The Cyprus Stock Exchange (CSE) performed robustly in 2024, with significant increases in trading activity, market capitalisation, and investment interest, according to its chairman Marinos Christodoulides.
The CSE chairman said that there has been a 271 per cent rise in daily trading activity this year when compared to 2023.
In a statement, Christodoulides reported that the CSE General Index grew by 57.29 per cent as of December 27, 2024, reaching a daily trading volume of €1.38 million, up from €0.37 million in 2023.
Moreover, market capitalisation soared by 135 per cent, rising to €23.3 billion from €9.9 billion.
Foreign investors also increased their participation in listed companies, accounting for 49 per cent of total capitalisation, compared to 39.3 per cent in 2023.
Additionally, remote members, primarily international brokerage firms, contributed 23.46 per cent of daily trading activity, up from 9.6 per cent in the previous year.
“This improved performance stems from increased interest, largely driven by better results from listed companies, particularly in the banking sector,” Christodoulides said.
He attributed the growth to enhanced profitability, dividend distributions, and positive business prospects.
“These gains reflect broader economic improvements, as demonstrated by successive upgrades in Cyprus’ credit ratings by international agencies,” he stated.
Strategic initiatives and milestones
Christodoulides also mentioned that the CSE undertook several initiatives to expand its offerings and enhance its strategic positioning.
In March 2024, the CSE, in collaboration with Switzerland’s SIX SIS depository, facilitated cross-border securities transfers and dual listings of European Medium-Term Notes (EMTNs) from the Republic of Cyprus.
In ddition, discussions are ongoing with the Finance Ministry to implement Delivery Versus Payments (DvP) for treasury bills and government bonds to attract more investors.
Efforts were also intensified to expand the government and corporate bond markets. The introduction of favourable tax regulations encouraged growth in the corporate bond segment.
Furthermore, the CSE saw its first green bond listing in 2024, a move Christodoulides described as crucial for the energy sector.
“We anticipate the green bond market will continue to grow through the CSE,” he stated.
Focus on energy and privatisation
The CSE, Christodoulides pointed out, continued its active involvement in energy markets. It participated in greenhouse gas emissions auctions and collaborated with the Hellenic Energy Exchange, where it is a founding shareholder.
What is more, plans are underway for the CSE to handle clearing operations for the competitive electricity market in Cyprus in 2025.
Christodoulides also underlined the importance of privatising the CSE, calling it a “key growth parameter”.
He announced that legal groundwork for privatisation is nearing completion, with the government expected to launch a tender for a strategic investor in 2025.
“Privatisation will bring new expertise and opportunities, enhancing our corporate ecosystem and the broader economy,” the CSE chairman concluded.
Click here to change your cookie preferences