Ljubljana, 31 January (STA) - The Croatian firm InterCapital Securities will act as market maker on the Ljubljana Stock Exchange as of 1 February under an agreement that enlists the company to provide the service to two blue chips, drug maker Krka and insurer Zavarovalnica Triglav.
Market makers maintain the liquidity of a stock and stabilise its price by entering counter-orders on the market. They had already been present on the Slovenian capital market until 2009.
"Now is an appropriate moment to re-establish market-making service," stock market operator Ljubljanska Borza said on Thursday, adding that the main benefit would be increased liquidity.
The Ljubljana Stock Exchange is struggling with poor liquidity, with daily volumes frequently at levels below a million euros.
Ljubljanska Borza chairman Aleš Ipavec was hopeful that other listed companies will follow suit and sign new market-making contracts in the near future.
"This way, the Slovenian capital market will achieve the liquidity we want, which will further encourage investors to trade," he said.