing.Kazakhstan's economy grew by 10.5% year onyear in real terms in Q1 2007. A weak baseperiod–harsh weather had dampenedindustrial output in January-March 2006,dragging down growth in that quarter–partlyexplains the acceleration, but the oil sectorhas also performed strongly so far in 2007. Inconjunction with an upward revision to our oilprice forecast for 2007, we have increased ourforecast for Kazakhstan's real GDP growth inthe year from 9.2% to 9.6%. Growth willdecelerate slightly in 2008, to just over 8%,mainly owing to base-period effects.Continued large-scale foreign-exchangeinflows will offset the impact on consumerprices of lower producer price inflation in2007-08. On the demand side, public-sectorwage increases in 2007 and rises in socialexpenditure amounting to a total of Tenge 108billion (US$990m) in 2008 will sustain existinginflationary pressures. The lagged effects oftighter monetary and credit policies, togetherwith a strengthening nominal exchange rate,should nevertheless encourage gradualdisinflation in both years of the forecastperiod, to an annual average rate of around8%, compared with 8.6% in 2006. However,there are substantial upside risks to thisforecast, particularly if central bank measuresto curb credit growth prove unsuccessful.The underlying pressure on the tenge remainsone of appreciation, driven by large-scaleforeign-exchange inflows. The currency wastrading at Tenge122:US$1 in late June 2007,up by around 4% in nominal terms since thestart of the year. The NBK will interveneoccasionally in the market to weaken the paceof appreciation, but will have to balance thispolicy against that of controlling inflation. Acomparatively rapid rate of nominalappreciation, combined with higher inflationthan Kazakhstan's trading partners, will resultin continued real appreciation of the tengethroughout 2007-08: we expect a cumulativereal effective appreciation of 11% over thisperiod.Kazakhstan posted a current-account deficitof just under US$ 1.8 billion in 2006,equivalent to 2.3% of GDP. Rising invisiblestransactions–income debits, in particular,owing to profit and dividend outflows fromforeign investors, and payments byKazakhstan's banks–will drive an increase inthe deficit over the forecast period to US$ 5.8billion (4.8% of GDP) by 2008. However, therisks to macroeconomic stability posed by thedeficit are small. Even leaving aside themassive build-up of reserves that has takenplace in recent years, any current-accountdeficits are more than covered by large-scaleinflows of foreign direct investment. With thegiant Kashagan field coming on streamtowards the end of the decade, and severalother large projects undergoing furtherdevelopment, annual FDI inflows are likely toaverage around US$ 6.6 billion in 2007-08.** The Economist Intelligence Unit Ltd. July 2007.Key Information ContactsFinancial Institutions' Association of Kazakhstan www.afk.kz/eng/National Bank of Kazakhstan www.nationalbank.kzMinistry of Finance of the Republic of Kazakhstan www.minfin.kzCentral Securities Depository www.csd.kz/ruKazakhstan Agency for Financial Market and Financial Organizations Regulation And Supervision www.afn.kzPAGE 90

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KAZAKHSTAN STOCK EXCHANGEKAZAKHSTAN: QUARTERLY ECONOMIC INDICATORS 1 2005 2006 2007Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1General government finance (Tenge millions)Revenue 468 528 719 570 696 469 618 591Expenditure & net lending 423 478 817 495 705 512 561 675Balance 45 50 -98 75 -9 -42 58 -85OutputGDP at current prices (US$ billlions) 14.6 15.4 13.9 15.5 21.1 n/a n/a n/aGDP at constant 1994 prices (Tenge billlions) 167 201 200 163 185 226 222 180Real GDP (% change, year on year) 9.1 8.6 10.7 7.7 10.8 12.7 11.3 10.5Industrial production (% change, year on year) 6.6 0.9 5.5 2.2 8.1 10.5 7.1 9.5Employment, wages and pricesUnemployment (milllions) 628 616 651 647 621 602 626 621Unemployment rate (% of labour force) 7.7 7.6 8.3 8.0 7.4 7.3 7.8 7.5Monthly earnings (Tenge) 31,494 35,016 39,657 36,357 39,029 41,281 46,288 47,442% change, year on year 14.8 22.8 26.5 25.8 23.9 17.9 16.7 30.5Consumer prices (% change, year on year) 7.6 8.0 7.6 8.4 8.9 8.7 8.3 8.0Producer prices (% change, year on year) 24.1 28.5 20.4 24.4 22.6 14.6 12.1 5.0Financial indicatorsExchange rateTenge:US$ (avg) 132.16 135.16 133.93 131.10 123.11 122.32 127.84 124.85Tenge:US$ (end-period) 134.99 133.89 133.77 128.45 118.69 127.12 127.00 123.75Interest ratesDeposit rate (avg; %) 2.6 1.9 3.1 3.6 3.8 4.6 4.3 4.4Lending rate (avg; %) 6.1 6.0 4.8 6.3 5.4 6.1 6.2 6.43-month money market rate (avg; %) 2.7 2.1 2.2 2.1 3.3 3.8 4.8 5.3Long-term government bond yield (avg; %) 6.0 5.9 5.6 5.4 5.2 5.2 5.2 5.1M1 (end-period; Tenge billlions) 750 786 799 913 1,077 1,187 1,282 1,393% change, year on year 46.6 39.3 18.0 33.5 43.6 51.0 60.3 52.5M2 (end-period; Tenge billlions) 1,833 2,016 2,065 2,333 2,704 3,053 3,678 3,936% change, year on year 52.7 53.6 26.3 35.1 47.5 51.5 78.1 68.7Sectoral trendsCoal (milllion tonnes) 17.2 19.9 23.9 24.0 19.4 21.4 26.8 23.4Natural gas (billlion cu metres) 4.1 3.0 3.5 3.3 3.5 3.3 4.3 4.2Crude oil ('000 b/d) 1,234 1,196 1,300 1,208 1,301 1,317 1,395 1,324Electricity (milllion kwh) 15,208 14,388 18,817 20,207 16,704 14,935 19,821 21,180Foreign trade (US$)Exports (FOB) 7,422 7,266 7,388 7,357 9,978 11,059 9,856 10,052Imports (CIF) 4,775 4,569 4,808 4,043 5,902 6,568 7,164 6,472Trade balance 2,647 2,697 2,580 3,315 4,076 4,491 2,692 3,580Foreign payments (US$ millions)Trade in goods balance 2,711 2,827 2,524 3,313 4,131 4,489 2,709 n/aServices balance -1,227 -1,484 -1,803 -1,347 -1,633 -1,458 -1,474 n/aIncome balance -1,312 -1,531 -1,672 -1,601 -2,455 -2,666 -2,597 n/aCurrent-account balance 104 -341 -1,133 230 -180 42 -1,888 n/aReserves excl gold (end-period) 7,190 7,408 6,084 9,902 11,929 12,315 17,751 20,116(c) 2007 The Economist Intelligence Unit Ltd. All rights reserved. Reproduced withpermission of the copyright owner. No further reproduction is permitted.The Economic Intelligence Unit Ltd., July 2007PAGE 91

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KYRGYZ STOCK EXCHANGEThe index of the KSE in 31 December 2005declined by 11.55% in comparison with31 December 2004.Andrey ZalepoActing PresidentIn 2005 trading volume of the Kyrgyz StockExchange(KSE) were reduced by 43.61% incomparison with 2004, and the total quantityof the transactions were reduced by 24.29%.The index of the KSE on 31 December 2005declined by 11.55% in comparison with31 December 2004.HISTORY AND DEVELOPMENTThe KSE was founded in 1994. The officialopening and the first trade in stocks tookplace in May 1995, while a privatizationprocess was in full swing in our country.At the initial stage of its existence and up until2000, the KSE had functioned as a non-profitorganization with a total membership of 16.In May 2000 the KSE was transformed into ajoint-stock company; simultaneously weacquired one of the largest shareholders anda reliable partner in the Istanbul StockExchange, which has actively assisted us inimproving our activities. In 2001 theKazakhstan Stock Exchange became ashareholder allowing the KSE to significantlyincrease its technical software potential.At present the KSE is a closed-type non-profitjoint-stock company with 17 shareholders.FUTURE OUTLOOKPriorities for the KSE in 2007 are:• continue work on the introduction of acryptographic information security system tobe used in the process of trading;• development of uniform rules of listing anddelilsting in KR;• continue the work on engaging Kyrgyzcompany securities KSE listing;• continue participation in the Privatizationprogram–sell/buy securities owned bygovernment on the KSE; and• realization of the project, Organization statesecurities trading on.A significant contribution has been made bythe US Agency on International Development(USAID) for the sake of our continueddevelopment. Thanks to the USAID, the KSEhas obtained powerful financial support thathas allowed our Exchange to becomeindependent.PAGE 92

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KYRGYZ STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 31.27 1.65 8.23 0.43Feb-07 0.91 0.05 1.74 0.09Mar-07 10.29 0.51 301.28 15.06Apr-07 5.92 0.30 12.06 0.60May-07 7.94 0.36 2.87 0.13Jun-07 7.87 0.37 4.39 0.21TOTAL 64.2 0.54 330.6 2.76BondsJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 91.37 104.81Feb-07 99.81 116.08Mar-07 104.07 120.77Apr-07 104.48 127.24May-07 102.2 115.57Jun-07 107.62 117.58CONTACT INFORMATION35302520151050140 120120 10010080806060404020 2000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Mahmud Usuphanov E-mail mahmud@kse.kg Website www.kse.kgPAGE 93

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KYRGYZ STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe political situation in the Kyrgyz Republicshows no sign of stabilizing, and tensionsbetween the president, Kurmanbek Bakiyev,and the prime minister, Feliks Kulov, remainhigh. The strife between the factions allied tothe two men is not only creating politicalincoherence but also fuelling accusations thatthe political elite is co-opting criminalelements. Further conflict can be expectedover constitutional reform, as Mr. Bakiyev andMr. Kulov each seek to strengthen theirrespective posts at the expense of the other.The government will continue with a "multivectoral"foreign policy. This is a core principlein the five former Soviet republics of CentralAsia, given these countries' paucity ofresources and need for foreign investment.Although earlier in the year Mr. Bakiyevpublicly stated that the US should set atimetable for the withdrawal of coalition troopsfrom Central Asia, the base at Manasinternational airport provides the KyrgyzRepublic with much-needed income.Consequently, a US withdrawal is unlikely tobe a near-term proposition, as confirmed bythe fact that an agreement on the coalitionforces' continued use of the base, reached bythe two sides in October 2005, did not set afixed date of departure.The IMF has favorably reviewed the KyrgyzRepublic's progress under the three-yearpoverty reduction and growth facility (PRGF)signed in February 2005. Heavily reliant onmultilateral funding, the Kyrgyz Republicclearly has a strong incentive to maintain goodrelations with the IMF, but meeting the IMFcriteria will have to be balanced withpreventing a rise in social instability. This taskwill be eased by the IMF's recognition of thedifficult circumstances in the country.Nonetheless, the IMF has expressed graveconcerns over corruption and the large quasifiscaldeficits in the electricity sector; thegovernment will therefore seek to makeconcrete progress in these spheres.Strong Russian demand, largely attributable topersistent high oil prices, is helping to supportgrowth in the Commonwealth of IndependentStates (CIS). Although the rate of Russian realGDP growth will trend downwards in 2006-07,Russian import demand growth will staystrong, ensuring that the country remains theKyrgyz Republic's most important destinationfor non-gold exports. The Kyrgyz Republic isalso benefiting from strong growth inneighboring Kazakhstan.Economic PerformanceReal GDP contracted by 0.6% in 2005,according to the National StatisticalCommittee. Falling output at the Kumtor goldmine played a crucial role in the slowdown,but output in other sectors also performedpoorly. The low base of comparison in 2005will allow for a rebound in growth rates in 2006to 3% of GDP. For 2007, we forecast GDPgrowth is expected to be 4%.Based on monthly data from the NationalStatistical Committee (NSC), year-end inflationin 2005 was 5.9%, resulting in an annualaverage rate of 5.2%. This was an increasefrom annual average inflation of 4% in 2004,largely attributable to the supply disruptionsresulting from the political upheavals in 2005.As the economy stabilizes over 2006-07 andreturns to growth, inflation will trend upwardstowards the end of the two-year forecastperiod, further boosted by rising inflows ofworkers' remittances.The central bank will try to limit itsinterventions on the foreign exchange marketto the minimum required to smooth dailyfluctuations and strengthen internationalreserves. However, political uncertainty raisesrisks to the conduct of exchange-rate policy,as further turmoil could weaken the exchangerate and force the bank to intervene moreheavily.According to the central bank, the currentaccount posted a deficit of US$ 191 million in2005, roughly double that posted in 2004.The government's efforts to bring the deficitdown will be helped in 2006-07 by steadilyrising net transfers and the successfulrenegotiation of Paris Club debt, which willbring about a significant reduction in interestpayments. The current account balance willnonetheless remain negative, given rapidlyrising imports and moderating growth inexport revenue–itself caused by decliningoutput at the Kumtor gold mine.** The Economic Intelligence Unit Ltd., May 2006Key Information ContactsNational Bank of the Kyrgyz Republic www.nbkr.kgMinistry of Finance www.minfin.kgState Commission on Securities Market www.nsc.kg4.Ministry of Foreign Trade and Industry of the Kyrgyz Republic www.mvtp.kg2005-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesAgriculture & forestryIndustryPrivate consumption Public consumption Gross fixed investmentChange in stocksNet exports34.11008080.945.0604020.92018.9 15.70-20-0.1-19.6PAGE 94

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007KYRGYZ STOCK EXCHANGEKYRGYZSTAN ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)GDP at market prices (Som billions) 75.4 83.9 94.4 100.1 107.9GDP (US$ billions) 1.6 1.9 2.2 2.4 2.7Real GDP growth (%) 0.0 7.0 7.1 -0.6 2.5Consumer price inflation (av; %) 2.1 3.0 4.1 4.3 5.8Population (million) 5.0 5.0 5.1 5.1 5.1Exports of goods (FOB) (US$ millions) 498 590 733 687 704Imports of goods (FOB) (US$ millions) -572 -724 -904 -1,106 -1,283Current-account balance (US$ millions) -80 -99 -101 -204 -343Foreign-exchange reserves excl gold (US$ millions) 289 365 528 570 587Exchange rate (av) Som:US$ 46.94 43.65 42.65 41.01 40.28(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2003 2004 2005 2006Real GDP growth (%) 7.1 -0.6 2.0 4.0Consumer prices (% change) 4.1 4.3 6.4 7.0Government balance (% of GDP) -0.5 0.2 -1.2 -1.0Merchandise exports (US$ millions) 733 687 702 815Exchange rate (Som:US$1) 42.65 41.01 40.67 40.692005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Precious & semi-precious metalsMineral productsTextilesMineral products Machinery & equipment ChemicalsGlass & construction materialsOtherFood, beverages & tobaccoOther14.413.135.111.527.910.96.98.532.139.62005-MAIN DESTINATION OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)UAE Russia KazakhstanSwitzerland OtherRussiaChinaKazakhstanUSA17.3 16.320.015.534.29.36.125.821.434.1The Economic Intelligence Unit Ltd., April 2006PAGE 95

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007LAHORE STOCK EXCHANGEAs of June 29, 2007 market capitalizationincreased to US$ 63.767 billion.Hamid M. ImtiaziManaging Director and CEOH1 2007 saw growth in several sectorsespecially cement, banks, fertilizers, refinery,IT, oil & gas exploration and power generation& distribution sectors. Mutual fund businesshas also started to grow with the emergenceof a number of private sector assetsmanagers.The market remained volatile during theperiod. LSE-25 Index started with 4,081.83points on 3 January then showed a sharpincrease in Q1 2007 and after reaching theheight of 4,952.32 points on 8 February 2007started to decline sharply to settle at 4219.21points on 29 March 2007. Again, in Q2,LSE-25 Index showed a bullish trend as themarket closed at 4,849.88 points on 29 June2007.As of June 29 2007 market capitalizationincreased to US$ 63.767 billion. The averagedaily turnover of shares remained 36.504million shares with an average daily value ofshares traded of US$ 56.871 million. LSElisted 6 companies, 10 open-end mutual fundsand term finance certificates of 3 companiesduring the period under review.The market has been driven by a number ofpositive factors including continuousimprovement in the country’s economicfundamentals, improving Pakistan’s geopoliticalrelationship with neighbors as well asglobally, The government’s commitment tomaintain its economic reform and pro-marketpolicies, stability in exchange rate as a resultof a strong build up in foreign exchangereserves, regionally cheap valuation drivingforeign interest in Pakistan’s stock market,large-scale merger and acquisition in thebanking, telecom and other sectors,successful GDR offerings of the Oil & GasDevelopment Company, MCB Bank andUnited Bank, increase in Pakistan’s coverageby large international brokerage firms andinvestment banks including Merrill Lynch,JPMorgan, Credit Suisse, Citigroup and UBS.Recent large scale mergers and acquisitionsalso provided support to the stock marketvaluation. Key takeovers that have taken placeinclude acquisition of Union Bank Ltd. byStandard Chartered Bank, acquisition of PrimeCommercial Bank Ltd. by ABN AMRO,acquisition of Pakistan Industrial Credit &Investment Corporation by NIB Bank (backedby Temasek Group of Singapore), acquisitionof Crescent Commercial Bank by SAMBA,acquisition of PakTel by China Mobile andacquisition of further stake in Lakson Tobaccoby Philip Morris. Peer group companies’ stockprices have also reacted as a result of theseacquisitions. Pakistan’s privatization programhas also accounted for support to sector andcorporate valuations. Recently, shares of thelargest Bank of Pakistan i.e. Habib Bank Ltd.have been offered to the general publicthrough Initial Public Offer.Market reform initiatives proactively undertakenby the Securities and Exchange Commissionof Pakistan (SECP) include implementation ofsustainable risk management measures in themarket, leading to high level of integrity andtransparency in terms of price discovery andtrade settlement. A new risk managementstructure has been introduced that includes anew netting regime and a margining systembased on Value at Risk (VAR). Other measuresintroduced on risk management are Valuationof Securities eligible to be held as security,Mark-to-Market Loss Collection and ProfitDistribution, and Position Limits linked with thefree float of the scrip. These measures areexpected to minimize the possibility of anymarket abuse. Moreover, work is in progresson implementation of Continuous FundingSystem Market-II and Margin Financing.LSE is also expeditiously working on itscorporatization and demutualization. Severalissues such as shareholding structure,valuation of the Exchange, trading rights andsale of shares to strategic investor are beingexamined. The completion of process ofdemutualization has been targeted by31 December 2007.HISTORY AND DEVELOPMENTLahore Stock Exchange (LSE) wasincorporated in Lahore, the provincial capital ofPunjab, Pakistan, under the Securities andExchange Ordinance in 1969, as a companylimited by guarantee. The activities of theExchange have increased in all areas sinceinception. LSE introduced screen-basedelectronic trading in 1996 and became the firstfully automated Stock Exchange of Pakistan.LSE has become a key institution in thefinancial sector of Pakistan and has amembership of 152 brokerage houses. As of30 June 2007 there were 520 listed companies,having a listed Capital of US$ 9.8230 billionwith a market capitalization of US$ 63.7673billion.LSE has made large investments in technology& automation to keep pace with globalizationof securities trading. The Exchange is fullycommitted to providing a transparent, efficient,fair and investor friendly environment for thebenefit of investors and issuers. The goal is tobring LSE up to international standards inoperational, technical, regulatory and qualitymanagement areas and to ensure that not onlydomestic but also foreign investors areattracted to the Exchange for the developmentof the country.FUTURE OUTLOOKIn 2007 Lahore Stock Exchange plans to:• continue with its strategy of increasing itsgeographical outreach through the use ofinformation technology in order to attracthigher trading volumes;• phase-out of Carry-Over Trading and itsreplacement with Margin-Trading and othermodes of financing;• frame a strategy for the demutualization andintegration of the stock exchanges of Pakistanin the interest of the Exchange and capitalmarkets of the country;• enhance trading in the derivatives marketand introduce Stock and Sector Index Futures;• replace existing exposure monitoring systemwith Value at Risk Margin System in line withglobal practices;• Market BrokerNet - Broker hosted InternetStock Trading Solution;• promote and market the indigenouslydeveloped trading software i.e. Ultra Trade andrelated systems to other stock exchanges;• implement a regular timetable for the BrokerSystem Audit, in order to build investors’confidence; and• strengthen the surveillance function of theExchangePAGE 96

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007LAHORE STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 891.80 46.94 465.78 24.51Feb-07 1,572.47 82.76 852.89 44.89Mar-07 699.86 33.33 521.70 24.84Apr-07 1,049.91 50.00 773.57 36.84May-07 1,289.73 58.62 893.56 40.62Jun-07 1,461.28 69.58 993.83 47.33TOTAL 6,965.1 56.9 4,501.3 36.5BondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 48,772.16 4,657.38Feb-07 48,445.79 4,537.83Mar-07 48,561.60 4,249.31Apr-07 57,433.32 4,583.75May-07 60,076.48 4,723.37Jun-07 63,767.35 4,849.88CONTACT INFORMATION1,6001,4001,2001,00080060040020005,000 70,0004,00060,00050,0003,000 40,0002,00030,00020,0001,00010,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Amir Razakhan E-mail amir@lahorestock.com Website www.lahorestock.com* Please refer to page 84 for the Pakistan country report.PAGE 97

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MACEDONIAN STOCK EXCHANGEThe market performance of MacedonianStock Exchange in the first half of 2007 wasquite outstanding.Ivan SterievCEOThe market performance of Macedonian StockExchange in the first half of 2007 was quiteoutstanding. On 30 June 2007, MSE endedwith a total turnover of EUR 327 million. Moredetailed analysis of the turnover shows thequality level of the MSE performance in thefirst half of 2007: trading in equities throughBEST trading system reached about EUR 235million which indicates a 217% increase ascompared with the same figure in the first halfof 2006, and 33% increase as compared withthe trading in equities through BEST in wholeof 2006).The total number of transactions executed inthe first half of 2007 (82.304) increased by353% as compared with the same period in2006. MSE ended up the first half of 2007 with40 listed companies that have a marketcapitalization of around EUR 1.7 billion,increasing the total market capitalization oflisted companies by 106% compared with theend of 2006 (when 43 were companies listedat the MSE).The reasons for the market growth may befound in several facts: continually improvingdisclosure of the listed companies, especiallythe financial reporting through the MSEinternet-based system for distribution ofinformation from the listed companies; higherpresence of foreign portfolio investors, stillmainly from the region of former Yugoslavia (inaverage around 40% on the buying side);higher participation of the domestic retailinvestors on the market (in average around36% on the buying side); etc.In the same time the reported financial resultsof the listed companies for the first andsecond quarter are also significantly improved.Furthermore, the trading activity is shiftingtowards unlisted securities as well.Altogether, the market sentiment was quiteoptimistic and investors expectationsremained high as many as anticipatedtakeovers were not performed and were stillpending.HISTORY AND DEVELOPMENTThe Macedonian Stock Exchange was foundedon 13 September 1995 and commencedtrading on 28 March 1996, as a centralmarketplace for trading in securities and thefirst organized stock exchange in the history ofthe Republic of Macedonia.The MSE was founded as a not-for-profit jointstock company with founding capital of EUR500,000. According to the legislation that wasin force in 1996 the only eligible founders of theMSE were banks and other financial institutions(saving houses and insurance companies).MSE initially had 19 members: 13 banks, 3saving houses and 3 insurance companies.All MSE members must be licensed for tradingin securities by the Macedonian SEC. Onlybrokers, authorized by the MSE members maytrade in securities at MSE.MSE currently has 17 members–11 brokeragehouses and 6 banks. Starting from 20 June2001 (with the amendments of the SecuritiesLaw), MSE started to operate on a for-profitbasis, with a founding capital of EUR 500,000.MSE shareholders may be any legal andprivate domestic and foreign entity.Shareholdings per entity is limited up to 10%of the MSE outstanding shares. Currently MSEhas 20 shareholders (8 brokerage houses, 8banks, 1 insurance company and 3 privateinvestors).FUTURE OUTLOOKOur expectations for the second half of 2007are that it will be as successful as the first onehaving in mind the fact that the turnover inequities through BEST trading system in thefirst six months in 2007 was 33% higher thanthe turnover in equities through BEST in whole2006.The presence of the foreign investors mainlyfrom the region makes potential for theentrance of investors from other Europeancountries. Also, we expect the presence offoreign investment funds, as well as domesticones. By the end of 2007 two investment fundswill start operations in our capital market whichwill contribute to more efficient and moredynamic market. The expectations are that thetwo private pension funds will continue theirpresence on the market.A few new brokerage houses will become MSEmember firms and by the end of 2007 thenumber of MSE members will increase up to25.We assume that several notifications for IPOswill became effective in the next few months.The process of privatization will be finished forthose companies wich possess state ownedshares. Also by the end of 2007 a fewtakeovers are expected especially in thebanking sector.MSE will actively follow all events in the regionregarding the regional co operations.PAGE 98

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MACEDONIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 13.09 0.65 3.60 0.18Feb-07 32.17 1.61 1.49 0.07Mar-07 56.93 2.59 2.18 0.10Apr-07 83.71 4.41 5.45 0.29May-07 84.00 4.20 1.86 0.09Jun-07 30.74 1.46 0.98 0.05TOTAL 300.64 2.49 2.59 0.13BondsJan-07 1.30 0.06 1.24 0.06Feb-07 1.45 0.07 1.32 0.07Mar-07 3.10 0.14 2.91 0.13Apr-07 4.70 0.25 4.28 0.23May-07 2.75 0.14 2.55 0.13Jun-07 3.24 0.15 2.96 0.14TOTAL 16.53 0.14 15.25 0.13OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 1,211.12 4,019.11Feb-07 1,387.28 4,536.71Mar-07 1,790.78 5,481.92Apr-07 2,371.25 6,827.71May-07 2,451.96 7,127.34Jun-07 2,331.82 6,917.519080706050403020100Jan Feb Mar Apr May Jun8,0007,0006,0005,0004,0003,0002,0001,00002,5002,0001,5001,0005000Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Milco Kupev E-mail mse@mse.com.mk Website www.mse.com.mkPAGE 99

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MACEDONIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe Republic of Macedonia is a countryplaced in the middle of the Balkan Peninsula,with a population of just over two million. In1991, it declared its sovereignty fromYugoslavia, and has since experienced mixedsuccess in liberalizing its economy.The industrial sector comprises about 18%of GDP and employs about one-third of thoseholding jobs in the formal economy.The largest components of industrialproduction are metals, chemicals and foodand beverage processing. The privatizationprocess is almost finished and the country hasadopted a market economy system.The President of the Republic of Macedonia isMr. Branko Crvenkovski. The Prime Minister ofthe Government is Mr. Nikola Gruevski.Economic PerformanceAfter the elections held in July, a newgovernment was formed. The program of thenew government anticipates reforms in severalareas, such as: introduction of flat rate taxes,fight against the corruption, more favorableclimate for foreign investments etc. All reformsin the following years will be tailored towardsthe main goal of Macedonia: accession intothe EU and NATO. Macedonia is an EUcandidate country and is expected to beaccepted as a NATO member in 2008.Macedonia officially joined CEFTA in February2006 and new trading arrangements tookeffect from July. A “one-stop shop” for theregistration of businesses came into effect inJanuary 2006, reducing the time taken toestablish a business from 48 days to 5 days.In March 2006 parliament approved newbankruptcy legislation, aiming to shortenproceedings and reduce costs. The newpension law took effect in September 2005and contributors started to be transferred toprivate pension funds in January 2006.Real GDP grew by 4% in 2005. The economywas driven by exports, especially metal andtextile products, while private consumptionand investment increased by 0.8% and 1.5%respectively. Unemployment remained high at36.5% at the end of 2005. Following deflationin 2004 and subdued consumer prices in2005, inflation increased in the first half of2006 reaching 4% in August. The rise wasmainly due to tax increases and high energyprices. The exchange rate against the euroremained stable at around 61 denar, in linewith the Central Bank’s exchange rate policy.The current account deficit declined from 7.8%of GDP in 2004 to 1.3% in 2005, driven by asubstantial increase in net current transfers aswell as a decline in the trade deficit. Theamount of FDI was expected to increasesubstantially in 2006 as a result of energysector privatization. In December 2005 thegovernment issued a Eurobond in value ofEUR 150 million, listed on the London StockExchange, which was used to retire debt owedto London Club creditors.On 1 September 2005 the IMF approved anew three-year stand-by arrangement withMacedonia, which, together with a new WorldBank loan, will set the economic policyframework for the whole of the forecast period.The IMF and World Bank agreements requirethe authorities to push through structuralreforms of the labor market and the judiciary,and to improve the functioning of the publicadministration.From the beginning of 2004 the Governmenthas started issuing t-bills, and from November2005 it started to issue government bonds.The plans for the next years are the issues ofbonds to become more significant thandominant.In August 2005 Macedonia was given creditratings by S&P of “BB” for domestic debt and“BBB+” for external debt. In November 2005FitchRatings gave Macedonia long term creditrating in domestic and foreign currency “BB”with positive prospects, short term credit rating“B” and maximal country rating “BB.”Key Information ContactsCentral Securities Depository www.cdhv.org.mkSecurities & Exchange Commission www.sec.gov.mkNational Bank of the Republic of Macedonia www.nbrm.gov.mkMinistry of Finance www.fin.gov.mk2002 2003 2004 2005GDP (US$ millions) 3.769 4.631 5.368 5.625GDP per capita (US$) 1.885 2.316 2.653 2.850Real GDP growth (%) 0.9 2.8 4.1 4.0Industrial production growth (%) -0.8 6.6 -2.1 7.0Inflation rate (%) 1.8 1.2 -0.4 0,5External debt (US$ millions) 1.635 1.813 2.044 2.258Foreign currency reserves (US$ billions) 0.73 0.90 0.99 1.33Foreign direct investments (US$ millions) 77.7 94.3 150.1 120.0Export (US$ millions) 1.112 1.359 1.672 2.041Import (US$ millions) 1.916 2.211 2.785 3.097Information provided by Macedonian Stock Exchange2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%)Services IndustryAgriculture, forestry, fishing & water management2004-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)Private consumption Public consumption Gross fixed investmentChanges in stocks Exports of goods & services Imports of goods & services58.927.880706077.960.5504040.213.2302020.817.81003.7PAGE 100

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MACEDONIAN STOCK EXCHANGEMACEDONIAN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (Den billions) 233.8 244.0 253.5 265.3(b) 277.3GDP (US$ billions) 3.4 3.8 4.7 5.4(b) 5.6Real GDP growth (%) -4.5 0.9 2.8 4.1(b) 4.0Consumer price inflation (av; %) 5.2 2.3 1.1 1.1 0.0 (a)Population (millions) 2.0 2.0 2.0 (b) 2.0 (b) 2.0Exports of goods (FOB) (US$ millions) 1,155.4 1,112.2 1,362.7 1,672.4 2,039.1 (a)Imports of goods (FOB) (US$ millions) 1,681.8 1,916.5 2,210.6 2,784.5 3,095.5 (a)Current-account balance (US$ millions) -243.6 -357.9 -149.0 -414.8 -80.6 (a)Foreign-exchange reserves excl gold (US$ millions) 745.2 722.0 897.7 905.0 1,228.5 (a)Total external debt (US$ billions) 1.5 1.7 1.9 2.0 2.2Debt-service ratio, paid (%) 11.5 13.5 11.1 9.2 7.9Exchange rate (av) Den:US$ 68.04 64.35 54.32 49.29 49.25 (a)(a) Actual. (b) Estimates. (c) Forecasts.ECONOMIC FORECAST SUMMARY2004 (a) 2005 (b) 2006 (c) 2007 (c)Real GDP growth (%) 4.1 (b) 4.0 4.0 4.5Consumer prices (% change) 1.1 0.0 3.0 2.0Budget balance (% of GDP) 0.7 0.3 -0.6 -0.8Merchandise exports (US$ billions) 1.67 2.04 2.31 2.51Exchange rate (Den:US$1) 49.29 49.25 (a) 49.00 45.05(a) Actual. (b) Estimates. (c) Forecasts.2005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Iron & steelClothingPetroleum & petroleum productsPetroleum & petroleum productsRoad vehiclesTobaccoChemicalsIndustrial machineryMeat and meat preparations24.415.226.27.75.04.94.64.42.732.372.62005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)Serbia & MontenegroGermanySaudi ArabiaChinaUAEGreeceItalyCroatiaOtherUSAJapanOther17.813.222.515.351.710.49.240.44.08.37.38.2The Economic Intelligence Unit Ltd., September 2006PAGE 101

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MOLDOVAN STOCK EXCHANGEDr. Corneliu DODUPresident2006 was a year full of events and changesfor the Moldavian capital market, whichwere a result of the EU integration forMoldova.2006 was a year full of events and changesfor the Moldavian capital market, which werea result of the EU integration for Moldova.A new entity called a Megaregulator will becreated. The Megaregulator’s function is tooversee the financial non-banking sector ofthe economy, which also includes insurancecompanies.During 2006 projects concerning basic lawsin the securities market were passed,projects in accounting and audit laws, andso on. Modernization of the legislation isimplemented in accordance with the directiverequirements of the EU standards.The calculation and structure of the CNVMindex of the Stock Market, was developed bythe National Securities Committee, and waschanged at the end of 2006.In 2006 listing requirements and trading rulesconcerning direct transactions werechanged. Further, new rules concerningcommissions used by the Exchange wereimplemented and new proceduresconcerning auction realization wereintroduced.In the context of international cooperation, amemorandum of understanding between theMoldavian Stock Exchange (MSE) and theBucharest Stock Exchange was signed. Alsoin plans is the signing of similar MoU withfew more exchanges.In 2006, turnover grew to US$ 26.58 million,which exceeded the amount in 2005 by59.73%. During 2006 1,845 transactions wereconcluded with securities from 265 issuers.Investors showed their interest primarily incommercial bank stocks. Transactions withcommercial bank securities have comprised37% of the total turnover for the year.The largest transactions of the year were:the transactions involving securities ofMoldova-Agroindbank, the leadingcommercial bank in Moldova, with US$ 9.41million and that of Ciment, a cement plant,with US$ 5.18 million.As before, the main players in the securitiesmarket, the investment funds are missing.All of them are at the current time in aprocess of reorganization or liquidation.Active trading at the stock market at itslowest. It is expected that changes inlegislation will lead to the growth of thesecurities market, because it is planned thatall transactions concerning corporatesecurities will be carried out only at theExchange.HISTORY AND DEVELOPMENTIn December 1994, the MSE, a closedcompany, was established under the law onSecurities Circulation and Stock Exchanges.Originally, 34 securities market professionalsparticipated in trading. The first transactionswere held on 26 June1995, which isconsidered the date of the founding of theMSE.Due to the assistance of the USAID, theExchange was equipped with advancedtechnology for stock auctions. In 1998 theMSE established the National SecuritiesDepository (NSD), a non-commercial jointstockcompany.At the initial stage of the MSE's development,the authorized capital adequacy standardswere set as an authorized capital ofUS$ 18,030 (238,000 lei). In 1998 capitaladequacy increased from US$ 29,697(392,000 lei) and is now US$ 37,879 (500,000lei). The equity capital sufficiency norms ofUS$ 75,758 (1.0 million lei), and guaranty fundadequacy norms of 30% of the authorizedcapital as set by the legislation are currently inpractice.In April 2000, the MSE received the status of aself-regulating non-commercial organization.At the beginning of 2002, the NationalCommission introduced the CNVM-32 index.The world famous index, the Dow JonesIndex, serves as a basis for the calculation ofthe CNVM-32.In June 2005, the MSE celebrated its 10thanniversary. At the end of 2006 methodologyof calculation CNVM-32 Index was changed,regarding number of issuers included in indexcalculation, diminishing from 32 companies to24. But the changes that have taken place,have had a positive effect on the activities ofall participants of the stock market, includingthe Exchange itself.Rules of the MSE were renewed with newlisting requirements for the companies thisspring. There were three listing levels andnon-listing section before, now there are onlytwo plus non-listing. Also, new projects ofbase securities market laws in accordancewith European Standards were introduced tothe community.FUTURE OUTLOOK2007 will be a very significant year forMoldova’s capital market. We are sure thatour securities market will take a big stepforward because of the following aspects:In an effort to expand cooperation with worldstock exchanges, on 2 November 2006 amemorandum of understanding was signedbetween the MSE and the Bucharest StockExchange. In accordance with our schedulewe are planning to sign an MoU with 5 moreexchanges.Our legislation concerning the capital marketwill be changed. Law on Joint StockCompanies and Law on Securities Market willbe revised in conformity with EuropeanStandards.The National Securities Committee will soonbe transformed to a new regulative body,as it is called now–a Megaregulator. Thisorganization will control and supervise thenon-banking financial sector, including thesecurities market, the insurance servicesmarket, and the minor savings-loan givingassociations.PAGE 102

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MOLDOVAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 25.12 1.20 5.53 0.26Feb-07 0.63 0.03 0.55 0.03Mar-07 1.83 0.09 1.34 0.06Apr-07 2.10 0.11 2.12 0.11May-07 17.97 0.86 3.38 0.16Jun-07 2.46 0.12 3.93 0.20TOTAL 50.1 0.40 16.9 0.14BondsJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0MarketCapitalization*(US$ millions)IndexMONTHLY STOCK VOLUME(US$ millions)5-YEAR STOCK VOLUME(US$ millions)Jan-07 0.0 n/aFeb-07 0.0 n/aMar-07 0.0 n/aApr-07 0.0 n/aMay-07 0.0 n/aJun-07 0.0 n/a* MSE recalculated its market cap. Data is not availableCONTACT INFORMATION3025201510506050403020100Jan Feb Mar Apr May Jun 2003 2004 2005 2006 YTD 2007Contact Name Mr. Serghei Istrate E-mail serghei.moldse@gmail.com Website www.moldse.mdPAGE 103

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MOLDOVAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political Environment2006 became a period of serious stress for theMoldovan economy. The stable growth ofmacroeconomics indicators was slightlydisrupted. This was a result of the placing of anembargo by the Russian Federation onMoldovan imported wines, meat processingoutput, and also the rise in prices of naturalgas from US$ 80 to US$ 160 for 1,000 cubicmeters by the Russian energy corporationGazprom. Russia is the main trade partner ofMoldova, and that’s why a hit to the Moldovaneconomy was so harshly felt. Export ofMoldovan commodities to the Russia for thefirst ten months of 2006 reached the level ofUS$ 153.4 million (this is a 53.1% increase incomparison with 2005). Last year the tradebalance with the Russian Federation waspositive US$ 85.4 million, this year thatindicator changed and comprises minusUS$ 156.8 million. On the other hand, theoverall balance of trade deficit has increasedto US$ -1,293 million). This deficit is coveredby money transfers from the Republic ofMoldova (RM) citizens working outside thecountry. Up until the end of 2006 thesummarized result of money transfers willreach the value of US$ 1 billion.Rise in prices on natural gas has lead toinflation growth outside the predicted range–by the end of October 2006 the CPI was10.8%, or 14.4% cumulative for the last 12months starting from October 2005. It isreasonable that the rise in prices on naturalgas has driven to an increase of commoditiesand services prime cost, and to the growth ofinflation index.These were negative aspects of the year, nowto the positive ones. It should be mentionedthat the CIS summit took place at the end ofNovember in Minsk, Belarus. The result of thismeeting was the reestablishment of Moldovanwine and meat production exports to Russia.The signing of an agreement for long termexport with Gazprom is planned, on conditionsthat Russia’s interest in the business of theenergy sector (US$ 800 million), againstMoldova’s debt for the consumed natural gasin the value of US$ 1.4 billion. Moldova’srepresentatives have published a statementabout the readiness of signing a protocol forRussia’s joining WTO.2006 can be viewed as a year where we seeforeign banks arriving to Moldova’s financialmarket. This spring, assets of the Moldovancommercial bank, Eximbank, were bought bythe Italian bank, Veneto Banca. At the end ofNovember, the French bank, Societe Generale,was authorized to purchase 70.2% of theissued stocks of the Moldovan commercialbank, Mobiasbanca. The Austrian bank,Raiffaisen Bank, representatives are currently inthe process of deciding whether to create anew bank, or to buy one of the workingMoldovan commercial banks. Also this year19.66% (US$ 9.4 million) of Moldova-Agroindbank shares was purchased by 3 legalentities from Slovenia and a Holland privatefund, Poteza Adriatic Fund B.V. The thirdlargest bank by the assets size, Victoriabankwas named for the second time “CommercialBank of the year in Moldova” by the Londonmagazine, The Banker.On 26 October, the building of the bulk-oilterminal at the south of Moldova, Djurdjulestiwas completed. Now the RM has a pipelineexit to the Black Sea over the Danube river.The territory of the terminal received the statusof an international free port. This project, whichstarted two years ago was qualified as one withno future at the time, but afterwards it wastaken by the Danube Logistics company andcompleted in a very short timeframe.Economic PerformanceGDP in current prices in the first half-year of2006 comprised of US$ 1,411.4 million. Growthof the GDP was supported by the increasing ofadded costs in the services sector (+8.2%)and agro-industrial sector (+2.3%).Labor productivity has fallen a little (-1.1%) inJanuary-June of 2006, at the time whenaverage the salary has grown (+28.3%) toUS$ 117.7. At the end of September 2006 theaverage salary was US$ 135.4.CPI during the first half-year 2006 was 7.4%,and for the period of January-October 2006, itwas 10.8%. When we consider thegovernment’s budget by examining theirrevenues intake we find they took in US$ 579.1million which is equal to 105.7% of what theyinitially planned for revenue income. Externaldebt for the RM as of 30 June 2006 wasUS$ 161.2 million.At the banking sector the embargo onMoldovan wine exports had an effect too,which became apparent in a minor diminishingof the principal liquidity coefficients of financialinstitutes. Loans given out to wine producingenterprises, became potentially unreturnable,increasing risk level at this sector of theeconomy. Nevertheless, credit operations inJanuary-October 2006 comprised ofUS$ 953.5 million, deposits operation–US$ 1,014.6 million.Moldova's currency, the Lei, is looking stableagainst US dollar. However, foreign exchangemarket trends influence the US$/MDL course,which has changed from MDL 12.59 for US$ 1in October 2005 to MDL 13.32 for US$ 1 at theAugust 2006. At the current moment US$/MDLis falling – MDL 13.08 for US$ 1. The NationalBank of Moldova, which has among its mainfunction –the support of the national currencyby smoothing fluctuations and creating stabilityon the foreign exchange market.** Information provided by the Moldovan Stock Exchange.Key Information ContactsMSE President Dr. Corneliu Dodu dodu@infomarket.mdListing, Marketing and Quotation Department rimma@moldse.md, silvia@moldse.md; serghei.moldse@gmail.comNational Securities Commission of Moldova www.cnvm.mdDepartment of Privatization www.privatization.md2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesAgriculture & fishingPrivate consumption Public consumption Gross fixed investmentIndustryConstructionIncrease in stocksNet exports54.321.31008091.619.1604.84020016.924.45.4-20-40-38.2PAGE 104

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MOLDOVAN STOCK EXCHANGEMOLDOVA ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)GDP at market prices (Lei billions) 22.6 27.6 32.0 36.8 43.0GDP (US$ billions) 1.7 2.0 2.6 2.9 3.3Real GDP growth (%) 7.8 6.6 7.4 7.1 4.0Consumer price inflation (av; %)(b) 5.2 11.6 12.4 11.9 12.5Population (millions)(c) 3.6 3.6 3.6 3.4 3.3Exports of goods (FOB) (US$ millions) 660 805 994 1,104 1,090Imports of goods (FOB) (US$ millions) -1,038 -1,428 -1,748 -2,295 -2,670Current-account balance (US$ millions) -75 -140 -53 -307 -518Foreign-exchange reserves excl gold (US$ millions) 269 302 470 597 680Total external debt (US$ billions) 1.8 1.9 1.9 2.1 2.5 (d)Debt-service ratio, paid (%) 17.1 8.4 9.8 10.6 12.3 (d)Exchange rate (av) Lei:US$ 13.57 13.94 12.33 12.60 13.16(a) Actual. (b) Annual and quarterly series from different sources.(c) Excludes Transdniestr. (d) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2004 (a) 2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 7.4 7.1 4.5 5.5Consumer prices (% change) 12.4 11.9 12.8 12.5Budget balance (% of GDP) 0.4 2.1 -0.5 -1.2Merchandise exports (US$ billions) 0.99 1.10 0.99 1.29Exchange rate (Lei:US$1) 12.33 12.60 13.18 13.502005-PRINCIPAL EXPORTS (%) 2004-PRINCIPAL IMPORTS (%)Food products Textiles Vegetable productsMachinery & equipment Mineral products OtherMineral products Machinery & equipmentChemicals Textiles Metal & metal productsOther17.812.113.610.136.34.222.17.81.87.027.839.42005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)RussiaUkraineItaly RomaniaGermany OtherUkraineGermanyRussiaItalyRomaniaOther31.912.210.29.111.711.28.34.332.320.96.641.3The Economic Intelligence Unit Ltd., October 2006PAGE 105

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONGOLIAN STOCK EXCHANGEThe activities of the MSE are acceleratingand some progress has notably been made.Rentson SodkhuuChairman and CEOThe Mongolian Stock Exchange (MSE)continues operation while at the same timeimplementing our mission in order tocontribute to the economic development ofMongolia in this historical period denoted bythe transition from a securities tradinginstitution based primarily on privatization to aclassical securities market with a trueinvestment nature.In 2006, the MSE focused on issues such ascreating a favorable legal and economicframework to develop the securities market asa traditional model outside of the stateprivatization policy; to improvingdissemination of information to the public;conducting activities in open and transparentways; extending foreign relations; improvingthe administrative management and structureand capacity building of human recourses;In 2007, we will focus on to achieving thefollowing goals:• developing the securities market legalenvironment;• creating economically suitable conditionsfor securities market development andpromoting innovation to create newinvestment capital resources through thesecurities market trading;• improving dissemination of information onthe securities market to public and activitiesfor trainings and advertisements;• providing an environment for memberorganizations to operate in a fair andtransparent way;• implementing projects to solve challenges,affecting on the development of the securitiesmarket;I wish you all the success and hope tocontinue our successful cooperation in thefuture.HISTORY AND DEVELOPMENT18 January 1991 The MSE was establishedaccording to the Government decree No 22.22 May 1991 Privatization law enacted.07 February 1992 Primary market tradingstarted.26 September 1994 Securities law enacted.14 November 1994 Mongolian SecuritiesCommission established.01 July 1995 Privatization of securitiescompanies has started.31 July 1995 Securities Dealers and BrokersAssociation founded.12 August 1995 First General Assembly ofSecurities Dealers and Brokers Associationwas held.28 August 1995 Secondary market tradingstarted.25 October 1996 The first trading day ofgovernment bonds.11 February 1998 Off-exchange tradingstarted.01 October 1998 The MSE joined as a fullmemberin FEAS.02 July 1999 A new companies law wasenacted.25 August 1999 A software for trading wasintroduced.10 September 1999 1000th trading day01 November 1999 The MSE has started tocalculate a composite price index.21 January 2000 The first securitiescompany with foreign investment registeredas a member of the MSE.26 September 2000 Structure of the MSEreorganized.16 November 2000 Trading of thegovernment bonds restarted.08 January 2001 The monthly magazine ofthe MSE “Security and Trading” published.under the name of “Development +Investment”.PAGE 10618 January 2001 10th anniversary of theMSE.08 June 2001 Corporate bond tradingstarted.30 October 2001 Listing rules of the MSEupdated.05 July 2002 Top value of a stock trading onthe MSE amounted to MNT 376.77 million.03 December 2002 Memorandum ofUnderstanding on Mutual Cooperation signedwith the Taiwan Stock Exchange.30 December 2002 Revision to the SecuritiesLaw adopted.26 March 2003 The MSE was divided intotwo independent organizations:“Mongolian Stock Exchange” and, “SecuritiesClearing House and Central Depository”26 March 2003 The MSE was reorganized asa profit making state owned ShareholdingCompany.15 May 2003 The MSE charter passed byState Property Committee.06 November 2003 Shares of the MSE listedon the Exchange.29 October 2004 For the first time a speciallicense has been issued to an underwritingcompany on the security market30 March 2005 “Information Center” of theMSE established17 June 2005 “Mongol Shiltgeen” JSC waslisted on the MSE and issued shares in aclassical way.01 November 2005 Training center of thecapital market established.18 January 2006 Celebrated the 15thanniversary of the MSE30 March 2006 Celebrated the “AnnualShareholders Day”15 June 2006 Memorandum ofUnderstanding with the Korean StockExchange signed.19 July 2006 Memorandum ofUnderstanding with the Istanbul StockExchange signed.MISSION STATEMENTOur mission is to contribute to the nationaleconomy by creating a classical securitiesmarket with the purpose of mediating theaccumulation of assets in the financial marketby providing the lowest possible cost in thelong term.FUTURE OUTLOOKIn 2007, we will focus on achieving thefollowing goals:• developing the securities market legalenvironment,• creating economically suitable conditionsfor the securities market development andpromoting innovations to create newinvestment capital resources throughsecurities trading,• improving the dissemination of informationon the securities market to the public andcreating activities for trainings andadvertisement,• providing an environment for memberorganizations to operate in a fair andtransparent way and;• implementing works to solve challenges,effecting the development of the securitiesmarket.

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONGOLIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 2.54 0.12 13.94 0.63Feb-07 1.56 0.08 18.38 0.97Mar-07 1.41 0.07 3.08 0.15Apr-07 1.23 0.06 9.10 0.43May-07 1.33 0.06 13.84 0.60Jun-07 0.57 0.03 2.21 0.11TOTAL 8.65 0.07 60.6 0.48BondsJan-07 0.059 0.006 0.014 0.001Feb-07 0.003 0.0003 0.001 0.0001Mar-07 0.093 0.009 0.017 0.002Apr-07 8.31 0.69 0.16 0.01May-07 4.11 2.06 0.06 0.03Jun-07 5.40 0.90 0.07 0.01TOTAL 17.97 0.61 0.32 0.010OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 119.05 2,101.10Feb-07 133.83 2,253.51Mar-07 158.33 2,770.65Apr-07 157.32 2,970.56May-07 176.24 3,017.17Jun-07 217.25 4,026.96CONTACT INFORMATION3.02.52.01.51.00.50.04,500 2504,0003,500 2003,0002,5001502,0001001,5001,000 5050000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Ms. J. Erdenbileg E-mail erdenbileg@mse.mn Website www.mse.mnPAGE 107

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONGOLIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSGeneral government budgetIn the first 7 months of 2007, total revenue andgrants of general government budget amountedto MNT 868.4 billion and total expenditure and netlending MNT 748.2 billionThe general government budget overall balancesurplus was MNT 120.2 billion. Current revenue ofgeneral government budget amounted to MNT865.1 billion and current expenditure MNT 594.4billion.The budget current balance was a surplus MNT270.8 billion. Compared with the same period ofprevious year, tax revenue increased by 30.4%,taxes on foreign trade increased by 32.7% andexcise tax increased by 30.4%.The shares of capital expenditure and net lendingin the total expenditure and net lending amountedto 15.5% and 5.1%, which were increased by 5.8points and 1.4 points compared to the sameperiod of the previous year. But the share ofcurrent expenditure in the total expenditure andnet lending amounted to 79.4%, which decreasedby 7.2 points.Money and loanAccording to the report of Mongol Bank, at theend of July 2007 money supply (M2) increased by3.9% over the June 2007, reaching MNT 2,094.7billion and increased by 39.9% compared to July2006. At the end of July 2007 currency issued incirculation increased 1.6% compared to June2007, reaching MNT 325.1 billion and comparedto July of 2006, increased by 32.5%. Time savingdeposits increased by 5.6% or MNT 52.8 billionover the previous month, increased by 82.2%compared with July 2006, reaching MNT 996.9billion. Foreign currency deposits increased by2.0% reaching MNT 323.2 billion over the previousmonth and decreased by 18.3% compared withJuly 2006.At the end of July 2007 the remainder of loansoutstanding increased by 51.0% compared withJuly 2006, reaching MNT 1,640.4 billion, of whichloans in private sectors increased by 60.2%,individuals loans increased by 54.7%, othersectors increased by 26.3%, public sectorsdecreased by 43.8% and other financialcorporations decreased by 15.9% andrespectively.External tradeFor the first 7 months of 2007, total external tradeturnover equaled US$ 2,037.8 million, of whichexports US$ 977.5 million and imports million1,060.3 million. Total external trade balance turneda deficit of US$ 82.8 million. As compared with thesame period of the previous year, total externaltrade turnover increased by 34.3%, exports by29.3% and imports by 39.3% respectively. Mineralproducts exports by increased US$ 177.5 million,natural or cultured pearls, precious metal, jewelersexport by US$ 54.2 million and base metals andarticles exports increased by US$ 1.7 million buttextiles and textile articles decreased by US$ 12.6million. The greasy cashmere and combed goatdown exports increased by US$ 4.8 million andUS$ 16.2 million respectively.Domestic tradeIn the first half of 2007, the total sales of wholesaleand retail trade entities wasMNT 321.9 billion and it was increased by 19.5%compared with the same period of the previousyear. The total sales comprises 51.4% wholesaleand 48.6% retail trade.IndustryIn the first 7 months of 2007, the total industrialoutput was MNT 497.2 billion at the constantprices 2000 that was more than by 14.9% with thesame period of previous year. The mining andquarrying sector growth was 7.2%. Themanufacturing sector growth was 32.2%.Compared with the same period of previous year,industrial output has been increased by 1.8% –5.5times for electricity, thermal energy, steam, miningof metal ores, collection, purification anddistribution of water, manufacture of textiles, othermining and quarrying manufacture of paper andpaper products, mining of coal and lignite,extraction of peat, publishing, printing andreproduction of recorded media, manufacture offood products and beverages, manufacture ofcoke, refined petroleum products and nuclear fuel,manufacture of fabricated metal products, expectmachinery and equipment, manufacture of rubberand plastic products, production of othernonmetallic mineral products, manufacture ofbasic metals, extraction of crude petroleum andnatural gas, manufacture of electrical machineryand apparatus, manufacture of tobacco products,tanning, dressing of leather, manufacture ofluggage, handbags, saddlers harness andfootwear etc. divisions and declined by 4.2-39.5%for manufacture of office, accounting andcomputing machinery, manufacture of furniture,manufacturing n.e.c, manufacture of wearingapparel, dressing and dyeing of fur, manufactureof wood and wooden products, manufacture ofchemicals and chemical products, manufacture ofmedical precision and optical instruments,watches and clocks etc. divisions.Compared with the same period of previous year,the production of 56.4% of main industrialproducts increased, while the remaining 43.6%decreased. Production of main items of industrialproducts, electricity, coal, crude oil, copper withconcentrate, molybdenum with concentrate, gold,zinc concentrate, copper 99%, meat, bakeryproducts, bread, flour, spirit, beer, soft drinks,carpet, combed down, metal steel, metalfoundries, articles of iron concrete, concretemortar, cement, lime, brick made from clay etc.increased by volume; iron ore, thermal energy,flour spar concentrate, alcohol, biscuit, sweets etc.decreased by volume. In the first 7 months of2007, production of industry (at current prices) on1,335.1 billion MNT sold at domestic and foreignmarket.Key Information ContactsParliament of Mongolia: www.pmis.gov.mnMinistry of Finance: www.mof.pmis.gov.mnFinancial Regulatory Commission: www.frc.mnThe Central Bank of Mongolia: www.mongolbank.mnMongolian Chamber of Commerce & Industry: www.mongolchamber.mnNational Statistical Office of Mongolia: www.nso.mn* Information provided by the Mongolian StockExchange.2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%) (a)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%) (b)IndustryServicesTrade Agriculture, hunting & forestryTransport Communications ConstructionPrivate consumption Government consumption Gross fixed capital formationChange in stocksNet exports of goods & services25.66057.824.6502.63.09.740302014.831.013.221.3100-103.7-7.2* World Bank reportsPAGE 108

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONGOLIAN STOCK EXCHANGEMONGOLIA ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)GDP at current prices (Tg billions)(c) 1,329.5 1,549.1 1,976.9 2,316.4 n/aGDP (US$ millions)(c) 1,197.4 1,348.5 1,667.8 1,921.8 n/aReal GDP growth (%)(c) 4.0 5.6 10.6 6.2 7.5Consumer price inflation (av; %)(d) 1.8 4.6 11.0 12.7 n/aPopulation (millions)(c) 2.55 2.58 2.61 n/a n/aMerchandise exports (FOB) (US$ millions)(e) 524.0 615.9 869.7 1,064.9 n/aMerchandise imports (FOB) (US$ millions)(e) 690.7 801.0 1,021.1 1,148.4 n/aCurrent-account balance (US$ millions)(c) -158.0 -148.1 -24.6 n/a n/aReserves excl gold (year-end; US$ millions)(c) 349.5 236.1 236.3 430.1 n/aTotal external debt (US$ millions)(c) 978.0 1,237.0 1,360.0 1,380.0 n/aExchange rate (av; Tg:US$)(c) 1,110.3 1,146.5 1,185.3 1,205.3 1,180.0(a )Actual.( b) Economist Intelligence Unit estimates. (c) IMF, International Financial Statistics; Mongolia: Selected Issues andStatistical Appendix; World Bank, Mongolia Macroeconomic Brief. (d )Asian Development Bank. (e) Bank of Mongolia.2004-PRINCIPAL EXPORTS (b)(US$ millions)Copper 284.3Textiles 96.5Cashmere & cashmere products 78.92004-PRINCIPAL IMPORTS (b)(US$ millions)Petroleum 210.2Machinery & equipment 201.5Transportation equipment 103.92004-MAIN DESTINATION OF EXPORTS (%) (a)2004-MAIN ORIGINS OF IMPORTS (%) (a)ChinaRussiaUSA UKSingaporeJapanOtherRussia China Japan South KoreaUSA Germany Other18.015.822.07.346.83.82.42.333.56.04.63.310.923.3The Economic Intelligence Unit Ltd., August 2006PAGE 109

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONTENEGRO STOCK EXCHANGEDejana SuskavcevicCEOContinuous development of our market isthe basis of the future of the MontenegrinStock Exchange, a future in whichMontenegro Stock Exchange stronglybelieves.2006 showed that the things that happenedon the Montenegro Stock Exchange are thealpha and the omega of lives of Montenegrincitizens. 2005 was turning point andrepresents a boost of the Montenegrincapital market, 2006 definitely showed thatstock market fever is not a temporary thingbut the most exploited topic, and a provesthe need for investing in all of us.The Previous year exhibited that whathappened on the stock exchange is in directrelation with the political status of thecountry, the macro-economic situation andaccession and membership in numerousinternational institutions. The first big boost ofprices on the Montenegro Stock Exchangewas recorded after the referendum on thelegal status of Montenegro was conducted.After independence was declared, prices ofsecurities have, to put it simply 'gone wild'i.e. this act has been accepted in a positiveway by both local and foreign investors.Further, accession of Montenegro into thePartnership for Peace was also a longdesired prerequisite for investors.In the last part of 2006 the Montenegro StockExchange has achieved great results.Transactions of over EUR 241million throughmore than 50,000 transactions have provedthat all expectations have been met. At thebeginning of the year a new service tool formonitoring stock market transactions in realtime via Internet came out as our product,and at the end of the year users of mobilephones were given the possibility to checkinformation on valid prices of shares on thestock exchange via a message service.A Document of Association with the Stockmarket of Vienna was signed, as well asmany other coordinated activities withinstitutions from abroad were employed andhad the goal of establishing of our market onthe international map in order to attract morenew investments, as well in order tointroduce new market material. 2006 endedwith 22 companies and the bonds of oldcurrency savings being listed, this in turncompares very well in light of the statistics ofmore developed markets.In 2007 I expect a very dynamic atmosphereon stock exchange. Incorporation of newinstitutional investors, investment andpension funds, new stock market mediatorswith foreign property, and the interest offoreign companies to be listed on theMontenegro Stock Exchange, followed bythe announcement of the issuing ofcorporate bonds, with an attractive tax policyfollowed by appropriate legal regulation, isthe basis of the development path of thecapital market of Montenegro. Continuousdevelopment of our market is the basis ofthe future of the Montenegrin StockExchange, a future in which MontenegroStock Exchange strongly believes.HISTORY AND DEVELOPMENTThe Montenegro Stock Exchange was setup in June 1993 pursuant to the Act onMoney and Capital Markets (1989). The firstfounder-members were the four Montenegrinbanks: Montenegrobanka a.d. Podgorica,Pljevaljska banka a.d. Pljevlja, Beranskabanka a.d. Berane, Hipotekarna banka a.d.Podgorica, and the Republic of Montenegro,i.e. Montenegrin Agency for EconomicRestructuring and Foreign Investments.On the constitutional meeting held on 7 July1997, the Montenegro Stock Exchangeharmonized its operation with the Exchange,Exchange Operations and ExchangeIntermediaries Act. Another three banks andtwo insurance companies joined thefounding–members of the Exchange:Podgoriãka banka a.d. Podgorica,Jugobanka a.d. Podgorica, Niksicka bankaa.d. Niksic, Lovcen osiguranje a.d.Podgorica and Swiss osiguranje a.d.Podgorica.In order to increase its share capital,Montenegro Stock Exchange issuedadditional shares, upon the approval of theFederal Commission for Securities andFinancial Markets. The shares weresubscribed and paid in by several Yugoslavbanks, as well as the Federal Government.In order to comply with The Law onSecurities of the Republic of Montenegro,Montenegro Stock Exchange issued a thirdissue of shares in total amount 120,372,EUR. The importance of this issue whichwas sold successfully with 100%subscription was instrumental in the furtherdevelompent of capital market ofMontenegro because with the sale of thisissue 10 new shareholders emerged asowners of the Montenegro Stock Exchangefrom banking sector, insurance companiesand private companies from all spheres ofeconomy. As of today, MSE has 24shareholders.FUTURE OUTLOOKIn 2007, Montenegro Stock Exchange hasthe following plans:• In the begining of February, theMontenegro Stock Exchange will introduce anew index MOSTE Intuitivo. It is index ofexpectation of market experts.• At the end of February will beimplemented new version of the tradingsistem MSETS.• Montenegro Stock Exchange will organizethe First Annual Conference.• We expect to become a Corespondentmember of FESE.• Real-time information will be shown byBloombergPAGE 110

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONTENEGRO STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 16.45 1.03 4.70 0.29Feb-07 29.11 1.27 12.81 0.56Mar-07 54.40 2.47 30.09 1.37Apr-07 52.22 2.90 16.57 0.92May-07 47.02 2.77 9.40 0.55Jun-07 16.15 0.77 3.95 0.19TOTAL 215.3 1.87 77.5 0.65BondsJan-07 1.16 0.07 1.17 0.07Feb-07 0.70 0.03 0.92 0.04Mar-07 2.65 0.12 4.57 0.21Apr-07 0.34 0.02 0.49 0.03May-07 0.17 0.01 0.18 0.01Jun-07 0.95 0.05 0.87 0.04TOTAL 6.0 0.05 8.2 0.07OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 2,528.97 1,072.96Feb-07 2,945.37 1,350.24Mar-07 3,221.83 1,925.18Apr-07 3,954.18 2,281.78May-07 5,298.41 2,286.14Jun-07 5,183.88 2,189.8860504030202,5002,0001,5001,0006,0005,0004,0003,0002,000105001,000000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Nedeljko Suskavcevic E-mail mberza@cg.yu Website www.montenegroberza.comPAGE 111

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONTENEGRO STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitic and Economic EnvironmentMontenegro emerged as a sovereign stateafter just over the required 55% of thepopulation opted for independence in a May2006 referendum. The vote heralded the endof the former Union of Serbia andMontenegro which had existed since 2003and which was itself the rump of the formerYugoslavia.The EU-brokered deal forming it wasintended to stabilize the region by settlingMontenegrin demands for independencefrom Serbia and preventing further changesto Balkan borders. The same deal alsocontained the seeds of the union'sdissolution. It stipulated that after three yearsthe two republics could hold referendums onwhether to keep or scrap it. Montenegroopted for the latter.Montenegro last experienced independencenearly 90 years earlier. It was absorbed intothe newly-formed Yugoslavia at the end ofWorld War I. There were fears that the 2006independence vote could lead to unrest inthe areas of Montenegro where ethnic Serbs,who make up roughly a third of thepopulation, form the majority and stronglyoppose separation from Serbia. There wasbacking for independence from most ethnicMontenegrins and ethnic Albanians living inMontenegro.The pro-independence camp led by PrimeMinister Djukanovic argued that theassociation with Serbia was holding therepublic back, not least with its bid for EUmembership. Montenegro will now seeknegotiations on a stability and associationagreement with the EU in its own right.As the successor state to the union, Serbiainherited its seat at the UN and otherinternational organizations. The newlyindependentMontenegro has since beenadmitted to the UN in its own right.Montenegro, which means "Black Mountain",borders Croatia, Bosnia, Serbia, Serbia'sbreakaway province of Kosovo and Albania.About half of it is covered in thick forest.The tiny republic encompasses an Adriaticcoastline, lowlands and high mountainranges. The Tara River canyon is thedeepest and longest in Europe.Filip Vujanovic, a pro-independencecandidate and an ally of the prime minister,has been president since May 2003.Milo Djukanovic, the spearhead ofMontenegrin independence, is to step down,just a month after winning the September2006 general elections. President Vujanovicsays the prime minister is leaving forpersonal reasons.Mr. Djukanovic said his election victoryproved that Montenegro was firmly on theEuropean track. One of the major tasks forparliament will be to draft a constitution.Milo Djukanovic is the only Balkan leader tohave remained in office - as prime minister orpresident - since the disintegration of theformer Yugoslavia in 1991.At the time of his first premiership he was anally of then Serbian leader SlobodanMilosevic and favored the preservation of afederal Yugoslavia. Under his premiershipMontenegrin forces within the Yugoslav armyplayed an important role in the siege ofCroatia's historic city of Dubrovnik.A rift with Mr. Milosevic developed from themid 1990s on. The split was underlined in1997 when Mr. Djukanovic defeated the pro-Milosevic candidate in Montenegro'spresidential election.He went on to win favor with the EU when hedeclared that Montenegro was not a party tothe conflict over Kosovo when PresidentMilosevic's actions there led to Nato airstrikes. Parties allied with Mr Djukanovic wonMontenegro's general elections in October2002. At that point he gave up thepresidency to resume the more hands-onrole of coalition prime minister, a job he firstcarried out in 1991 at the age of 29.His pursuit of independence rang EU alarmbells over potential dangers for Balkanstability. Under EU pressure, he reluctantlyagreed to the formation of the new, looserUnion of Serbia and Montenegro in 2003 -but only after it was agreed that the crucialreferendum on its future could be held threeyears later.** BBC Country Profile.http://news.bbc.co.uk/2/hi/europe/country_profiles/5033274.stmKey Information ContactsSecurities Commission of Montenegro www.scmn.cg.yuCentral Depositary Agency www.cda.cg.yuCentral Bank of Montenegro www.cb-cg.orgMinistry of Finance www.ministarstvo-finansija.cg.yuMontenegro Statistical Office www.monstat.cg.yu2003-FOREIGN TRADE - IMPORT (%) 2003-FOREIGN TRADE - EXPORT (%)Europe Asia South AmericaNorth and Central AmericaEuropeOtherNorth and Central America85.8 7.13.14.096.6 3.00.4PAGE 112

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MONTENEGRO STOCK EXCHANGEMONTENEGRO ECONOMIC REVIEW2000 2001 2002 2003 2004 2005GDP, market prices (EUR milions) 1,022 1,225 1,302 1,375 1,475 1,580*GDP real growth (annual in %) - -0.2 1.7 2.5 2.7* 4.0*GDP per capita (EUR) 1,679 2,031 2,113 2,231* 2,378* 2,548*Inflation (CPI changes) 24.8 28.0 9.4 6.7 4.3 3.0*Industrial output (annual percentage changes) 3.7 -0.7 0.6 2.4 13.8 -Unemployement rate (% of the total labour force) 37 37 - 25.8 22.2 -Monetary reserves (EUR millions) - - - - 53.5 -Montenegro's budget deficit (EUR millions) - - - 438.8 502.7 -External debts as % of GDP - - - 32.0 34.0 -Balance of payements current account (EUR millions) - - - -114 -118 -Montenegro's budget deficit (EUR millions) - - 25.16 45.29 32.21 34.32*Share in GDP (in %) - - 2.01 3.29 2.18 2.17Export of goods (US$ millions) 161.3 178.0 194.2 171.3 - -Import of goods (US$ millions) 354.5 529.4 681.6 601.7 - -Balane of trade (deficit-surplus, US$ millions) 193.2 351.4 487.4 430.4 - -* evaluationGROSS DOMESTIC PRODUCT OF THE ENTIRE ECONOMY2000* 2001* 2002** 2002*** 20032,471,756 3,397,400 1,868,849 - -PRODUCTIVE BRANCHES OF ECONOMIC ACTIVITIESTotal 2,465,347 3,349,382 1,832,425 -Agriculture 395,063 467,913 257,887 280,008Fishery 1,420 2,237 948 -Stones and ores extraction 98,987 96,711 68,189 59,467Manufacturing industry 753,968 909,492 401,893 463,337Electricity, gas and water supply 168,850 252,508 142,791 129,931Construction industry 241,656 259,735 155,084 180,036Retail and wholesale trade 259,933 578,581 347,133 294,299Hotels and restaurants 111,093 142,236 88,310 84,530Transport, warehousing and communications 382,390 574,323 331,446 265,567Financial mediation - - - 42,676Real estate operations 48,716 61,412 35,860 172,366State administration and defence; Obligatory social insurance - - - 154,970Education - - - 64,632Health care and social welfare 1,921 2,612 1,307 76,621Other utility, social and personal service activities 1,350 1,622 1,577 85,398Gross value added - - - -2,700Gross value added (basic prices) - - - 1,154,623Taxes on products minus subsidies on products - - - 146,882GDP (market prices) - - - 1,301,505Source: Monstat*2000. - DM thousand**2002. - EUR thousand***SNA conceptPAGE 113

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MUSCAT SECURITIES MARKETAhmed Saleh Al-MarhoonDirector GeneralWe believe that exchanges that adhere togood governance, greater transparency andgreater accountability, are able to fosterinvestors’ confidence as well as creating anattractive investment environment.We are consciously working on developingand operating an efficient and transparentsecurities market to the best standardexpected by our local and foreign investors.We believe that exchanges that adhere togood governance, greater transparency andgreater accountability, are able to fosterinvestors’ confidence as well as creating anattractive investment environment.We at Muscat Securities Market (MSM),however, have devised a comprehensive roadmap that enables us to build capacity andpromote sustainable capital marketdevelopment strategy specifically aimed atimproving access to the regional andinternational capital markets.In view of the above, MSM recently revised itslegislation with respect to listing, trading andclearance and settlement regulations to enableMSM to cater for our market demand.One of our eminent projects is to replace theMSM existing trading system with Atos-Euronext Trading System that is used by somewestern and other emerging stock markets.We expect that the new trading system will beimplemented at the end of 2005 and will,inevitably, enhance the capability of MSM andmake it the first exchange in the GCCcountries that uses this advanced tradingsystem.We are in the process of upgrading MSMwebsite to improve the navigation, content andoverall value of the website for users.HISTORY AND DEVELOPMENTThe MSM has passed through two stages; onestarted when the exchange was established in1989 up until 1998 when MSM crashed at theend of 1997 and the beginning of 1998 and thesecond stage from that time up until today.Each stage has its own characteristics andenvironment. One of the significant changes inthe market structure was the establishment ofthe Capital Market Authority (CMA) as aregulator and the Muscat Depository Companyas a central depository.The first era of MSM was the real learningexperience for the people running theexchange and for the market participant as wellas the investors and the public at large. In thebeginning there were 48 public shareholdingcompanies listed and six brokers; the marketcap was around R.O. 414.7 millions (OneRial=2.59781 US$). The ambition at that timewas to grow the exchange by listing more andmore companies. The government encouragedthe establishment of new public companiesthrough various incentives especially in theindustrial sector. This resulted in rapid growthin the exchange in terms of the number ofstocks listed reaching the peak at the end of1996 with 97 companies, which was reflectedin the increase of the capitalization of themarket where it reached R.O. 1.62 billion at thesame period. Market cap was also overstatedby the inflated indexes where the main indexesreached 5,300 at the first quarter of 1998.The second period of MSM is after theestablishment of CMA as the market regulatorin 1998. The market was in a very criticalsituation with the main index dropping, marketconfidence and market sentiments were veryweak, and the corporate performance ingeneral was low due to difficulties which thenational economy was facing because of thedecrease in oil prices at that time. That was thereal start for MSM, where the market authoritiesevaluated the first period to identify what wentwrong and started building on the experiencethey have for a more scientifically operatingexchange of today.FUTURE OUTLOOKMuscat Securities Market contracted with aspecialized French consultancy company(Atos-Euronext) to make its recommendationson ways and means to develop the MSM overthe next few years. The said Company hasconducted a detailed study and come up withseveral proposals and recommendations thatneed to be implemented in order to upgradethe performance of the market. MSM hasalready started to implement thoserecommendations which it deems suitable andappropriate. Other proposals andrecommendations shall be implemented inaccordance with an agreed time schedule incooperation with the Capital Market Authorityand other concerned government authoritiesThe near future should witness betterperformance in the primary market due to theexpected privatization of some companies inthe governmental sectors particularly in the oiland gas sectors. Further, New oil and gascompanies shall be established.PAGE 114

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MUSCAT SECURITIES MARKETOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 198.79 9.47 112.98 5.38Feb-07 152.73 7.64 88.76 4.44Mar-07 189.55 9.03 114.15 5.44Apr-07 369.58 16.80 181.21 8.24May-07 355.56 15.46 212.18 9.23Jun-07 270.32 15.90 133.50 7.85TOTAL 1,536.5 12.4 842.8 6.8BondsJan-07 8.12 0.39 0.16 0.008Feb-07 0.19 0.01 0.02 0.001Mar-07 15.19 0.72 0.07 0.004Apr-07 14.03 0.64 0.52 0.024May-07 0.36 0.02 0.05 0.004Jun-07 0.63 0.05 0.09 0.007TOTAL 38.5 0.31 0.92 0.01OtherJan-07 87.78 4.18 21.99 1.05Feb-07 49.77 2.49 25.93 1.30Mar-07 45.49 2.17 29.44 1.40Apr-07 17.16 1.14 7.72 0.51May-07 25.25 1.68 14.45 0.96Jun-07 75.15 6.26 22.44 1.87TOTAL 300.6 3.0 122.0 1.18MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 16,393.80 5,769.99Feb-07 16,576.23 5,773.15Mar-07 15,744.28 5,550.47Apr-07 16,788.06 5,795.30May-07 17,886.07 6,202.40Jun-07 18,205.30 6,338.96CONTACT INFORMATION4003503002502001501005007,000 20,0006,00018,00016,0005,000 14,0004,00012,00010,0003,000 8,0002,000 6,0001,0004,0002,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Talal H. Al Nasseb E-mail talal21@msm.gov.om Website www.msm.gov.omPAGE 115

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MUSCAT SECURITIES MARKETECONOMIC AND POLITICAL DEVELOPMENTSIntroductionThe Sultanate of Oman has threegovernorates–Muscat, Dhofar andMusandam. The governorate of Muscat isOman's political, economic andadministrative center.Integration into the World EconomyOman has a liberal economy and over theyears has succeeded in boosting its ownpotential as well as its ability to respond todevelopments in the region and beyond. Asa member of the WTO, Oman aims tostrengthen its economic relations with othereconomic power and blocs, through theArab Gulf Cooperation Council (AGCC), theArab League or the Indian Ocean RimAssociation for Regional Co-operation(IORARC), as well as on a bilateral basis. Atthe same time active steps are being takento implement the policy of privatization andopen up the electricity sector, as well ascommunications, ports, industry, tourism andother areas to increased foreign investment.Oman and the World (Foreign Policy)The main principle of Omani foreign policyinclude respect for the national sovereigntyof other countries, noninterference in theinternal affairs of other states and thefostering of neighborly relations, includingcooperation for the sake of commoninterests. It is these principles that determineand guide the country’s approach todevelopments in the Gulf, as well as thebroader Arab and international arenas.Oman was the first Arab country to establishdiplomatic contact with the US in the first halfof the 19th century and the bicentennial ofthe treaty relationship with Britain wascelebrated in January 2000. In recent yearsthe Sultanate’s relations with the US and thecountries of Europe have gone from strengthto strength.Balanced, Growth-Oriented Budgetfor 2006The excess of planned aggregateexpenditure of US$ 11 billion over budgetedrevenue receipts of US$ 9.317 billion, isestimated to leave a higher deficit ofUS$ 1.688 billion in 2006, as against a deficitof US$ 1.403 billion on estimated in theprevious budget. The oil revenue wascalculated on the basis of a price of US$ 32per barrel, with an average production of746,000 barrels a day. The deficit, accordingto preliminary estimates, constitutes 6% ofthe GDP. Oman’s defense budget has beenraised 8.5% to US$ 3.234 billion as againstUS$ 2.982 billion budgeted for 2005. Thebudget reveals that the nation is to boostspending on education in a budget flaggedas a boost for social and economicdevelopment. The budgeted revenue for theyear 2006 shows an increase of 14% overlast year. Oil (US$ 6.543 billion) and gas(US$ 1.023 billion) revenues for 2006constitute 81% of total revenues, and currentand capital revenues (US$ 1.751 billion)constitute the remaining 19%. Moreprecisely, oil revenue will contribute 70% tothe total revenues, while gas revenue willcontribute 11%. Total expenditure ofUS$ 11 billion for the fiscal year 2006 isUS$ 1.447 billion or 15% more than theprevious year’s budget. Current expenditurefor the government civil ministries and unitsis estimated at US$ 3.64 billion, constitutingnearly 33% of the total public expenditure.This will cover basic and operationalexpenditure of government services,ministries and units.Preliminary estimates indicate the GDP atcurrent prices is expected to register anaverage growth rate of 8.7% during the SixthPlan period. During this period, the economyregistered low inflation rates, with an annualrate, not exceeding 0.3% despite increase inprices in 2005 on fall in dollar exchange rate.Price increase in the international market hasalso affected the price trends in Oman. Inaddition, the balance of payments positionwitnessed an improvement. The currentaccount balance registered surpluses of anannual average of US$ 1.442 billion.Non-oil activities witnessed a recovery duringthe plan period. On an average, non-oilactivities, at current prices, grew by 9.2%annually. Natural gas-based industriesregistered a high annual growth of about36.8% during the plan period. The non-oilmerchandise exports, including the reexportsincreased during the Plan periodfrom US$ 2.405 billion in 2000 to US$ 4.906billion in 2005, registering an annual averagegrowth of 15.3%.Tourism sector witnessed remarkable growthduring the plan period. On an average, itsvalue addition, at current prices, grew by6.7% annually. The capacity of the sector(number of rooms) increased by 8.8%.The total number of hotel rooms increasedfrom 5,312 rooms in 2000 to 8,082 in 2005.** Information provided by the Muscat Securities Market.Key Information ContactsMinistry of National Economy www.moneoman.gov.omCapital Market Authority www.cma-oman.gov.omOman Chamber of Commerce and Industry www.cbo-oman.orgFinancial Corporation www.fincorp.orgNational Bank of Oman www.nbo.co.omPAGE 116

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MUSCAT SECURITIES MARKETOMAN MAJOR ECONOMIC & SOCIAL INDICATORSUnit Change % 2004 (1) 2003 2002(03/04)A- ECONOMIC INDICATORS- Gross Domestic Product at Current Prices RO millions 13.7 9,527.1 8,375.9 (1) 7,815.1- Gross National Income (GNI) RO millions 15.8 9,014.1 7,782.9 (1) 7,334.1- GNI per Capita RO 11.7 3,731.0 3,339 (1) 2,890.0- % of Domestic Saving to GDP % -3.2 33.1 34.2 33.1- % of Private Capital Formation to GDP % 40.4 6.7 4.8 3.8- % of Private Capital Formation to Total Gross Capital Formation % 17.0 35.6 30.5 30.4- Total Government Revenue RO millions 22.2 4,040.2 3,305.3 3,009.5- Oil & Gas Revenue as a % of Total Government Revenue % 7.4 78.1 72.7 75.7- Total Government Expenditure RO millions 19.5 3,809.9 3,188.9 2,939.5- Average Daily Production of Oil (000) BBL -4.9 780 820 897- Average Oil Price US$ 23.6 34.42 27.84 24.29- Total Merchandise Exports RO millions 14.7 5,145.0 4,486.6 4,295.6- Of which Non-Oil Exports (Omani origin) RO millions 38.2 420.3 304.1 261.6- Total Recorded Merchandise Imports RO millions 29.3 3,381.9 2,615.0 2,420.8- General Price Index % 0.1 97.0 96.9 97.3B- SOCIAL INDICATORS- Total Population No. (000) 3.2 2,416.0 2,341 2,538 (2)- Omani No. (000) 1.2 1,803.0 1,782 1,870- Expatriate No. (000) 9.7 613.0 559 668- Crude Birth Rate per 1,000 Population -1.6 24.0 24.4 25.6- Infant Mortality Rate per 1,000 Live Births ... 10.3 10.3 16.2- Hospitals No. ... 57 57 56- Health Centers (with beds) No. 1.5 67 66 60- Health Centers (without beds) No. 7.5 57 53 58- Extended Health Centers No. 20.0 12 10 10- Bed/1,000 Persons No. -3.6 2.15 2.23 2.04- Doctor/1,000 Persons No. 0.6 1.60 1.59 1.39- Nurse/1,000 Persons No. -1.4 3.62 3.67 3.25- Life Expectancy at Birth No. 0.1 74.3 74.26 73.80- Males No. 0.1 73.2 73.14 72.20- Females No. ... 75.4 75.40 75.40- Schools No. 2.5 1,217 1,187 1,187- Students No. -0.3 626,157 628,110 628,971- Teachers No. 6.5 38,098 35,786 33,614- Civil Government Employees No. (000) 3.3 127 123 119- Omanis Registered with The Public Authority for Social Insurance (on-job) No. 16.4 87,064 74,816 65,879- Expatriate Employees in the Private Sector No. (000) 4.2 424 (3) 407 (3) 547- Asphalted Roads Km. 18.7 14,681 12,365 10,930- Fixed Telephone Lines No. 1.3 239,262 236,178 233,897- Mobile (GSM) No. 9.2 257,287 235,662 220,410- Prepaid Card (Hayyak) No. 53.4 548,993 357,791 243,450- Internet No. -6.0 48,657 51,769 48,232- No. of Hotels No. 9.8 146 133 124- Electricity Production GW\H 7.3 11,499 10,714 10,331- Electricity Distribution GW\H 6.4 10,959 10,303 9,851- Water Production from Desalination Plants & Wells million gallons 9.2 26,195 23,978 22,724- Water Distribution million gallons 9.1 26,140 23,951 22,855(1) Provisional(2) Mid-year estimates(3) Expatriate data refers to those who hold valid labour cards onlyInformation provided by the Muscat Securities MarketPAGE 117

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007PALESTINE SECURITIES EXCHANGEDr. Hasan Abu-LibdehChairmanThe year 2006 witnessed serioustransformations in the life of the PSEon both the organizational and practicallevels.The year 2006 was not a normal year for thePalestine Securities Exchange nor was it sofor investors. Since late 2004, the PSE hasentered an ascending correction movementcompensating Al-Quds Index loss for fouryears of hurdles that prevented achieving theexpected growth that reflects an objectiveassessment of the performance of thePalestinian economy and publicshareholding companies. The aggregateconsequences of the continuous Israeliaggression during the first years of theUprising had a direct role in stopping thegrowth of the index. During the year 2005,the Palestinian cause witnessed politicalprogress that led to unprecedented upwardmovement of the index. The result was thatthe index registered the highest growth levelin the world that reached 306%. However,the developments following the legislativeelections that took place at the first month of2006, and the security tensions in Palestinebefore and after the said elections, made theindex lose an important portion of its gains of2005. Despite this decline, I can assure thatPSE is stable and stands on solid ground.Meantime, the PSE enjoys a benefit thatqualifies it to become the favorite market forinvestment as soon as circumstancesimprove. It is sufficient to mention that theperformance of Al-Quds Index was not theworst in 2006 that was characterized with adeep correction movement thatoverwhelmed most of the stock exchanges inthe region despite its developing economiesand high oil prices.The year 2006 witnessed serioustransformations in the life of the PSE on boththe organizational and practical levels. SinceMay 2006, the PSE launched the processionof increasing the bases of ownership,transparency and good corporategovernance. The General Assembly of thePSE decided to go public and become apublic shareholding company. More than51% of its current shares will be sold for thepublic and other investors includingPalestinian brokerage firms. The PSEcommenced in preparing a strategic plan,restructuring, staff development, increasinginteraction with public shareholdingcompanies and member companies(brokerage firms), sustained coordinationwith the Capital Market Authority, andallocation of resources to increase publicawareness of investors. In this respect, theInvestment Awareness Project was launchedduring the second half of 2006. A radicalchange was carried out in the computerizedenvironment in order to maintain the efficacyof the PSE operations and to protectinvestors. The PSE regulations were alsodeveloped to keep up with the SecuritiesLaw and the Capital Market Law.HISTORY AND DEVELOPMENTIn 1995, and in aproactive outlook forinvestment prospects in Palestine, as well asthe urgent need for creating asoundinvestment enviroment, PalestineDevelopment and Investment Company(PADICO), and in cooderation andcooperation with the Palestinian NationalAuthority, took the first steps towardsestablishing asecurities exchange inPalestine. This initivate aimed to attractPalestinian savings inside Palestine and inthe Diaspora and encourage foreigninvestments that would provide long-termfinancing for economic projects in Palestinethat ensures the advancement of thenational economy under all circumstances. Italso aimed to regulate and faciliate tradingin securities in asecure investmentenviroment. Hence, PADICO signed anagreement with the Ministry of Finance foroperating the Securities Exchange in the lastquarter of 1996, and the first trading sessionwas held on 18 February 1997.The beginings of PSE were modest butdeveloping, in terms of the number of listedcompanies and brokerage firms, as well thesize of transactions. Starting with fewcompanies in 1997, the number of listedcompanies on PSE increased to thirty-threeby end of 2006, while the number ofbrokerage firms increased to sevenm withoffices and branches in most of thePalestinian Cities. Most listed companiestrade in Jordanian Dinar, while others tradein US Dollars. Only equities are currentlytraded on PSE, but there is potential andreadiness to trade other securities in thefuture.With the continuous expansion andprogress, Palestine Securities Exchange(PSE) has opened a branch office inRamallah in order to serve investors andccordinate with stakeholders. With anOutlook for enhancing the principels ofpartnership and transparency, PSE is in theprocess of becoming a public shareholdingcompany, and hence would be listed.FUTURE OUTLOOKIn the year 2007, the PSE will witness moreprocedures for good corporate governanceincluding offering its stocks for subscriptionand listing its shares at the Exchange. Inaddition, it will provide investors with theopportunity of direct trading via the internet(E-Trading). Training courses will be held toraise the efficiency of its workers andTraders. It will finance several initiatives thataim at supplying technical and basicanalysis of listed companies. It will attemptto develop the performance of brokeragefirms, enhance the procedures of disclosure,and sign bilateral agreements with regionaland international stock exchanges. WithGod's will, not less than ten new companieswill be listed so that the number ofcompanies listed at the exchange will reach45 public shareholding companies by theend of the year 2007. We will also launch agroup of Electronic surveillance programsfor daily trading to protect investors. Theyear 2007 shall witness, by God's will, moreefforts in the field of investment awareness,horizontal expansion by opening a branch ofthe PSE in Gaza Strip, and expansion in theSocial Liability Program so as to reflect morecommitment in the human and socialprogram. In cooperation and coordinationwith the Capital Market Authority, we hope toachieve the legal and organizationalrequirements to launch the market makingservice so as to protect the investors fromthe severe fluctuations in stock prices at anytrading session.PAGE 118

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007PALESTINE SECURITIES EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 76.58 4.03 24.24 1.28Feb-07 99.80 4.99 36.73 1.84Mar-07 79.76 3.80 30.38 1.45Apr-07 55.24 2.51 23.02 1.05May-07 61.53 2.80 25.40 1.15Jun-07 78.38 3.92 35.58 1.78TOTAL 451.3 3.7 175.4 1.4BondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalizationUS$ millionsIndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 2,798.02 610.58Feb-07 2,930.85 640.07Mar-07 2,857.36 622.87Apr-07 2,501.50 522.9May-07 2,383.94 504.08Jun-07 2,375.77 509.69CONTACT INFORMATION1009080706050403020100700 3,000600 2,5005002,0004001,5003002001,000100 50000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Dr. Hasan Abu-Libdeh E-mail habulibdeh@p-s-e.com Website www.p-s-e.comPAGE 119

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007PALESTINE SECURITIES EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitical DevelopmentsIn the year 2006, the Palestinian arenawitness surprising developments when thePalestinian political map changed radically atthe beginning of the year following thelegislative elections that led to the winning ofthe opposition party. As a result, a financialblockade was imposed on the Palestiniangovernment, leading to security tension fromtime to time in various locations in thecountry. The results of the elections came asa surprise at both the local and internationallevels. Since then, the political developmentshave severe impacts on the Palestinianeconomical situation.Economic DevelopmentsIn the year 2006, the number of thePalestinians exceeded ten million people;four million of them live in the Gaza Strip andthe West Bank including Jerusalem.From an economical prospective, statisticsat the end of the year 2006 shows that therevenues of the Palestinian National Authorityduring 2006 reached US$ 370 million incomparison to US$ 1,290 million during 2005with a drop of 71%. The main reason of thissevere drop is due to the Israeli governmentstand which resulted in halting thetransference of the Palestinian taxes returns.The donations received by the PalestinianAuthority during the first three quarters of2006 reached US$ 550 million. They areexpected to reach US$ 760 million for thewhole year, that is, more than two folds ofthe amount donated during 2005 when thetotal sum of such donations reachedUS$ 352 million.During the third quarter of the year 2006, thegross domestic product (GDP) in thePalestinian territories deteriorated at a rate of15.3% relative to the same period of lastyear. In general, the rate of deterioration is3.6% when comparing the first three quartersof the year 2006 with the same period of theyear 2005.During the third quarter of the year 2006, theunemployment rate reached 24.2% that is arise of 5.7% and 6.7% in comparison with thesecond quarter of 2006, and the third quarterof 2005 respectively. At the end of thesecond half of 2006, the number of poorpeople in the Palestinian territories reached2.1 million people while their number was 1.3million at the end of the year 2005.Impact Of The Economical SituationOn The PSEAt present, the Palestine Securities Exchange(PSE) stands on a solid ground. Despite thepolitical and economical deteriorations, thePSE was able to achieve outstanding resultsin the year 2006 although they were less than2005. Most of the Arab exchanges witnesseddeep correction movement following thedramatic rises of stock prices in 2005 thatwas not anticipated by most observers.In 2006, the PSE held 238 trading sessionswere more than 150 thousand transactionswere executed with a value that exceededone billion US dollars. Despite the drop ofAl-Quds Index at a percentage of 46.39%,all indicators show that at any positivedevelopment in the political situation inPalestine will be reflected immediately at theeconomical circumstances and the PSE.Key Information ContactsPalestine Capital Market Authority: http://www.cma.gov.ps/Ministry of Finance: http://www.mof.gov.ps/Ministry of National Economy: http://www.met.gov.ps/DesktopDefault.aspx?lng=1Palestinian Central bureau of statistics: http://www.pcbs.org/Palestine Media center: http://www.palestine-pmc.com/link.aspThe Palestinian Legislative Council: http://www.pal-plc.org/english/english.aspGROWTH OF INVESTMENT AND GDP(%)GDIGDP100-10-20-30-40-50-60-70-809798 99 00 01 02 03* World Bank reportsPAGE 120

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007PALESTINE SECURITIES EXCHANGEPALESTINE MONEY SUPPLY, INTEREST RATES ANDFOREIGN EXCHANGE RESERVES1999 2000 2001 2002 2003Real GrowthGross domestic product 8.40 -5.00 -14.80 -10.10 6.10Private consumption 9.80 -5.60 -12.50 -14.20 3.40Public consumption 9.30 8.90 -4.30 0.70 0.10Investment 35.90 -30.50 -41.20 5.00 5.40Exports 1.20 -7.90 -15.50 -11.80 -4.00Imports 22.50 -16.40 -20.00 -6.60 -3.00Real GDP, cumulated decline since 1999 -5.60 -19.60 -27.70 -23.30Real GDP per Capita, cumulated decline since 1999 -9.50 -26.40 -37.30 -36.60Net Factor Income, NIS (US$ millions) 3,121 2,733 1,611 1,579 1,894Net Current Transfers, NIS (US$ millions) 1,547 2,349 3,896 5,250 6,479Population (million) 2.83 2.95 3.09 3.26 3.42Exchange Rate (NIS:US$) 4.14 4.08 4.2 4.74 4.55GNI per Capita, US$ 1,739 1,620 1,201 97 1,041Consumer Price Inflation (%) 5.50 2.70 1.20 5.70 4.40Source: World Bank Staff Calculated & PCBSGROWTH OF EXPORTS AND IMPORTS(%)INFLATION(%)ExportsImportsGDP deflatorCPI1050-5-10-15-20-259798 99 00 01 02 031816141210864209798 99 00 01 02 03EXPORT AND IMPORT LEVELS(US$ millions)CURRENT ACCOUNT BALANCE TO GDP(%)ExportsImports3,00009798 99 00 01 02 032,000-10-201,000-3009798 99 00 01 02 03-40Source: World Bank reportsPAGE 121

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007SARAJEVO STOCK EXCHANGEZlatan DedicGeneral ManagerIn the first four months of 2006, we haveanalyzed investor’s obstacles and startedremoving them. Above all we wanted toadequately show investors that our capitalmarket is worthy for them and offerssubstation returns on their investments.In its fifth year of operation the SarajevoStock Exchange (SASE) has accomplishedexcellent results in share trading. There areseveral examples that could confirm this, butthe most illustrative one is the total turnoverin 2006 with the amount of EUR 334 million.When compared with last year’s turnover thiswas an increase of 18%.In the first four months of 2006, we haveanalyzed investor’s obstacles and startedremoving them. Above all we wanted toadequately show investors that our capitalmarket is worthy for them and offerssubstation returns on their investments. Theaccess to the greater number of informationwas enabled with new data available onredesigned SASE web portal together withlist of top ten share holders for all securitiesavailable on Central Register’s web portal. In2006 another significant milestone wasachieved with listings of the first threecompanies on the SASE Official Market.These companies were first to understandadvantages of this market segment andadvantages toward their investors, clientsand other interest groups. Openness toinvestors draws their attention and givesincite and confidence to the capital market inthe Federation of Bosnia and Herzegovina.Past year will also be remembered by thefirst custody transaction done in October.This means banks can now trade for theirclients without identifying them, which isvery important for some of them and willattract them in greater numbers. One morereason for greater investor’s interest incapital market in the Federation of Bosniaand Herzegovina is the announcement forinfrastructure projects especially in energy,telecommunication and road constructionsectors.Also government made announcement forprivatization of companies who are pillars ofBosnian economy. The First InternationalConference organized by SASE in Octobermade a big impact on the market andattracted new investors from the region, butalso from the world.HISTORY AND DEVELOPMENTThe Sarajevo Stock Exchange (SASE) wasfounded in September of 2001 by eightbrokerage houses and commenced tradingon 12 April 2002. The SASE is a centralmarketplace for securities trading in theFederation of Bosnia and Herzegovina.The SASE is a joint-stock company whichoriginally had eight founding members.The SASE currently has 16 members, whoseheadquarters are spread around theFederation of Bosnia and Herzegovina, themajority being in the capital, Sarajevo.All members of SASE must be licensed fortrading in securities by the SecuritiesCommission of the Federation of Bosniaand Herzegovina.Trading on the SASE is performedelectronically through an order drivenelectronic trading system BTS (StockExchange System). BTS is a computerassisted information and trading system,which enables remote entry, modification,halt and removal of orders, automatedmatching of orders and concluding trades,supervision of orders and trades, as well assurvey of information on trading and onlisted securities.At the beginning of 2004, trading at theSASE Official Market started and all 11Privatization Investment Funds were listedthere. The Official Market is a higher levelmarket where only securities that meetspecial conditions and are approved by theSecurities Commission and SASE’s additionboard can be listed there. Also in 2004, aftertwo years of trading with only call auctiontrading system, continuous trading has beenintroduced at the SASE under the nameMulti Fixing Trading Schedule (MFTS). Onlythe most liquid securities on the SASE havebeen transferred to MFTS. In 2006 anothersignificant milestone was achieved withlistings of the first three companies on theSASE Official Market.In conclusion, after only five years ofoperations market capitalization of SASEhas reached over US$ 7.6 billion.FUTURE OUTLOOKOur trading turnover projection for 2007 is inthe framework of accomplished results in2006. We expect that 2007 will not bringgreater increase in turnover when comparedwith 2006, and we are projecting 660 millionConvertible marks (EUR 338 million).In these careful estimates we had toconsider decrease in projected number ofblock trades for 2007 due to new stricterreporting regulation. In 2006 block tradesrepresented 30% of annual turnover.On the other hand SASE plans to introducenew trading stimulants. In 2007 we areintroducing Friday as a fifth trading day. Wehave purchased source code for our newtrading software and now we will be able tooffer new software solutions for ourmembers. Also SASE is trying to decreasetransaction costs for investors and in 2007 islowering stock exchange commission to0.08% of transaction value.We are currently working on intraday tradingproject which will enable same daypurchase and sale of any shares. The startof intraday trading is expected for early2007. Parallel to this we are working onelectronic order book which will be of crucialimportance for intraday trading. All theseplans for more efficient trading on our stockexchange in 2007 give a clear signal toinvestors that capital market institutions areworking on more open and flexible market inBosnia and Herzegovina. We are expectingbond trading to start in 2007 first withgovernment bonds. The government hasannounced them for April of 2007, but morerealistic forecast would be for late 2007.The capital market in the Federation ofBosnia and Herzegovina will host some newdomestic open investment funds which willcontribute to further growth of our market.Cooperation with stock exchanges in theregion will continue in 2007. SASE has madearrangements with the Vienna StockExchange for the live data feed and datadissemination to the wide range ofproviders. Also SASE is continuouslyworking with the Vienna Stock Exchange oncreation of single Bosnian index. SASEtogether with the Banja Luka StockExchange will receive technical assistancefrom the Vienna Stock Exchange in thismatter. Furthermore we are planning jointpresentations to investors. This cooperationwith the Vienna Stock Exchange and otherstock exchanges in the region wouldpromote our region on the global market.This way investors would be able to choosewhat they like the most, and we hope theywill choose the Sarajevo Stock Exchange.PAGE 122

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007SARAJEVO STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 108.97 5.19 6.13 0.29Feb-07 101.87 5.09 8.92 0.45Mar-07 111.29 5.30 8.71 0.41Apr-07 178.04 9.37 16.01 0.84May-07 80.32 3.82 7.33 0.35Jun-07 55.06 2.62 3.43 0.16TOTAL 635.6 5.2 50.5 0.42BondsJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 9,766.70 6,791.11Feb-07 11,490.71 7,191.70Mar-07 12,904.81 9,354.92Apr-07 13,558.44 8,482.33May-07 12,249.99 7,866.26Jun-07 11,579.73 7,447.2818016014012010080604020010,0008,0006,0004,0002,0000Jan Feb Mar Apr May Jun14,00012,00010,0008,0006,0004,0002,0000Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Mr. Goran Kahvedzic E-mail goran.kahvedzic@sase.ba Website www.sase.ba* Please refer to page 48 for the Bosnia and Herzegovina country report.PAGE 123

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTANThe exchange is one of the most important domestic economicinstitutions to date and acts as the main body for import andexport operations in the country as well as a governmentregulator.HISTORY AND DEVELOPMENTThe State Commodity and Raw MaterialsExchange of Turkmenistan (SC&RME) wascreated by decree of the President ofTurkmenistan, Saparmurat Turkmenbashi,in 29 July 1994. The Exchange is one of themost important domestic economicinstitutions to date and acts as the mainbody for import and export operations in thecountry as well as a governmental regulator.There are many indicators of activityregarding the Exchange. During 2004,1,071 export contracts for the sum ofUS$ 677,577.3 thousand were registered.These figures are indicative of the favorablepolitical and economic situation inTurkmenistan, its rich natural resources, andof utmost importance, the reliability andstability of state organizational structures toattract business from all over the world.SC&RME has relationships with more than45 countries.Business people from Turkey, Russia, theUSA, the UAE, Germany, Great Britain, buyoil products, liquefied gas, cotton fiber,cotton yarn, handmade Turkmen carpets,hides and knitwear from Turkmenistan.An information and analytical system wascreated for the SC&RME to enable directoperational control of contract execution aswell as for information retrieval. The InfoBasedatabase will be developed to allow theretrieval of world quotations on significantcommodities in real time and to facilitatepotential marketing outlets for domesticcommodity production.FUTURE OUTLOOKThe following plans are currently underway:• further development of external economiclinks with foreign trade companies;• streamlining the uses of PR companiesand the services they provide in terms ofmass media disclosure;• expansion of external contacts withinternational and regional organizations;• simplification of the contract registrationprocedure; and• increasing the level of skill and experienceof Exchange staff through interactionsbetween organizations.CONTACT INFORMATIONContact Name Mr. Murad Muradov E-mail muradovma@exchange.gov.tm Website www.turkmenbusiness.orgPAGE 124

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTANECONOMIC AND POLITICAL DEVELOPMENTSPolitic and Economic EnvironmentIt is expected that the president, SaparmuradNiyazov, will remain in power in 2007-08.Prospects for the introduction of any kind ofpolitical pluralism are negligible. The politicalupheavals elsewhere in the former SovietUnion over the past few years will havereinforced Mr Niyazov's belief that anyattempt at reform risks undermining hisposition. He will continue to rely on thepractices that have sustained his rule untilnow: guaranteeing basic welfare provision,minimizing political freedom, and maintainingan extensive patronage network to ensurethe support of the political elite. AlthoughMr Niyazov looks unchallengeable for themoment, the frequent reshuffles of officialson the grounds of corruption andincompetence suggest that tension is risingwithin the political system, and that thepresident's patronage network could bestarting to unravel.The focus of Mr Niyazov's foreign policy willbe to ensure that the country's existing gasexport deals are maintained on favorableeconomic terms, as well as to secure newgas export deals and further inwardinvestment for the hydrocarbons sector. Anagreement reached with China in April 2006provides for the construction of a new gaspipeline linking the two countries, andappears to have given Turkmenistan someleverage in its export negotiations withRussia-in September 2006 the Turkmenauthorities secured a 40% increase in theprice of gas exports to Russia.We expect the government's economicpolicies to remain broadly unchanged, withthe state maintaining the dominant role in allsectors of the economy. Subsidies, pricecontrols and the free provision of utilities willcontinue to underpin these policies. Thesustainability of this system will dependmainly on Turkmenistan's ability to earn hardcurrency from commodity exports. In view ofthe development of the domestic oil-refiningsector, and the expectation of continued highworld energy prices, we anticipate thatexport revenue will hold up sufficiently topreclude any need for the government tointroduce economic reform.Turkmenistan will continue to benefit fromstrong demand in Russia and China for itsenergy resources, and has already takenadvantage of the competition in the regionfor gas supplies by negotiating a higher pricefor its exports to Russia as of October 2006.Even if world energy prices fall by morethan anticipated in the coming years,Turkmenistan will retain bargaining power inprice negotiations. High world oil prices willalso work in its favor. Revenue from cottonfibre exports will increase slightly, as risingglobal prices are expected to offsetstagnating volumes. Global industrial rawmaterials prices are forecast to weaken fromthe record highs of recent years, therebyeasing pressure on Turkmenistan's importcosts.Economic PerformanceThe hydrocarbons industry will remain theprincipal engine of growth throughout 2007-08, with construction also continuing to makea substantial contribution to growth. Outputof natural gas is expected to rise, driven byTurkmenistan's export contracts with Russiaand Iran; oil production will also postmoderate growth. Based on the expectationsfor output growth for Turkmenistan's maincommodities–hydrocarbons, cotton andgrain–real GDP growth of around 8% in both2007 and 2008 is expected. Official statisticswill continue to overstate output, probablyreporting growth rates of around 20%.Recorded statistics for inflation mainlyindicate price trends in urban centers, asTurkmenistan's rural areas are reported to bevirtually demonetized. Moreover, even thoseofficial consumer price data that are rarelyavailable fail to capture price trends on theblack market, where most household goodsare obtained. Rises in public-sector wagesand benefits–funded in part by printingmoney–are likely to exert inflationarypressure, although the fact that thesepayment increases are often not received infull will diminish the impact. Consumer priceswill rise by around 11% per year in 2007 and2008.Large inflows of foreign currency from oiland gas exports and restrictions on accessto foreign exchange will enable the Turkmenauthorities to maintain the official exchangerate at Manat5,200:US$1. The black-marketrate is also expected to remaincomparatively stable-in part owing to ashortage of currency in circulationdepreciatingonly slightly in 2007-08 from its2006 rate of around Manat25,500:US$1.As a result, the manat's "estimated market"rate (a weighted average of the official andblack-market rates) will depreciate byaround 3% over 2007-08. If the black-marketrate were to weaken more sharply, thegovernment would tighten monetary policyin order to reduce even further the amountof manat in circulation.* The Economic Intelligence Unit Ltd., October 20061999-ORIGINS OF GROSS DOMESTIC PRODUCT (%)Industry Agriculture & forestryConstruction Services26.032.011.031.0PAGE 125

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007STATE COMMODITY & RAW MATERIALS EXCHANGE OF TURKMENISTANTURKMENISTAN ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (a)GDP at market prices (Manat billions) 35,119 43,665 51,747 59,929 70,491GDP (US$ billions) 3.6 (b) 4.3 5.2 5.8 6.4Real GDP growth (%) 20.4 12.0 13.0 9.0 6.0Consumer price inflation (av; %) 11.6 (b) 8.8 5.6 5.9 10.6Population (millions) 5.6 5.8 6.2 6.5 6.5Exports of goods (FOB) (US$ millions) 2,623 2,862 (a) 3,468 (a) 3,870 (a) 4,939 (a)Imports of goods (FOB) (US$ millions) -2,201 -2,119 (a) -2,502 (a) -3,320 (a) -3,638 (a)Current account balance (US$ millions) 14 (b) 145 69 -503 255Foreign exchange reserves excl gold (US$ millions) 2,055 2,346 (a) 2,673 (a) 2,714 (a) 3,314 (a)Exchange rate (av; estimated market) Manat:US$ 9,828 (b) 10,098 10,034 10,375 11,015Exchange rate (av; official) Manat:US$ 5,200 5,200 5,200 5,200 5,200(a) Economist Intelligence Unit estimates. (b) Actual.ECONOMIC FORECAST SUMMARY2004 (a) 2005 (a) 2006 (b) 2007 (b)Real GDP growth (%) 9.0 6.0 9.0 7.0Consumer prices (% change) 10.0 10.5 11.0 11.3Government balance (% of GDP) -2.1 -3.2 -3.4 -3.4Merchandise exports (US$ billion) 3.9 4.9 5.7 5.8Exchange rate(Manat:US$1)(c) 11,470 11,800 12,050 12,8502001-PRINCIPAL EXPORTS (%) 1999-PRINCIPAL IMPORTS (%)GasTextilesCrude & refined oilOtherCotton fibreMachinery & equipmentFood productsOther57.026.03.02.060.015.012.025.02001-MAIN DESTINATIONS OF EXPORTS (%) 2003-MAIN ORIGINS OF IMPORTS (%)UkraineRussiaItalyTurkeyIranOtherRussiaUAEUkraineGermanyTurkeyOther18.015.09.046.011.06.021.08.04.05.043.014.0The Economic Intelligence Unit Ltd., October 2006PAGE 126

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TEHRAN STOCK EXCHANGEDr. Ali RahmaniManaging DirectorIn 2006, the TSE established a set offundamental and structural reforms in orderto create possibilities of a considerablegrowth and development in the future.The year 2006 can not be considered as asuccessful period for the Tehran StockExchange (TSE) however, within that year TSEhas established a set of fundamental andstructural reforms in order to create possibilitiesto obtain a considerable growth anddevelopment in the future. The new SecuritiesAct has allowed establishing an independentregulator with sufficient legal authorities in orderto convert TSE to a "For-Profit" public joint stockcompany and expand the diversity of financialinstitutions and instruments.In the first half of 2006, market continued thebearish trend which had been started in 2005; aresurge period has started since the secondhalf of 2006 and experienced a fair growth untilthe end of year. The TEDPIX, which evaluatesthe market total return, was increased by 8.28%from 28,821.8 to 31,207.6. The TEPIX (allshares price index) and market capitalizationhas been decreased slightly. TEPIX decreased1.8% from 10,258.9 to 10,074.4, and marketcapitalization decreased by 2%. In 2006 twonew companies were added to the TSE listwhile 90 companies have relegated to the new“Unofficial Board” which is in fact temporarilyde-listing. Therefore, the final number ofcompanies decreased from 420 to 332companies. The remaining key statistical figuresin 2006 in comparison to 2005 are as follow:1. Financial index decreased by 28.16% from25,150.59 to 18,068.842. Industrial index increased by 1.59% from7,957.47 to 8,083.813. Volume of trades decreased by 19.9% from13,123.62 to 10,939.79 million shares.4. Turnover decreased by 60.99% fromUS$ 7,866.25 to US$ 4,885.88 million.5. Number of trades decreased by 24% from2,252,972 to 1,816,144.The bearish trend in 2006 can be justified bythe following explanation:Existence of better trade opportunities in themarket compare to 2005, the increase ofconsuming goods import as a result of increasein oil revenue and inflation rate from 12.1% to13.5% (beside government price controlpolices) caused higher production cost andlower firms profit.Despite having 8% growth of investment ratewith respect to previous year and 2% to 5%decrease in banks loans rate, economic growthhas been constant at the rate of 5%. This canbe explained by the fact that the maininvestment expenditure had been invested onthe infrastructure sector which has lower rate ofreturn compare to other sectors in theeconomy.HISTORY AND DEVELOPMENTThe TSE was founded in 1967, by starting withonly six listed companies, since that time, TSEhas experienced a considerable changes in thepath of development. Today, TSE has evolvedinto an exciting and growing marketplace. Nowthere are 332 companies that investors trade-insecurities hall.With the implementation of new SecuritiesAct of 2006 and the completion of thedemutualization process, TSE has improvedfacilities and opportunities to achieve its ownplans.TSE's mission is setting the agenda for changein the securities markets in Iran. TSE must bemore than a mere market facilitator. It ought tobe able to guide industries towards a newhorizons and greater opportunities. TSE mustpromote the Iranian Capital Market to respondto the socio-economic development needs ofthe nation. The Market should help to stimulateindustrial as well as economic growth anddevelopment of the Iranian economy. TSE ispreparing to maintain a free and open marketin order to give opportunity to the investors toconvert their cash into securities at a fair andhonest price and vice versa. TSE is developingto become a highly liquid secondary market forsecurities to raise funds and win confidencefrom all stakeholders.The TSE is going to operate as a world-classmarketplace for Iranian securities andderivatives products. It strives to offer issuersaccess to a wide national capital market andmaintain an open, secure, fair, orderly, efficientand transparent marketplace. It must contributeto Iran’s status as an economy which intendsto open-up to international financial centers.By servicing Iran’s substantial long-termdemand for capital and exchange services inaccordance with international standards andpractices, TSE has the potential to becomeone of the pre-eminent Exchanges in thePersian Gulf area.FUTURE OUTLOOKThe TSE is currently working on the followinggoals:• installing of the new trading software whichwill be purchased from AEMS during secondquarter of 2007.• facilitating new privatization plan throughtransferring shares of public enterprises to theprivate sector.• providing shorter settlement cycles and bookentry settlement systems to meet the currentinternational standards of securities markets.• providing diverse securities of high quality toraise funds.• offering timely, accurate and completedisclosure of information and widespreadinvestment-related education.• establishing OTC Market.• relocating the Exchange to the new building.PAGE 128

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TEHRAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 412.38 20.62 911.94 45.60Feb-07 535.97 28.21 1,408.94 74.16Mar-07 1,002.39 62.65 3,502.38 218.90Apr-07 649.44 32.47 4,560.84 228.04May-07 519.30 23.60 1,316.48 59.84Jun-07 426.28 23.68 947.89 52.66TOTAL 3,545.78 31.87 12,648.48 113.20BondsJan-07 23.22 1.16 0.21 0.01Feb-07 6.44 0.34 0.06 0.003Mar-07 0.65 0.04 0.006 0.0004Apr-07 0.38 0.02 0.004 0.0002May-07 0.37 0.02 0.003 0.0002Jun-07 0.29 0.02 0.027 0.002TOTAL 31.34 0.27 0.31 0.003OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.0 0.0 0.0 0.0MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 37,683.86 9,987.00Feb-07 37,683.86 9,894.00Mar-07 42,902.75 9,858.00Apr-07 42,452.49 9,758.44May-07 40,439.70 9,291.00Jun-07 39,732.15 9,084.00CONTACT INFORMATION1,2001,000800600400200010,000 45,0009,000 40,0008,000 35,0007,00030,0006,00025,0005,00020,0004,0003,00015,0002,000 10,0001,000 5,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. M. E. Jahandoost E-mail int@tsemail.com Website www.tse.irPAGE 129

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TEHRAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentDespite growing domestic criticism, chieflyconfined to economic policy, the president,Mahmoud Ahmadinejad, is likely to retain thesupport of the supreme leader, AyatollahAli Khamenei, who believes he has restoredthe vitality of the Islamic Republic andincreased its popularity in the region.Ayatollah Khamenei will continue to giveMr. Ahmadinejad license to makepronouncements on foreign policy, althoughthis will be subject to the input of other "wise"voices that counsel the supreme leader. Whileoil revenue remains high, Mr. Ahmadinejad islikely to be able to deliver on some of hispopulist economic promises, although thereare concerns over the impact this will have oninflation. International efforts to resolve thedispute over Iran's nuclear activities willcontinue, with possible attempts to establishinterim arrangements that might restoreIranian co-operation with the InternationalAtomic Energy Agency. Any agreement,however, would probably collapse under thepressure of mutual suspicion and divergentinterests. There are a number of scenariosthat follow from this, the most likely beingacceptance of Iranian nuclear capability,possibly under very close surveillance.Mr. Ahmadinejad's electoral appeal rested onhis advocacy of more equitable economicopportunity–above all, the fairer and moreexpansive distribution of Iran's oil wealth. Thisis likely to continue to manifest itself in highgovernment spending, including steeperincreases in public-sector wages and firmersupport for conservative-leaning institutions.Exceptionally strong oil prices are likely toencourage and facilitate such policies, and,with large gross fiscal and current-accountsurpluses in the near term, these couldprevent financing pressures after 2007.However, relatively high spending also carriesstrong inflationary risks, particularly given therelatively inflexible monetary policy exemplifiedby constraints on lending rates. There is alsodisagreement with influential hardliners in theMajlis, who continue to be keen to constrainplanned off-budget spending on importedfuel. (Such refined products are central toIran's highly subsidized economic system andreflect the limited productive and refiningcapacity of its oil sector.) Nevertheless, theinfluence of Ayatollah Khamenei upon theultra-conservative bloc in parliament shouldensure that the government is able to use theOil Stabilization Fund (OSF–in which allabove-budget oil revenue is supposedlydeposited) to finance significant levels ofunplanned expenditure, including on importedfuel.Economic PerformanceIt is estimated that real GDP growth in fiscalyear 2005/06 (ending 20 March 2006) was6.9%. Growth is forecast to ease to 5% in2006/07, as oil output declines and importexpansion, although slowing, remains strong.However, with oil revenue still rising on theback of exceptionally high oil prices, fiscalexpenditure growth will stay buoyant. This inturn will continue to contribute to high levels ofprivate consumption and investment. Overallreal GDP growth will ease further in 2007/08,despite the fact that output levels will riseslightly. However, oil prices will remainexceptionally high by historical standards, andhence oil revenue will stay comparativelystrong, resulting in firm, albeit declining,expansion in public spending. Investment andprivate consumption levels will continue torise, albeit at a slower rate, resulting in aforecast real GDP growth rate of 4.6%.The average rate of inflation fell to 13.4% in2005/06, from 14.8% the previous year. Thisdecline is surprising, given liquidity pressures,rapidly increasing demand, and low realinterest rates. Anecdotal reports of sharp risesin essential goods and services, still highliquidity levels, and rising import costs, lead usto assume that inflation will rise in 2006-07,although the rate of increase will be offset bythe freezing of the price of some goods.Annual price growth is therefore projected toaccelerate to an average of around 15.4%over the forecast period. Limited monetarypolicy tools make it difficult for the centralbank to combat inflation, leaving it largelydependent on arguing the case for restrictinggovernment spending growth.Bank Markazi (the central bank) will continueto allow the rial to weaken in nominal terms, inorder to support the competitiveness of nonoilexports. However, in trade-weighted termsthe "depreciation" will be much less marked,and in real terms the rial will continue tostrengthen against the US dollar. We expectthe pace of nominal exchange-rate decline tobe little changed, at around 3%, in 2006/07,leaving the rial at an average of IR9,279:US$1as the US currency falls only marginallyagainst the euro.** The Economic Intelligence Unit Ltd., July 2006.Key Information ContactsTSE Services Company www.tsesc.comCentral Bank of the Islamic Republic of Iran www.cbi.irIranian Chamber of Commerce, Industries and Mines (ICCIM) www.iccim.comOrganization for Investment, Economic & Technical Assistance (OIETAI) a division of the Ministry of Finance: www.investiniran.ir2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2004-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesIndustryOilPrivate consumptionGross fixed investmentPublic consumptionNet external sectorAgriculture35.8605054.251.810.413.740302010010.935.2-10-7.1PAGE 130

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TEHRAN STOCK EXCHANGEIRAN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (b)GDP at market prices (IR trillions) 671.7 926.5 1,109.5 1,406.0 1,646.7GDP (US$ billions) 84.8 116.4 134.0 161.3 182.3Real GDP growth (%) 3.7 7.5 7.1 5.1 6.9Consumer price inflation (av; %) 11.3 14.3 16.5 14.8 13.4Population (millions) 67.0 67.6 68.2 68.8 69.4Exports of goods (FOB) (US$ millions) 23,904.0 28,237.0 33,991.0 43,852.0 60,012.0Imports of goods (FOB) (US$ millions) 18,129.0 22,036.0 29,561.0 38,199.0 40,969.0Current-account balance (US$ millions) 5,985.0 3,585.0 816.0 1,442.0 14,037.0Foreign-exchange reserves excl gold (US$ millions) 16,616.0 (b) 21,409.0 (b) 24,427.0 (b) 32,709.0 (b) 45,209.0Total external debt (US$ billions) 7.5 9.2 12.3 17.7 (b) 20.4Debt-service ratio, paid (%) 4.9 (b) 4.8 (b) 4.6 (b) 5.0 (b) 4.2Exchange rate (av) IR:US$ 7,921.5 7,958.1 8,281.5 8,719.0 9,032.6(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 5.0 4.6 4.0 3.6 3.4 3.3Consumer price inflation (av; %) 15.8 16.0 15.5 15.0 15.0 15.5Official net budget balance (% of GDP) -12.2 -12.6 -10.1 -6.7 -2.8 0.1Unofficial gross budget balance (% of GDP) 1.9 -1.6 -1.3 -0.2 1.9 3.6Current-account balance (% of GDP) 6.0 3.2 1.0 -1.4 -3.5 -5.2Commercial banks' lending rate 16.0 16.0 16.0 16.0 16.0 16.0Exchange rate IR:US$ (av) 9,247 9,544 10,023 10,728 11,642 12,6892004-PRINCIPAL EXPORTS (FOB) (b)(US$ millions)OOil & gas 36,827Petrochemicals 1,431Fresh & dry fruits 7722001-PRINCIPAL IMPORTS (CIF) (b)(US$ millions)Transport, machinery & tools 7,565Chemical products 2,384Food & live animals 2,1062004-MAIN DESTINATION OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)Japan China ItalySouth Africa South KoreaOtherGermany China ItalyUAE France Other54.417.311.457.114.28.37.56.26.75.56.25.2(a) In real terms; Bank Markazi data. (b) Bank Markazi data.The Economic Intelligence Unit Ltd., October 2006PAGE 131

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TIRANA STOCK EXCHANGEThe year 2006 was characterized bydevelopments which improved theprocedural and legal infrastructure for thedevelopment of the Tirana Stock Exchange.Anila FurerajGeneral ManagerThe year 2006 was characterized bydevelopments which improved the proceduraland legal infrastructure for the development ofthe Tirana Stock Exchange (TSE). The politicalchanges, taking place in our country, haveopened new opportunities for the improvementof the economic climate, encouragement oflocal and foreign investment and the waragainst informality; these factors will worktowards bringing about the encouragement ofdevelopment in the capital markets in Albania.During this year the management andadministrative arms of the TSE werereorganized. In this aspect, at the beginning ofthis year, new members of the TSE SupervisoryBoard were appointed by the Minister ofFinance, as the only shareholder of thecompany. The Supervisory Board has alsoappointed a new General Manager. Thereorganization was followed by the changing ofthe organization scheme of the functioning ofthe Exchange and the adaptation of personnelnumbers to be in line with its actualdevelopment conditions. All these changeswere done for a better management of theExchange and to create better conditions fortransforming the TSE into a real securitiesmarketThe purpose of our work has been thebroadening of the development of the TSE andthe taking further steps so as to transform theTSE into an active exchange. For this reason,the TSE started the work of reviewing thestrategy of the development of the TSE inaccordance with the actual conditions ofmarket developments and in the setting of the2005-2009 Government Program. Thesestrategies aim is to transform the TSE into areal securities market. At the same time,statistical analyses were done in connectionwith the volume of transactions made in theinformal market of stocks from anonymouscompanies. Through this analysis thepossibility was shown of channeling thesetransactions from the informal market towardsthe organized market, as a necessary step, forthe reduction of informality in the economy andthe re-activation of the TSE.We have also undertaken many other differentprojects with various groups of interest aimingnot only at their susceptibility but also offeringour legal and technical assistance.During 2006 the complete internal regulatorybase of the functioning of the TSE has beenimproved, leaning on the guidelines given bythe FEAS according to the Book of Rules andrecommendations given by the consultinggroup, GMA Company.HISTORY AND DEVELOPMENTThe Securities Act was approved by theParliament on 1 March 1996, paving the way forthe establishment of the Albanian SecuritiesCommission (ASC) on 16 April and the TiranaStock Exchange (TSE) on 2 May 1996. Oncethe law was approved, the necessary rules andregulations of the ASC and the TSE wereprepared and adopted.The TSE opened officially on 2 May 1996, asthe first exchange in Albania’s financial history.The TSE was originally established as adepartment of the Bank of Albania with the goalof spinning off as a separate institution after atransition period of several years. At thebeginning, trading sessions were held everyMonday and Thursday. By October 1997, thesessions were increased to every business day,and 3- and 6-month maturity t-bills were addedto the existing instruments traded. Primaryauctions for t-bills were conducted by the TSEuntil 1 August 1998.The major change in the legal framework of theTSE was the approval by the Parliament ofsome revisions to the actual Securities Law,which came into force in March 2001. Underthese new changes, the Ministry of Financetook all practical steps to develop andinstitutionalize the capital market in Albaniaduring 2002. In this way, the TSE was finallyestablished for the first time, in March 2002, asan independent institution (joint-stockcompany), with the sole owner the Ministry ofFinance.The TSE obtained its full license on 1 July 2003,thus becoming the first licensed securitiesmarket in Albania. This license was renewed inJuly 2005 and is valid until July 2007. Currently,the TSE has five full members.FUTURE OUTLOOKActivating the securities market as a commontrading platform for several financialinstruments, will be the strategic objective ofthe TSE during 2007. Achievement of such animportant goal shall be carrried out throughpractical implementation of the strategicalternatives pointed out within the TSEDevelopment Strategy. The activity of the TSEduring 2007 will be mainly focused in:• the approval of TSE Development Strategy inthe Government’s Economic Policy Committeeas well as the implementation of the Action Planas an integral part of this strategy;• working closely with and assisting in thecontinuance of domestic top level businesses.Make the TSE members aware of theadvantages the securities market may offerthem as well as providing these stockholderswith the necessary information, in order to belisted at the TSE,• bilateral negotiations with AlbanianGovernment towards the inclusion of the TSE inthe privatization process of the state-ownedenterprises (SOEs). These negotiations willcover identification of potential strategic andnon-strategic state owned companies, whichcan be privatized through IPO,• negotiations both with the AlbanianGovernment and the Ministry of Financetowards the assignment of the TSE, by theMoF, as the Government’s agent in organizingprimary auction for long-term public debtsecurities,• negotiation and cooperation with both, theMoF and the Albanian Financial SupervisoryAuthority towards the compilation of legal andfiscal incentives, which are deemed necessaryto encourage private companies to raise theircapital through IPOs and the TSE listing,• performance of a marketing campaign, in fullcompliance with the marketing programcompiled by the TSE with a final objective toattract domestic business for exchange listing;• in cooperation with AFS, carrying out of acontinued public education & informationcampaigning regarding the securities marketand advantages of investing;• improvement of information technology at theTSE in order to make possible the providing ofthis market with an appropriate ElectronicTrading System for securities;• keeping fruitful cooperation with institutions inthe region, regarding the exchange ofexperiences and staff training, targeting furtherimprovements in human resource capacitywithin the field of the securities market.PAGE 132

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TIRANA STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aBondsJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/a* The TSE is trading debt instruments only at this time, but there is no volume to-date.MarketCapitalization(US$ millions)Index5-YEAR CURRENCY EXCHANGE(US$ millions)MONTHLY CURRENCY EXCHANGE(US$ millions)Jan-06 n/a n/aFeb-06 n/a n/aMar-06 n/a n/aApr-06 n/a n/aMay-06 n/a n/aJun-06 n/a n/a1201008060402002003 2004 2005 20061009080706050403020100YTD 2007 Jan Feb Mar Apr May JunCONTACT INFORMATIONContact Name Ms. Anila Fureraj E-mail afureraj@tse.com.al Website www.tse.com.alPAGE 133

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TIRANA STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentA coalition of the Democratic Party of Albania(DPA) and several smaller allies won theparliamentary election on 3 July 2006. Sincecoming to power the DPA leader and newprime minister, Sali Berisha, vowed for deepreforms mainly towards the integration ofAlbania in the Euro-Atlantic structures,improvement of judiciary system,guaranteeing of free and fair electoralprocess, respecting human rights,decentralization of the local government aswell as declaring a war on corruption andorganized crime.The implementation of such strong reformsgave positive results in changing Albania’simage the western countries and was finalizedwith the endorsement of the Stabilization andAssociation Agreement (SAA) with EuropeanUnion on June, 2006. Likewise, the Albaniangovernment is undertaking all the necessarysteps to make Albania the most attractivecountry in the region regarding foreign directinvestments (FDIs) inflows. In this respect thegovernment unveiled its initiative called“Albania 1 euro”, which intends to offerextremely cheap facilities for all the FDIsplanning to invest in Albania. As far ascountry’s foreign policy concerns, integrationto EU and NATO as well as the definition ofKosovo’s final status in full compliance withthe UN and international factorrecommendations, will remain key goals underthe DPA-led government.Albania has signed a new three-year IMFPoverty Reduction and Growth Facility(PRGF), which puts a stronger emphasis onstructural and institutional reforms, and onimproving the business environment. Withinthis framework, the authorities will face thechallenge of tackling widespread poverty.Public investment is likely to concentrate oninfrastructure, healthcare and education. I nthemeantime, many other soft credit lines havebeen signed between Albanian governmentand World Bank, EBRD and many donors inorder to finance some strategic publicinvestments.Economic PerformanceAccording to international financialorganizations who supervise the financialstability of the country (IMF and WB), Albania'smacroeconomic performance over the pastyear has been good, with strong growth, largeinward remittances, and a significant reductionin poverty. Macroeconomic stability has beenmaintained–evidenced by low inflation,decreasing debt, increasing confidence in thecurrency and the banking system, and risinginternational reserves. Although the currentaccount deficit has deteriorated somewhat,the Albanian LEK (ALL) has continued tostrengthen, reflecting rising confidence anddeclining risk premiums.Albania has signed a new three-year IMFPoverty Reduction and Growth Facility(PRGF), which puts a stronger emphasis onstructural and institutional reforms, and onimproving the business environment. Withinthis framework, the authorities will face thechallenge of tackling widespread poverty. Inthe meantime, many soft credit lines havebeen signed between Albanian governmentand World Bank, EBRD and many donors inorder to finance some strategic publicinvestments. The expectation is for growth tomoderate slightly in 2006 (around 6%), but toreturn to a faster pace in 2007 and over thelonger term. However, sustaining this pace willrequire significant reforms to improveinfrastructure and institutional quality–includinggovernance and the rule of law. Such reformswill enable Albania to attract the high-qualityinvestment needed to further develop theexport sector, which remains small. Thecurrent rapid growth of financial intermediationis a positive development, and necessary forsustained high growth. Actions will be taken totighten gradually prudential regulations andenhance banking supervision, to safeguardloan quality. The banking system displayssatisfactory indicators of liquidity andcapitalization at the end of 2006. It continuesto realize a profitable activity, creating thegrounds for its expansion in the future. Creditto economy has maintained its rapid growthrates, although its annual growth rate resultsto be lower than over 2005.In November, Parliament passed the StateBudget for 2007. This budget is consistentwith the authorities' strategy of developing asmall but efficient government concentratedon its core functions. Likewise, the mainpriorities of the budget of 2007 will be towardsreforms regarding education, healthcare andthe legal system. Last but not least, during2007, Government will be strongly focused onthe improvement of country’s infrastructurethrough the successful realization of planedpublic investments.** Information provided by the Tirana Stock ExchangeKey Information ContactsBank of Albania www.bankofalbania.orgMinistry of Finance www.minfin.gov.alAlbanian Institute of Statistics www.instat.gov.allAlbanian Securities Commission www.asc.gov.alMinistry of Economy www.mete.gov.al2004-ORIGINS OF GROSS DOMESTIC PRODUCT (%)Agriculture, hunting, forestryConstructionIndustryTrade, Hotels and RestaurantsOther services19.512.520.59.020.8PAGE 134

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TIRANA STOCK EXCHANGEALBANIA ECONOMIC CHARTS AND TABLES2002 2003 2004 2005 (E) 2006 (P)Real GDP 2.9 5.7 5.9 5.5 5.0Retail prices (average) 5.2 2.3 2.9 2.4 2.2Retail prices (end-period) 1.7 3.3 2.2 2.0 3.0Consumer Price Index 1.7 3.3 2.2 2.0 n/aFiscal Sector (In percent of GDP)Revenues and grants 24.7 24.5 24.1 24.4 25.5Expenditures 31.4 29.0 29.2 28.0 29.3Overall balance -6.6 -4.5 -5.1 -3.6 -3.8Net domestic borrowing 3.3 2.9 2.3 2.7 2.3Public Debt 65.0 61.8 56.5 55.3 55.2Domestic 41.7 41.1 38.5 37.7 37.4External 23.3 20.7 18.0 17.6 17.8Monetary IndicatorsBroad money growth (in percent) 5.7 8.7 13.5 13.9 13.5Interest rate (3-month T- bills, end period) 11.1 7.3 6.2 5.4 ...Exchange Rate Lek/US$ 131.67 106.58 97.3 103.33 95.68External Sector (In percent of GDP unless otherwise indicated)Balance of goods and services -25.9 -25.1 -21.7 -24.1 -24.5(in EUR millions) -1,214 -1,248 -1,307 -1,629 -1,794Current account balance -10.0 -8.1 -5.5 -7.8 -8.1(in EUR millions) -468 -402 -331 -525 -594Gross international reserves (in millions of euros) 845 834 1,025 1,202 1,260(in months of imports of goods and services) 4.4 3.9 4.0 4.2 4.1Memorandum itemsNominal GDP (LEK billions) 624.7 682.7 766.4 836.9 899.7Nominal GDP (US$ billions) 4.4 5.7 7.5 8.4 9.1Sources: Albanian authorities and IMF staff estimates and projections.(E) Estimate (P) Projection2005-PRINCIPAL EXPORTS (%) (acc. SITC)2005-PRINCIPAL IMPORTS (%) (acc. SITC)Various manufactured items Manufactured products Crude materialsTransport machinery and equipments Food and live animals OtherManufactured productsFood and live animalsTransport machinery and equipmentsMinerals fuels and lubrificants Chemical products Other60.715.510.623.613.08.64.13.95.225.88.520.52004-MAIN DESTINATION OF EXPORTS (%) 2004-MAIN ORIGINS OF IMPORTS (%)Italy Greece Serbia-MontenegroGermany Turkey OtherItaly Greece TurkeyGermany Russia Other72.410.55.03.31.729.316.47.55.44.07.135.4Sources: Albanian Institute of Statistics - INSTATPAGE 135

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007“TOSHKENT” REPUBLICAN STOCK EXCHANGEBakhtiyor KhudoyarovChairmanIn 2006 the TRSE plans to increase thevolume of trade with securities. Mostimportantly, we will carry out technicalmodernization of the system of electronicexchange trades.As a result of all of the hard work of the staffof the “Toshkent” Republican Stock Exchange(TRSE) in 2005, the TRSE has achievedcertain positive results. In 2005, 5,814transactions with the shares of 643 joint-stockcompanies and 9 transactions with corporatebonds have been carried out on the tradingplatforms of the TRSE.• Trade with corporate bonds accountedfor 1%;• Shares of the privatized state enterprisesaccounted for 30.5%;• Shares of the privatized state enterprisesobtained by foreign investors for the hardcurrency accounted for 1.2%;• IPOs and other additional issued shares ofthe joint-stock companies for nationalcurrency as well as for the hard currencyaccounted for 4.1%;• Shares in the secondary market accountedfor 38.7%; and• Shares in the secondary market obtainedby foreign investors for hard currencyaccounted for 24.5% of the total volume.Although in comparison with thecorresponding period of 2004, the tradingvolume of shares has increased slightly, thetrading volume of shares for hard currencyhas increased 7.4%. Our efforts concerningthe increase of the secondary market havebeen proving themselves. In the year 2005trade volume with shares in the secondarymarket increased 15%.We expect that the further development ofthe secondary market will keep this pace.Currently, there are securities of 700companies in circulation in the secondarymarket, which should considerably increasethe share of securities in the secondarymarket.In 2006 the TRSE plans to increase thevolume of trade with securities. Mostimportantly, we will carry out technicalmodernization of the system of electronicexchange trades:1. Perfection of the technology of exchangetrades:First, the TRSE will create of a platform forthe secondary circulation of shares in thesecondary market, working on technologybased on simple auction. Second, the TRSEwill create a special platform on fulfillment oftransactions.2. Modernization by updating the equipment.The TRSE will complete modernization ofequipment in all branches and in theexchange itself.3. Modernization of the trading system of theTRSE. The TRSE will translate into a newtechnological platform the whole tradingsystem of the Stock Exchange and create auniform database. Further the TRSE willendeavor to open facilities for regional brokeroffices to access the trading system fromdistance and implement maintenance of aclosed network of data transmission for allregional branches.HISTORY AND DEVELOPMENTA stock department was established in 1991,which became a pioneer of Uzbekistan’ssecurities market, and was eventuallytransformed in 1994 into the TRSE–a closedjoint-stock company. The TRSE became anopen joint-stock company in 1998.Establishment of the TRSE was closelyconnected to its market performance anda policy of establishing public joint-stockcompanies on the basis of privatizedgovernment enterprises. Currently, theTRSE has 39 shareholders.Throughout its development, the TRSEcompleted a complex infrastructure, a centraloffice in Tashkent, and branches and brokerageoffices in all regions nationwide. In 1994,12 brokerage offices were members of theExchange and as of the 1 July 2005, thisnumber had increased to 61.On 1 February 1998, a listing procedure wasintroduced. On 1 September 1998, shares ofthe first listed company began trading on theTRSE. A specialized trading platform, for thepurpose of selling shares of privatizedenterprises to foreign investors for hardcurrency, was launched on1 January 1999.In 2001, work on Exchange information andelectronic trading systems continued.The website www.uzse.uz started operations in2001, and today the TRSE continues work on atransition to modern web-technology trading. Inaddition, the website reflects daily informationon IPOs and other JSCs. Investors may followall the current changes and information onlisted companies, share price and amountsstanding out.In 2003 new listing procedures were adopted atTRSE where the requirements for the official aswell as unofficial listing were stated. Currentlythe four largest companies of Uzbekistan arelisted in Class “A” of the official listing.Founded 12 years ago as Uzbekistan’s firststock exchange, the TRSE is actively takingpart, always keeping in mind its major role, inthe development of the Uzbek capital market.FUTURE OUTLOOKThe priority directions of the development of theTRSE in 2006 will become the opening of anadditional trade sections on transactions forshares of unlisted companies.Additionally, our Stock Exchange is planning tochange the software system and bring it tostandards in accordance with Rules of theStock Exchange, as well as prepare new, morecomplex software, in particular:• development of the module on conclusion ofturnip-deals, based on technology of continualdouble auction;• modernization of software system, based ontechnologies of the simple auction; and• full modernization of software system of theTRSE, with transition on new technical platform.PAGE 136

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007“TOSHKENT” REPUBLICAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJJan-07 3.29 0.15 3.68 0.17Feb-07 3.29 0.16 11.84 0.59Mar-07 3.70 0.19 15.37 0.77Apr-07 6.28 0.30 13.60 0.65May-07 6.07 0.28 7.66 0.35Jun-07 5.42 0.26 8.97 0.43TOTAL 28.1 0.22 61.1 0.49BondsJan-07 0.24 0.24 0.30 0.30Feb-07 0.40 0.20 0.50 0.25Mar-07 0 0 0 0Apr-07 0 0 0 0May-07 0 0 0 0Jun-07 0 0 0 0TOTAL 0.65 0.22 0.80 0.28OtherJan-07 n/a n/a n/a n/aFeb-07 n/a n/a n/a n/aMar-07 n/a n/a n/a n/aApr-07 n/a n/a n/a n/aMay-07 n/a n/a n/a n/aJun-07 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aMarketCapitalization*(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 688.59 157Feb-07 727.19 45.6Mar-07 1,148.05 40Apr-07 1,205.99 53.8May-07 935.83 107.3Jun-07 1,208.89 104.6* The “Toshkent” RSE does not trade all joint-stock companieseach month and thus market capitalization varies widely.CONTACT INFORMATION6543210160 1,400140 1,2001201,0001008008060600404002020000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Gairat Mamadazizov E-mail gairat@uzse.uz Website www.uzse.comPAGE 137

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007“TOSHKENT” REPUBLICAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentWith Islam Karimov's second presidentialterm due to expire in December 2007, thequestion of who is to succeed him willincreasingly dominate the domestic politicalscene during the forecast period.Mr. Karimov has ruled the country for 18years, first as head of the Soviet republic'sCommunist Party, and then as president ofindependent Uzbekistan. Uzbekistan'sopposition groups will remain too weak in2006-07 to mobilise a mass civil movementagainst the authorities. Nevertheless, therisk of popular unrest is high, as social andeconomic grievances are likely to mount.The authorities will act swiftly, and with forcewhen necessary, to quell such protests.Although measures such as these willprobably ensure that Mr. Karimov sees outhis term in office, his position is notimpregnable. A small risk to his continuedtenure comes from the possibility thatdiscontent could build up within the politicalelite, if it were to judge that Mr. Karimov wasno longer capable of protecting its interests.Pressure on the president to make way foran alternative leader could then render hisposition untenable, resulting in his ouster bya rival from within the political hierarchy.Uzbekistan's relations with Russia andChina will continue to strengthen over theforecast period, but ties with the West willdeteriorate. Neither Russia nor China sharesthe West's concerns over the lack ofdemocracy in Uzbekistan, and the threecountries will continue to find commoncause in their respective campaigns againstIslamist extremism. Growing economic linkswill also give Russia and China a stake inmaintaining stability in Uzbekistan.The support of these countries will beuseful in political terms for Mr. Karimov, butis unlikely to translate into more concreteaid to him personally–in the form of militaryassistance, for example–in the event that hecomes under pressure from within thepolitical elite to resign.The World Bank has become the latestmultilateral financial institution to downgradeits program in Uzbekistan: in mid-March itannounced that it was suspending lendingto the country, but that it would continue tooffer technical assistance. Although notexplicitly stated, concerns at the way inwhich the loans were used appear to havemotivated the suspension. The World Bank'sdecision reduces the already limitedinfluence that the international financialinstitutions have over the Uzbek governmentin terms of promoting reform. Large, albeitnarrowing, trade and current accountsurpluses, in conjunction with investmentfrom Russia and China, will allow thegovernment to avoid economic reforms.Instead, it will retain a plethora ofregulations on private-sector activity,including currency controls and high tariffson imports–measures that in the past twoyears have sometimes sparked protests.Economic PerformanceNew investment into Uzbekistan'shydrocarbons and telecommunicationssectors will provide the main impetus toeconomic growth in 2006-07, when annualaverage growth rate of just over 6% isexpected. New gold-mining projects willalso support economic expansion.However, the government's failure toimplement substantive reforms will precludestronger growth in the agricultural sector.On the expenditure side, wage andpayments increases are likely to stimulatedomestic demand, although the effect willbe inhibited by the government's tendencyto run up arrears. High tariffs andrestrictions on access to foreign currencywill limit growth in consumer goods imports,but purchases of capital goods will remainsizeable, reflecting the undeveloped state ofmuch of the domestic manufacturing sector.A loosening of monetary policy, driven inpart by large public-sector wage rises,contributed to an acceleration in inflation in2005, when the official year-end rate was7.8%, up from 3.7% in 2004. Increases inutility tariffs and in public-sector salaries arelikely to exert further upward pressure onprices in 2006-07, pushing inflation to about10% by end-2007.The som depreciated against the US dollarby about 11% in nominal terms in 2005,to end the year at Som1,180:US$1.The loosening of monetary and fiscalpolicies is expected to result in a slightlymore rapid pace of depreciation over theforecast period, bringing the exchange ratedown to about Som1,460:US$1 by end-2007. The accelerating rate of nominaldepreciation will ensure that the currencycontinues to weaken in real terms, despitethe pick-up in inflation.** The Economic Intelligence Unit Ltd., July 2006Key Information ContactsState Property Committee www.spc.gov.uzMinistry of Finance www.mf.uz/engNational Bank of Uzbekistan http://eng.nbu.com/about/history/index.phpState Central Securities Depository www.deponet.uz/english.shtmlPortal of the State Authority www.gov.uz/en/2003-ORIGINS OF GROSS DOMESTIC PRODUCT (%)2003-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)ServicesIndustryAgriculture & forestryPrivate consumption Public consumption Gross fixed investmentExports of goods & servicesImports of goods & services33.26054.85044.2403037.931.122.62018.5 19.9100PAGE 138

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007“TOSHKENT” REPUBLICAN STOCK EXCHANGEUZBEKISTAN ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (b) 2005 (b)GDP at market prices (Som billions) 4,925 7,450 9,664 10,559 12,083GDP (US$ billions) 11.6 9.7 10.0 10.4 10.8Real GDP growth (%) 4.1 3.1 1.5 7.4 (a) 7.0 (a)Consumer price inflation (av; %) 27.2 24.2 13.1 1.7 (a) 6.9 (a)Population (millions) 25.0 25.3 25.6 25.9 26.0Exports of goods (FOB) (US$ millions) 2,740 2,510 3,240 4,290 4,930Imports of goods (FOB) (US$ millions) -2,554 -2,186 -2,405 -3,060 -3,460Current account balance (US$ millions) -115.8 (b) 97.8 (b) 862.8 (b) 936.7 1,081.8Foreign exchange reserves excl gold (US$ millions) 903 (b) 850 (b) 1,162 (b) 1,546 2,000Total external debt (US$ billions) 4.8 4.7 5.0 5.1 5.0Debt-service ratio, paid (%) 26.8 25.2 21.3 27.2 23.5Exchange rate (av) Som:US$ 423.8 771.0 971.3 1,020.0 (a) 1,115.0 (a)(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2004 2005 2006 2007Real GDP growth (%) 7.4 7.0 6.1 6.5Consumer prices (% change) 1.7 6.9 7.5 8.3Budget balance (% of GDP) -0.4 0.1 -1.0 -1.4Merchandise exports (US$ billions) 4.29 4.93 5.49 5.57Exchange rate (Som:US$1) 1,020 1,115 1,255 1,4292003-PRINCIPAL EXPORT (%) 2003-PRINCIPAL IMPORTS (%)Cotton Energy productsMachinery & equipment OtherMachinery & equipmentFoodstuffsOtherPlastics & plastic goods60.819.844.412.89.89.99.632.92004-MAIN DESTINATION OF EXPORTS (%) 2004-MAIN ORIGINS OF IMPORTS (%)RussiaChina Turkey TajikistanRussiaSouth KoreaUSAKazakhstanBangladeshOtherGermanyKazakhstanChinaOther22.014.712.626.88.06.47.742.66.14.24.032.85.86.3The Economist Intelligence Unit ViewsWire, July 2006PAGE 139

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007UKRAINIAN STOCK EXCHANGEValentin OskolskyChairman of the BoardIt is our belief that the chosen strategywill gradually result in the creation of atransparent, liquid, investment attractiveto both national and foreign investors,capital market.The Ukrainian Stock Exchange (USE)entered 2005 year with great expectationslike an all others participants of the market.However, political changes and governmentreplacements played its role for marketdevelopment and investments processes.The annual stock exchange turnoverdecreased almost in 2 times from US$ 300million in 2004 to US$ 156 million in 2005.Long term expected Law “On Joint-StockCompanies” that should make market moretransparent still was not adopted by theParliament.Nevertheless the USE continues to work attechnical trading improvements. Electronictrading was launched. The USE alsocontinued with arrangements to implementelectronic documentation turnover andelectronic digital signature according toUkrainian legislation.One of the main problems of the Ukrainianmarket is still domination of unorganized(shadow) market under the organizedexchange market. The other point is theabsence of a real secondary exchangemarket. Most of transactions are conductedin OTC market.The main part of the exchange’s turnover asin previous years is the privatization market.Trading of state-owned shares wassuccessfully performed through the USE,but we believe that our efforts on creating afree-float market in Ukraine will soon berealized.The USE provides educational activity.The USE as a co-founder of the KievSlavonic University continued its workwith students, through the Securities Chair.Starting from 2002 there has been aStudent Stock Exchange at the USE. Everystudent has an opportunity to become anexchange specialist and then a broker.Through gaining theoretical and practicalknowledge, accumulating experience,students realize the importance of capitalmarkets and can make their choice offuture professions.It is our belief that the chosen strategy willgradually result in the creation of atransparent, liquid, investment attractive toboth national and foreign investors, capitalmarket.HISTORY AND DEVELOPMENTUSE is a pioneer in the capital market ofUkraine, created according to Law “OnSecurities and the Stock Exchange”, andregistered by decision of the Cabinet ofMinisters on 29 October 1991. The USE is aclosed joint-stock company with anauthorized capital divided into 288 ordinarynominal shares belonging to legal entities. In1997, according to the Law “On StateRegulation of Securities Market in Ukraine”,the Securities and Stock Market StateCommission re-registered the USE. SinceJune 1998 the USE has been a selfregulatedorganization. There are 117registered brokerage companies as USEmembers as of 1 January 2006. The USEhas 3 branches in the largest Ukrainianregions. In 1993, the USE became a pioneerof money privatization and implemented theexchange mechanism of price creation.The USE is a member of the CoordinatingCouncil for the functioning of securitiesmarket charged by the President of Ukraine.It’s also a member of the Consulting &Experts Council in the SSMSC, the UkrainianChamber of Commerce and Industry, theAcademy of Economic Science and theAcademy of Engineering Science of Ukraine,the Board of Ukrainian Council on EconomicEducation and the Ukrainian Community“Intelligence of the Nation”.Chairman of the Board of USE Mr. ValentinOskolsky is also President of Union ofEconomists of Ukraine and President ofArticle Numbering Association of Ukraine.The USE has created many educationalprograms in association with the SlavonicUniversity.The official publication, “Hermes”, can befound in the daily newspaper “UkraineBusiness”.FUTURE OUTLOOKPlans for the USE in 2006 include:• expansion through a System of ElectronicTrading (SELT USE) into secondarysecurities turnover and trading the internalstate loan bonds;• creation of the conditions and basis forformation and development of a derivativesmarket;• take actions to attract new members tooperate in SELT USE;• participation in the privatization processesplanned to be implemented by the StatePrivatization Program and the Law ofUkraine “On State Budget of Ukraine for2006”;• improvement of technologies for tradingState-owned shares of privatizedcompanies;• promotion for the attraction of directnational and foreign investments to developstrategically important industry companiesduring the process of its privatization;• development of the electronicdocumentation turnover and electronicdigital signature according to new Ukrainianlegislation;• development of Exchange informationareas, expansion of publishing, scientific,methodical and educational activities inorder to prepare specialists for nationalcapital market; and• strengthening the internationalcooperation with foreign stock exchangesand international financial organizations.PAGE 140

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007UKRAINIAN STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 0.15 0.15 3.04 3.04Feb-07 0.0 0.0 0.0 0.0Mar-07 9.08 9.08 7.01 7.01Apr-07 0.01 0.01 1.42 1.42May-07 0.08 0.08 1.66 1.66Jun-07 0.0 0.0 0.0 0.0TOTAL 9.3 1.55 13.1 2.2BondsJan-07 0.43 0.43 0.05 0.05Feb-07 0.0 0.0 0.0 0.0Mar-07 0.0 0.0 0.0 0.0Apr-07 0.0 0.0 0.0 0.0May-07 1.26 0.63 0.15 0.08Jun-07 0.0 0.0 0.0 0.0TOTAL 1.7 0.18 0.20 0.02OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 0.014 0.014 0.0001 0.0001Apr-07 0.0 0.0 0.0 0.0May-07 0.0 0.0 0.0 0.0Jun-07 0.0 0.0 0.0 0.0TOTAL 0.014 0.002 0.0001 0.00002MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)MONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 326.00 0.0Feb-07 214.43 0.0Mar-07 208.79 0.0Apr-07 213.02 0.0May-07 312.46 0.0Jun-07 312.14 0.0CONTACT INFORMATION109876543210350300250200150100500Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mrs. Hanna Yatsyuk E-mail hanna.yatsyuk@ukrse.kiev.ua Website www.ukrse.kiev.uaPAGE 141

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007UKRAINIAN STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSEconomic and Political EnvironmentThe centrist PoR has come to dominateUkrainian politics in recent months and isexpected to remain the most significant forceon the political scene in 2007-08. The March2006 parliamentary election handed the PoR byfar the largest share of seats in the legislature,and the party has since then managed to setup a majority coalition with the parliamentaryleft. Since August the PoR has also dominatedthe cabinet, which is headed by the partyleader, Mr Yanukovych. Although the PoR'sinternal strains have become more apparent inrecent weeks, its discipline and financialresources are still well above those of any otherpolitical grouping. These qualities–combinedwith the enhanced powers enjoyed by theparliament and the cabinet since the start of2006–should permit the PoR to retain itscurrent powerful position in 2007-08. There islittle prospect that any other parliamentaryfaction could form–and lead–an alternativemajority coalition.The "declaration of national unity" in theorycommits the PoR to the president's pro-Western foreign policy priorities, and it isexpected that the new government will continueto implement the EU-Ukraine Action Plan. Thisruns until 2008 and will then be reconsideredby the EU, alongside the partnership and cooperationagreement (PCA) that expires at thatpoint. The government will most probablypursue membership of the World TradeOrganization (WTO), albeit with considerablyless urgency than the previous two cabinets. Inother areas, however, the PoR is already callingfor a more "balanced" foreign policy. Inpractice, this will mean closer ties to Russiaand a less unconditional approach to Westernintegration.The new governing coalition is not expected tobreak completely with the generally pro-reformpolicies espoused by the previous government,even though it is dominated by the formeropposition and includes both of the left-wingparliamentary factions. The economic intereststhat dominate the governing PoR are keen toexpand links with the West and to pursue probusinesspolicies. This will ensure at leastgradual and uneven progress on structuralreforms, deregulation and liberalization, whichare prerequisites for Ukraine's joining the WTOand deepening links with the EU. However, thenew government brings back into power manyof the oligarchic economic interests thatprevented meaningful reform and allowed theshadow economy to flourish under the previouspresident, Leonid Kuchma. This suggests littlescope for progress on sensitive reforms suchas energy sector restructuring, and greater riskthat privatizations will return to the insider dealswitnessed in the past. The political force that ismost serious about bringing the shadoweconomy into the open–the Yuliya TymoshenkoBloc (YTB)–is now in opposition.Economic PerformanceThe most recent data have indicated that theeconomy grew by 5.4% year on year in the firsthalf of 2006–rather than by the 5% previouslyreported–and that the expansion accelerated toreach 6.2% year on year in January-September.Full-year growth of 6.5% in 2006 now appearslikely, which is well above the 2.6% recorded in2005 as a whole. The forecast for annualgrowth of at least 6% in 2007-08 reflects anumber of considerations. An end to electionrelateduncertainties is now likely to beginencouraging investment, and an ongoing risein earnings will help to ensure that householdconsumption growth remains strong–eventhough real personal incomes are unlikely tocontinue to rise at the buoyant pace recordedin 2005, and incomes will be affectedby rising utility prices. However, with incomesgrowing at a decelerated rate, steel exportprices set to decline and gas prices risingfurther, real GDP growth is still forecast to slowslightly in 2007.Year-on-year consumer price inflationaccelerated beyond 9% in September owing tothe sharply higher electricity and agriculturalprices recorded that month. Consumer pricesare expected to rise slightly more quickly overthe remainder of the year and in 2007 as well,before then moderating in 2008 in the absenceof both gas import price rises and furtheradministered tariff increases. The acceleratinginflation expected over the next year will reflectnot just rising gas prices and higher utilitytariffs, but also the looser fiscal stance.Moreover, currency inflows resulting fromincreased investment are expected to rise. Thiswill offset part of the reduction in trade-relatedcurrency inflows, thereby limiting thedeceleration in money supply growth.The National Bank of Ukraine (NBU, the centralbank) has kept the hryvnya steady against theUS dollar since April 2005. It has indicated thatit intends to prevent the currency divergingmuch from its current rate. The hryvnya isexpected to weaken moderately against the USdollar over 2007-08 in the face of a growingtrade deficit (the government's 2007 budgetproposal assumes a slight depreciation). All ofthis will translate into a modest real effectiveappreciation during that period. Owing to therapid increase anticipated in the trade deficit,the risk of greater than expected currencyweakening against the US dollar has grown.Another risk to the forecast comes from thepossibility that the NBU could begin a de factopegging of the hryvnya to a basket ofcurrencies, rather than just to the US dollar asat present.** The Economic Intelligence Unit Ltd., October 2006Key Information ContactsSecurities and Stock Market State Commission www.ssmsc.gov.uaMinistry of Finance www.minfin.gov.uaState Property Fund of Ukraine www.spfu.gov.uaState Committee of Financial Monitoring www.sdfm.gov.uaState Commission for Regulation of Financial Services’ Market in Ukraine www.dfp.gov.ua2001-ORIGIN OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)IndustryServicesPrivate consumptionPublic consumptionAgricultureGross fixed investmentIncrease in stocksNet exports35.17069.36041.5504023.4302022.01007.60.1 0.9PAGE 142

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007UKRAINIAN STOCK EXCHANGEUKRAINE ECONOMIC CHARTS AND TABLES2002 (a) 2003 (a) 2004 (a) 2005 (a) 2006 (b)GDP at market prices (HRN billions) 225.8 267.3 345.1 424.7 478.1GDP (US$ billions) 42.4 50.1 64.9 82.9 94.7Real GDP growth (%) 5.2 9.6 12.1 2.6 6.3Consumer price inflation (av; %) 0.7 5.2 9.0 13.5 7.9Population (million) 47.8 47.4 47.1 46.7 46.5Exports of goods (FOB) (US$ millions) 18,669 23,739 33,432 35,024 39,043Imports of goods (FOB) (US$ millions) -17,959 -23,221 -29,691 -36,159 -44,776Current-account balance (US$ millions) 3,174 2,891 6,909 2,531 -2,109Foreign-exchange reserves excl gold (US$ millions) 4,241 6,731 9,302 19,110 18,750Total external debt (US$ billions) 13.5 16.2 21.7 25.9 (b) 30.4Debt-service ratio, paid (%) 13.8 12.6 10.3 13.6 (b) 14.1Exchange rate (av) HRN:US$ 5.33 5.33 5.32 5.12 5.05(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 6.8 6.0 5.8 6.2 5.8 5.5Consumer price inflation (%) 9.0 13.0 9.0 7.0 6.5 5.8Consolidated budget balance (% of GDP) -2.3 -2.6 -2.3 -2.4 -2.6 -2.2Current-account balance (% of GDP) -1.8 -5.3 -5.9 -4.9 -3.1 -1.4Commercial banks' prime rate (av; %) 15.0 14.0 12.5 11.5 10.5 10.0Exchange rate HRN:US$ (av) 5.05 5.10 5.18 5.22 5.27 5.32Exchange rate HRN:[euro] (av) 6.31 6.95 6.93 6.75 6.64 6.732005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Non-precious metals Machinery & equipment Fuel & energy, incl oresFood, beverages & agricultural products Chemicals OtherFuel & energy, incl ores Machinery & equipmentFood, beverages & agricultural products MetalsChemicalsOther13.512.827.98.612.67.441.08.731.46.811.417.92005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)RussiaTurkeyItalyRussiaGermanyPolandGermanyChinaOtherTurkmenistanChinaOther60.821.95.935.59.47.45.52.83.82.139.9The Economic Intelligence Unit Ltd., October 2006PAGE 143

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ZAGREB STOCK EXCHANGEThe Zagreb Stock Exchange is one of theleading exchanges in South-Eastern Europe.Roberto MotusicGeneral ManagerOur goal is to strengthen our current role inthe region and develop a more substantialand intensive cooperation with otherexchanges. The Zagreb Stock Exchange isone of the leading exchanges in South-Eastern Europe. According to this yearsBloomberg research, the Zagreb StockExchange, according to marketcapitalization, is the sixth in the region ofCentral and Eastern Europe. In the region ofex-Yugoslavia countries, the Zagreb StockExchange holds a leading position with37.4% of the total regional turnover and over41% of the total regional marketcapiptalization.HISTORY AND DEVELOPMENTThe ZSE was incorporated in 1991 as ajoint-stock company with 25 commercialbanks and insurance companies. Today, theZSE has 47 shareholders and 42 members.Prerequisites for ZSE membership include:compliance with the Securities Law,licensing with CROSEC and acceptance ofthe ZSE rules. A seat on the ZSE currentlycosts approximately US$ 13,000. Membersare required to comply with the rules andregulations of the ZSE and must register atleast one licensed broker.The Zagreb Stock Exchange and theCroatian capital market have just finished ayear of great growth and development.Impressive yearly statistics speak volumesabout the growth. Regular equitytransactions have more than doubled(+137.7%) compared to 2005, exceedingUS$ 1.8 billion. But the true growth is visiblefrom the following: this years equitytransactions have almost reached ZagrebStock Exchanges cumulative transactionsfor the past five years (2001-2005).Two big events have played a large role inraising interest for stock trading: the processof public takeover of PLIVA and the publicoffer and listing of the largest Croatian oilcompany INA into the official stock market(the third Croatian stock listed on Londonand Zagreb simultaneously).With the increase in transactions came thegrowth of the prices. The CROBEX index (aprice movement indicator for the most liquidCroatian shares) has grown by 60.7% thisyear. The Stock market cap has beendoubled, compared to the previous year(+123.3%), exceeding US$ 28.9 billion.An interesting indicator for the futuredevelopment of the market is a largeincrease of 42.9% in the number ofsecurities listed in the highest and mosttransparent market segment, the OfficialMarket. In 2005, this market segment had 28shares, which reached 40 shares at the endof last year (8 shares, 3 commercial papersand 29 bonds).Also visible is the growth trend in thenumber of listed corporate bonds (this year6 new bonds have been listed into theOfficial Market).FUTURE OUTLOOKFurther development plans of the ZagrebStock Exchange are moving in the directionof Croatian market consolidation, throughthe acquisition of the VaraÏdin StockExchange and implementation of a new,modern OMX trading platform.Takeover of the Varazdin stock Exchangehas been approved by General Assembly ofShareholders at the end of January 2007.Legally process is expected to be finished inMarch 2007.The implementation of the new tradingplatform is underway and it is expected tobe fully functional till the end of July.PAGE 144

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ZAGREB STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-07 149.79 6.81 1.27 0.06Feb-07 233.66 10.62 1.84 0.08Mar-07 329.06 14.96 3.33 0.15Apr-07 339.05 17.84 2.39 0.13May-07 484.52 22.02 2.99 0.14Jun-07 334.52 18.58 1.87 0.10TOTAL 1,870.6 15.1 13.7 0.11BondsJan-07 479.36 21.79 1,748.51 79.48Feb-07 1,503.68 68.35 7,067.05 321.23Mar-07 836.42 38.02 3,732.26 169.65Apr-07 850.76 44.78 3,839.86 202.10May-07 437.65 19.89 1,331.85 60.54Jun-07 353.03 19.61 932.27 51.79TOTAL 4,460.9 35.4 18,651.8 147.5OtherJan-07 0.0 0.0 0.0 0.0Feb-07 0.0 0.0 0.0 0.0Mar-07 1.02 0.05 5.34 0.24Apr-07 3.20 0.17 11.25 0.59May-07 2.26 0.10 7.62 0.35Jun-07 1.24 0.07 3.95 0.22TOTAL 7.70 0.193 28.15 0.70MarketCapitalization(US$ millions)IndexMONTHLY STOCK VOLUME VS INDEX(US$ millions)StocksIndexMONTHLY MARKET CAPITALIZATION(US$ millions)Jan-07 34,679.60 3,762.60Feb-07 36,879.20 3,797.10Mar-07 47,773.50 4,237.70Apr-07 55,323.40 4,613.10May-07 59,049.70 4,976.80Jun-07 57,764.40 4,835.30CONTACT INFORMATION5004504003503002502001501005005,000 60,0004,5004,000 50,0003,5003,00040,0002,500 30,0002,0001,500 20,0001,00050010,00000Jan Feb Mar Apr May Jun Jan Feb Mar Apr May JunContact Name Mr. Zeljko KardumE-mail zeljko.kardum@zse.hr Website www.zse.hrPAGE 145

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ZAGREB STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSPolitic and Economic EnvironmentAlthough Croatia's government, led by theHDZ, lacks a parliamentary majority, it hasbeen able to make legislative progress withthe support of the Croatian Party ofPensioners (HSU) and ethnic minorityrepresentatives. EU accession talks haveoffered a solid anchor for reform, anddespite a widely recognized dilution ofsupport for further enlargement among EUinstitutions and existing members, theaccession process should help to maintainpolicy discipline over the forecast period.Opposition to further EU enlargement hasintensified in many EU states. The decisionto admit Bulgaria and Romania into the EUin 2007 may aggravate these sentiments,which now pose some threat to Croatia'smembership prospects. As a consequence,there is likely to be greater scrutiny ofCroatia's preparedness for EU membershipthan there was for preceding rounds ofenlargement. Despite the current debateover the legality of admitting additionalmembers without prior amendment of theNice treaty, the promise of full EUmembership can be expected to remain forCroatia. However, this goal will not beachieved until 2009 at the earliest.With Croatia's SDR 97 million (US$ 142.5million) IMF stand-by arrangement havingbeen concluded satisfactorily following athird review in October 2006, there isexternal pressure on the government toagree to another IMF program. The EU hasadvocated another formal IMF assistancepackage as a means of safeguarding theeconomic policy framework that supportedthe stand-by arrangement over its 20-monthduration. However, Croatia has opted not todraw down on its last three IMF stand-bydeals (extending back to March 2001), andthe prime minister, Ivo Sanader, hasannounced that future consultations with theIMF over economic policy will take place inthe context of annual Article IV reviews.Economic PerformanceReal GDP growth decelerated considerably,to an estimated 3.6% year on year, in thesecond quarter of 2006, compared with 6%in the previous quarter. Preliminary figuresfor industrial output suggest that growthpicked up in the third quarter. The share ofgovernment consumption in overall growthcan be expected to remain weak in 2007-08,in line with pressure to reduce the generalgovernment deficit (although election-relatedrisks will exist in 2007). Improved access tocredit and the one-off income impact of thepayment of pension arrears will supportgrowth in private consumption (although thesecond effect will be transitory.).The CNB is committed to using the stabilityof the kuna against the euro as a nominalanchor for monetary policy. This strategyhas helped to insulate the economy fromupward pressure on inflation stemming fromhigh oil prices. Average consumer priceinflation in the 12 months to August 2006was 3.7%, but we expect base-year effectsto bring inflation down later this year, to anannual average of 3.4% in 2006. Kunastability should permit average inflation tostabilize below 3% over 2007-08. Theinflationary risks posed by rapid creditgrowth and public-sector wage settlementswill have to be managed by the authorities.The CNB intervenes regularly in the currencymarket, generally purchasing foreigncurrency in order to ease upward pressureon the kuna. However, the central bank hasalso recently sold euro in the market in aneffort to shore up the kuna. The CNB'sactions are consistent with a desire tomanage the volatility of the currency, ratherthan defend a target range. The introductionof regular repurchase agreement auctionsby the central bank has improvedmanagement of liquidity and reducedinterest rate volatility, helping the CNB tocounter pressures on the Croatian currencyfrom tourism- and investment-relatedforeign-exchange inflows. Recent upwardpressure on the kuna has its origin inseasonal tourism-related influences, as wellas currency positioning allied to theUS$ 2.5 billion purchase of the drug-makerPliva by Barr (US). These factors have beenat least partly offset by demand for eurofrom local banks seeking to comply withnew rules on foreign borrowing.** The Economic Intelligence Unit Ltd., October 2006Key Information ContactsCroatian Agency for Supervision of Financial Services www.hanfa.hrMinistry of Finance www.mfin.hrCroatian Government www.vlada.hr2005-ORIGIN OF GROSS DOMESTIC PRODUCT (%)2005-COMPONENTS OF GROSS DOMESTIC PRODUCT (%)Manufacturing & mining Public services Transport & tradePrivate consumption General government consumption Gross fixed investmentAgriculture, forestry & fishing Construction Other services Change in stocks Exports of goods & services Imports of goods & services20.110.27.0605055.946.252.824.26.6403028.032.02010020.02.7PAGE 146

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007ZAGREB STOCK EXCHANGECROATIA ECONOMIC CHARTS AND TABLES2001 (a) 2002 (a) 2003 (a) 2004 (a) 2005 (a)GDP at market prices (HRK billions) 165.6 178.6 196.8 212.8 233.4GDP (US$ billions) 19.9 22.7 29.4 35.3 39.2Real GDP growth (%) 4.4 5.6 5.3 3.8 4.3Retail price inflation (av; %) 4.9 1.7 1.8 2.1 3.3Population (million) 4.5 4.5 4.5 4.5 4.6Exports of goods (FOB) (US$ millions) 4,759 5,004 6,308 8,210 8,992Imports of goods (FOB) (US$ millions) -8,860 -10,652 -14,216 -16,560 -18,283Current-account balance (US$ millions) -727 -1,917 -2,132 -1,911 -2,541Foreign-exchange reserves excl gold (US$ millions) 4,703 5,885 8,191 8,758 8,800Total external debt (US$ billions) 12.7 16.7 25.7 31.5 34.4 (b)Debt-service ratio, paid (%) 37.9 34.1 26.7 27.0 38.8 (b)Exchange rate (av) HRK:US$ 8.34 7.87 6.70 6.04 5.95(a) Actual. (b) Economist Intelligence Unit estimates.ECONOMIC FORECAST SUMMARY2006 2007 2008 2009 2010 2011Real GDP growth (%) 4.5 4.1 4.2 4.0 3.9 4.2Consumer price inflation (av; %) 3.4 2.7 2.7 2.5 2.4 2.0Budget balance (% of GDP) -3.0 -3.1 -2.9 -2.7 -2.9 -2.7Current-account balance (% of GDP) -7.2 -7.1 -6.9 -6.6 -6.3 -4.7Exchange rate HRK:US$ (av) 5.83 5.37 5.46 5.65 5.79 5.76Exchange rate HRK:[euro] (av) 7.32 7.31 7.31 7.30 7.29 7.282005-PRINCIPAL EXPORTS (%) 2005-PRINCIPAL IMPORTS (%)Machinery & transport equipmentClassified manufacturesMachinery & transport equipmentMineral fuels & lubricantsChemicalsMineral fuels & lubricantsChemicalsFood & live animalsOtherFood & live animalsRaw materials (excl fuels)Other13.79.915.111.114.79.932.97.92.029.622.231.02005-MAIN DESTINATIONS OF EXPORTS (%) 2005-MAIN ORIGINS OF IMPORTS (%)ItalyBosnia & HercegovinaGermanyItalyGermanyRussiaSloveniaAustriaFranceOtherSloveniaAustriaFranceOther14.410.79.16.814.85.721.48.14.27.12.316.043.436.0The Economic Intelligence Unit Ltd., September 2006PAGE 147

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007AFFILIATE MEMBER PROFILESCDA Central Depository of Armenia 147Central Registry Agency Inc. 148Central Securities Depository of Iran 149Misr For Clearing, Settlement & Central Depository 150Securities Depository Center (SDC) of Jordan 151Takasbank - ISE Settlement and Custody Bank, Inc. 152Tehran Securities Exchange Technology Management Company (TSETMC) 153PAGE 148

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CDA CENTRAL DEPOSITORY OF ARMENIAAFFILIATE MEMBERThis adopted model significantlycontributed to the decrease of securitiesmarket institutional risks and protection ofinvestors rights.XXXXXCEOThe Armenia’s securities market, being in itsnascent stage of development, stronglyemphasizes the issue of protecting investor'srights and legal interests. The pastexperience proved the success of the CDA’smodel, which implements the registrymaintenance, depository andclearing/settlement functions through acentralized institution. This adopted modelsignificantly contributed to the decrease ofsecurities market institutional risks andprotection of investors rights.I am pleased to report that we aligned all ourefforts to bring the CDA in line with theinternational standards from the governance,technological and legal/regulatoryviewpoints.Prehistory and role of the CentralDepository of ArmeniaBefore the foundation of the "CentralDepository of Armenia" close joint-stockcompany no centralized register system wasoperating in Armenia. Based on theGovernment decree N 4, dated 10 January,1996 the "National Centralized Register" stateownedenterprise was established.Then, in accordance with Government decreeN 211, dated 8 April, 1999 "NationalCentralized Register" state-owned enterprisewas reorganized into the "Central Depositoryof Armenia" CJSC, which started to carry outcentralized depository and custodianoperations.In August 2000, the RA Law on SecuritiesMarket Regulation (hereinafter, the Law) cameinto effect. Under this Law, the exclusive rightof the centralized principal custodian,securities registrar and clearing/settlementfunctions throughout the Republic of Armeniawere delegated to the "Central Depository ofArmenia" self-regulatory organization.The Central Depository of Armenia SRO as amain structure of the Armenian securitiesmarket plays a key role in it.Implemented Functions1. Register maintenance2. Custodian functions3. Clearing and settlement functionsRegulated byCentral Bank of Armenia.OwnershipOrganization established on the principle ofgovernment of a voice per member.Members of the Depository can beprofessional participants of securities market,stock exchanges and banks (including CentralBank of Armenia).Legal StatusSelf-regulatory organization.Type of Commercial EntityNot for profit.Memberships to InternationalOrganizationsFederation of Eurasian Stock Exchanges(FEAS)European Central Securities DepositoriesAssociation (ECSDA)International Association of Stock Exchangesof the States of Commonwealth ofIndependent States (IAS CIS).Form of SecuritiesDematerialized.Form of Settlement and TransfersBook-entrySettlement PeriodExchange trades: T+0OTC (over the counter) trades: T+3* Please refer to page 34 for the Armenia country report.CONTACT INFORMATIONAddress: XXXXTel: XXXX Fax: XXXXContact Name XXXX E-mail depository@cda.am Website www.cda.amPAGE 149

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CENTRAL REGISTRY AGENCY INC. OF TURKEYAFFILIATE MEMBERThe Central Registry Agency of Turkey(CRA) moved Turkish Capital Markets onestep forward in terms of legal andoperational quality.Remzi ÖzbayCEOCRA moved Turkish Capital Markets one stepforward in terms of legal and operationalquality, by putting the CentralDematerialization System into operation.Shares, mutual funds and corporate bondsnow can only be traded in dematerializedform.Investors can control their accounts by meansof the CRA website and of the CRA VoiceResponse System which recognizes voices.In our new price list, banks and intermediaryinstitutions saved a minimum of 50% and amaximum of 93% in the cost of operations.The issuers, when making issues in the capitalmarket, were saved of the difficulties and risksof importing and distributing valuabledocuments and of making their rights to beexercised on valuable papers and onpresenting coupons.All our operations with Takasbank (ISESettlement and Custody Bank) are based onelectronic exchanging of messages. The newsoftware facility we have put into operationhas been built on an architectural structurewhich has no dependence outside and whichcan reach everybody through different accessand integration channels from the simplestinvestor to the intermediary institutions havingthe most sophisticated systems.Within the framework of our mission ofrepresenting and managing the Investors’Protection Fund, the harms suffered by theinvestors in the previous years werecompensated for in very short periods by thecompensation payments made by the Fund.General InformationCentral Registry Agency of Turkey (CRA) wasestablished in accordance with the Turkish CapitalMarkets Law in 2001. CRA serves as the centraldepository for the following security types:Equities, Mutual Fund Certificates, ExchangeTraded Funds and Corporate Bonds. CRA will alsoserve for Government Bonds and Treasury Bills asof 2007, according to the project plan. Alltransactions regarding dematerialized capitalmarket instruments (e.g. creation of investoraccounts, pledging securities, furnishingcolleterals, securities transfers, dematerializationoperations) are done by the CRA members viaCentral Registry Software which was developed inhouse.In November, 2005 all stock certificatesincluding the certificates formerly kept atTakasbank were dematerialized. Between April2005 and March 2006, all Mutual Fund Certificateswere dematerialized at the CRA platform. InAugust 2006, first corporate bond in TurkishCapital Markets after approximately 5 years, wasissued through CRA.CRA also manages and represents the InvestorProtection Fund. This involves, conducting all theformalities on behalf of the Fund as per theapplicable regulatory provisions and implementingliquidation formalities of intermediary institutions,which are subject to gradual liquidation per theCMB resolution, on behalf of the InvestorProtection Fund as per the applicable regulatoryprovisions.Form of Securities: Dematerialized.Type of Commercial Entity: Although CRAoperates as a private sector for-profit company,the fee schedule is subject to approval by theCMB.Regulated by The Capital Markets Board (CMB)Ownership30% Istanbul Stock Exchange (ISE)64.9% ISE Settlement and Custody Bank(Takasbank)0.1% Istanbul Gold Exchange (IGE)5% The Association of Capital Market IntermediaryInstitutions of Turkey (TSPAKB)Transaction Volumes (as end of 2006)Members 543(391 being issuers, 152 being intermediaries)End-Users 1897Daily Transactions +3,800,000Accounts 21,152,610Investors 8,977,322Accounts Showing Balance 8,443,877Total Reports Accessed by End-Users 2,250,177Market Value of Securities DepositedEquities US$ 150,585,044,039Mutual Funds US$ 18,641,832,080Exchange Traded Funds US$ 84,942,894Corporate Bonds US$ 9,987,735,704Monetary Value of Dividends Processed US$ 3,190,873,955Memberships to InternationalOrganizationsEuropean Central Securities DepositoriesAssociation (ECSDA)International Securities Services Association (ISSA)Future OutlookFollowing the issuance of the draft TurkishCommercial Code, CRA plans to provide servicesto investors enabling them to participate in themember issuers’ general assemblies remotely,using electronic signatures.We also aim to increase the level of straightthrough processing, especially for corporateactions, and to fully synchronize our messageformats with ISO standards. Efficient reporting hasalways been one of our main concerns and in thisregard we plan to increase the report typesavailable to our members, while providinganalytical tools to manage them.Within the context of the ongoing European Unionconsistency processes, we would like to extendthe coverage of the Investor Protection Fund, toinclude all securities, in addition to shares.We are also working on the dematerialization of anew security type - treasury bills and governmentbonds. Dematerialization is expected to berealized by the end of 2007. A followingdevelopment in this regard would be the inclusionof repo and reverse repo trades into thedematerialized system.* Please refer to page 80 for the Turkey country report.CONTACT INFORMATIONAddress: Askerocagi Cad. Suzer Plaza No:15 Kat:3 34367 Elmadag/ISTANBULTel: +90 (212) 334 57 00 Fax: +90 (212) 334 57 57Contact Name XXXX E-mail kaydisistem@mkk.com.tr Website www.mkk.com.trPAGE 150

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007CSDI CENTRAL SECURITIES DEPOSITORY OF IRANAFFILIATE MEMBERThe CSDI is an integral part of atransparent, viable ,fair and efficientequities market.Alireza HajinorouziCEOThe newly created Central SecuritiesDepository of Iran (CSDI) is playing animportant role in the Iranian capital market byestablishing a national center for registrydepository and clearing and settlement ofsecurities.The CSDI is an integral part of a transparent,viable ,fair and efficient equities market inIran that has attracted domestic investorsconfidence and will contribute to the wealthof the nation.The CSDI is implementing EFA technology toperform its responsibilities.Role of the DepositoryThe Central Securities Depository of Iran(CSDI) is a public utility institution establishedin the Islamic Republic of Iran by virtue ofapproved (Dec, 21, 2005) Capital Market law.The CSDI commenced operation in Dec,2005 and is the only entity in the I.R. of Iranthat is legally empowered to oversee theregistration of securities deposit of securities,transfer ownership, safekeeping of securitiesand clearing and settlement of securitiestransactions.The CSDI is one of the most importantinstitution in Iran's Capital Market as it holdsthe ownership register of all publicshareholding companies. As a keycomponent in the modernization of the CapitalMarket the CSDI .Implements a delivery –versus- payment settlement protocol.Financial statements are currently conductedby CSDI.CSDI is planning to develop the securitiescentral operation registry processing and theinformation online system in future. At presentconducting all activities is in Farsi (Persian)but desire to do so in FARSi and English inthe coming years. The CSDI offers differentservices to investors in securities includingpledging services, legal services, providinginvestors with the ability to freeze theirsecurities in the central registry.Participation CriteriaThe CSDI membership are public issuers,brokers and custodians.Eligible PledgePledge are not considered members in thatcapacity.IssuersMembership is obligatory for publicshareholding listed companies by virtue ofcapital market law.Does the CSDI act as a centralcounter party?NoMembership in other internationalorganizationsFEAS, at present, planning for otherorganizations in future.Legal StatusPublic utility institution.Type of Commerc›al EntityProfitRegulated byCapital market law.Form of SecuritiesDematerialized.Form of SettlementBook-entryFuture Outlook1. CSDI will move to its new head quarter inSeptember of 2007. This building covers1800 square meters.2. Coexis London will implement new softwareat CSDI for post-trade activities.3. CSDI continues to employ local staff andexperts to reach its planned goals.* Please refer to page 128 for the Iran country report.CONTACT INFORMATIONContact Name Mr. Alireza Hajinorouzi E-mail info@csdiran.com Website www.csdiran.comPAGE 151

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MISR FOR CLEARING, DEPOSITORY & REGISTRYAFFILIATE MEMBERA secure, stable and encouraginginvestment environment is the goal ofMCSD.Mohamed S. Abdel SalamChairman & Managing DirectorMCSD was established at the end of 1994 tocomplete the infra structure of the Egyptiancapital market. In time, MCSD has becomethe largest central registry firm among themajor and emerging markets in the world.MCSD’s does not spare any efforts tomaintain the highest standard of servicesprovided to the Egyptian market. As a resultof its qualified performance, MCSD wasawarded the International Gold Star forQuality in Geneva in 2001. For significantcontribution to the business world, for highstanding and professionalism demonstratedby prestigious performance, B.I.D. -Business Initiative Directions - presented itsspecial recognition award to MCSD. AlsoMCSD was granted the highest level ofefficiency, following the results of anassessment panel of depository companiesconducted by JPMorgan – Chase, with ascore of 1.25 points on a scale of 1 to 3where depository that closely resemble thebest practice is rated 1, meet some of therequirements but not fully meet the preferredpractice rated 2 and finally depositories thatare deficient are rated 3.The assessment revealed that MCSD hasabided by all the rules and high standardsset by the SEC in Rule 17f-5 which evenhave been developed to be more strict ascompared to Rule 17f-7 in order to secureAmerican foreign investments. A secure,stable and encouraging investmentenvironment is the goal of MCSD.Role of the DepositoryMCSD is the sole Egyptian CSD providingclearing and settlement services to the Cairoand Alexandria stock exchanges (CASE).MCSD operates both the depository and theclearing house. It is a not for-profit privatecompany owned by the stock exchanges,local banks and its participants. It wasincorporated under the Capital Market Law No95 of 1992, commenced operations in October1996 and is currently governed by theDepository and Central Registry Law No 93 of2000. It is regulated by the Capital MarketsAuthority (CMA).Use of the central depository in the market forsettlement and safekeeping is compulsory bylaw, where securities in the depository are heldin certificated form. Equities are held via bookentry,with certificates immobilized in MCSD'svaults. All securities are treated as fungibleand may be transferred or pledged bybookkeeping entry without actual physicaldelivery. MCSD’s authorized capital is 50million L.E, issued capital is 40 million L.E andpaid capital is 18.75 million L.EMCSD Main Activities & Services1. Clearing and settlement of operationsexecuted at CASE.2. Central depository and registry of all listedand unlisted securities3. Management of securities accounts forcustodian banks and issuers.4. Handling corporate actions (cash and stockdividends etc) according to the issuers’assemblies’ decisions.5. Management of the Settlement GuaranteeFund to eliminate suspended movements dueto brokers’ defaults (securities and/or cash).6. Management of a pledge system for allsecurities lodged into the central depository.7. Repatriation of international investors’ funds.8. Customer servicing through the MCSD’sfront office, the call center, the internet, theSMS and finally through direct phones orfaxes.Legal StatusPrivate Joint-Stock CompanyType of Commercial EntityNot for-profit companyRegulated byDepository and Registry law number 93 of year2000Form of SecuritiesImmobilized in the book entry formForm of SettlementNet cash settlement, gross securitiessettlementSettlement DatesT+0 Same Day Trading SettlementT+1 Treasury BondsT+2 Active securitiesT+3 Dematerialized securitiesT+4 Physical securitiesCONTACT INFORMATIONContact Name Mohamed S. Abdel Salam E-mail m.abdsalam@mcsd.com.eg Website www.mcsd.com.egAddress 70 El-Gomhoria St., P.O. Box 1536 Attaba, Cairo, EgyptPhone +202 5971 522-505-506-509 Fax +202 5971 670-523PAGE 152* Please refer to page 68 for the Egypt country report.

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007SECURITIES DEPOSITORY CENTER (SDC) OF JORDANAFFILIATE MEMBERThe SDC is an integral part of a transparent,viable, fair, and efficient equities market inJordan that enhance the confidence ofinvestors in securities.Samir JaradatChief Executive OfficerThe Securities Depository Center (SDC) hasmade a qualitative leap in the Jordan CapitalMarket by establishing a national center forregistry, depository and clearing andsettlement of securities. The SDC is an integralpart of a transparent, viable, fair, and efficientequities market in Jordan that enhance theconfidence of investors in securities andenable them to follow-up their investments withease by establishing a central registry to safekeepthe ownership of securities and reducerisks related to settlement of tradingtransactions executed through the market byimplementing by-laws, instructions andprocedures that are fair, fast and safe.The SDC provides a number of services toinvestors in securities, which include investoridentification and account set-up, statementsof accounts and ownership balances, placingand releasing pledges upon request and thefreezing of deposited securities upon theowner’s request. The SDC has designed andimplemented a state-of-the-art electronicsystem that provides a one-stop solution forregistration, depositing and clearing andsettlement of securities. The Securities CentralOperation Registry Processing & InformationOnline or SCORPIO system is bilingual andprovides a registry that maintains records oflegal ownership of shares.Role of the DepositoryThe Securities Depository Center of Jordan(SDC) is a public utility institution established inthe Hashemite Kingdom of Jordan by virtue ofthe Securities Law. The SDC commencedoperation in May 1999 and is the only entity inJordan that is legally empowered to oversee theregistration of securities, deposit of securities,transfer of ownership, safekeeping of securitiesand clearing and settlement of securitiestransactions.The SDC is one of the most importantinstitutions in Jordan’s capital market as it holdsthe ownership register of all public shareholdingcompanies where ownership registration is inthe beneficial owner name where nominee &street names does not apply.As a key component in the modernization of thecapital market, the SDC implemented a deliveryversus-payment(DVP) settlement protocol. DVP,a globally recommended settlementmethodology that ensures the simultaneousdelivery of securities against final payment offunds. The ownership is transferred on T+2 andbackdated to T, these transfers are final andirrevocable, and financial settlements arecurrently conducted via the Central Bank ofJordan’s Real Time Gross Settlement System(RTGS-JO) which is a central real time, grossfinal & irrevocable electronic settlement system,using SWIFT instructions to effect transfers withimmediate value.The SDC also developed the “Securities CentralOperation Registry Processing & InformationOnline (SCORPIO)” system. SCORPIO, an SDCdesignedand implemented system, is bilingualand it provides a complete solution for theregistration, deposit and clearing andsettlement.The SDC offers different services to investors insecurities including pledging services, providinginvestors with statements of their securitiesbalances that show the securities owned bythem and their distributions among members; inaddition to providing investors with the ability tofreeze their securities in the central registry.There are no restrictions on the remittance ofinvestment funds into or out of Jordan, allincome & capital gained from investment inJordan are exempted from tax; this includescash & stock dividends. However, (5%) appliesto interest gained from credit balances.Participation CriteriaThe SDC's members are public shareholdingcompanies, public issuers, brokers andcustodians.Eligible PledgeePledgee are not considered members inthat capacity.IssuersMembership is obligatory for publicshareholding companies by virtue of theSecurities Law.Size of Guarantee FundJOD 42.9 mn - US$ 60.6 mn as of 31December, 2006Does the SDC act as a centralcounter partyNoMemberships in other InternationalOrganizationsThe International Organization of SecuritiesCommissions (IOSCO)Association of National Numbering Agencies(ANNA)Africa & Middle East Depositories Association(AMEDA)Federation of Euro-Stock Exchanges (FEAS)Union of Arab Stock Exchanges9th Conference of Central SecuritiesDepositories (CSD9)Association of Global CustodianThomas MurrayLegal StatusPublic utility institutionType of Commercial EntityNot for profitRegulated byJordan Securities CommissionForm of SecuritiesDematerialized no physical certificates beingissued in JordanForm of SettlementBook Entry at the SDCSettlement CycleT+2Turnaround Trades TradesAllowed provided the same broker in the samesettlement cycleNumberingISIN CODES complying with the InternationalStandard ISO-6166* Please refer to page 30 for the Jordan country report.CONTACT INFORMATIONContact Name Mr. Samir Jaradat E-mail info@sdc.com.jo Website www.sdc.com.joAddress The Securities Depository Center (SDC) 2nd Floor -Capital Market Building, Al-Mansour Bin Abi Amer StreetAl-Abdali Area, Al-Madina Al-Riyadiya District, Amman, The Hashemite Kingdom of JordanP.O.B. (212465) Amman 11121 JordanPAGE 153

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TAKASBANK ISE SETTLEMENT AND CUSTODY BANK INC.AFFILIATE MEMBERIn 2006, Takasbank was accepted to themembership of ECSDA (European CentralSecurities Depositories Association).Emin ÇatanaPresident & CEOGlobalization, spreading due to internet, bringscountries, cultures and ways of doing businesscloser than ever. In today’s world, successfulorganizations cannot content themselves withlocal markets. Organizations having thedetermination of success have to step into theinternational arena. Although the main missionof Takasbank is to contribute to thedevelopment of capital markets by enhancingthe free movement of capital, a more broadbasedapproach to its ultimate task required itto facilitate the process such that Turkey wouldbenefit from the international flow of capital onthe best terms available.In this framework, the most important factor inconstructing a productive, efficient and reliablesettlement and custody system is to offerinternational market players an environmentthat will ensure a stable technical andregulatory-supervisory infrastructure. Forcountries that participate in the globaleconomy, a series of standards andrecommendations have been developed in theareas of settlement and custody with the aim toharmonize their national capital markets withthe international arena.During the course of the year 2007, within theframework of the global integration of capitalmarkets, Takasbank has already maintainedand still endeavors further to implement theinternationally accepted standards andrecommendations in order to reduce thecauses of fragmentation and inefficienciesbased in market practice/regulatoryrequirements, tax procedures and issues oflegal certainty.Within the responsibility of its leadership ofFEAS Affiliate Task Force, Takasbank sharedits accumulated experience and knowledgeabout the latest developments on clearing andsettlement issues with its peers in FEAS. In thiscontext, “corporate governance for clearing &settlement institutions” and “the access andinteroperability protocol of the Code ofConduct” was evaluated in the FEAS AffiliateTask Force Meetings. I believe that theimplementation of these studies wouldenhance the safety and efficiency of the globalsettlement process and thus, contribute toincreasing volumes of cross bordertransactions among FEAS markets.General Informat›onTakasbank is incorporated as a non-deposittaking investment bank and is authorized by theCapital Markets Board of Turkey to function as:the Clearing and Settlement Institution for the ISEmarkets, the Clearing House for the TurkishDerivatives Exchange, the National NumberingAgency of Turkey and the Custodian for theMutual Funds and Pension Funds incorporated inTurkey.Services Provided• Central clearing and settlement for theorganized markets of ISE and Turkish DerivativesExchange (Turkdex),• Real time gross DvP “member to member”settlement,• Cash settlement and transfer facilities (domesticand cross-border),• Cross-border settlement and custody services,• Takasbank Money Market,• Securities Lending and Borrowing Market (SLB),• Cash Credits,• Allocation of ISIN for securities issued in TurkeyBrief HistoryTakasbank, started as a department within theIstanbul Stock Exchange (ISE) in 1988, andoriginally dealt with the provision of settlementservices for securities traded by the members ofthe ISE. In January 1992 , the operations of thatdepartment were transferred to an independentcompany, the ISE Settlement and Custody Co.Inc., which was set up under the shareholdershipof the ISE and its members. This company wasthen transformed into a bank and renamedTakasbank (ISE Settlement and Custody Bank,Inc.) in 1996.Form of SecuritiesDematerializedForm of Settlement and Transfers:Book-entryLegal StatusJoint stock companySettlement PeriodEquities: T+2Bonds and Bills: T+0Derivatives:T+1Type of Commerc›al EntityPrivate sector for-profit companyDoes Takasbank Act as a CentralCounter Party?No for the ISE markets. (However, defaultprocedure is applied for the settlement of the ISEmarkets).Yes for Turkdex and Takasbank Money MarketRegulated byCapital Markets BoardBanking Regulation and Supervision BoardCentral Bank of Turkey.Size of Guarantee Fund(As of July 2007)ISE Equities Market: US$ 31 millionISE Bonds and Bills Market: US$ 37.5 millionOwnershipIstanbul Stock Exchange (ISE): 32.62%Banks (19): 34.48%Brokerage Houses (67): 32.90%Board of Directors: 11 MembersIstanbul Stock Exchange: 4Banks: 3Brokerage Houses: 2Capital Markets Board: 1and the President and CEO of Takasbank.Memberships to International OrganizationsAssociation of National Numbering Agency(ANNA)International Securities Services Association(ISSA)Society for Worldwide InterbankTelecommunications (SWIFT)Association of European Central SecuritiesDepositories (ECSDA)Future OutlookIn 2007, Takasbank intends to:• Initiate efforts to become a Central Counterpartyfor equities;• Give-up process for Turkdex transactions;• Fully automation of cross-border settlementservices merged with the SWIFT system; Institutepre-matching facility on T+1 for DvP settlement(among brokers and custodians) for equities viaintegration of SWIFT and DvP transfer facility;• SWIFT Concentrator Model for enabling non-SWIFT member institutions to reach SWIFTsystem;• Development and expansion of the scope ofInvestmentFund Custody System;• Endeavor to comply with EU directivesregarding securities clearing and settlementsystems;• Contribute to the development of internationalstandards for securities and implementing thesestandards in Turkey.* Please refer to page 80 for the Turkey country report.CONTACT INFORMATIONContact Name Ms. Filiz Kaya E-mail international@takasbank.com.tr Website www.takasbank.com.trPAGE 154

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007TEHRAN SECURITIES EXCHANGE TECHNOLOGY MANAGEMENT COMPANY (TSETMC) AFFILIATE MEMBERMorteza KhazanedariManaging DirectorThe major project for TSETMC is toimplement a new trading solution for theTehran Stock Exchange (TSE) in the year2007.TSETMC’s activities for the year 2007 are:The major project for TSETMC is to implement anew trading solution for the Tehran StockExchange (TSE) in the year 2007. ATOS EuronextMarket Solutions (AEMS) is in the process ofintegration testing of the new solution based onthe customizations required by the TSE. Thetrading solution is scheduled to be installed onthe purchase hardware in early April 2007. ThisSolution is due to come online in the summer of2007 after finalization of User Acceptance Testing(UAT). TSETMC is also assisting the newlyestablished CSD Iran Company for theimplementation of a new post-trade solution.TSETMC has a very close relationship with CSDIran Company since all of the post-trade activitieswere the responsibility of TSETMC before hand.The post-trade Solution is planned to go live inearly 2008. CSD Iran Company is also in theprocess of becoming an Affiliated Member ofFEAS.During the implementation of the new core tradeand post-trade solutions, TSETMC is working withmajor brokerage firms in Iran for theimplementation of Brokerage Solution. At themoment, the initial study phase has beenfinalized and various alternatives forimplementation are being evaluated. This Solutionwould allow e-trading in various markets in Iran.The plan is to introduce financial and commodityderivatives markets in TSE and the newlyestablished Iranian Commodity Exchange in thenear future. TSETMC is the main driving force forthe introduction of these markets and also theirprocessing. The new Solutions have thefunctionalities for trade and post-trade activities inDerivatives markets. TSETMC has plannedvarious seminars, lectures, and workshops forderivatives market to educate market participants.TSETMC is an active member of a consortiumwith the responsibility to establish the IranianPetroleum Exchange.TSETMC has received the initial agreements forthe development of a Lending and Borrowing(LNB) Market for equities. The initial structure andbusiness processes for the LNB market has beenidentified. TSETMC is in the process to developthe infrastructure and link it with other activities.TSETMC is the main contributor in thedevelopment and implementation of internationalstandards in Iran. TSETMC is the main drivingforce to implement a DVP Model2 for the equitymarket. In addition, the new CSD Companywould become a CCP of the equity market by2008. TSETMC is providing all the neededinfrastructure and risk management mechanismsfor them.General InformationTehran Stock Exchange Services Company(TSETMC) is a subsidiary of the Tehran StockExchange (TSE). TSETMC was established onJune 1994 as an independent company ownedby TSE and its members. The TSETMC’s mainfunction is to develop, maintain, operate, andpromote systems for all stages of the trade-cycleservices in Iran.Specifically, TSETMC is responsible to:• maintain all hardware and software used fortrade and post trade activities• develop and enhance existing softwareapplications• provide consultancy and technical advice• function as the National Numbering Agency ofIranServices ProvidedTradingMaintain Automated Trading System (ATS)Disseminate trade information to interestedpartiesInformation and SupportingProvide operational servicesManage operational risksOthersProvide consultancyManage the data centersImplement specialized softwareBrief HistoryTSETMC started its operation as a subsidiary ofthe National Informatics Corporation (NIC) of Iranin July 1984. Originally, TSETMC developed,maintained and operated the computerizedsystem of TSE used for trade and post-tradeactivities. In June 1994, TSETMC wasincorporated as an independent company underthe ownership of the TSE, its members, and NIC.Currently, TSE and its members are the soleowners of TSETMC. In November 2006, TSESCrenamed to TSETMC.Form of SecuritiesDematerializedForm of Settlement and Transfers:Book-entryLegal StatusPrivate Joint Stock CompanySettlement PeriodEquities: T+3Corporate Bonds: T+1Type of Commerc›al EntityPrivate sector for-profit companyDoes TSETMC act as a central counter party?No. However, the plan is to introduce a CCPorganization for the Iranian markets in early 2008.TSETMC is driving force for this undertaking.Regulated BySecurities and Exchange Organization of Iran(www.sena.ir)OwnershipOwned by the Tehran Stock Exchange (TSE) andits members.Memberships to International OrganizationsAffiliate Member of the Federation of Euro-AsianStock Exchanges (FEAS)Association of National Numbering Agency(ANNA)Board of Di›rectors: 11 MembersRepresentatives of the TSE and memberbrokerage companiesFuture OutlookFrom March 2006 to March 2007, TSETMC intendsto:• lead the implementation of a new trade andpost-trade solutions• assist brokerage companies for implementingtotal solutions especially introduction of e-trading• assist CSD Iran Company in the implementationof a new pos-trade solution• contribute in the introduction of new instruments• Assist in the creation of the Iranian PetroleumExchange• champion the creation of a Lending andBorrowing market• contribute to the development andimplementation of international standards• initiate studies and efforts to introduce CCP* Please refer to page 128 for the Iran country report.CONTACT INFORMATIONContact Name Mr. Houman Farajollahi E-mail houman.farajollahi@tsetmc.com Website www.tsetmc.comPAGE 155

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007MEMBER LISTPAGE 156

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Abu Dhabi Securities MarketAddress: P.O. Box 54500 Abu Dhabi, U.A.E. Phone: (2) 627 7777 Fax: (2) 612 8787 E-mail: info@adsm.co.aeWeb Address: www.adsm.co.ae Country Code: 971Company’s Name City Code Telephone Fax E-mail AddressAABAR Petroleum Co. 9712 626 4466 626 8228Abu Dhabi Aviation Co. 9712 575 8000 575 7775Abu Dhabi Co For Building Materials (BILDCO) 9712 645 5500 645 5544Abu Dhabi Commercial Bank 9712 696 2222 677 6499Abu Dhabi Energy Company (TAQA) 9712 694 3662 694 3774Abu Dhabi Islamic Bank 9712 634 3000 633 3316Abu Dhabi National Hotels Co. 9712 444 7228 444 8495Abu Dhabi National Insurance Co. (ADNIC) 9712 626 4000 626 8600Abu Dhabi Ship Bldg (ADSB) 9712 551 0800 551 1067Abu Dhabi Takaful 9712 626 2727 626 0777Al Buhaira National Insurance Co. 9716 568 4000 574 8855Al Dhafra Insurance Co. 9712 672 1444 672 9833Al-Ain Ahlia Insurance Co. 9712 445 9900 445 6685ALDAR Properties 9712 696 4444 641 7504Al-Khazna Insurance Co. 9712 676 7000 676 8500Al-Wathba National Insurance Co. 9712 677 0566 677 6628Arkan Building Materials 9712 2445 5888 244 55282ASMAK 9716 743 5727 743 2256Bank of Sharjah 9716 569 4411 568 3377Commercial Bank International 9717 222 7555 222 7444Commercial International Bank / Egypt (CIB) 202 747 2292/3 573 1541DANA GAS 9716 556 9444 556 6522Emirates Driving Company 9712 551 0544 551 0227Emirates Foodstuff & Mineral Water (Agthia) 9712 445 5221 446 3644Emirates Insurance Co. 9712 644 0400 644 5227Emirates Telecommunications-ETISALAT 9712 628 3333 631 7000Finance House 9712 621 9999 619 4099First Gulf Bank 9712 681 6666 681 3727FOODCO Holding Co. 9712 673 1000 673 2100Fujairah Building Industries 9719 222 2051 222 7314Fujairah Cement Industries Co. 9719 222 3111 222 7718Fujairah National Insurance Co 9719 223 3355 222 4344Fujairah Trade Center 9719 222 2661 222 6212Gulf Cement Company 9717 266 8222 266 8038Gulf Medical Projects Company 9716 561 9999 561 6699Gulf Pharmaceutical Industries (Julphar) 9717 246 1461 246 1462International Fish Farming Company 9716 743 5727 743 2256Invest Bank 9716 569 4440 569 4212National Bank Of Abu Dhabi 9712 611 1111 627 5881National Bank of Fujairah 9719 202 9312 222 4516National Bank of Ras Al Khaimah 9717 228 1127 228 6106National Bank of Umm Al Qiwan 9716 706 6666 765 1525National Corporation for Tourism & Hotels 9712 409 9777 409 9778National Marine Dredging Co. 9712 551 6000 551 6500Oasis International Leasing Co. 9712 627 3880 627 3990Oman & Emirates Investment Holding Co. 99682 448 9458 448 9465Palestinian Telecommunication Co. (PALTEL) 9702 240 5838 9709 237 6227Qatar Telecommunication Co. (Q-tel) 974 440 0525 483 0112RAK Co. for White Cement & Construction Materials 9717 266 8888 266 8866RAK National Insurance Co. 9717 227 3000 228 8500RAK Properties 9717 233 0004 227 2444Ras Al Khaimah Poultry & Feeding Co. 9717 246 2222 246 2220Ras Al-Khaimah Cement Company 9717 266 0111 266 0006Ras Al-Khaimah Ceramics 9717 244 5046 244 5270Sharjah Cement & Industrial Dev. Co. 9716 568 4681 568 3171Sharjah Insurance Company 9716 568 6690 568 3888Sharjah Islamic Bank 9716 568 1000 568 0101Sorouh Real Estate 9712 444 0006 444 0066Sudanese Telecommunication Co. Ltd. 249183 770 099 782 322Umm Al Qiwain Cement Industries 9716 765 5522 765 5520Union Cement Company 9717 266 8166 266 8635Union Insurance Co. 9716 746 6996 746 6997Union National Bank 9712 674 3141 677 3482United Arab Bank 9716 507 5500 573 3913United Insurance Co. 9717 235 1877 235 3250PAGE 157

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Amman Stock ExchangeAddress: P.O. Box 212466, Amman 11121, Jordan Phone: (6) 566 4109 Fax: (6) 566 4071 E-mail: info@ase.com.joWeb Address: www.exchange.jo Country Code: 962Company’s Name City Code Telephone Fax E-mail AddressAhli Brokerage Company 6 562 4361 562 4362 brokerage@jnb.com.joAjiad for Securities 6 562 2269 562 2293 -Al- Eman Financial Investment 6 566 3173 566 4988 nidbass@yahoo.comAl Shorouq Financial Brokers 6 569 5512 569 5551 -AL Wameedh for Financial Services and Investment 6 568 1960 568 1030 -Al-Amal Financial Investment 6 567 1485 566 7993 -AL-Aula Financial Inv. Co. 6 562 2256 562 2993 -Al-Awael International Securities 6 563 3222 - -Al-Bilad For Securities And Investment 6 510 5900 510 5700 -AL-Fares Financial Inv. Co. 6 565 0340 569 6464 alfaris@wanadoo.joAL-Hekma Financial Services 6 565 4046 565 4049 info@hekma-fs.joAl-Mawared For Brokerage 6 568 8085 562 2405 -Al-Nadwa For Financial Services and Investment 6 510 5213 - -AlNour For Financial Investments 6 566 6690 565 6520 -AL-Omana'a Portfolio and Investment 6 554 9700 554 9702AL-Reda for Financial Services 6 569 9995 569 9995 www.aula.com.joAL-Safwa For Financial Investments 6AL-Sahm International for Investment and Brokerage 6 569 1662 569 1665AL-Salam for Financial Investments 6 582 0628 582 0630Al-Watanieh For Financial Services 6 566 3851 568 2803 -Aman For Securities 6 566 2362 566 2381 info@amansecurities.joAmman Investment & Securities Co Ltd 6 566 9689 567 2572 -Arab Cooperation Investment 6 562 9300 562 9300 alie@abci.com.joArabic Falcon for Sec. Trading 6 562 3116 562 3118 fifco@joinnet.com.joAsia for Financial Brokerage 6 567 3086 567 6030 -Atlas Investment Group 6 552 6491 552 6492 mail@atlasinvest.netBank Of Jordan 6 560 0900 567 5951 boj@bankofjordan.com.joBusiness Women Co. for Trading Sec. 6 562 6068 562 6068 info@multaqua-altadawul.comDelta Financial Investment 6 02-725 4660 02-725 4664 -Elite Financial Services 6 568 0194 568 6086 -Excel For Financial Investment 6 560 0923 567 5951 -Experts Financial Services 6 566 1608 566 3905 -Export And Finance Bank 6 569 4250 569 2062 info@efbank.com.joFriends Financial INV. & Brokerage 6 563 9446 568 0298 -Horizons Invest 6 562 6665 569 0922 -Ibda" for Financial Investment 6 566 2440 566 8910 -Imcan For Financial Services 6 560 4222 560 1444 info@imcan.comIndemaj Financial Services 6 580 2930 582 3819 -Industrial Development Bank 6 464 2216 464 7821 idb@indevbank.com.joINT' Brokerage & Financial Markets 6 550 3300 585 5362 -International Financial Center 6 567 4558 569 6720 -Investment House for Financial Services 6 568 5525 568 5344 -Jordan Gulf Investment 6 567 5617 567 5617 -Jordan Investment And Financial Bank 6 562 2401 562 2405 investment@jifbank.comJordan Islamic Bank For Finance And Investment 6 565 3046 565 3047 jib@islamicbank.com.joJordan National Bank 6 562 4361 562 4362 info@jnb.com.joJordan River Financial Investment 6 556 0023 553 0801 info@jrfic.comJordanian Eexpatriates for Financial Brokerage 6 565 3702 565 3702 -Jordanian Saudi Emirates Financial Investment 6 562 0011 562 0050 info@jescoonline.netNational Portfolio Securities 6 567 3101 568 8793 info@mahfaza.com.joOsool for Inv and Financial Services 6 - - -Philadelphia Investment Bank 6 560 9800 565 7536 pibccb@go.com.joSamir &Sameh Bros For Investment 6 567 1546 568 4476 -Sanabel Al-Khair for Financial Investments 6 565 3046 565 3047Selwan Financial Brokers 6 565 1546 565 1549 selwan@firstnet.com.joShareco Brokers Co Ltd 6 567 3812 569 5644 shareco@nets.com.joShares House for Financial Sec. 6 569 4114 569 4114 info@shareshouse.comShua'a for Securities Trading and Investment 6 562 3004 562 3006Societe Generale De Banque-Jordanie 6 568 1651 568 1258 meibsg@meib.comSociete Generale Jordan - Brokerage 6 568 1651 568 1251 sgbj@sgbj.com.joSukook INV. & Brokerage Co. 6 562 3997 562 3998 -Tanmia Securities Inc 6 567 2460 568 3559 info@tanmiainc.comThe Arab Financial Investment 6 569 2425 569 2423 -The Bankers for Brokerage and Financial Invest 6 582 5380 582 7590 -The Financial Investment Company For Shares & Bonds 6 5671569 569 9626 -Trans Jordan For Financial Services 6 565 0287 567 2980 money@go.com.joUnion Bank For Savings & Investment 6 567 5558 566 6149 info@unionbankjo.comUnion Financial Brokerage 6 567 5558 560 6996 union.brokerage@wanadoo.joPAGE 158

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Amman Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressUnited Arab Jordan Company For Investment AndFinancial Brokerage 6 567 1578 569 6156 -United Financial Investments Plc 6 581 5070 586 5870 ufico@accessme.comArmenian Stock ExchangeAddress: 5B M. Mkrtchian Street, Yerevan 375010, Republic of Armenia Phone: (10) 543321 Fax: (10) 543324 E-mail: info@armex.amWeb Address: www.armex.am Country Code: 374Company’s Name City Code Telephone Fax E-mail AddressAB Securities Ltd. 10 532 815 532 829 absec@arminco.comAerobrok Ltd. 10 222 725Alinvest Ltd. 10 454 112 alinvest2000@yahoo.comAlphasecurities Ltd. 10 397 866Ameria Invest CJSC 10 524 040 546 800 vardan@ameria.amArmenbrok CJSC 10 528 986 528 986 armbrok@web.amAstvan Ltd. 10 423 210 astvan@rambler.ruAyti Brok Dil Trust Ltd. 10 348 837 aytibrok@yahoo.comCapital Invest Ltd. 10 542 589 526 417 mzaven@yandex.ru; astair@arminco.comCascade Investments CJSC 10 263 840 278 221 info@cascadeinvmnts.comCentre of Government & Corporate Securities Ltd. 10 581 578Future Capital Market Ltd. 10 226 135 fcm@freenet.amGlobal Bond Ltd. 10 737 979Private Invest CJSC 10 521 812 521 051 privat@arminco.comRenesa CJSC 10 544 527Sarinyan & Co. Investment Ltd. 10 544 252 544 353 sarinyanandco@cornet.amTonton Ltd. 10 545 477 545 407 info@tontoninvest.comYerevan Broker Ltd. 10 544 657Bahrain Stock ExchangeAddress: Hedaya Building 2, Government Avenue, Manama, Block: 305 Kingdom of Bahrain, P.O. Box 3203, Phone: (17) 261 260 Fax: (17) 256 362E-mail: info@bahrianstock.com Web Address: www.bahrainstock.com Country Code: 973Company’s Name City Code Telephone Fax E-mail AddressAbdulla J. Zainalabideen 17 246 661 246 661 -Ahli United Bank 17 585 824 580 549 info@ahliunited.comBank of Bahrain & Kuwait 17 227 441 229 822 ecall_ebank@bbkonline.comGlobal Investment House 17 200 060 200101 www.globalinv.netGulf Securities Co. 17 272 578 258 780 -Gulfinvest Securities 17 207 070 250 800 info@gulfinvestsecurities.comIndo Gulf Financial Services 17 227 778 215 231Nassir Abbas Khosrou 17 270 130 271 267 -Securities & Investment Co. 17 515 000 530 603 sico@batelco.com.bhTAIB Bank Securities 17 549 499 531 213 taibdirect@taib.comUGB Securities 17 533 233 531 953 info@ugbbah.comYousif H. Al-Ajaji 17 261 006 262 948 ajaji001@yahoo.comBaku Interbank Currency ExchangeAddress: 57, Acad H. Aliyev Str., AZ1110 Baku, Azerbaijan Phone: (12) 465 6314 Fax: (12) 465 6516 E-mail: info@bbvb.orgWeb Address: www.bbvb.org Country Code: 994Company’s Name City Code Telephone Fax E-mail AddressAFbank 12 499 1617 499 1066 afbank@bakinter.netAmrahbank 12 497 8862 497 8863 amrahbank@azeurotel.comAnarbank 12 498 9437 498 4235 office@anarbank.baku.azAqrarkredit Non Bank Credit Organization 12 438 0530 498 1517 asb@baku-az.netAtabank 12 497 3496 498 7447 atabank@atabank.comAtlantbank 12 497 6986 497 6989 atlant@azdata.netAtra 12 495 8093 498 1274 atrabank@azdata.netAzal 12 498 6056 498 9701 azalbank@azalbank.azAzdemiryolbank 12 440 2722 496 0977 damir@azerdemiryolbank.comAzerigazbank 12 497 5017 498 9615 agbbank@azeri.comAzernegliyyatbank 12 493 4804 493 4804 azerneqliyyat@liderkart.comAzer-Turk Bank 12 497 4316 498 3702 atb@azertyrkbank.bizBank of Azerbaijan 12 498 0247 498 0250 office@is-bankasi-azerbaycan.netBank of Baku 12 447 0055 498 8278 root@bankofbaku.comBirlikbank 12 441 6775 441 6119 info@birlikbank.baku.azCapital Investment Bank 12 493 4949 493 8450 cibank@azersun.comPAGE 159

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Baku Interbank Currency Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressCapitalBank 12 493 6630 498 6605 afig.khudayev@kapitalbank.azCaucasian Development Bank 12 497 3272 497 1222 office@tdb.baku.azDebutbank 12 496 4551 497 4560 debutbank@azeronline.comDeka-Bank 12 498 1157 498 1147 office@dekabank.comEurobank 12 497 7455 497 8907 office@eurobank.azGunay Bank 12 498 0456 498 1439 gunaybank@azeri.comKocbank Azerbaijan Ltd. 12 497 7795 497 0276 ÍÓcbank@ÍÓcbank.com.azMugan 12 498 3411 498 3511 bank@mugan.baku.azNBC Bank 12 566 6856 498 9477 info@nbcbank.azNikoyl 12 497 2972 497 3379 bank@nikoil.azOpen Joint-Stock Society Kovsar 12 497 3034 497 3029 bank@usal.baku.azPara-Bank 12 447 1000 493 0882 office@parabank.azPostbank 12 498 6914 498 3314 seymur@postbank.orgRabitabank 12 492 6097 497 1101 rb@rabitabank.comRespublika 12 498 0800 498 0880 info@bankrespublika.azRoyal Bank of Baku 12 498 6588 498 1319 info@royalbank.azStandart Bank 12 497 1070 498 0778 bank@bankstandart.comTekhnikabank 12 465 3613 493 0841 info@texnikabank.comThe Azerbaijan Bank of Microfinancing 12 493 0726 493 0796 bank@mfba.azThe International Bank of the Azerbaijan Republic 12 493 0091 498 9128 ibar@ibar.azThe National Bank of the Azerbaijan Republic 12 493 1122 493 5541 info@nba.azTuran 12 497 2592 497 2577 turanbank@azdata.netUnibank 12 498 2244 498 0953 bank@unibank.azUnited Credit Bank 12 490 0641 490 0522 ucb@ucb.azXalq bank 12 496 8152 496 8157 mail@xalqbank.azZaminbank 12 498 8105 493 4190 info@zaminbank.azBaku Stock ExchangeAddress: 19, Bul-Bul Avenue A21000 Baku, Azerbaijan Phone: (12) 498 9820 Fax: (12) 493 7793 E-mail: info@bse.azWeb Address: www.bse.az Country Code: 994Company’s Name City Code Telephone Fax E-mail AddressADB Broker LLC 12 440 2429 496 0977 damir@azerdemiryolbank.ÒÓÏAtaBank Joint-Stock Commercial Bank 12 497 8700 498 7447 teymur@atabank.comAzerigasbank Open Joint Stock Company 12 497 5017 498 9615 f.veliyeva@azerigazbank.comAzerTurkBank Joint Stock Commercial Bank 12 497 4317 498 3702 kelkhan@azerturkbank.bizBank of Baku Commercial Bank 12 447 0055 498 8278 ssmammadov@bankofbaku.comCapital Investment Bank – CIBank 12 493 0145 493 8450 cibank@azersun.comInternational Transaction Systems LLC 12 436 8490 436 8485 murtuzayev.s@gcc.azKoch Bank Azerbaijan Joint-Stock Commercial Bank 12 497 7795 497 0276 eldara@kochbank.comMars ‹nvestment LLC 12 497 3162 497 3336 office@azinvestgroup.comRabitabank Joint-Stock Commercial Bank 12 492 6157 497 1101 rb@rabitabank.comStandard Capital LLC 12 497 5501 497 5503 m.iskandarova@standardcapital.azTekhnika Capital Management LLC 12 440 2961 493 8711 ›lkin.piriyev@texnikabank.azUniBank Joint-Stock Commercial Bank 12 498 2244 498 0953 samir.balayev@unibank.azBanja Luka Stock ExchangeAddress: Petra Kocica bb, 78 000 Banja Luka, Bosnia and Herzegovina, Phone: (51) 326 040 Fax: (51) 326 056 E-mail: blberza@blic.netWeb Address: www.blberza.com Country Code: 387Company’s Name City Code Telephone Fax E-mail AddressAkcija Broker a.d. Banja Luka 51 227 460 227 460 info@akcija-broker.comBalkan Investment Bank a.d. Banja Luka 51 245 155 245 145 v.stokanic@balkaninvestment.comBobar Banka a.d. Bijeljina 55 211 552 218 388 ana.mirosavljeviç@bobarbanka.comEurobroker a.d. Banja Luka 51 310 347 310 348 sasa.grbic@eurobroker.baGrand Broker a.d. Banja Luka 55 211 799 211 798 grbroker@teol.netHypo-Alpe-Adria Bank a.d. Banja Luka 51 336 530 336 535 bratoljub.radulovic@hypo-alpe-adria.comLHB Banka a.d. Banja Luka 51 226 570 212 671 a.kujundzic@lhbbank.comNova Banjaluãka Banka a.d. Banja Luka 51 243 392 243 299 vladan.jovic@novablbanka.comNova Banka a.d. Bijeljina 51 241 923 310 135 jasnav@novabanka.comRazvojna Banka Jugoistoãne Evrope a.d. Banja Luka 51 211 751 211 743 brokeri@razvojnabanka.comZepter Komerc Banka a.d. Banja Luka 51 241 164 215 771 bojan.blagojevic@zepterkomercbanka.comPAGE 160

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Belarusian Currency and Stock ExchangeAddress: 48a, Surganova Str., 220013 Minsk, Belarus Phone: (375) 17 209 41 03 Fax: ( 375) 17 209 41 10 E-mail: blusson@bcse.byWeb Address: www.bcse.by Country Code: 375Company’s Name City Code Telephone Fax E-mail AddressAbsolutbank CJSC 17 237 0702 root@absolutbank.byAigenis, CJSC 17 205 4041 info@aigenis.byAktsiya, Ltd 17 237 7891 action2004@tut.byAlfa Industrial Capital, FE 17 206 6174 elena_b@alpha-invest.comAlfa Prof-Active, Ltd 17 299 0084 alfaprof@gin.byASTANAEXIMBANK JSC 17 289 5811 chubkova@aeib.by, www.aeb.byAtlant-Invest, Depository 152 721 844ATOM–BANK JSC 17 219 8482 info@atombank.byBank of Reconversion and Development JSC 17 203 5727 catherine@rrb.by,Belagroprombank JSC 17 218 5777 belapb@belapb.byBelarusky narodny bank JSC 17 280 1663 bnb@tut.byBelarussian Industrial Bank JSC 17 203 9578 bib@bib.byBelgazprombank JSC 17 206 7740 bank@bgpb.byBelinvestbank JSC 17 289 2812 info@belinvestbank.byBelMezhKomInvest, JSC 17 201 3341Belpromstroibank JSC 17 289 4606 inbox@bpsb.byBELROSBANK CJSC 17 289 7680 mailbox@belrosbank.byBelSwissBank United Stock Company 17 206 6933 info@bsb.byBelvnesheconombank JSC 17 209 2944 bonds@bveb.minsk.byBrostok, CJSC 17 213 5859 brostock@solo.byCapital-Active, CJSC 232 574 357Denim Trading, Unitary Enterprise 17 236 9549 dima@altdenim.comDerzhavainvest, JSC 17 203 8978 derzhava@telecom.byGeneral Investment System CJSC 17 294 0353 gsi@aport.ruGT–Bank (Golden Taler Bank) 17 226 6298 office@gtbank.byInternational reserve bank JSC 17 299 6900 info@irb.byIntertrustgroup, JSC 17 237 3896 info@it-g.ruInvalue, CJSC 17 206 4611 invalue@invalue.byITI–Bank (Joint–Stock CommercialInternational Trade and Investement Bank) 17 200 6880 office@itibank.byKaskad-93-Invest, Ltd 17 298 5768 kaskad-invest@anitex.byLiderInvest, Ltd 17 220 8353 shutko@stock.nsys.byLorobank OJSC 17 299 6901 lorobank@mail.ruMinsk Transit Bank JSC 17 213 2901 bank@mtb.minsk.byMoscow–Minsk Foreign Bank 17 288 6301 mmb@mmbank.byNational Bank of the Republic of Belarus 17 219 2242 www.nbrb.byNorthern Investment Bank JSC 17 299 6621 nordinvest@nib.bn.byParitetbank OJSC 17 288 3248 info@paritetbank.byPriorbank JSC 17 289 9087 info@priorbank.byPromreestr, Ltd 17 200 0272PromtechInvestVeksel, Unitary Enterprise 17 221 8909Reestr, Ltd Investment Company 2161 42862 reestr@tut.bySavings Bank "Belarusbank" JSSB 17 218 8431 info@belarus-bank.bySlavneftebank, CJSC 17 216 2387 snb@snbank.bySOMBelBank JSC 17 206 6569 info@sbb.by, www.sbb.bySovmedia, Unitary Enterprise 17 213 5472 sovmedia@tut.byStock Aliance, Ltd 17 202 9647 fondoy_alians@mail.ruStock House, CJSC 17 294 9170Synthesis Invest Group,Ltd 17 211 2857 dkorn1972@mail.ruTECHNOBANK OJSC 17 283 2727 shlyago@tb.by www.tb.byTrustbank, Private JSC 17 203 2467 samson@trustbank.byTrust-West, Ltd 162 203 207 trast-zapad@mail.ruWestern Stock Bureau, CJSC 162 230 386 zfb@mail.ruZARS, CJSC 17 206 4611Belgrade Stock ExchangeAddress: 1, Omladinskih Brigada Street, 11000, Belgrade, Serbia Phone: (11) 322 1599 Fax: (11) 138 242 E-mail: info@belex.co.yuWeb Address: www.belex.co.yu Country Code: 381Company’s Name City Code Telephone Fax E-mail AddressAB INVEST 11 323 2977 323 2977 abinvest@eunet.yuAC-BROKER 11 202 7700 202 7700 info@ac-broker.co.yuALCO BROKER 11 305 0376 354 8305 abroker@abanka.co.yuALPHA BANK 11 302 3971 334 2349 mgostiljac@jubanka.comAS FINANCIAL CENTER 11 262 2266 262 2266 office@asbroker.co.yuBANCA INTESA 11 201 1422 201 1297 broker@bancaintesabeograd.comBANKA POSTANSKA ·TEDIONICA 11 3024-329 3376-777 broker@posted.co.yuPAGE 161

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Belgrade Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressBELGRADE INDEPENDENT BROKER 11 322 3227 322 3227 office@bibroker.co.yuBEO MONET 11 303 6059 303 3563 beomonet@ikomline.netBEOPUBLIKUM BROKERSKA KUCA 11 334 5171 334 5080 publikum@infosky.netBONITET GRUPA 11 306 7855 306 7855 budacash@eunet.yuBROKER NIS 18 520 377 520 377 brokerni@infosky.netBROKER POINT 11 262 2439 624 460 office@brokerpoint.co.yuCACANSKA BANKA 32 320-657 348-146 jtlacinac@cacanskabanka.co.yuCACANSKI NEZAVISNI BROKERI 32 310-690 341-772 cnbca@sezampro.yuCENTROBROKER 11 3248-405 3248-309 office@centrobroker.co.yuCITADEL SECURITIES 11 3284036 628 165 office@citadel-securities.comCITY BROKER 11 3836-913 3836-915 firma@cbroker.co.yuCONFIDENCE 11 308 9020 308 9020 office@confidence.co.yuCONVEST 21 455 629 450 595 convest@eunet.yuCREDY BANKA 34 360 685 331 360 m.radojevic@credybanka.comDELTA BROKER 11 201 2690 201 2677 broker@deltayu.comDIL BROKER 11 334 7757 324 5035 dilbroker@ptt.yuDUNAV STOCKBROKER 11 3223-764 3223-763 dunavstockbroker@dunavstockbroker.comEAST-WEST INVEST 11 308 9816 308 9429 ewistan@drenik.netECOTEL 11 303 0307 303 0308 office@ecotel.co.yuEMISSIO BROKER 11 316 5900 316 5900 emissio@beotel.yuENERGOBROKER 11 311 5261 311 5312 broker@energobroker.co.yuEURO FINEKS BROKER 11 309 6920 309 6920 fineks@eunet.yuEUROBANK EFG STEDIONICA 11 3027-538 3027-587 rada.laketa@eurobankefg.co.yuEUROZIRO 11 303 6280 303 6281 risticz@sbb.co.yuFIDELITY BROKER 21 472 3228 472 3224 fidelit@eunet.yuFIMA INTERNATIONAL 11 334 1066 334 0787 office@fimaint.co.yuFIMAKS BROKER 11 339 8768 339 8915 broker@fimaks.co.yuFIRST GLOBAL BROKERS 11 328 5184 328 2398 info@fgb.co.yuGALENIKA BROKER 11 316 2260 219 6572 company@galenikabroker.co.yuGT BROKER 11 260 7713 260 7713 dragangt@eunet.yuHIPOBROKER 11 301 5654 301 5658 office@hipobroker.co.yuHVB BANKA 11 323 3918 323 3171 branislav.radovanovic@yu.hvb-cee.comHYPO ALPE-ADRIA-SECURITIES 11 222 6808 222 6896 aleksandar.zinaic@hypo-alpe-adria.co.yuILIRIKA INVESTMENTS 11 330 1000 330 1050 info@ilirika.co.yuIMTEL TRADE 11 301 6822 301 6822 office@imteltrade.comINTERCAPITAL SECURITIES 11 3111-420 222-3105 dragan.milin@intercapital.co.yuINTERCITY BROKER 11 308 3130 308 3150 icb@eunet.yuINVEST BROKER 11 324 8650 303 5006 investbroker@beotel.yuITM MONET 11 361 5929 361 4148 itmmonet@beotel.yuJORGIC BROKER 11 311 7835 311 7840 jorgicb@ptt.yuJUBMES BROKER 11 311 0275 311 3851 broker@jubmes.co.yuKBK BROKER 11 243 4820 243 4820 kbkbrok@eunet.yuKOMERCIJALNA BANKA 11 324 0911 323 9201 danilo.vuksanovic@kombank.comLAIKI BANK 11 330 6407 324 1448 gordana.kamatovic@cs.laiki.comM&V INVESTMENTS 21 661 2788 661 2788 ns@mvi.co.yuMAKLER INVEST 11 334 5351 334 5351 office@maklerinvest.co.yuMAX-DILL 32 222 277 222 277 office@maxdill.co.yuMEDIOLANUM INVEST 11 367 0137 367 0137 veljamed@eunet.yuMERIDIAN INVEST 11 330 5876 330 5908 mebainv@meridian-invest.comMETALS BANKA 21 424 121 524 693 vikovacevic@metals-banka.co.yuMMK GROUP 18 521 951 521 925 mmkgroup@eunet.yuMULTIBROKER 11 334 1158 334 1158 multi@eunet.yuNBA BROKER 11 313 1286 146 691 nbabrok@eunet.yuOLIMPIA INVEST 11 301 7200 313 3115 olimpiainvest@yahoo.comPAN-BROKER 11 246 4231 246 1435 pan.brok@net.yuPLATFORMA 11 362 9030 362 9031 platforma@gmail.comPRIVREDNA BANKA 11 641 874 264 1894 office@pbbad.comPROSPERA INVESTMENTS 11 3285-600 3285-601 iradovic@prosperainvestments.comRAIFFEISENBANK 11 220 7171 220 7170 aleksandar.malisic@raiffeisenbank.co.yuSAB MONET 11 382 1002 382 1002 sabmonet@yubc.netSBD BROKER 24 558 275 554 003 office@sbdbroker.co.yuSENZAL 11 218 0856 328 5722 senzal@senzal.co.yuSINTEZA INVEST GROUP 11 301 8740 301 8749 info@sinteza.netSOCIETE GENERALE YUGOSLAV BANK 11 311 1515 328 2230 sogeyu@eunet.yuSUMADIJA BROKER 34 303 011 303 021 sumbrok@eunet.yuSYNERGY CAPITAL 11 328 4825 262 2784 office@syn-cap.comTANDEM FINANCIAL 21 425 777 425 777 office@tandemfin.comTDK BROKER 32 340 610 340 610 tdkkbroker@yu1.netTEMA BROKER 21 443 809 472 1640 info@temabroker.co.yuTEZORO BROKER 11 263 2346 263 2057 office@tezorobroker.co.yuPAGE 162

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Belgrade Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressTRZISTE NOVCA 11 361 2430 361 2286 info@tn.co.yuUNICREDIT BANK SRBIJA 11 3204-570 3204-693 broker@unicreditbank.co.yuVOJVODANSKA BANKA 21 488 6731 616 023 broker@voban.co.yuBucharest Stock ExchangeAddress: 34-36 Carol I Boulevard, 14th Floor, Sector 2, Bucharest, 020922, Romania Phone: (21) 307 9502 Fax: (21) 307 9519 E-mail: bvb@bvb.roWeb Address: www.bvb.ro Country Code: 40Company’s Name City Code Telephone Fax E-mail AddressACTINVEST 268 470 938 411 387 actinvest@rdsbv.roACTIVE INTERNATIONAL 21 307 6020 307 6024 broker@active.roALPHA FINANCE ROMANIA 21 209 2233 231 5332 office@alphafinance.roBCR SECURITIES 21 222 3703 222 7404 opl@bcrsecurities.roBRD SECURITIES - GROUPE SOCIETE GENERALE 21 301 4150 301 4159 daniel.pocorea@brd.roBT SECURITIES 264 597 980 431 747 office@btsecurities.roBUCURESTI GLOBAL INVEST 21 319 0251 319 0253 contact@bgi.roCA IB SECURITIES 21 206 4680 206 4690 valerian.ionescu@ro.hvb-cee.comCARPATICA INVEST 269 217 781 211 398 carpaticainvest@carpaticainvest.roCENTRAL EUROPEAN INVESTMENTS 21 319 1073 319 1075 office@ceigroup.roCOMPANIA ROMANA DE INVESTITII INVESTCO 21 336 1018 337 3365 office@cri-investco.roCONFIDENT INVEST BUCURESTI 21 320 2102 320 2102 office@confidentinvest.roDELTA VALORI MOBILIARE 21 255 2247 255 4645 ssif_delta@shares.rossif_delta@rdsmail.roDORINVEST 21 312 9970 312 9962 office@dorinvest.roEASTERN SECURITIES 21 314 0892 314 0892 adrian.caramiha@easternsecurities.roEFG EUROBANK SECURITIES 21 206 2300 206 2310 office@efgfinance.roEGNATIA SECURITIES 21 313 5350 313 5351 egnatiasecurities@rdsmail.roELDAINVEST 236 472 113 473 393 eldainv@xnet.ro; eldainvest@gmail.comEQUITY INVEST 21 311 7930 310 4362 office@equity.roESTINVEST 237 238 901 237 471 esin@estinvest.ro epure@estinvest.roETEBA ROMANIA 21 316 7153 316 7269 invest@eteba.roEURO INVEST VISION 21 211 0137 211 0531 euroinvestvision@eiv.roEUROSAVAM 244 0344401188 0344401188 eurosavam@ploiesti.rdsnet.roFINACO SECURITIES 21 666 4870 666 4870 finaoffice@yahoo.comFINANS SECURITIES - SOCIETATE DESERVICII DE INVESTITII FINANCIARE 21 301 7250 318 0965 office@finsec.roG.I.F. - GRUPUL DE INTERMEDIERE FINANCIARA 21 311 2702 312 6757 gif@rdsnet.ro; mihai.pangrate@gif.roGLOBAL VALORI MOBILIARE 21 210 3441 210 3411 office@globalsecurities.roGM INVEST 21 327 3151 327 3155 office@gminvest.roGOLDRING 265 269 195 269 195 goldring@goldring.roH B INVEST 268 542 500 542 503 hbinvest@easynet.roH&C SECURITIES 232 239 019 233 530 -HARINVEST 250 733 898 733 898 harinvest@onix.ro; office@harinvest.roHTI VALORI MOBILIARE 21 253 2644 252 2483 office@hti.roIEBA TRUST 21 313 0102 313 1595 office@iebatrust.roIFB FINWEST 257 281 611 281 611 ifb@ifbfinwest.ro office@ifbfinwest.roING BANK 21 222 1600 222 1401 office@ingbank.roINTERCAPITAL INVEST 21 222 8731 222 8731 222 8744 office@intercapital.roINTERDEALER CAPITAL INVEST 264 433 212 433 212 interdealer@xnet.ro;office@mail.interdealer.roINTERFINBROK CORPORATION 241 639 071 547 829 office@interfinbrok.roINTERVAM 21 315 7010 315 8222 intervam@intervam.comINVEST TRUST 251 415 287 417 658 office@investtrust.roKD CAPITAL MANAGEMENT 21 650 0446 650 0448 office@kd-capital.roMUNTENIA GLOBAL INVEST 21 337 0947 337 0947 office@rainvest.ro alex@rainvest.roNOVA INVEST 261 768 875 768 870 ssif@nova.roOLTENIA GRUP INVEST 251 410 502 418 215 office@olteniagrup.roPRIME TRANSACTION 21 322 4614 321 5981 office@primet.roRAIFFEISEN CAPITAL & INVESTMENT 21 306 1233 230 0684 office.rci@rzb.roROINVEST BUCOVINA 230 520 133 520 133 roinvest_bucovina@yahoo.comROMBELL SECURITIES 21 232 0185 232 0197 rombell@grivco.roROMCAPITAL 256 490 121 490 121 office@romcapital.roROMEXTERRA FINANCE 265 250 132 250 141 office@romexterra-finance.roS.S.I.F. ORIZONT VEST 259 415 031 414 990 orizontv@rdslink.roS.S.I.F. PIRAEUS SECURITIES ROMANIA 21 305 0370 305 0375 corona.radulescu@piraeusbank.roSC BANK LEUMI ROMANIA SA 21 312 0368 312 0498 dpc@eurombank.roSOCIETATEA DE SERVICII DEINVESTITII FINANCIARE ROMINTRADE 268 410 605 410 592 office@onlinebroker.roSSIF BROKER 264 433 677 433 677 staff@ssifbroker.roPAGE 163

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Bucharest Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressSSIF GEOFFREY INVEST 258 806 600 806 619 office@geoffreyinvest.roSSIF MAXWELL RAND SECURITIES INTERNATIONAL 21 210 6103 210 6113 mrsi@mrsi.roSSIF MOBINVEST 259 467 335 410 894 ago@rdslink.roSUPER GOLD INVEST 248 213 417 215 862 sold@geostar.roSWISS CAPITAL 21 222 7322 222 6169 office@swisscapital.roTARGET CAPITAL 264 590 776 590 775 office@targetcapital.roTGH INVESTMENT 232 216 562 212 744 info@tgh.roTRANSILVANIA CAPITAL 266 206 440 206 442 transilvaniaoffice@rdsbv.roTREND 234 519 346 519 396 diana@svmtrend.roUNICAPITAL 21 231 8990 231 8991 office@unicapital.eunet.roUNICREDIT SECURITIES 21 301 5170 301 301 5172 gigi.dragnea@unicreditsecurities.roVALMOB INTERMEDIA 248 214 661 210 195 valmob@gic.roVANGUARD 21 336 9325 336 9233 office@vanguard.roVENTRUST INVESTMENT 265 262 471 261 752 office@ifcro.roVOLTINVEST 251 419 342 419 342 voltinvest@sifolt.roWBS ROMANIA 21 310 4125 310 4124 office@wbs.roWORLD ROM SECURITIES 21 312 0084 312 1590 office@worldrom.comBulgarian Stock ExchangeAddress: 10 Triushi Str. Floor 5, 1303 Sofia, Bulgaria, 1301, Sofia, Bulgaria Phone: (2) 937 0937 Fax: (2) 937 0946 E-mail: bse@bse-sofia.bgWeb Address: www.bse-sofia.bg Country Code: 359Company’s Name City Code Telephone Fax E-mail AddressCB "Alianz Bulgaria" 02 921 5476 981 9307 cap.market1@bank.allianz.bgCB "BACB" 02 965 8358 944 5010 aboneva@baefinvest.comCB "BNP - Paribas Bulgaria" 02 921 8640 921 8687 toni.skakalova@bnpparibas.comCB "Bulbank" 02 923 2596 988 4636 liliya.anachkova@bulbank.bgCB "Bulgarian Post Bank" 02 816 6492 983 8104 ntzokev@postbank.bgCB "Central Cooperative Bank" 02 926 6288 988 8107 sstoynov@ccbank.bgCB "Corporate & Comercial Bank" 02 937 5665 937 5711 sofia.gborisova@corpbank.bgCB "D Commerce Bank" 02 989 4444 989 4848 b.israel@dbank.bgCB "DSK Bank" 02 939 1363 980 6477 daniela.yordanova@dskbank.bgCB "DZI bank" 02 930 7134 980 2623 aangelov@dzibank.bgCB "Economic & Inv. Bank" 02 981 3518 981 2526 anikolov@hq.eibank.bgCB "Emporiki Bank" 02 917 1711 917 1156 nadia.budinova@emporiki.bgCB "First Investment Bank" 02 910 0157 980 5033 invest@fibank.bgCB "Hebros" 02 923 2596 988 4636 liliya.anachkova@bulbank.bgCB "HVB Bank Biochim" 02 926 9127 926 9104 michael.slavov@biochim.comCB "Inernational Asset Bank" 02 812 0253 986 2879 feib@asico.netCB "ING Bank - Sofia Branch" 02 917 6716 981 4111 emil.asparouchov@ingbank.comCB "Investbank" 02 818 6128 980 7722 mincho@ibank.bgCB "MKB Unionbank" 02 915 3355 980 2367 mainmail@unionbank.bgCB "Municipal Bank" 02 981 9270 981 5147 p.matev@municipalbank.bgCB "PEB Teximbank" 02 833 5136 935 9362 dealing@teximbank.bgCB "Piraeus Bank Bulgaria" 02 969 0722 969 0790 bnikov@eurobank.bgCB "Raiffeisenbank - Bulgaria" 02 919 854 52 943 4528 martin.tarpanov@rbb-sofia.raiffeisen.atCB "Tokuda Bank" 02 932 9133 981 5378 info@tcebank.comCB "United Bulgarian Bank" 02 811 3753 811 2402 dimitrova_k@ubb.bgFinancial House "Ever" 02 873 7724 980 1116 ever@ever.bgFinancial House "FINA-S" 02 818 5520 955 5989 ceo@fina-s.comInv. Intermediary "ABV Investments" 02 856 7021 955 5925 abvinvest@mnet.bgInv. Intermediary "Argo Invest" 02 931 0361 931 0361 argoinv@bnc.bgInv. Intermediary "Aval IN" 02 987 7273 986 0911 aval.in@ibn.bgInv. Intermediary "Balkan Advisory Company" 02 980 9050 981 7200 pkrastev@abv.bgInv. Intermediary "Balkan Investment Company" 02 943 9215 943 4718 mar_dimovska@abv.bgInv. Intermediary "BBG Simex - Bulgaria" 02 980 7510 980 7510 office@bbg-simex.comnv. Intermediary "BenchMark Finance" 02 962 5405 962 5396 office@benchmark.bgInv. Intermediary "Beta Corp" 02 986 6683 986 5566 boko@beta-corp.comInv. Intermediary "BG ProInvest" 02 989 3002 981 0048 bgproinv@mail.bol.bgInv. Intermediary "Bora Invest" 02 983 1577 980 4770 office@borainvest.comInv. Intermediary "Bulbrokers" 02 937 6209 981 4182 klimentr@bulbrokers.bgInv. Intermediary "Bulex Invest" 052 632 416 609 550 bulex@varna.netInv. Intermediary "Bulfin Iinvest" 02 400 1192 400 1192 gmarinov@bulfininvest.comInv. Intermediary "Bull Trend Brokerage" 02 943 3366 986 7998 bulltrend@bulltrend-bg.comInv. Intermediary "Capital Finance" 02 981 1755 981 1755 capfin@hotmail.comInv. Intermediary "Capital Ing. Proect" 064 800 627 800 637 capital_ip@mail.orbitel.bgInv. Intermediary "Capital Markets" 02 933 0075 933 0034 capital_markets@netissat.bgInv. Intermediary "Capman" 02 810 60 810 6033 mail@capmanbg.comInv. Intermediary "CEE Securities" 02 975 1690 975 1690 info@cee-securities.comPAGE 164

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Bulgarian Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressInv. Intermediary "D.I.S.L. Securities" 02 962 2186 962 2196 disl.securities@yahoo.co.ukInv. Intermediary "Dealing Finansial Company" 02 987 0235 987 9240 dfco@cablebulgaria.bgIInv. Intermediary "Delta Stock" 02 811 5060 811 5050 office@deltastock.bgInv. Intermediary "DZI - Investment" 02 988 2150 988 2150 invest@dzi.bgInv. Intermediary "Elana Trading" 02 810 0024 810 0099 ovcharov@elana.netInv. Intermediary "Euro - Finance" 02 980 5657 981 1496 contact@euro-fin.comInv. Intermediary "Euro Garant" 02 986 7678 980 8242 evrogarant@mail.orbitel.bgInv. Intermediary "Eurodealing" 056 846 030 846 030 diling@bse.bgInv. Intermediary "Faktory" 02 981 2710 943 4157 factory@mail.bol.bgInv. Intermediary "First Financial Brokerage House" 02 810 6424 810 6401 ffbh@ffbh.bgInv. Intermediary "FiÒo Invest" 052 603 519 603 519 head@fikoin.bgInv. Intermediary "Frontier Finans" 02 988 4444 986 1179 deals@ifc7m.comInv. Intermediary "Intercapital Markets" 02 921 0511 980 1148 office@intercapital.bgInv. Intermediary "IP Favorit" 02 981 3469 981 3467 favorit@ipfavorit.comInv. Intermediary "Karoll" 02 981 1381 986 5363 rabadjiiski@karoll.netInv. Intermediary "KD SÂcurities " 02 810 2665 981 2165 desislava.petkova@kd-group.bgInv. Intermediary "Makler 2002" 032 620 598 622 139 makler@plovdiv.techno-link.comInv. Intermediary "McCup Brokers" 02 951 5201 954 9984 mitusheva@maccupbrokers.bizInv. Intermediary "Metrik" 02 981 5822 981 4610 metrik_bg@yahoo.comInv. Intermediary "Naba Invest" 052 699 550 699 553 office@naba.bgInv. Intermediary "Populiarna Kasa 95" 032 627 727 265 353 pk95sf@balkansys.comInv. Intermediary "Positiva" 02 846 6623 846 8293 backoffice@positiva.bizInv. Intermediary "Real Finance" 052 603 828 603 828 real-finance@real-finance.netInv. Intermediary "Sofia International Securities" 02 988 6340 988 6341 info@sis.bgInv. Intermediary "Sofia Invest Brokerage" 02 981 7119 981 7229 amenkajiev@sib.orbitel.bgInv. Intermediary "Somoni 2001" 02 951 6583 951 6583 office_sf@somoni2001.comInv. Intermediary "Standart InvestmÂnt" 02 971 7667 870 3270 office@standardinvestment.bgInv. Intermediary "Statos Invest" 02 946 1740 980 0447 contact@status-invest.bgInv. Intermediary "STS Finance" SC 02 963 1138 963 1053 office@finance.sts.bgInv. Intermediary "TBI Invest" 02 935 0626 937 5069 back_office@tbi-invest.bgInv. Intermediary "UG Market" 032 625 401 625 402 office@ugmarket.comInv. Intermediary "Varchev Finance" 052 634 040 699 145 info@varchev.comInv. Intermediary "VIP-7" 052 631 020 631 020 vip7@mail.orbitel.bgInv. Intermediary "Zagora Finakorp" 042 600 203 623 451 finhouse@zts.orbitel.bgInv. Intermediary "Zlaten Lev Brokers" 02 965 4550 965 4552 mladenka@zlatenlev.comCairo & Alexandria Stock ExchangesAddress: 4A, El Sherefeen St. Cairo, Egypt Phone: (2) 2392 8698 Fax: (2) 2392 4214 E-mail: webmaster@egyptse.comWeb Address: www.egyptse.com Country Code: 20Company’s Name City Code Telephone Fax E-mail AddressAgead Securities Brokers 2 3302 3735 3305 4038 agyad@yahoo.comAl Ahly Brokerage Co. 2 3338 2930 3338 2950Al Ahram Co. Stock Exchange & Securities Brokers 2 2393 3543 2390 6579 ahrambrk@hotmail.comAl Aliaa Stock Brokerage House 2 3338 5195 3761 7509 alaliaa@mist-net.netAl Amalka Securities Trading 2 3304 7732 3305 2846 alamalk@thewayout.netAl Hamd for Stock Brokerage 2 2624 2376 2623 4176Al Karma Brokerage Co. 2 2417 3597 2417 3597 alkarma@link.netAl Manar for Stock Exchange 2 2396 1905 2396 1907Al Nasr Securities Brokerage Co. 2 2519 2703 2519 2778 research@alnasrsecurities.comAl Rowad Securities Brokerage SAE 2 3749 7600 3335 8978Al Shark El Awsat for Securities Brokerage 2 3303 5613 3303 5689 sh_elkhodry20@yahoo.comAl Shorouk Brokerage 2 3578 1177 3578 1166 alshorouk@link.com.egAlexandria Brokerage Co. 3 2484 0655 2484 8926Aman Securities Company 2 3794 2883 3794 3232 amanbrok@yahoo.comAmwal for Trading Securities 2 3736 2150 3736 2150Arabia Online Company for Stockbrokers 2 2414 0025 2418 0666 arabia_brokers@hotmail.comAxion Dor 2 3736 8550 3736 1410Bab El Molouq Securities 3 486 0800 485 9551 bab_ el_ molouq@mist-nBankers Group for Bookkeeper & Brokerage 2 2395 8382 2395 8384 ramzytolba@hotmail.coBaraka for Securities Brokerage 2 2395 6111 2392 1478 baraka@linknet.comBloom Misr for Securities Trading 2 3335 7054 3761 7680Brokers Stock Exchange 3 2485 6128 2485 6128 brokers_com@yahoo.comCairo Brokerage 2 2391 0151 2395 8048Cairo Capital Securities Co. 2 3797 4333 3797 4344Cairo International Securities Exchange 2 2287 9903 2287 9904 cise@hotmail.comCairo National Co. Securities Negotiation 2 3760 9394 3760 9438 cnrs@mist-net.comCapital Securities Brokerage 2 3762 7481 3335 7144 csb@gega.netCity Stars for Securities Trading 2 2395 7809 2395 7809PAGE 165

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Cairo & Alexandria Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressCity Trade for Securities Trading 2 2395 4880 2395 8384Commercial International Brokerage Co. 2 3338 3906 3761 8379 helguindy@cibcegypt.comCorrect Line Brokerage & Stock Exchange 2 3338 0568 3338 0568 correctline2003@hotmail.comCounsel Inc. 2 3792 1100 3792 1300 counselinc@consultant.comDelta Securities Egypt 2 3347 2120 3347 2180 info@delta-securities.comDynamic Securities Trading Co. 2 3344 4919 3305 3423 info@d-securities.comEgypt Brokerage 2 3748 1816 2575 9815 gfm.01014@mcsd.com.egEgypt Trust Securities 2 2395 2515 2395 2515 e_trust@hotmail.comEgyptian American Co. for Brokerage 2 3762 5811 3762 5817 eab1091@hotmail.cimEgyptian Emarites Securities Co. 2 3335 0009 3338 9521Egyptian Group for Securities 2 3792 0183 3792 0183 egsecurities@hotmail.comEgyptian Kuwaiti Securities Co. 2 2579 8551 2579 8554 egku181@hotmail.comEl Alamia for Brokerage 2 2393 5874 2393 5874 alamia-b@internetegypt.comEl Amal Stock Brokerage Company 3 2545 8947 2545 8947El Dawlia Company for Securities 3 2486 0505 2484 4457El Eman Securities Brokerage 2 2419 9529 2417 2295El Etehad Brokerage Company 2 2395 7265 2395 4839El Fath Stockbrokers 2 3794 4712 3794 6216El Geziera for Securities Trading 2 2578 0931 2578 0933El Giza for Securities Trading 2 2573 2575 2417 2295 gizabk@link.netEl Horreya Securities Brokerage Co. 2 2390 4940 2395 2172 horreya105@hotmail.comEl Karnak Stock Brokerage 2 23937 7715 2393 7715 elkarnak@yahoo.comEl Kheir for Circulating & Keeping Securities 3 2483 6966 2480 3767 elkhair.comp@maileitEl Kinanah Brokerage Securities Co. 2 2395 5053 2395 5046 info_kinanah.com.egEl Mahrousa for Securities Trading 3 2486 8267 2487 1490 mahrousa101@hotmail.comEl Mokattam Securities Brokerage 2 2575 6903 2395 5614 gfm.01086@mcsd.com.egEl Nour Securities 2 3336 8780 3336 8783 alnoursecurities@hotmail.comEl Nouran for Securities Trading 2 2395 8081 2395 8081El Omanaa El Motahedeen for Bookkeeping & Brokerage 3 2484 5088 2484 4712 gfm_02019@mcsd.com.El Safa for Securities Brokerage 3 2487 4030 2487 4030El Salam Co. for Brokerage 2 2391 9215 2392 8162 salambrk@arabia.comEl Tadamon El Arabi Brokerage Co. 2 3338 5466 3335 3990 tadamonar@link.netFarana Securities Trading 2 3748 1484 3748 1484 gfm_01022@mcsd.com.egFirst Brokerage 2 3336 2373 3336 2373Fortune Securities Co. 2 3336 8129 3336 2373 fortune@link.com.egGlobal Capital Securities 2 2418 7750 2415 7313Golden Hand for Securities Brokerage and Bookkeeping Co. 2 2392 4570 2395 3796 golden_hand98@hotmail.comGolden Share Stocks 2 2418 3341 2418 3329Golden Way Securities 2 3338 4171 3338 6533 goldenway@golden-way.netGrand Investment for Trading Securities 2 3302 1055 3304 6459Guarantee for Securities Exchange 2 2392 6578 2392 4255 gurantee_1136@yahoo.comGulf for Securities Exchange 3 2541 1756 2543 6601H A for Trading Securities 2 3302 5078 3302 5181HC Brokerage 2 3749 6009 3749 6055 hcgroup@hc-si.comHelwan Brokerage & Bookkeeping 2 2554 8838 2554 8838 helwan_co@hotmail.comHermes for Securities Brokerage 2 3338 8851 3338 5400Honest for Brokerage & Bookkeeping 2 25199 0111 2519 0666Horison for Trading Securities 2 2578 0911 2578 0912Horus for Brokerage 2 3588 9410 3588 9410 horas2003_8@hotmail.comHSBC Securities Egypt 2 3738 0145 3738 0028 shereenghattass@hsbc.comInternational Brokerage Group 2 590 5184 590 5195 lbggroup@egypto line.comInternational for Securities 2 2418 3340 2418 6272 ›nt_for_sec@hotmail.comLeaders for Brokerage 2 1 6662 3347 2266Lepon Securities Brokerage & Bookkeeping 2 2391 4707 2391 4607 m_saleh2003@yahoo.comLotus Securities Trading 2Maadi Co. for Stock Dealing 2 3760 0261 3760 0261 maadi@mist-net.netMarwa Brokerage Co. 2 2574 0074 2578 3855 gfm.01051@mcsd.com.egMediterranean Co. for Brokerage Securities 2 2576 7187 2576 7879 badrello@link.netMega Investment for Trading Securities 2 3748 9888 3748 8820Metro Company for Bookkeeping & Stock Dealing 2 2526 0445 2526 0447 info@metrobrokerage.comMina Brokers Stock Exchange 2 2417 2930 2417 2930Miracle for Securities Transactions Co. 2 2392 1378 2392 1377 miracle_securities@hotmail.comMisr International for Trading Securities 3 2484 8138 2484 8265 mis@investiaco.comnaeem Investments Securities 3 3303 4244 3346 7879 tahio teem@hotmail.comNamaa for Trading Securities 2 3837 8346 3837 8346New Print for Trading Securities 2 3335 9045 3338 6327Nile Investments Securities 2 3760 2951 3338 8653 www.nileinv.comNile One Brokerages for Securities Transactions Co. 2 2526 0445 2526 0447Oblysk for Trading Securities 2 3736 2237 3736 2239Okaz Stockbrokers & Investment Consultants 2 3589 5321 3589 1499 okaz@okaz-stockbrokers.comPAGE 166

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Cairo & Alexandria Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressOptima Securities Brokerage 2 2578 4725 2578 4726 optimabrokrage.comOroba Stock Exchange Corporation 2 3792 0204 3792 0390 oroba@link.netOsoul E.S.B Brokerage Co. 2 2413 9100 2417 2295Pharaonic Brokerage Co. 2 2393 5200 2390 1399 pharonic_b@hotmail.comPioneers for Securities 2 2392 2461 2272 6553 pioneers_brokers@usa.netPremiere Brokerage Co. 2 3336 9671 3762 7584Prime Securities 2 3338 1526 3338 1993 prime@primeegypt.comPrizma Securities Company 2 3338 1810 3338 1813Profit for Securities 2 2390 3843 2390 4891 profit_securities@yahoo.comQueen for Brokerage & Stock Exchange 2 2575 3652 2575 3931 queenq@hotmail.comRoots Stock Brokerage House 2 2395 3041 2395 2799Safir International for Stockbrokers 2 2639 7093 2639 5081 safir net@inteotch.comSaudi Crescent for Trading Securities 2 2395 9752 2395 9659Saudi Egyptian for Trading Securities 2 2460 5577 2460 5577Sigma Brokerage Co. 2 3335 7575 3335 0066Stars Securities Brokerage 2 2401 4089 2262 4260 starsm@hotmail.comStrategic Securities Group 2 3304 1260 3304 1290 ssgroup@link.netSwiss Group for Securities Brokerage 2 2450 3150 2451 2030Tadawoul for Trading Securities 2 2519 2703 2519 2778Takamol Securities Brokerage Co. 3 2485 4500 2485 4500Three Way for Stock Exchanges Brokerage 2 3792 5045 3792 5045 gfm_01116@mesd.com.egTiba Brokerage Co. 2 2390 5906 2390 5906 tiba4@excite.comTop for Brokerage 2 2623 6941 2623 6941 top_ 4_ brokerage@yahoo.comTrend for Trading Securities 2 2392 2012 2392 2407Triple A Securities 2 2574 5427 2579 7442Tropicana for Brokerage and Bookkeeping 2 2395 0014 2395 0014 tropicana@mbox.link.com.egTrust Group for Securities 2 3792 4026 3792 5884 trust@trust.com.egTycoon for Brokerage & Bookkeeping 2 2690 8078 2690 8078 sadany2@yahoo.comUnited Brokerage Corporation & Bookkeeping 2 3774 4968 3569 9108 u.b.c@l›nk.netUnited Economic Group 2 3337 5901 3337 5860Universal Brokerage Co. 2 2528 0771Wall Street Securities 2 3748 7505 3336 4379 wallstr2000@yahoo.comWatania Brokers 3 2484 3527 2484 3527Wedian Securities Stock Brokerage and Bookkeeping 2 2393 8930 2393 9235 gfm_01082@mcsd.com.egYasmine Brokerage Co. 3 2485 8111 2484 4216 yasmbrok@yahoo.comGeorgian Stock ExchangeAddress: 74a Chavchavadze Avenue Tbilisi 0162 Georgia Phone: (32) 220 718 Fax: (32) 251 876 E-mail: info@gse.geWeb Address: www.gse.ge Country Code: 995Company’s Name City Code Telephone Fax E-mail AddressAICBERGI 32 914 847Bona 32 230 074 bona@orbeli.geCartu Broker 32 230 021 251 410 cartubroker@cartubank.geCaucasus Capital Group 32 291 457 info@capital,geCaucasus Financial Services 32 559 900 zviad.chachanidze@caucasusfinancial.comDBL Capital 32 377 724 archilmgeladze@dblcapital.geGalt & Taggart Securities 32 235 800 235 804 ikirtava@galtandtaggart.geGeorgian Investment Group 32 225 907 225 907 d.aslanishvili@investgroup.geGeorgian Investment Group + 32 914 999 252 815 n.tandashvili@investgroup.geGeorgian Stock Company 32 987 109 933356 tiko@ugb.com.geKabarjina 32 250 052 slg73@mail.ruOden 32 294 621 vli@myoffice.gePrima Broker 32 92 15 54 zura44@rambler.ruPublic Investment Management Company 32 555 505 m.lortkipanidze@peobge.comTBC Broker 32 222 537 25 16 44 gtsikaridze@tbcbank.com.geTbilintercapital 32 433 095 tic@wanex.netIraq Stock ExchangeAddress: P.O. Box, 3607 AlAlwiya, Iraq Phone: (790) 148 6733 Fax: (1) 717 4461 E-mail: info-isx@isx-iq.netWeb Address: www.isx-iq.net Country Code: 964Company’s Name City Code Telephone Fax E-mail AddressAhliya for Insurance 718 8415 718 8357 info@aic-iraq-comAl-Batek InvestmentAl-Ekha'a for Agricultural 555 0294Al-Hadhar for Marble Extraction 717 6329Al-Hilal Industries 773 3600 773 1284 alhilal@yahoo.comPAGE 167

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Iraq Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressAl-Ithmar AgriculturalAl-khazer for Construction Materials 060 816 600Al-Kindi of Veterinary Vaccines 511 0073 kindivacc@yahoo.comAl-Warka Investment Bank 717 2828 717 9555 warkabank@hotmail.comAl-Ahlyia for Agricultural 719 7379Al-Ameen Estate Investment 719 3739Al-Ameen for Financial Investment 717 5004Al-Ameen for Insurance 718 4239 718 8956 alameeninsco@yahoo.comAl-Badia General Trans 886 5612Al-Khair for Financial Investment 719 0619 alkhair_fin@hotmail.comAl-Ma'mun Trading 761 3115 malwiyah@yahoo.comAl-Mansour Pharmaceuticals IndustriesAl-Mosul for Funfairs 810 301Al-Nukhba for ConstructionAl-Therar for Agricultural Production 778 3403Al-Wiaam for Financial Investment 717 1406Amuse Ment Town 774 4496Arabian Aerated Water 751 4937 sincola@yahoo.comAshour Hotel 060 778 012Babil for Animal Production 751 5197Babylon Bank 718 5150 719 1014 babylonbank@yahoo.comBabylon Hotel 778 1964 717 1843 babilhotel@yahoo.comBaghdad for Packing MaterialsBaghdad Hotel 717 2047Baghdad Passengers Transport 555 6611 555 9983Baghdad Soft Drinks 773 0351 773 4146 bsdc@burntmail.comBank of Baghdad 717 5007 717 5006 anfo@bankofbaghdad.netBasrah National Bank for Investment 883 1038 headoffice@basrahbank.comCommercial Bank of Iraqi 717 0048 718 4312 cbiraq@yahoo.comCredit Bank of Iraq 719 6020 778 2740 creditbkiq@yahoo.comDar Al-Salam Investment Bank 886 9859 886 8934 info@daressalam.netDar Al-Salam for Insurance 719 2368Eastern Brewery 773 2301Economy Bank for Investment 541 6828Electronic Industries 773 3551 773 6687 eic742003@yahoo.comFallujah for Construction Materials 246 62083Gulf Commercial Bank 778 8251 gulfbank1@yahoo.comHousehold Furniture Industry 850 497Investment Bank of Iraqi 719 3010 719 8505 investmentiraq@yahoo.comIraqi Agricultural ProductsIraqi Agricultural Products Marketing Meat 740 0034Iraqi Bottling and Canning 719 0038Iraqi Carton Manufacturies 773 0541 773 8407Iraqi Date Processing and Marketing 522 5173 522 4634Iraqi Engineering Works 718 1475 iraqienggineeringco@yahoo.comIraqi for General Transportation 816 1874 oil-78s@hotmail.comIraqi for Seed Production 511 4141 511 5908 icsp_baghdad@yahoo.comIraqi For Tufted Carpets 555 3409 556 7646 tuffoo.1973@yahoo.comIraqi Islamic Bank 415 3731Iraqi Land Transport 886 6491Iraqi Middle East Investment Bank 717 3743 e.moilimebigc@uruklink.netIshtar Hotels 816 0039 816 3300 ishtarcom@hotmail.comKarbala Industry 717 2466 718 3751Kharkh Tour Amuzement City 554 2091Khubab for General Construction 542 3509 khubab_company@yahoo.comKirkuk for ProducingMamoura Realestate Investment 718 6293 almamoura-com@yahoo.comMesopotamia Investment 719 0514 bain_alnahreen@yahoo.comMessan for Food Industries 717 0750Metallic Industries and Bicycles 546 2910 546 2913 nmibc@yahoo.comMiddle East for Production-Fish 718 2629Modern Chemical Industries 778 2551 jajo2@uruklink.netModern Constrcution Materials IndustryModern for Animal Production 555 9987Modern Paint Industries 773 4041 773 9939 modrenpaints@yahoo.comModern Sewing 425 3324 modrn2003@urukling.netMosul Bank for InvestmentNational Bank of Iraq 718 9115 719 1645National Chemical &Plastic Industries 773 0810 773 3770 ncp20032001@yahoo.comNational for Food Industries 773 1133 nfi@maktoob.comPAGE 168

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Iraq Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressNational for Production Fish 443 4690National for Tourist Investment 719 4079Nineveh Food Industries 813 498North Soft DrinksPalestine Hotel 816 4400 816 2613Ready Made Clothes 546 2526Sumer Commerical Bank 719 6472The Light IndustriesTourist Village of Mosul dam 060 810 279United Bank for Investment 717 4093 717 2919 unitedbank2004@omeldonia.comIstanbul Stock ExchangeAddress: IMKB Building, Resitpasa Mah., Tuncay Artun Cad., Emirgan, 34467 Istanbul, Turkey Phone: (212) 298 2100 Fax: (212) 298 2500E-mail: dis@imkb.gov.tr Web Address: www.ise.org Country Code: 90Company’s Name City Code Telephone Fax E-mail AddressABN AMRO Bank N.V. Merkezi Amsterdam Ist. Sb. 212 359 4040 359 5050Acar Yatirim Menkul Degerler A.S. 212 216 2661 266 0543Adabank A.S. 212 272 6420 288 5796Anadolubank A.S. 212 296 9811 296 5715Ada Menkul Degerler A.S. 212 213 2570 288 5796Anadolu Yatirim Menkul Kiymetler A.S. 212 368 7700 233 3318Akbank T.A.S. 212 270 0044 269 7383Akdeniz Menkul Degerler Tic.A.S. 212 233 1102 234 4101Ak Yatirim Menkul Degerler A.S. 212 334 9494 249 1287Alfa Menkul Degerler A.S. 212 277 4910 277 0120Alan Yatirim Menkul Degerler A.S. 212 236 6869 236 7293Altay Yatirim Menkul Degerler A.S. 212 229 5980 225 0135Alternatif Yatirim A.S. 212 315 5800 231 3842Alternatifbank A.S. 212 232 4400 233 3780Ataonline Menkul Kiymetler A.S. 212 310 6060 259 0764Arap Turk Bankasi A.S. 212 225 0500 224 9687Morgan Stanley Menkul Degerler A.S. 212 339 0000 339 0043BCG Partners Menkul Degerler A.S. 212 339 4200 353 1301Ata Yatirim Menkul Kiymetler A.S. 212 310 6200 310 6210Arti Menkul Kiymetler A.S. 216 517 7245 517 7246Ayborsa Menkul Degerler Tic.A.S. 212 220 0930 220 3851B.A.B. Menkul Degerler Ticareti A.S. 212 234 4428 296 2834Bahar Menkul Degerler Ticareti A.S. 216 345 4438 347 8980Bizim Menkul Degerler A.S. 216 452 9090 452 9093Credit Suisse Istanbul Menkul Degerler A.S. 212 349 0400 349 0409Baskent Menkul Degerler ve Yatirim A.S. 212 291 2121 219 0535Birlesik Fon Bankasi A.S. 212 340 1000 340 1339Cagdas Menkul Degerler A.S. 212 236 4510 236 4520Calyon Bank Turk A.S. 212 339 3700 282 6301Camis Menkul Degerler A.S. 212 350 3002 350 5150Citibank A.S. 212 288 7700 288 7760Calik Yatirim Bankasi A.S. 212 339 1414 339 1444Pozitif Menkul Degerler A.S. 212 329 7676 329 7601Censa Menkul Degerler A.S. 212 346 0300 346 0333Deutsche Bank A.S. 212 317 0100 317 0105Deger Menkul Degerler A.S. 212 286 4800 286 4818Delta Menkul Degerler A.S. 212 310 0800 236 6567Deha Menkul Kiymetler A.S. 212 252 7190 252 7198Diler Yatirim Bankasi A.S. 212 297 1790 253 9454Deniz Turev Menkul Degerler A.S. 212 336 4296 211 8316Denizbank A.S. 212 355 0800 267 2724Deutsche Securities Menkul Degerler A.S. 212 252 2000 293 3490Dunya Menkul Degerler A.S. 212 512 8465 527 2337Dundas Unlu Menkul Degerler A.S. 212 330 0202 330 0178Deniz Yatirim Menkul Kiymetler A.S. 212 275 3500 212 5412Eczacibasi Menkul Degerler A.S. 212 319 5999 319 5790EFGIstanbul Menkul Degerler A.S. 212 317 2727 317 2726Ekinciler Yatirim Menkul Deg.A.S. 212 266 2766 266 1607Ekspres Yatirim ve Menkul Degerler A.S. 212 336 5100 336 5101Entez Menkul Degerler Ticareti A.S. 216 348 0433 346 6343Euro Yatirim Menkul Degerler A.S. 212 354 0700 356 2076Eti Menkul Kiymetler A.S. 212 347 8181 347 7635Evgin Yatirim Menkul Degerler Ticareti A.S. 212 270 1046 282 8820PAGE 169

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Istanbul Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressEgemen Menkul Kiymetler A.S. 232 489 4530 489 6130Finansbank A.S. 212 216 7070 216 1538Finans Yatirim Menkul Degerler A.S. 212 282 1700 282 2250Form Menkul Degerler A.S. 212 284 8495 284 8492Fortis Yatirim Menkul Degerler A.S. 212 358 0770 358 0778Fortis Bank A.S. 212 274 4280 211 5879Gedik Yatirim Menkul Degerler A.S. 216 453 0000 453 0101GFC General Finans Menkul Degerler A.S. 212 233 1010 296 8575Gisad Menkul Degerler A.S. 212 216 6064 216 6068Global Menkul Degerler A.S. 212 244 5566 244 5567Galata Menkul Degerler A.S. 212 393 3900 293 1010Guney Menkul Degerler A.S. 212 441 3300 4413388Garanti Yatirim Menkul Kiymetler A.S. 212 318 2838 217 8470GSD Yatirim Bankasi A.S. 216 489 9750 489 9781Guven Menkul Degerler A.S. 212 212 3270 288 5038Hak Menkul Kiymetler A.S. 212 296 8484 2329823Hedef Menkul Degerler A.S. 212 310 2700 227 8333Halk Yatirim Menkul Degerler A.S. 212 393 0303 292 9946HSBC Bank A.S. 212 366 1173 336 2641HSBC Yatirim Menkul Degerler A.S. 212 376 4600 336 2472Iktisat Yatirim Menkul Degerler A.S. 212 319 9800 344 1577Inter Yatirim Menkul Degerler A.S. 212 236 4141 236 3918Info Yatirim A.S. 212 319 2600 324 8428Is Yatirim Menkul Degerler A.S. 212 350 2000 350 2001Kalkinma Yatirim Menkul Degerler A.S. 212 213 3005 211 9702Kapital Yatirim Menkul Degerler A.S. 212 330 0333 330 0369K Menkul Kiymetler A.S. 212 275 6060 274 0991Med Menkul Degerler A.S. 212 274 5444 274 4656Merrill Lynch Yatirim Bank A.S. 212 319 9500 319 9511Merrill Lynch Menkul Degerler A.S. 212 319 9500 319 9511Millennium Banka.S. 212 231 4010 233 1968Turkland Bank A.S. 212 368 3434 368 3535Sardis Menkul Degerler A.S. 212 328 3750 328 3755MNG Menkul Kiymetler Yatirim A.S. 212 292 2323 293 4888Marbas Menkul Degerler A.S. 212 286 3000 286 3050Merkez Menkul Degerler A.S. 312 311 6665 311 3397Meksa Yatirim Menkul Degerler A.S. 212 385 0900 344 1121Metro Yatirim Menkul Degerler A.S. 212 344 0900 344 0913Ulus Menkul Degerler A.S. 212 257 3232 257 1193Nurol Menkul Kiymetler A.S. 212 286 8000 286 8001Nurol Yatirim Bankasi A.S. 212 286 8000 286 8001Oncu Menkul Degerler A.S. 212 251 8380 251 9012Oner Menkul Kiymetler A.S. 212 234 4062 225 9892Opus Menkul Degerler A.S. 212 385 0101 385 0199Oyak Yatirim Menkul Degerler A.S. 212 319 1200 351 0599Oyak Bank A.S. 212 335 1000 286 6100Pay Menkul Degerler A.S. 212 275 1708 275 0185Piramit Menkul Kiymetler A.S. 212 293 9500 293 9559Prim Menkul Degerler A.S. 212 283 8888 283 8890Polen Menkul Degerler A.S. 212 252 1212 249 3544Bankpozitif Kredi ve Kalkinma Bankasi A.S. 216 538 2525 680 3844Raymond James Yatirim Menkul Kiy. A.S. 212 349 2000 349 2001San Menkul Degerler A.S. 212 243 3500 249 1332Sekerbank T.A.S. 212 319 7200 319 7229Seker Yatirim Menkul Degerler A.S. 212 213 4370 213 4391Sanko Menkul Degerler A.S. 212 410 0500 410 0505Soymen Menkul Kiymetler A.S. 312 468 8750 468 8101Societe Generale Paris Mrk. Fransa Ist. Tr. Mrk. Sb. 212 282 1942 282 1844Standard Yatirim Menkul Kiymetler A.S. 212 323 4885 323 4849Strateji Menkul Degerler A.S. 212 354 7900 288 4811Sayilgan Menkul Degerler Ticareti A.S. 212 520 4242 513 5209Tacirler Menkul Degerler A.S. 212 355 4646 282 0997Turkish Bank A.S. 212 225 0330 225 0353TEB Yatirim Menkul Degerler A.S. 212 345 1111 345 0714JP Morgan Chase Bank Merkezi New York Istanbul-Turkiye Sb. 212 319 8500 319 8664T.C Ziraat Bankasi Gen. Md.Sermaye Piyasalari Md. 212 276 5960 584 3140Turk Ekonomi Bankasi A.S. 212 251 2121 249 6568Tekstil Bankasi A.S. 212 335 5335 276 2376Tekfenbank A.S. 212 357 0707 357 0808T.Garanti Bankasi A.S. 212 318 1818 216 6093PAGE 170

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Istanbul Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressT.Halk Bankasi A.S. 212 393 0600 393 0596T.Ihracat Kredi Bankasi A.S. (Eximbank A.S.) 312 417 1300 425 2947T.Is Bankasi A.S. 212 316 0000 316 0900T.Kalkinma Bankasi A.S. 312 417 9200 417 1220Taksim Yatirim A.S. 212 251 7116 249 7483Turkish Yatirim A.S. 212 315 1000 315 1001Tekstil Menkul Degerler A.S. 212 276 2727 276 2900Toros Menkul Kiymetler Ticareti A.S. 212 231 5252 231 3849Tera Menkul Degerler A.S. 212 290 6990 290 6995T.Sinai Kalkinma Bankasi A.S. 212 334 5050 243 2975Ticaret Yatirim Menkul Degerler A.S. 212 263 7373 263 7363T.Vakiflar Bankasi T.A.O. 312 455 7575 455 7690Taib Yatirim Menkul Degerler A.S. 212 347 5454 347 0111Ubs Menkul Degerler A.S. 212 319 2000 319 2015Universal Menkul Degerler A.S. 212 276 5540 276 5617Vakif Yatirim Menkul Degerler A.S. 212 352 3577 352 3620WestLB AG Merkezi Dusseldorf Ist. Mrk. Sb. 212 339 2500 283 0460Yatirim Finansman Menkul Degerler A.S. 212 317 6900 282 1550TAIB Yatirim Bank A.S. 212 347 5454 347 0111Yapi ve Kredi Bankasi A.S. 212 339 7000 339 6060Yapi Kredi Yatirim Menkul Degerler A.S. 212 280 1030 325 2245Ziraat Yatirim ve Menkul Degerler A.S. 212 285 1150 285 1661Karachi Stock ExchangeAddress: K.S.E. Building, Stock Exchange Rd., Offl. I. Chundrigar Road, Karachi-74000, Pakistan Phone: (21) 111-001-122 Fax: (21) 241 0825E-mail: info@kse.com.pk Web Address: www.kse.com.pk Country Code: 92Company’s Name City Code Telephone Fax E-mail AddressA. Latif Noorani 021 2410240 2428776A. Sattar Motiwala Securities (Pvt.) Ltd 021 2446230-31A.A.K. Securitie (Private) Limited 021 2413087A.H.K.D. Securities (Pvt.) Limited 021 2444499A.R.Securities (Pvt.) Limited 021AAG Securities (Pvt) Limited 021 2429382-3AAU Securities (Private) Limited 021 2412280AAZEB Securities (Private) Limited 021 5670751 5670756Aba Ali Habib 021 2412491 2413822Abbasi Securities (SMC-PVT) Limited 021 2423785 2418823 aijaz_abbasi@hotmail.comAbid Ali Habib 021 2413822 abaalihabib@yahoo.comACE Securities (Private) Limited 021 5363439-50 5363438Adam Haji Mohammad Securities (Private) Ltd. 021Adam Securities (Pvt.) Ltd 021 2420909 2437380Afroz Ali Merchant 021 2417434AKD Securities Limited 021 2426651-3 2426429Akhai Securities (Pvt.) Limited 021AKY Securities (Private) Limited 021 2439870 shares@akystocks.comAL Habib Capital Markets (Pvt.) Limited 021 2417822Al-Asar Securities (Pvt.) Limited 021 2436786 2432086Alfa Adhi Securities (Pvt.) Ltd. 021 2422550 2425669 info@alfa-tec.comAlfalah Securities (Private) Limited 021 2422359 2422358 smemon@alfalahsec.comAl-Hoqani Securities & Investment Corporation (Pvt.) Ltd. 021Ali Hassnain Yusuf Ali 021 2441100 2428488Ali Husain Rajabali Limited 021 2420485 ahrl@cyber.net.pkAl-Mal Securities & Services Ltd. 021 2444829 2427082 al-mal@cyber.net.pkAltaf Adam Securities (Private) Limited 021 2440242-43 2427768 altafadam001@hotmail.comAmber Haroon Saigol 021 5670001Amin Tai Securities (Private) Limited 021 2429505-8 2423469Ample Securities (Pvt.) Limited 021 2446796 2412412AMZ Securities (Private) Limited 021 2418491-3 2418495 info@amzsecurities.comApex Capital Securities (Private) Ltd. 021 2472390-4 2472397Arif Habib Limited 021 2415213-5 2429653 ahsl@cyber.net.pkASDA Securities (Private) Limited 021 2411558Ashfaq Ashraf Securities (Private) Limited 021Asian Securities Limited 021 2426649 5870404 asian@khi.comsats.net.pkAtlas Capital Markets (Pvt.) Limited 021Azee Securities (Private) Limited 021 2410708 goldencapital@mail.comAziz A. Dawood 021Aziz Fidahusein & Co. (Pvt.) Limited 021 2410091-4 2415042B&B Securities (Pvt.) Ltd. 021PAGE 171

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Karachi Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressBagasra Securities (Private) Limited 021 2429708 2429709 bagasra@web.net.com.pkBawa Securities (Pvt.) Limited 021 2418253 2410313 mhbawa@cyber.net.pkBhayani Securities (Private) Limited 021 2429774-7 2421755 kabsec@cyber.net.pkBMA Capital Management Limited 021 111-262-262 2437094Capital One Equities Limited 021 2412295 2410470Cassim Investments (Private) Limited 021 2421626 2414742Cliktrade Limited 021 5379611-2 5379669 info@cliktrade.comConcordia Securities (Pvt) Ltd. 021 2424526 2434832Continental Capital Management (Pvt) Ltd. 021 2446723 2446724Creative Capital Securities (Private) Limited 021 2446131-35 2446130 nadysf@cyber.net.pkD.J.M. Securities (Pvt.) Limited 021 2441193-4 2443541Dalal Securities (Pvt.) Limited 021 2419601 2436565 msdalal@cyber.net.pkDarson Securities (Private) Limited 021 2471089Dattoo Securities (Private) Limited 021 2419713 2439236 sajjad_d@cyber.net.pkDawood Equities Limited 021 2271908 2271912-3Dawood Mohammed 021 2413931Eastern Capital Limited 021 2446265-75 2446267 info@easterncapital.comElixir Securities Pakistan (Private) Limited 021 2401021-28 2420527 info@elixirsec.comEscorts Investment Bank Limited 021 6312022 ceo@escortsbank.netFairtrade Capital Securities (Private) Limited 021 2429042-46 2428552Fawad Yusuf Securities (Private) Limited 021 2444554-5 2428464 fysec@yahoo.comFDM Capital Securities (Pvt.) Limited 021 2427174-6 2430302First Capital Equities Limited 021 2425698 2425329First Choice Securities Limited 021First Equity Modaraba 021 5672815-8 5686116First National Equities Limited 021 111-000-363 5395953 mticek@yahoo.comFort Securities (Private) Limited 021 5684768Fortune Securities Limited 021 2444228-32 2444229Foundation Securities (Private) Limited 021 5612262 info@fs.com.pkFriendly Securities (Pvt.) Limited 021 24.421.742.442.156 2442189 fsl@sat.net.pkGazipura Securities & Services (SMC-PVT) Limited 021 2418903 2422893 bsgkse@sat.net.pkGhory's Securities (Private) Limited 021 2420005-7Global Securities Pakistan Limited 021 2457500 2418061GMI Capital Securities (Private) Limited 021 2417628 2437135 gmismail-131@yahoo.comGrowth Securities (Private) Limited 021 2463005H & H Securities (Private) Limited 021 4939854H. M. Idrees H. Adam 021 2425001H. M. Younus Janmohammed 021 2419885H.H.K. Securities (Pvt.) Limited 021 111-633-633Haji Ghani Haji Usman 021 2470220-29 2470090-96Haroon Suleman 021 2412622HH Misbah Securities (Private) Limited 021 2429106 2429106 hh_misbahsecurities@hotmail.comHum Securities Limited 021 2418973Hussain Ebrahim (LATE) 021 2417601-5 ahrt@cyber.net.pkI.I. Kodvavi Securities (Private) Ltd. 021 2446651-4 2446655 uk143@hotmail.comIGI Finex Securities Limited 021 2429601-6 2429607 fsl@finexsecurities.comIntermarket Securities (Pvt.) Limited 021 2427388International Investment Company (Pvt) Ltd. 021 2419438Invest and Finance Securities (Pvt.) Limited 021 5215087 info@investfinance.com.pkInvest Capital & Securities (Pvt) Ltd. 021 5215226-28 5215200 research@investcapital.comInvestec Securities Limited, (Under Suspension) 021 2444428-31 2444432Investment Managers Securities (Private) Ltd. 021 5303145-49 5303152 info@imsecurities.comInvisor Securities (Private) Limited 021 5611492-5 5611532Iqbal Usman Kodvavi Securities (Pvt.)Ltd. 021 2424144 2429802 iuksec@hotmail.comIrfan Mazhar Securities (Pvt.) Limited 021 2446155-56 2446157Ismail Abdul Shakoor Securities (Pvt.) Limited 021 2424057 2424043Ismail Iqbal Securities (Pvt.) Ltd. 021 2470998 2470126 info@ismailiqbal.comJ.P. Morgan Pakistan Broking (Private) Ltd. 021 5610861 5610121Jahangir Siddiqui & Co. Ltd. 021 2800167 info@jahangirsiddiqui.comJan Mohammed A. Latif Nini & Sons (Pvt) Ltd. 021 2411284-5 2420277 tufaily@cyber.net.pkJaved Omer Vohra & Co. Ltd. 021 2410849 2415709 javcoltd@hotmail.comJawed Zakaria Gulabi Securities (Private) Limited 021 2411492JS Global Capital Limited 021 2431178 info@jahangirsiddiqui.comKAI Securities (Private) Limited 021 2446581-84 2446585KASB Securities Limited 021 2630202 kasbho@kasb.comKhanani Securities (Private) Limited 021 2421752Khoja's Capital Management (Pvt) Limited 021 5363170KIF Capital Securities (Private) Limited 021 5686819Kosmopolitan Securities (Private) Limited 021 2416951Lakhani Securities (Private) Limited 021 2413741 2423467 chairman@kse.com.pkPAGE 172

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Karachi Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressLatif Suleman Securities (Private) Limited 021 2431957 2433767Live Securities (Private) Limited 021 2419649 live@livesecurities.comM H Securities (Private) Limited 021M.A.N. Securities (Pvt.) Limited 021 2410240M.B.J. Securities (Pvt.) Limited 021 2412265M.J. Memon Securities (Private) Limited 021 2436948 2433748 ikbalg@cyber.net.pkM.R.A. Securities (Pvt.) Limited 021 2419138 2417729MAC Securities (Private) Limited 021 2446550 2446559 mac_securities@yahoo.comMAK Securities (Private) Limited 021 2432368 info@kapadia.com.pkMalik Khan Awan 021 2415263Mannoo Capital (Private) Limited 021 2419393MARS Securities (Pvt) Ltd. 021 2446441-3 2446441MAS Capital Securities (Pvt.) Ltd. 021Mashriq Securities (Private) Limited 021 2410301Masons Securities (Pvt.) Limited 021 2416629 saleem_shakoor@hotmail.comMayari Securities (Private) Limited 021 2416665Mazhar Hussain Securities (Pvt) Limited 021 2410456 2417414 khisales@mzhsecurities.comMemon Securities (Private) Limited 021 2417511 2427841 amin_memon@hotmail.comMillennium Capital Management (Pvt.) Limited 051 2802271-75Mohammed Anis Ismail 021 2429277-81Mohammed Farooque Haji Abdullah 021 2425147 2429825Mohammed Siddiq Akbani 021Mohammed Tariq Moti 021 2413024Moonaco Securities (Private) Limited 021 2427740,Moosa, Noor Mohammed, Shahzada & Co. (Pvt) Ltd. 021 2441991-3 2444115Moosani Securities (Pvt) Limited 021 2400871-5 2416004 info@moosani.comMotiwala Securities (Pvt.) Ltd. 021 2401933-35 2429375 themotiwala.comMSMANIAR Financials (Private) Limited 021 2427414 2437050Muhammad Anaf Kapadia Securities (SMC-PVT.) Ltd. 021 111-633-633 2432368 anaf@kapadia.com.pkMuhammad Ayub Younus Securities (Pvt) Ltd. 021 2470245Muhammad Bashir Kasmani Securities (Private) Limited 021 2411460Muhammad Hussain Ismail Securities (Private) Ltd. 021 2417326Muhammad Munir Muhammad Ahmed Khanani Securities (Pvt.) Ltd. 021 2443434 2443434Muhammad Shahid Durvesh 021 2416059Muhammed Ashfaq Hussain 021 2427814 mahussain@cyber.net.pkMuhammed Salim Kasmani Securities (Private) Ltd. 021 2411460Multiline Securities (Pvt.) Ltd. 021 2440192-4 2440191Munaf Sattar Securities (Private) Limited 021 2422306 2429078 ms-hoff@hotmail.comMYTP Securities (Private) Limited 021 2416647N.U.A. Securities (Private) Limited 021 2460913 info@ashrafi.com.pkNaveed H.M. Idrees 021 2433830Nini Securities (SMC-PRIVATE) Limited 021 2411284Noman Abid & Company Limited 021 5693580-2 5680206 nomanabid.org.pkOriental Securities (Private) Limited 021 2446741-44 2446750Orix Investment Bank Pakistan Limited 021 5868862 asif@orixbank.comPak Meezan Securities (Pvt.) Limited 021 2446293 2446712Pardesi Securities (Private) Limited 021 2428973-4 2416450Patel Securities (Private) Limited 021 2416647Pearl Capital Management (Private) Limited 021Prime Securities (Pvt.) Limited 021 2437334-36 2437336Prudential Securities Limited 021 2401660-3, 2428192R.F.R. Securities (Private) Limited 021 2413087R.T. Securities (Pvt.) Limited 021 111-267-111 5835958Rafi Securities (Private) Limited 021 2439631 info@rafionline.comRayomund Jal H.P. Byramji 021 2443582 2436659 gogo@cyber.net.pkS. Nasir Hussain 021SAAO Capital (Private) Limited 021 22466922Sakarwala Capital Securities (Pvt.) Ltd. 021 2411998 2428303 rsebrok@pk.netsolir.comSalim Sozer Securities (Private) Limited 021 2411564 2417306 salimsozer@hotmail.comSalman Services (Pvt) Limited 021 2425570Sattar Chinoy Securities (Pvt.) Limited 021 2429715 chinoy@gerrys.netSaya Securities (Private) Limited 021 2417393 2427664SAZ Capital Securities (Pvt.) Ltd. 021 2437195-8 2437194Schon Capital Markets Limited 021 2636000 (10 Lines) 2636325Security Investment Bank Limited 021 2418410-13 2418414Shahid Ali Habib Securities (Pvt.) Limited 021 2471688Shehzad Chamdia Securities (Pvt.) Limited 021 2413003Sherman Securities (Pvt.) Limited 021 2426002-5 2417472Siddiq Moti 021 2415484 2446536 siddiqmoti@hotmail.comSirajuddin Cassim (Private) Limited 021 2415459PAGE 173

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Karachi Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressSNM Securities (Pvt.) Limited 021 2578103/16 2561050 smukaty@cyber.net.pkStandard Capital Securities (Private) Limited 021 2432367 2421639 scs@cyber.net.pkSurmawala Securities (Private) Limited 021 2413346 2446851 mjs_kse035@hotmail.comTariq Vohra Securities (Private) Limited 021 2423278Taurus Securities Limited 021 2423772Tewfiq Mohammed Amin Fikree 021 2423113Time Securities (Pvt.) Limited 021 timekse@hotmail.comTrade-In-Securities (Private) Limited 021 2416321 2426180TS Securities (Private) Limited 021 2429124-5 2412337 tshafiq@cyber.net.pkUnited Capital Securities (Pvt.) Limited 021 4316645 4322365 info@unitedcapital.com.pkWE Financial Services Limited 021 2429288-9 2429292 wefs@fascom.comWorldwide Securities (Pvt.) Limited 021 2472067-71 2472071Y.H. Securities (Pvt.) Limited 021 2446100 2446100Z.A. Ghaffar Securities (Private) Limited 021 2419326Zafar Moti Capital Securities (Pvt.) Ltd. 021 2410307 2446536ZHV Securities (Private) Limited 021 2428184 amzhv@super.net.pkZillion Capital Securities (Pvt.) Ltd. 021 2429073 info@mail.zcs.com.pkZubeda Abdul Sattar 021 2422306Kazakhstan Stock ExchangeAddress: 67 Aiteke bi, 050000, Almaty, Republic of Kazakhstan Phone: (327) 272 98 98 Fax: (327) 272 09 25 E-mail: info@kase.kz, kase@kase.kzWeb Address: www.kase.kz Country Code: 7Company’s Name City Code Telephone Fax E-mail AddressAstana-Finance» joint-stock company 7172 59 22 52 59 10 50 af@af.kz«BCC Invest» Joint stock company -subsidiary organization of Bank CenterCredit JSC 727 244 32 32 244 32 31 info@bcc-invest.kz«CAIFC Company» joint-stock company 727 311 01 37 311 01 37 caifc@caifc.itte.kz, caifc@caifc.kz«Citibank Kazakhstan» joint-stock company 727 298 03 91 298 03 99 serik.zhukenov@citigroup.com«Daughter Joint-stock Bank«ABN AMRO Bank Kazakhstan» joint-stock company 727 250 73 02 264 76 27 aabk@kz.abnamro.com«Eurasia Capital» Joint-stock company(Daughter entarprise of «Eurasian Bank» Joint-stock company) 7172 59 22 08 59 20 62 info@catc.kz«First Investment» joint-stock company 727 267 76 17 267 76 27 fs@fs.kz«General Asset management» Joint stock company0 727 291 86 13 293 84 83 gam@gam.kz«Global Securities (Kazakhstan)» joint-stock company 727 258 28 88 258 16 61 postmaster@global.almaty.kz«Informational-discount centre» joint-stock company 7172 32 0 374 32 03 74 iac@gosreestr.kz«Investment Financial House «RESMI» joint-stock company 727 266 71 77 266 70 77 rgs@resmi.kz«Kazakhstan Innovational Commercial Bank»joint-stock company 727 292 60 08 292 01 44 mail@kazincombank.kz«Kazinvestbank» joint-stock company 727 259 88 59 259 88 59 info@kib.kz «Management company «Alem» joint-stock company 727 227 61 49 227 61 45 info@alemkz.kz«NOMAD FINANCE» joint-stock company 727 272 69 66 272 69 66 nomad_finance@mail.kz«Nurbank» joint-stock company 727 259 97 10 250 67 03 bank@nurbank.kz«Pension assets investment management company«Premier Asset Management» Joint stock company 727 266 71 77 266 70 77 office@kupa.resmi.kz«RBNT SECURITIES» joint-stock company 727 268 65 16 245 62 42 rbnt@rbnt.kz«Renessans Capital Investments Kazakhstan»Limited liability partnership 727 2441544 2441545«Subsidiary organization of «Bank TuranAlem» jointstock company «TuranAlem Securities» joint-stock company 727 299 10 50 299 10 25 info@tas.kzABS SECURITIES Limited liability partnership 727 271 78 51 271 78 51Accumulative pension fund Kazakhmys joint-stock company 7102 74 42 45 72 33 14AFC Capital Limited liability partnership 727 272 08 28 272 08 27AIM Capital Limited liability partnership 727 244 43 33 244 43 33Alibi Securities joint-stock company 727 269 47 31 269 47 25 assel_o@alibisecurities.kzAlmaty Financial Center joint-stock company 727 272 64 80 272 63 50 afc@almatyfc.kzALMEX Asset Management joint-stock company 727 244 23 33 244 24 41 mail@aam.kzAsia Broker Services joint-stock company 727 2717851 274 05 72 zeinap@bk.kzASYL-INVEST joint-stock company 727 263 04 15 263 04 15 anara@asyl.kzBroker company Astana-Finance joint-stock company 727 259 61 72 259 61 77 o_izgutdinov@kki.kzCentras Financial Limited Liability Partnership 727 2598877 2598877Daughter organization of Bank CentercreditJSC BCC Securities Limited liability partnership 727 273 98 20 258 12 93 greenwich@tenir.comDaughter organization of Halyk savings bank ofKazakhstan Halyk Capital joint-stock company 727 244 32 32 244 32 31Finance company REAL-INVEST.kz joint-stock company 727 295 21 06 295 21 08 info@realinvest.kzFinancial company Alliance Capital joint-stock company 727 258 24 16 258 24 15 alc@alc.kzFirst Broker House Joint Stock Company 727 271 78 51 250 61 32 pbd@temirbank.kzPAGE 174

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Kazakhstan Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressGLOTUR INVEST joint-stock company 727 298 08 75 259 88 81Halyk Finance joint-stock company 727 259 00 28 259 00 28 halykfinance@halykbank.kzIFG CONTINENT joint-stock company 727 244 69 29 244 69 32 zoom-s@mail.ruJoint stock company «Accumulative pension fund ofHalyk Bank of Kazakhstan» 727 239 70 28 273 02 27 npfnbk00k@halykbank.kzJoint stock company «Almaty Investment Management» 727 244 43 33 244 51 53 aim@aim.kzJoint stock company «BANK «KASPIYSKIY» 727 250 18 20 250 95 96 office@bankcaspian.kzJoint stock company «Bank CentreCredit» 727 258 41 58 259 86 22 mail@centercredit.kzJoint stock company «Bank TuranAlem» 727 250 51 24 250 02 24 post@bta.kzJoint stock company «Centras Securities» 727 259 88 77 259 88 77 mail@centras.kzJoint stock company «DB Securitis (Kazakhstan)» 727 267 58 76 272 38 71 temirlan.omarzhanov@db.comJoint stock company «DEMIR KAZAKHSTAN BANK» 727 250 85 50 250 85 25 treasury@demirbank.kzJoint stock company «Eurasian bank» 727 250 86 54 250 85 25, info@eurasian-bank.kzJoint stock company «Eximbank Kazakhstan» 727 663093 2663910 postmail@eximbank.kzJoint stock company «Finance companyGreenwich Capital Management» 727 273 98 20 258 12 93 greenwich@tenir.comJoint stock company «Halyk saving bank of Kazakhstan» 727 259 03 50 259 02 38, ertais@halykbank.kzJoint stock company «House constructionsavings bank of Kazakhstan» 727 279 35 11 272 34 99 duganova_g@hcsbk.kzJoint stock company «International bank «Alma-Ata» 727 250 72 31 250 37 49 iba-bank@iba.kzJoint stock company «Joint bank «LARIBA-BANK» 727 258 34 73 249 64 21 lariba@lariba.kzJoint stock company «Kazkommerts Securities»(daughter organization of Kazkommertsbank JSC) 727 258 84 93 258 84 95 enquiry@kazks.kzJoint stock company «Kazkommertsbank» 727 258 52 25 250 95 07 lkim@kkb.kz, msenina@kkb.kzJoint stock company «Kazpost» 727 259 06 43 259 06 47 kazpost@kazpost.kzJoint stock company «NEFTEBANK» 727 243 61 61 243 16 08 nb@neftebank.kzJoint stock company «Pension assets investmentmanagement company «Bailyk Asset Management» 727 250 73 81 250 73 82 support@bailyk.kzJoint stock company «Pension assets investmentmanagement company «ZHETYSU» 727 244 26 61 244 26 61 zhetysu@mail.online.kzJoint Stock Company «REAL-INVEST RFCA» 727 2952106 2352108Joint stock company «SENIM-BANK» 727 268 18 56 268 18 56 senimbank@itte.kzJoint stock company «Temirbank» 727 258 78 73 250 77 85 lazarevr@temirbank.kzJoint stock company «Tsesnabank» 7172 770201 770195 tsb@tsb.kzJoint stock company «VISOR Investment Solutions» 727 259 88 44 259 88 33 visor@visor.kzJoint stock company Affiliated Bank«Bank of China in Kazakhstan» 727 258 55 15 258 55 17 boc@itte.kzJoint stock company Alliance Bank 727 250 03 00 259 67 87 azhakupov@alb.kzJoint stock company ATFBank 727 258 30 81 258 30 32 tulemisov@amb.kzJoint stock company Development Bank of Kazakhstan 7172 58 02 60 58 02 69 info@kdb.kzJoint stock company Pension assets investmentmanagement organization «GRANTUM Asset Management»daughter organization of Kazkommertsbank JSC) 727 244 57 44 261 12 59 aigul.bissenkulova@abnamropf.kzJoint stock compnay «Accumulative pension fund «GNPF» 727 243 24 11 250 91 35 reception@gnpf.kzJoint-stock company «Affiliated bank «Alfa-Bank» 727 292 19 12 292 19 12 infokz@alfabank.ruJoint-stock company «SUBSIDIARY BANK«KAZAKHSTAN-ZIRAAT INTERNATIONAL» 727 250 60 80, 250 60 82 kzibank@kzibank.comKazakhstan Finservice joint-stock company 727 272 62 11 272 60 01Kazkommerts Invest joint-stock company 727 261 00 00 244 38 38 info@kki.kzKazkommerts Invest RFCA Limited liability partnership 727 261 00 00 264 37 64Kazkommerts RFCA(daughter organization ofKazkommertsbank JSC) Limited liability partnership 727 258 84 93 258 84 95MAG Capital Limited Liability Partnership 727 244 51 13 244 51 13Management company «Alfa Trust» joint-stock company 727 267 12 89 267 12 91 alfatrust@alfatrust.kzManagement Company Investment resourcesjoint-stock company 727 267 12 89 267 12 90Managing company ORDA Capital joint-stock company 7252 54 52 36 54 52 36National Bank of Kazakhstan 727 270 48 18 250 94 56 securities@nationalbank.kzPrime Financial Solutions joint-stock company 727 267 15 85 272 04 53RESMI Investment House Almaty Limited liability partnership 727 266 71 77 266 74 00Seven Rivers Capital joint-stock company 727 273 90 81 273 52 20Smart Group joint-stock company 727 264 48 99 295 43 75Subsidiary Bank «HSBC Bank Kazakhstan»Joint stock company 727 259 69 70 259 69 02 info@hsbc.kzSubsidiary Bank Sberbank of Russia Joint Stock Company 727 250 00 87 250 00 87 eegulnara@texakabank.kzSubsidiary of Nurbank JSC MONEY EXPERTSJoint Stock Organization 727 250 26 40 250 20 13 info@moneyexperts.kzSubsidiary organization of Joint Stock Company«ATFBank» «ATF Finance» Joint Stock Company 727 258 31 17 244 14 10Tor Invest joint-stock company 727 237 84 00 237 83 99PAGE 175

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Kazakhstan Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressTsesna Capital joint-stock company 727 28 01 15 28 01 15 info@tscapital.kzVerny Capital joint-stock company 727 295 26 30 295 26 37 info@verny-capital.kzVISOR Capital joint-stock company 727 277 77 17 277 77 18VISOR Capital Limited Liability Partnership 727 277 77 17 277 77 18 info@visocap.comVOSTOK CAPITAL joint-stock company 727 250 08 34 250 08 34 office@vcapital.kzKyrgyz Stock ExchangeAddress: 172 Moskovskaya St., 720010 Bishkek, Kyrgyz Republic Phone: (312) 665 059 Fax: (312) 661 595 E-mail: kse@kse.kgWeb Address: www.kse.kg Country Code: 996Company’s Name City Code Telephone Fax E-mail AddressAalam 312 284 530 284 610 aalam@imfiko.bishkek.suAsko & Co. 312 544 242 544 216 anara@kse.kgBNC Capital Management 312 663 660 667 211 bnc@transfer.kgCapital 312 663 660 663 543 capital@elcat.kgChuiinvest 313 333 747 333 747 aip46@yandex.ruJS Halyk Bank Kyrgyzstan 312 218 932 218 955 kairat@kairatbank.kgNiet-Araket 312 428 893 548 760 naraket@infotel.kgSenti 312 219 946 610 025 senti@infotel.kgLahore Stock ExchangeAddress: 19, Khayaban-e-Aiwan-e-Iqbal, Lahore-54000, Pakistan Phone: (42) 636 8000 Fax: (42) 636 8485 E-mail: secretary@lahorestock.comWeb Address: www.lahorestock.com Country Code: 92Company’s Name City Code Telephone Fax E-mail Address128 Securities (Pvt) Ltd. 42 5731747 5734501 128@lahorestock.comAbbasi & Company (Pvt) Ltd. 42 732 0707 735 4538 info@abbasiandcompany.comABM Securities (Pvt) Ltd. 42 6310555-56 631 0557 abm_securities@yahoo.comAMCAP Securities (Pvt) Ltd. 41 2623023-24Adam Securities (Pvt) Ltd. 21 241 3580 243 7380 majeed_adnan@hotmail.comAdeel Zafar Securities (Pvt) Ltd. 42 636 8222 631 6204 az_063@hotmail.co.ukAdeel & Nadeem Securities (Pvt) Ltd. 42 5781601-5 578 1660 ansecurities123@yahoo.comAFIC Securities (Pvt) Ltd. 42 6300101-03 630 0104 sajid717@hotmail.comAli Usman Stock Brokerage(Pvt) Ltd. 42 111-254-254 636 8884 aliusman@ausbonline.comAhmad Kuli Khan Khattak 21 256 3138 256 4458Al-Hamad Investment & Securities (Pvt) Ltd. 42 6300277-81 630 0282 alhamd_inv_sec@hotmail.comAllied Bank Ltd. 42 631 1428 631 1418Allied Securities (Pvt) Ltd. 42 5894525-26 589 4527Altaf Adam Securities (Pvt) Ltd. 21 2429541-43 242 9540 altafadam001@yahoo.comAmer Securities (Pvt) Ltd. 42 6309687-90 630 9690 shahidmalikus@hotmail.comAl-Haq Securities (Pvt) Ltd. 42 636 2010 636 8782 alhaqsecurities@hotmail.comArif Habib Ltd. 21 2415213-15 242 9653 samad.habib@arifhabib.com.pkArif Latif 42 6311611-14 636 0613 ariflatifmlse@hotmail.comArif Majid Chaudhry 42 631 0412 631 0401 safina20@hotmail.comDr Arsalan Razaque (SMC-Pvt) Ltd. 42 588 4071 583 8683 arslanr@yahool.comAdhi Securities (Pvt)Ltd. 42 6369729-32 636 9728 adhisecuritiesloeconet.comA. S. Securities (Pvt) Ltd. 42 631 4552 631 4558Atlas Capital Markets (Pvt) Ltd. 42 6366170-74 636 6175Ayaz Mahmood 42 7992284-86 799 2233 inf@fortricemills.comAl-Hoqani Securities & Investment Corp (Pvt) Ltd. 21 2275353-56 227 5357A.Z Securites (Pvt) Ltd. 42 6315 555 630 4687 gsaqibuman@hotmail.comBright Securities (Pvt) Ltd. 21 586 0668 586 9715 www.brightsecurities.netBMS Capital (Pvt) Ltd. 42 567 1305 568 1296 bmscapital@gmail.comBridge Securites (Pvt) Ltd. 21 2472721-3 246 2030Capital Vision Securities (Pvt) Ltd. 42 637 2456 636 8466 ejazullah@yahoo.comCrescent Standard Brokerage & Invt. Services Ltd. 42 6308781-83 631 5728 cbis2@hotmail.comDarson Securities (Pvt) Ltd. 42 631 7111 631 4293 info@darsononline.comDosslanis Securities (Pvt) Ltd. 42 6375046-49 636 7999 dsbrokerage@msn.comEscorts Investment Bank Ltd. 42 6371931-34 637 5950 mailmanager@escortsbank.netFarzana MunirFirst Fidelity Leasing Modaraba 42 6306411-13 630 4156First Pakistan Securities Ltd. 42 631 1375 584 3730 info@fpsl.com.pkFinancial Harbour (Pvt) Ltd. 42 300843 2358Fairway Securities (Pvt) Ltd. 42 5878940-41 587 8941 info@fairway.com.pkFLOAT Securities (Pvt) Ltd. 42 584 4649 someone@super.net.pkGuardian Securites (Pvt) Ltd. 42 111-265-669 567 3247 faisalsarwar@guardiansecurities.comGul Abdullah Dhami 42 6368401-09 guldhami@hotmail.comGulrez Securities (Pvt) Ltd. 42 6309851-54 630 9855 gulrezrashid@hotmail.comPAGE 176

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Lahore Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressGPH Securities (Pvt) Ltd. 42 6310715-16 766 2939H.M.Siddique Chaudhry (Deceased)H. Hatim H. Karim 21 9217084-86 921 2374H.S.Z. Securities (Pvt) Ltd. 42 6309439-40 630 9438 h.s.z_sec@yahoo.comHabib Ullah Sheikh (pvt) Ltd. 42 6311383-7 636 8220 064@lahorestock.comHaji Abdul Sattar 42 636 8963 721 2072Haji Ghani Haji Usman 21 2470220-4 247 0209 arqureshi@aasml.comHameed Mukhtar Chaudhry 42 6375470-71 636 9088Harvest Smartrend Securities (Pvt) Ltd. 42 11180 0000 631 4193 hss101@nexlinks.net.pkHumayun Saeed Sheikh 42 630 4904 636 8679 humslse@yahoo.comHorizon Securities (SMC-Pvt) Ltd. 42 628 0825 628 0826 imran@horizonpak.comIftikhar Ahmad Malik 42 5716134-36 571 1530 hisvil@brain.net.pkIlyas Securities (SMC-Pvt) Ltd. 42 111-135-135 758 6042Invest & Finance Securities Ltd. 42 5787732-6 578 7737 info@investfinance.com.pkIGI Finex Securities Ltd. 21 568 7494 568 4087 www.finexsecurities.comJamshaid & Hassan Securities (Pvt) Ltd. 42 6371901-3 631 0154 www.jandhsec.comJavaid Iqbal Securities (Pvt) Ltd. 42 6369112-6 636 9117 javediqbal@jis_lse.comJaved Ahmed Securities (SMC-Pvt) Ltd. 42 575 9621 571 0312K.H.S. Securities (Pvt) Ltd. 42 636 8436 636 8919 info@khssecurities.comKashif Rafiq Vohra Securities (Pvt) Ltd. 42 630 1758 631 6204 www.krvsecurities.comKhalid Javed Securities (Pvt) Ltd. 42 6307680-83 636 9143 jgs410@hotmail.comKhawaja Imtiaz Ahmed 42 575 6953 571 0604KSR Stock Brokerage (Pvt) Ltd. 42 6316611-4 637 1868 ksr608@hotmail.comKhawaja Usman Arif 42 630 8717 630 9489 usmankhawaja@hotmail.comMillennium Brokerage(SMC-Pvt) Ltd. 42 6280771-6 630 8333 milleniumbrokerage@gmail.comMaan Securities (Pvt) Ltd. 42 6308000-2 631 5558 maansecurities@yahoo.comMalik Hamid Ali Noon 42 630 1803 630 1803 noon@hotmail.comMaximus Securities (Pvt) Ltd. 42 6315772-4 630 9216 maximus_sec@hotmail.comMazhar Hussain Securities (Pvt) Ltd. 42 627 8787 631 7329 ashad_lhr2003@yahoo.comM.R.Securities (SMC-Pvt) Ltd. 42 631 2222 636 8303 info@mrsecurities.com.pkMehdi Securities (Pvt) Ltd. 42 631 2180 628 0764 mehdisecurities@yahoo.comMGM Securities (Pvt) Ltd. 42 6279181-82 637 2475 mgmhi@yahoo.comMian Muhammad Saeed (Deceased)Mian Asif Maqbool Sukhera 42 6305663-5 631 3803 lse002@hotmail.comMian Khalid Bashir 42 6312569-7 631 2567Mian Nusrat-ud-Din 42 6313995-6 627 9204 mnd051@hotmail.comMian Sajid Masood (Engr.) 42 6313981-84 631 3985 mcm087@hotmail.comMian Shaukat Shafi 42 568 5231 568 3662 shaukatshafi@fascom.comMian Tajammal Hussain 42 724 4181 724 2839 mthlhr@brain.net.pkMirza Yasin Mahmood 21 586 9398Moosani Securities (Pvt) Ltd. 21 2400871-75 241 6004 www.moosani.comMoneyline Securities (Pvt) Ltd. 42 6279141-43 627 9144 moneyline_of_lse@hotmail.comM.R.A Securities (Pvt) Ltd. 21 243 3090 241 7729 owais@hotmail.comMTM Securities (Pvt) Ltd. 42 6369991-8 627 9101 info@mtmsecurities.comMuhammad Amer Riaz 42 631 0441 631 3960 amerriaz676@hotmail.comMAHA Securities (Pvt) Ltd. 42 6310526-28 6368526 info@mahasecurities.comMuhammad Ayub Chaudhry 42 636 8322 636 9096 mayub7862000@hotmail.comMuhammad Ilyaas Sethi 42 636 5756 636 8113 ilyas_sethi068@hotmail.comMuhammad Iqbal Khawaja 42 637 6808 631 5803MSA Securities& Services (SMC-Pvt) Ltd. 21 241 8903 242 2893Muhammad Shabbir Malik 42 766 8188 766 2303Muhammad Javed 21 11126 3263 263 1021 jdkki@hotmail.comMuhammad Tauqir Malik 42 6311401-4 636 0438 malik_tauqir@hotmail.comMuhammad Yousaf Rao 21 2212882-89 221 2890 hnhexchange@hotmail.comMumtaz Enterprises (Pvt) Ltd. 21 2412145-46 241 6104 mumtaz_ent@cyber.net.pk.Munir Khalid 42 636 8974 636 8976MZ Securities (pvt) Ltd. 21 2217778-9 221 2669 mzsecurities@cyber.net.pkN.H. Securities (Pvt) Ltd. 42 7235084-87 723 5083 hcc@pol.com.pkNajam Riaz Ghauri 42 6371138-41 636 7976 najamriazghauri@hotmail.comNaseer-ud-Din 42 631 5997 631 5998Nasir Ali Shah Bukhari 42 11122 2000 11122 2001 nasb@kasb.comNaveed Usman Engr. 42 576 2494 naveedusman@hotmail.comNayyar Sheikh Securities (Pvt) Ltd. 42 6316116-8 631 6448 nsspvt@yahoo.comNetworth Securities Ltd. 42 6307701-4 630 7705 networth@lhr.comsats.net.pkOrix Investment Bank Pakistan Ltd. 21 5303515-17 582 1916 oiblhr@orixbank.comPervez Ahmed Securities (Pvt)Ltd. 42 575 9621 571 0312Plus Securities (Pvt) Ltd. 41 2540956-59 262 9967 www.plus@psl.org.pkProgressive Securities (Pvt) Ltd. 42 631 7049 631 7048 progressive56@hotmail.comPrudential Securities Ltd. 42 637 5466 637 5980 pslpakistan@hotmail.comQasim Mahmood Securities (SMC-Pvt) Ltd. 42 6372747-50 casseem@lycos.comPAGE 177

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Lahore Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressR. F. J. Equity (Pvt) Ltd. 21 241 2265 241 6791 shakoo@khi.compol.comRavi Securities (Pvt) Ltd. 42 542 3378 542 3378Rahat Securities Ltd. 42 631 5223 631 4253 info@rahatonline.comR.S. Equities (Pvt) Ltd. 42 574 7905 574 7904Q.F. Securities (Pvt) Ltd. 42 663 9929 663 9753S. D. Mirza Securities (Pvt) Ltd. 42 636 8748 636 9108S. Z. Securities (Pvt) Ltd. 42 627 8973 631 5969 s.z. securities@hotmail.comSaliha Haroon 42 6311372-74 631 0245SAT Securities (Pvt) Ltd. 42 6375445 637 5450 nak312@go.net.pkSAFE Securities (Pvt) Ltd. 42 6368651-3 6368658 safesecurities@yahoo.comSeema Mubashir 42 7655578-79Shaffi Securities (Pvt) Ltd. 42 631 4732 631 4730 shaffisec201@hotmail.comShahid Hassan Awan (Suspended)Shaukat Shaffi 21 568 5231 568 3662 shaukatshafi@fascom.comShahid Iqbal 42 760 4184Shahid Nauman Rana (Suspended)Sheikh Abid Hussain 42 5756161-65 575 3399Shewani Securities (Pvt) Ltd. 42 630 7841Sheikh Muhammad Iqbal 586 2168Sohail Raza Moosani (SMC-Pvt) Ltd. 21 240 0871 241 6004 www.moosani.comSonia NisarStock Master Securities (Pvt) Ltd. 42 6316454-7 631 6458 sms@stockmaster.com.pkSwitch Securities (Pvt) Ltd. 42 631 7124 586 0497 info@switch.com.pkSLAS Securities (SMC-PVT)Ltd. 42 583 1644Syed Sarmad Maqsood (Suspended)T&J Securities (Pvt) Ltd.Tariq Majid Chaudhry 42 631 0402 631 0401Techno Fundamental Securities (Pvt) Ltd. 42 631 7351 631 7350 tfs_516@hotmail.comTrust Investement Bank Ltd. 42 571 0988 571 3453 tlcl@trustleasing.comTrust Securities & Brokerage Ltd. 42 6373041-43 637 3040 tsbl@brain.net.pkUnion Securities (Pvt) Ltd. 42 300429 4942 aiafafu@hotmail.comUniversal Equities (Pvt) Ltd. 42 591 1454Value Stock Securities (Pvt) Ltd. 42 11111 1255 577 0190 info@valuestock.pkWasi Securities (SMC-Pvt) Ltd. 42 6367935-36 636 0067 wasi@wasisecurities.comYasir Mahmood Securities (Pvt) Ltd. 42 631 4141 631 4488 info@invest.pkY.S. Securities & Services (Pvt) Ltd. 42 636 8772 631 0186 ysspakistan@hotmail.comZafar Moti 21 241 0307 244 6536 zafarmoti@hotmail.comZafar Securities (Pvt) Ltd. 42 5789500-03 578 9595 info@zafarstocks.comZahid Ali Habib 21 2429664-67 2413822 aahkse162@yahoo.comMacedonian Stock ExchangeAddress: Mito Hadzivasilev Jasmin 20, 1000 Skopje, Republic of Macedonia Phone: (2) 312 2055 Fax: (2) 312 2069 E-mail: mse@mse.org.mkWeb Address: www.mse.com.mk Country Code: 389Company’s Name City Code Telephone Fax E-mail AddressAlta Vista Broker 2 3 217 103 3217103 info@altavistabroker.com.mkBitola Broker 47 258 830 258 840 bbbroker@mt.net.mkBRO-DIL 2 329 8850 311 8670 jelena@bro-deal.com.mkEuro Broker 2 321 5198 322 3397 eurobroker@mt.net.mkFersped-Broker 2 321 9333 221 9478 broker@fersped.com.mkIlirika Investments 2 329 6853 3213785 info@ilirika.com.mkInovo Broker 2 3120 941 3120941 office@innovobroker.comINVESTBROKER 2 311 0280 311 0290 investbroker@investbroker.com.mkKomercijalna Banka 2 321 8217 321 8222 tatjana.grncarova@kbnet.com.mkMAK Broker 2 311 6213 311 6278 makbroker@mt.net.mkNLB Tutunskabroker 2 329 0931 313 3305 tutbrok@mt.net.mkOhridska Banka 2 321 6250 322 2920 atanasovm@ob.com.mkPostel Broker 2 322 4300 322 4300 palevski@postbank.com.mkSileks Banka 2 324 9360 324 9303 dhv@sileksbanka.com.mkStopanska Banka 2 329 5420 329 5551 broker@stb.com.mkTTK Banka 47 226 360 203 692 tkbbroker@mt.net.mkUniverzalna Investiciona Banka 2 321 0911 321 0950 zvonko.stankovski@unibank.com.mkPAGE 178

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Moldovan Stock ExchangeAddress: 73 Stefan cel Mare Blvd., Chisinau 2001, Moldova Phone: (22) 277 594 Fax: (22) 277 356 E-mail: silvia@moldse.mdWeb Address: www.moldse.md Country Code: 373Company’s Name City Code Telephone Fax E-mail AddressAAD Manager 22 227 484 278 060 causnean@mail.ruAsito-Broker 22 270 552 270 552Banca de Economi 22 218 026 218 006 angela.toderita@bem.mdBanca de Finante si Comert 22 220 080 237 308 iim@fincombank.comBanca Sociala 22 220 070 224 230 paladi@socbank.mdBrokwest 22 277 250 278 262 brokwest@yahoo.comDaac Prom 22 743 314 746 397 nikolay.kozin@daac.mdDaac-Invest 22 220 677 746 397 invest@daac.mdEnergbank 22 276 033 544 378 nkorono@energbank.comEurocreditbank 22 500 128 548 827 igoro@ecb.mdEximbank Gruppo Veneto Banca 22 549 828 546 234 abreaben@eximbank.comFincom 22 541 917 272 564 vzmoldova@yahoo.comGest-Capital-MF 22 270 965 272 256Investprivatbank 22 540 550 540 510 cerlat@ipb.mdIuventus-DS 22 270 035 271 337 lavric@hotmail.comM-Invest 22 276 265 276 054 m_invest@rambler.ruMobiasbanca 22 256 449 541 935 sergiu.rosca@mobiasbanca.mdMoldindconbank 22 576 835 279 195 martino@micb.mdMoldova-Agroinbank 22 220 671 228 061 mamaligav@maib.mdOldex 22 270 024 542 966 oldex95@yandex.ruPassim-Managerul Fondului 22 555 579 522 049Proajioc 22 507 085 507 085 proajioc@mail.ruReal-Manager 231 61 460 60 389Unibank 22 253 923 220 530 hvorostovscaia@unibank.mdVal-Invest 22 449 697 449 697Victoriabank 22 233 089 233 089 nparaschiv@victoriabank.mdMongolian Stock ExchangeAddress: Sukhbaatar Sq.-2, Ulaanbaatar, Mongolia Phone: (11) 310 501 Fax: (11) 325 170 E-mail: mse@mongol.netWeb Address: www.mse.mn Country Code: 976Company’s Name City Code Telephone Fax E-mail AddressAjnai Invest 11 345 757 345 656 ajinve@yahoo.comAltan Khoromsog 11 455 822Altan San - 9911 8082 nander7396@yahoo.comArgai Best - 9911 3297 ganaa3232@yahoo.comBat's Invest 11 320 773 343 477Bidisec 11 321 763 321 763 bdsec@yahoo.com; www.bdsec.mnBulgan Broker 11 322 708 322 312 gbrsn@yahoo.comBumbat Altai - 9943 1203Chandmani Bayan - 9525 3102Darkhan Broker 11 328 970Delgerkhangai Securities - 9525 2453 315 166Erdenest - 9935 6857Gendex 11 636 335 632 959 ubmanagement@mongol.netKhansh Invest 11 684 596 khansh_investments@yahoo.comMasdaq - 9525 2076 selbro@yahoo.comMergen Sanaa 11 451 626Mongol Securities - 9525 2719 462 130 mirai@magicnet.mnMonsec 11 323 090 monsec182004@yahoo.comMunkhud - 9525 6869 munkhud@yahoo.comMutsa 11 369 377 300 799 munkhbold_m@yahoo.comNici 11 324 790 324 790 bursa@magicnet.mnSanar 11 462 634 sanar@yahoo.comTavan Bogd 11 35 1210 tavanbogd@mol.mnUndurkhaan Invest 11 682 861Zerged 11 367 609 tszerged@magicnet.mnWorld Key 11 330 594 330 594 worldkey@zoosbank.mn;worldkey@yahoo.comPAGE 179

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Montenegro Securities MarketAddress: Cetinjski put, Zgrada Vektre 2A, 81000 Podgorica, Montenegro Phone: 81 235 051 Fax: 81 235 051 E-mail: mberza@cg.yuWeb Address: www.montenegroberza.com Country Code: 381Company’s Name City Code Telephone Fax E-mail Address3M Broker Co. Podgorica 81 210 685 210 688 3mbroker@cg.yuAnglo Broker Co. Podgorica 81 665 695 667 307 officer@anglobroker.comCG Broker Co. Podgorica 8 230 490 230 497 cgbroker@cg.yuEnergo Broker Co. Podgorica 81 215 230 215 231 enrgobroker@cg.yuFirst Financial Broker Broker-Dealer Co. Podgorica 81 665 780 665 784 ffs@cg.yuHolder Broker Co. Podgorica 81 408 105 408 108 hbroker@cg.yuMarket Broker Co. Bijelo Polje 84 430 360 430 363 marketbroker@cg.yuMB Broker Co. Podgorica 81 210 655 210 685 mbbroker@cg.yuMoneta Broker - Dealer Co. Podgorica 81 205 455 205 456 info@moneta.cg.yuMonte Adria Broker - Dealer Co. Podgorica 81 231 305 210 640 montadria@cg.yuMonte Broker Co. Berane 87 230 514 230 515 montebroker@cg.yuNK Broker Co. Nik‰iç 83 220 044 220 045 nk_broker@cg.yuNove Broker Co. Podgorica 81 664 100 667 711 novebroker@cg.yuONYX Broker Co. Budva 86 451 816 402 416 onyxbr@cg.yuPodgoriãki Broker Co. Podgorica 81 205 365 205 366 pgbroker@cg.yuSenzal Broker Co. Podgorica 81 238 410 238 390 office@senzal.cg.yuVIP Broker Co. Podgorica 81 205 345 205 346 info@vipbroker.netMuscat Securities MarketAddress: P.O. Box 3265, Ruwi, Postal Code 112 Oman Phone: 2481-2607 Fax: 2481-5776 E-mail: msm.info.news@msm.gov.omWeb Address: www.msm.gov.om Country Code: 968Company’s Name City Code Telephone Fax E-mail AddressAl Amin Securities 248 13738 15507 al-amin@omantel.net.omAl Madina Financial & Investment Services 248 10859 10772 madinah@omantel.net.omAl Shurooq Securities 247 89113 88882 sisco@omantel.net.omBank Muscat 247 80139 98220 aymanj@bankmuscat.comFinancial Corporation 248 116655 16611 fincorp@fincorp.orgFinancial Services 248 17208 17205 finserv@omantel.net.omGlobal Financial Services 247 00667 00662 gfioman@omantel.net.omGulf Investments Services 247 90614 90612 gisoman@omantel.net.omInternational Financial Services 247 95186 95188 intfn@omantel.net.omNational Bank of Oman 248 11491 98647 nboinvest@nbo.co.omNational Securities co. 245 71340 68737 nscoman@omantel.net.omOman Arab Bank 247 97428 93953 bataineh@omantel.net.omQ Invest 248 15580 17483 qurumfin@omantel.net.omUnited Securities 247 88647 88671 info@usoman.comVision Investment Services 248 12860 08088 visoman@omantel.net.omPalestine Securities ExchangeAddress: Al Qasr Bldg., Rafidia, P.O. Box 128, Nablus, Palestine Phone: (9) 234 55 55 Fax: (9) 234 13 44 E-mail: pse@p-s-e.comWeb Address: www.p-s-e.com Country Code: 970 or 972Company’s Name City Code Telephone Fax E-mail AddressAl-Watanieh Securities Company 2 298 0420 298 7277 watanieh@palnet.comGlobal Securities Company 9 238 7880 238 5060 elalmiaco@yahoo.comJordan & Palestine Financial Investment Company 2 298 7778 298 7779 jopfico@palnet.comLotus Financial Investments Co. 2 297 1729 297 1727 info@lotus-invest.psSahem Trading & Investments Company 2 296 5710 296 5713 sahem@sahem-inv.comTarget Investment & Securities Company 9 238 6111 238 6119 info@targetinvest.psUnited Securities Company 2 240 3090 240 3091 info@unite.psSarajevo Stock ExchangeAddress: Fra Andela Zvizdovica 1A/X, 71000 Sarajevo, Bosnia and Herzegovina Phone: (33) 251 462 Fax: (33) 251 478 E-mail: contact@sase.baWeb Address: www.sase.ba Country Code: 387Company’s Name City Code Telephone Fax E-mail AddressAA Kapital Brokers Bihac 37 228 308 228 272AW Broker Sarajevo 33 766 666 766 725 alma.i@aw-broker.baBond Invest Mostar 36 333 745 316 612 bond.invest@tel.net.baDionica Tuzla 35 315 500 315 501 dionicatuzla@hotmail.comeBrokers Sarajevo 33 714 370 714 371 info@ebrokers.baEurohaus Sarajevo 33 720 900 710 611 info@eurohaus.baFima International Sarajevo 33 710 840 710 842 info@fima.baHypo Alpe Adria Vrijednosnice Mostar 36 449 500 449 502 vrijednosnice.bih@hypo-alpe-adria.comICM Sarajevo 33 721 730 721 731 info@icm.baKvantum Sarajevo 33 560 020 560 021 info@kvantum.baMarket Bull Sarajevo 33 266 970 258 070 info@market-bull.co.baNational Brokerage Company Sarajevo 33 550 130 550 142 info@nbc-bih.comPalisaen Sarajevo 33 769 185 769 925 info@palisaen.baRaiffeisen Brokers Sarajevo 33 296 546 296 553 info@rbr.baSEE-Investment Solutions Sarajevo 33 275 650 275 651VGT Broker Visoko 32 730 540 730 541 vgt@vgt-broker.comPAGE 180

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Tehran Stock ExchangeAddress: 228, Hafez Avenue, P.O. Box 11355-399, IR-11389 Tehran, Iran Phone: (21) 670 8385 Fax: (21) 671 0111 E-mail: int.dept@tse.irWeb Address: www.tse.ir Country Code: 98Company’s Name City Code Telephone Fax E-mail AddressAAban 21 6674 0426 6671 5666 info@ababroker.comAgah 21 6674 9751 6672 4185 info@agah.bizAmin Sahm 21 6672 6505 6670 6487Andishe Bartar 21 8870 6042 8872 1100Apadana 21 8873 2873 8874 1582 info@apadanabrokering.comArman Tadbir Naghshe Jahanarmantadbiriss@yahoo.comArmoun Bourse 21 8871 8056 8891 5805 s-ajami@armounbourse.comArya Bours 21 6674 5965 6673 3389 aryabours@yahoo.comArya Novin 21 8882 8252 8832 3530Asel 21 8870 1890 8871 5847 f_zamanfar@yahoo.comAti Saman 21 2203 7644 2203 7645Ati Saz 21 6673 3539 6674 3665 nhjanani@yahoo.comAtieh 21 6671 6285 6671 0285 atiehsotockbrokerage@yahoo.comBadreh Saham 21 8871 1083 8870 1256Bahman 21 8871 4799 8872 4241 info@bahmanbroker.comBank Eghtessad Novin 21 6674 4240 6674 3848 barzani@novinbourse.comBank karafarin 21 8875 0064 8875 9314 m.amindavar@karafarinbank.comBank Keshavarzi 21 8872 9480 8872 9481 kharazi@agribourse.comBank Maskan 21 8872 0383 8872 0384 mail@maskanbr.comBank Mellat 21 6671 4993 6671 4995 mellatbroker@yahoo.comBank Melli Iran 21 8870 9693 8872 2189 rouhi@bmibourse.comBank Refah Kargaran 21 8880 8790 8880 8793 refahbroker@yahoo.comBank Saderat Iran 21 8872 6157 8872 6158 saderatbankbroker@yahoo.comBank Saman 21 8877 4669 8877 0240 kstocks@afranet.comBank Sanat va Madan 21 6670 2868 6672 9173 info@sanatomadan.comBank Sepah 21 8872 6057 8872 6058 info@sepahbourse.comBank Tejarat 21 8872 0296 8855 5338 bt_broker@yahoo.comBank Towse-e Saderat Iran 21 8872 7690 8872 7692 broker@edbi.orgBazare Saham 21 2225 4129 2225 4127 yahyayan@bazarsaham.comBehgozin 21 6671 8408 66671 8408 info@behbroker.comBourse Bimeh Iran 21 8897 3529 8896 4040 bimehbroker@yahoo.co.ukBoursiran 21 8883 2860 8884 3879 boorsiran@yahoo.comDonyaye Khobreh 21 6672 4001 6672 4002 dkhobreh@yahoo.comDonyaye Novin 21 6670 5889 6670 6743Ebraz 21 6672 5132 6672 5133 info@ebrazbourse.comEtemad Soroush 21 etemadsoroush@yahoo.comEtminan Sahm 21 6672 8080 6672 8081 etminansahm@yahoo.comGanjineye Saham 21 6672 4916 6673 8073 sadat@ganjinehbourse.comGolchin 21 6674 3713 6672 4809 golchinbroker@yahoo.comHafez 21 8875 4916 8875 4918 tehran@hafezbourse.comHesabdaran 511 8458031 8458031Imen Bourse 21 6674 0877 6670 5293 imenbooors1@yahoo.comIran Sahm 21 8887 3236 8879 7940 iran-sahm@yahoo.comIsatis Poya 21 6674 5560 6674 5864Jahan Sahm 21 6672 6500 6672 6650Karamad 21 6672 4875 6672 4843 info@karamadbroker.comKhobregan Saham 21 6671 7760 6671 8492 info@khobregan.comKimia Sahm 21 6672 4997 6670 5483 kimiabroker@yahoo.comMahake Sahame Sanayeh 21 6672 5706 6672 5708 mahaksaham@gmail.comMehr Afarin 21 6674 4680 6674 4681 mehr_saham@yahoo.comMeyar Saham 21 6673 6661 6672 2502 brijaniyan@meeyarbroker.irMoein Sahm 21 6671 6945 6672 4978 moinsahm@yahoo.comMofid 21 8 1900 6672 6499 info@mofidbourse.comMoshaveran Saham 21 8870 1363 8870 1398 info@tehranstock.comNahayat Nagar 21 6673 9101 6671 9253 f.abdollahzadeh@gmail.comNoandishan Bazar Sarmayeh 21 8873 9378 8876 2975 info@noandishan.irOmid Sahm 21 8884 2738 8883 45219 omidsahm@yahoo.comOmran 21 6672 4809 6671 8901Ordibeheshte Iraniyan 21 8873 7367 8873 6260 info@oibroker.comPars Gostar Khobreinfo@parsbourse.comPars Nemoudgar 21 6671 4952 6671 4955 info@parsnem.comPars Saham Beynolmelal 511 7684387 7684387Parsiyaninfo@pim_co.comPishgamane Bazar Novin (21) 6672 4891Pishtazan Tamadon Pars (21) 8852 4234 8852 4235Rahbord Sarmayegozari 21 6672 5124 6672 5125 info@rahbord-investment.comRahnamaye Sarmayegozaran 21 6672 3355 6672 6011 rahnamabourse@yahoo.comRazavi 21 8887 2053 8867 7987 info@razavibroker.comRoshd Paydarinfo@roshdbroker.comSaham Barez 21 6673 1315 6671 5372 clients@sahambarez.comSaham Gostaran Sharg 21 6672 4987 6672 7235 info@sahamgostaran.comSaham Pajoohan Shayan 21 6671 7751 6673 5361 shayanbroker_co@yahoo.comSaham Pouya 21 6671 8062 6672 4120Sahm Andish 21 6672 8273 6672 9041 sahmandish@yahoo.comSahm Ashena 21 6672 4908 6671 6891 info@abco.irSahm Azin 21 8873 1215 8851 5748 sahmazeen@yahoo.comPAGE 181

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Tehran Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressSahm Yar 21 8871 0357 8871 0357 brk_sahamyar@yahoo.comSarmayegozari Melli Iran 21 8891 9679 8891 9670 kargozari@nici.irSarmayeh va Danesh 21 6671 6428 6674 3087 info@ckbrokerShakhes Saham 21 8879 7885 8879 7884 shakhes_saham@yahoo.comSimabgooun 21 6672 4995 6670 1411 info@simabbroker.comTadbirgar Farda 21 8852 5580 8852 5581Tadbirgar Sarmaye 21 8888 2265 8888 2290 info@tadbirgar.comTahlilgarane Basir 21 6674 8990 6674 8991Torbati 21 6670 5889Towse-e Sahandsahanddevelopment@iss2000.netTowse-e Sarmaye Donya 21 6672 9121 6672 9122 info@tsd-broker.comTirana Stock ExchangeAddress: Rr. Dora D'lstria, Nr 2, Tirana, Albania Phone: (4) 265 058 Fax: (4) 271 850 E-mail: tseinfo@abcom-al.comWeb Address: www.tse.com.al Country Code: 355Company’s Name City Code Telephone Fax E-mail AddressBallkan Group 01 4 272 722 g_ramaj@hotmail.comItalo-Albanian Bank (BIA) 4 233 966 225 700 biatia@adanet.com.alNational Commercial Bank (BKT) 4 228 743 237 570 info@bkt.com.alRaiffeisen Bank 4 274 910 227 262 info@raiffeisen.alTriumf Group 4 256 081 256 081 triumfgrupbk@yahoo.com“Toshkent” Republican Stock ExchangeAddress: 10, Bukhoro St., Tashkent 700047, Republic of Uzbekistan Phone: (71) 136 0740 Fax: (71) 133 3231 E-mail: info@uzse.uzWeb Address: www.uzse.uz Country Code: 998Company’s Name City Code Telephone Fax E-mail AddressGallabank 71 136 1617 133 4225Ipoteka Bank 71 136 0388 133 3089Pakhtabank 71 173 2551 120 8808Uzsanoat qurilish bank 71 120 4534 120 4534Ukrainian Stock ExchangeAddress:10 Rylsky Provulok, 01025 Kiev, Ukraine Phone: (44) 279 4158 Fax: (44) 278 5140 E-mail: use@ukrse.kiev.uaWeb Address: www.ukrse.kiev.ua Country Code: 380Company’s Name City Code Telephone Fax E-mail AddressA.I.S.T. Invest 44 244 9758 244 9758ABD Trade Co. 44 554 7365 554 7395Absolut Investments 322 97 0989 39 5334 jurist@kubok.com.uaAgio Bank 44 244 3309 234 2143 agio@aggio.kiev.uaAjko 522 235 583 236 398AlfaBank 44 490 4600 490 4601 mail@alfabank.kiev.uaAlter-Brok 44 231 4916 231 4916ARMA 44 246 6707 246 6708 info@arma-bank.com.uaAutozaz Bank 612 172 966 172 961 nva@avtozazbank.comAval Bank 44 290 8888 490 8938 tshovkun@aval.uaAvtomobilnaya Fondovaya Company 57 714 0014 7140 014 konivtsova_ol@ais.com.uaAyaks 572 940 951 943 772 ayax1@ua.fmBank of Regional Development 44 494 4847 494 4847 krv@brr.com.uaBrokbusinessbank 44 206 2959 459 6747 bank@bankbb.comBrooks 562 341 877 341 271 bod@fargo.com.uaCapital Management Group 629 343 093 412 853 roman@adk.ruCapital Market 57 714 0014 7140 014 shophul@ais.com.uaCorporate Investments Agency 44 248 9186 248 9188Demark Bank 4622 164 686 178 055 invest@demark.cn.uaDikom 62 337 0773 332 2595 sekretar@dikom.donetsk.uaEast-European Bank 44 205 4270 205 4270 tfo@eebank.com.uaEast-European Investment-Innovation Co. 44 229 4088 229 4088 ceiik@mail.ruEast-Makler 572 712 1848 219 9761 studik@east.kharkov.uaEkspert 44 455 6853 240 9783 ekspert@zeoz.netEnergoProekt 44 456 3479 456 3479 ua_servic@ua.fmEuropean 572 282 287 282 006 bank@euro.kharkov.uaFagot 44 451 5698 451 5698 klondik@list.ruFINOKS 564 262 586 262 586 finox@alba.dp.uaFinance Comerz 57 757 8335 757 8336 veb@lintec.net.uaFinancial Co. Bukva 44 537 5154 537 5154 alice@ukrprombank.kiev.uaFinansovyy poserednyk 44 453 3010 453 3010 vocatio@ukr.netFinansy ta Credyt Bank 44 490 6870 484 2571 common@fc.kiev.uaFinkom Trading 564 260 905 260 905 kulakov@finfox.com.uaFlayton 482 250 202 250 202 kiyanitsa@ukr.netFondova Grupa 44 462 0325 462 0319 stockgrp@i.kiev.uaFondova Spilka 44 538 0979 538 0979 fondova_spilka@ukr.netFondovaya Co. Faforit 44 458 0545 458 0545 favorit@visti.comPAGE 182

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Ukrainian Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressFondovi Technologii 44 552 8078 552 8078 michel_2001@mail.ruGarantinvest 57 773 0994 773 0994 offert@.vi.kharkov.uaGelikon 4622 71 015 71 015General Investment Co. 44 455 6766 464 5961 gic@i.kiev.uaGeneral Investments 572 282 264 282 266 globalin@utel.net.uaGolden Gate Business 44 201 2020 201 2023 inbox@iukr.com.uaGrand Finance 44 241 8741 241 8743 office@smaster.com.uaIndexstocks 571 7578 145 7578 146 promeko@list.ruIndustrialno-exportnyy bank 44 494 1506 494 1506 babich@lindex.com.uaInvest Trade 44 416 7113 416 1559 mail@abiter-pro.orgITT Invest 44 246 6841 277 2112 office@itt-invest.kiev.uaJerom Securities 44 206 5450 206 5450Joint-Stock Commersial Prominvest Bank 44 229 8303 229 1456 piboo@courier.pfts.comKomex Securities 44 220 9588 227 7022 natasha@comex.com.uaKonfo 44 464 7692 464 7692 confo@petrovka.kiev.uaKredo Invest 612 134 909 134 909 kredo-invest@optima.com.uaKrok-MT 3422 40 056 76 261 krok-mt@il.if.uaKUB 44 296 5228 296 5228 office@kub.com.uaKupava 44 268 2194 269 9814 kupava@i.kiev.uaLaverna 44 466 7312 466 7312 bbp@dobrobut.kiev.uaLegbank 44 227 9570 227 9519 vsi@legbank.kiev.uaLvivski Securities 322 970 668 970 668 safin@utel.net.uaMAST 57 714 0643 714 0956 yulia@mast.kharkov.uaMega Invest 44 272 6053 272 6053 mega-invest@ukr.netMorskyy Bank 692 458 570 458 570 root@ambank.sebabtopol.uaMortransbank 482 301 300 301 301 office@mtb.com.uaMriya 44 244 6199 216 6543 postmaster@mriya.comMriyafinance 44 265 0841 265 0841 inna@kcp.kiev.uaMTbank 536 796 277 797 277 bank@mt-bank.comNadra 44 238 8477 205 3011 info@nadrabank.kiev.uaNarodna Invest Co. 57 719 5074 719 5074 nicom@velfon.kharkov.uaNoosfera 44 537 3245 575 1716 bormih@ukr.netNPK Invest 57 700 5011 700 5012 npkinvest@vlink.kharkov.uaOmetatrust 44 228 4598 228 4563 ometa@jt.com.uaOniks-Iva 3422 31 155 32 320 princom@com.if.uaPKTB-Securities 44 496 0115 496 0115 fctb@fctb.com.uaPolikombank 462(2) 74 895 101 513 fond@poli.com.uaPrivatbank 562 390 718 680 514 slava.derishev@pbank.com.uaProfesional-Brok 44 455 9419 455 9419Renessans Capital Ukraine 44 230 9318 230 9319 custodu@comex.kiev.uaReserv 44 404 1039 404 1039Ricabroker 44 416 8352 416 8352 rekabroo@courier.pfts.comRinkom Invest 44 544 5647 544 5647 sb@rin.com.uaRoland 57 715 6622 715 6622 stanchev@dayard.com.uaSecurities of Ukraine 44 412 8765 412 8765 securities@mail.ruSelyanska Investment Co. 44 246 4897 234 6037 sincom00@courier.pfts.comSigma Fund 572 141 180 141 188 office@fsigma.kharkov.uaSiriusSecurities 532 508 921 508 921 bk_sirius@mail.ruSkhidinvest 44 416 5344 451 5813 ua_vostok@narod.ruSofiya Securities 44 244 2887 244 2996 sofiaoo@mail.ruStanislav D 342 554 222 554 222State Oschadny Bank of Ukraine 44 247 8450 247 8515 butko@oschadnybank.comStock 564 260 807 261 561 stock@alba.dp.uaStocks 44 537 4380 566 9374 info@stocks.com.uaStocktrader 342(2) 43 033 785 328 strader@ivfukrpack.netStoik 57 757 4527 712 3386 stoik@vi.kharkov.uaStolichna Fondova Co. 44 249 3697 249 3697Stolichnyy Capital 44 235 3243 234 8161 broker-stk@skapital.kiev.uaSyntez 44 461 7930 228 6400 bmw@syntez.kiev.uaTAS Comerzbank 44 238 3883 238 3472 borisov@tas-combank.com.uaTavrika Bank 692 205 5983 205 5983 turicheva@tavrika.kiev.uaTechnotern Invest 352 229 086 235 579 invest@tehnotern.com.uaTEKT-BROK 44 201 6391 201 6392 office@tekt.com.uaTradeInvest 44 290 5150 249 3697Transferbutik 44 272 1748 272 1708 boutigue@skif.com.uaTrick Ltd. 512 471 991 471 991Ukrainian Depository Co. 44 451 4447 451 4447 tamara@urc.kiev.uaUkrainian Financial Group 44 251 8380 251 8353 cb@ufg-bank.com.uaUkrainian Fund of Promissory & Guarantee Notes 44 234 9567 229 8668Ukrayinska Konzesiyna Company Ltd. 44 244 3222 244 0715 ucc@ucc.kiev.uaUkrayinski Securities 44 253 6863 206 3022 atucp@atucp.kiev.uaUkrayinsky Komunalny Bank 642 553 529 420 106 layner@ukr.netUkrayinsky Promyslovy Bank 44 537 5154 537 5154 salla@ukrprombank.kiev.uaUkrinbank 44 247 2182 247 2134 chuchko@ukrinbank.comUkrinvest 352 235 366 239 9777 ukrinvest@ua.fmUkrsotsbank 44 238 3243 269 1307 info@ukrsotsbank.comUniversal Fondovy 44 268 5696 268 5696 kons_office@.ukr.netVabank 44 490 0662 216 0033 fom@vabank.com.uaPAGE 183

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2007Ukrainian Stock Exchange (con’t)Company’s Name City Code Telephone Fax E-mail AddressVash Vybor 652 546 613 546 613 vibor@ip-ua.comVest Stock 312 612 181 619 277 weststock@utel.net.uaVirabroker 44 490 2015 490 2015Volodymyrskiy Bank 542 215 400 215 423 balans@vibank.ukrpack.netYuneks 44 462 5053 462 5053 fedorenco@unexbank.kiev.uaZdobutokInvest 44 451 2815 451 2816 dobutok-invest@ukr.netZagreb Stock ExchangeAddress: I. Lucica 2a/22 HR-10000 Zagreb, Croatia Phone: (1) 468 6800 Fax: (1) 467 7680 E-mail: info@zse.hrWeb Address: www.zse.hr Country Code: 385Company’s Name City Code Telephone Fax E-mail AddressAbacus brokeri d.d. 1 482 5790 481 2499 abacus@abacus-brokeri.hrAntea brokeri d.o.o. 1 231 9715 232 0110 antea.brokeri@zg.t-com.hrApex vrijednosnice d.o.o. 1 638 6210 638 6215 apex@apex-securities.hrAuctor d.o.o. 1 480 7600 480 7633 auctor@auctor.hrCBB Vrijednosnice d.o.o. 42 314 255 313 132 cbb@vz.t-com.hrCentar Banka d.d. 1 487 0441 488 0375 bkozaric@centarbanka.hrComplete Line d.o.o. 44 521 547 524 116 cl@comlinebrokers.comCredos d.o.o. 1 236 3431 236 3433 credos@credos.hrCROBA Vrijednosnice d.o.o. 1 239 1602 239 1669 croba@croatiabanka.hrDionica Brod 35 447 750 443 343 dionica-brod@sb.htnet.hrEA Sistem d.o.o. 47 415 341 415 891 ea-sistem@ka.t-com.hrEra kapital d.o.o. 1 639 1700 639 1705 erakapitel@erakapital.hrERSTE Vrijednosni Papiri d.o.o. 62 372 800 372 801 kajkutz@erstebank.comExportdrvo d.d. 1 456 0222 456 0356 dkobas@exportdrvo.hrFima-Vrijednosnice d.o.o. 42 390 900 390 989 fima@fima.comFintrade d.o.o. 21 344 454 344 437 fintrade@st.t-com.hrHita Vrijednosnice 1 480 7750 480 7770 ivan@hita.hrHrvatska po‰tanska banka d.d. 1 488 8222 481 3111 brokeri@hpb.hrHypo Alpe Adria Bank d.d. 1 235 8350 235 8212 investment-banking.croatia@hypo-alpe-adria.comI.C.F d.o.o. 1 600 5600 600 5601 icf@icf.hrIlirika Vrijednosni Papir d.o.o. 1 480 8000 480 8030 ilirika@ilirika.hrInterfinance d.o.o. 1 238 1000 238 1020 d.fuduric@interfinance.hrInterkapital Vrijednosni Papiri d.o.o. 1 482 5850 481 2338 daniel.nevidal@intercapital.hrInvestco Vrijednosnice d.o.o. 1 481 1777 492 0711 investco@investco.hrIstarska kreditna banka d.d. 52 702 340 702 388 klaudija.paljuh@ikb.hrKarlovacka Banka d.d. 47 614 315 614 316 davorka.vidakovic@kaba.hrKD upravljanje imovinom 1 627 4444 627 4408 hrvoje.japuncic@kd-group.hrOTP banka 62 201 707 201 711 krsto.cveljo@otpbanka.hrPartner kapital 1 460 2361 460 2365 mico.jurjevic@partner-kapital.hrPodravska Banka d.d. 48 655 260 655 261 brokeri@poba.hrPozeska Banka d.d. 34 254 200 254 258 pozeska-banka@po.t-com.hrPrivredna Banka Zagreb d.d. 1 489 1331 472 3065 brokeri@pbz.hrPrva Generacija d.o.o. 1 461 2055 461 9761 prva-generacija@prva-generacija.hrRaiffeisenbank Austria d.d. 1 469 5072 456 0772 brokeri@rba.hrRast d.o.o. 42 231 777 231 611 rast@rast.hrSociete Generale - Splitska Banka d.d. 21 304 621 304 607 brokeri@splitskabanka.hrSted-kapital d.o.o. 1 630 6666 618 7531 sted-kapital@stedbanka.hrTo One Brokeri d.d. 1 482 5890 482 5899 jurica.pevec@to-one.comTrcin Vrijednosnice d.o.o. 1 492 0350 492 0350 trcin-vrijednosnice@zg.t-com.hrUtilis d.o.o. 40 310 114 312 726 utilis@ck.t-com.hrVolksbank d.d. 1 480 1226 680 1233 mato.ivos@volksbank.hrVrijednosnice Osijek d.o.o. 31 250 100 250 107 vrios@os.htnet.hrZagrebacka Banka d.d. 1 480 1544 480 1706 darko.doko@zaba.hrPAGE 184

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