Ordinary Fijians can become shareholders in companies they know and support without needing to be wealthy or financial experts.
This is according to South Pacific Stock Exchange Chief Executive Officer Sheraj Obeyesekere, who says there is a misconception that the stock market is only for sophisticated or wealthy investors.
Obeyesekere says the South Pacific Stock Exchange is licensed by the Reserve Bank of Fiji to facilitate the buying and selling of shares in companies listed in Fiji.
He says the main function of the stock exchange is to connect companies that need capital for growth with everyday Fijians and institutions that have funds they would like to invest.
He says SPX currently has 21 companies across multiple industries that have listed their shares for trading, with investors buying and selling shares in those companies daily.
Obeyesekere says people can start small and do not need a large amount of money to begin investing.
He says people can own a small number of shares and become shareholders in companies they already know and support.
He says SPX already has investors from villages and outer islands, showing that investing in shares is not restricted to people living in major centres.
Obeyesekere says it is encouraging to see successful businesses interested in listing their shares on the stock market, as this creates opportunities for everyday Fijians to benefit from their growth.
He says when listed companies are successful and profitable, shareholders can benefit through dividends, where they receive a portion of the profits, or through an increase in the value of their shares.
He says giving everyday Fijians the opportunity to own shares and benefit from the growth of successful businesses is inclusive and commendable.
He describes this as “democratising corporate growth”, where everyone is given an opportunity to benefit from corporate growth.
INSERT: SPX CEO on shareholders 4th Sept
Obeyesekere says stockbrokers can assist investors with the technical side of investing, including ratios and other analysis.
He says there are also qualitative signs people can consider when assessing whether a company is performing well.
He says extensive advertising, strong profits and being a strong player in the industry can be positive signs, although people should understand an investment before putting their money into it.
However, Obeyesekere stresses that investing in shares comes with risks and share prices do not always rise.
He says investors should consider the performance of individual companies as well as wider economic events that can affect share prices.
The CEO says diversification is one way investors can manage risk by spreading their investments across different industries.
He says Fijians should also continue using other savings and investment avenues such as FNPF, unit trusts and the banking system.
He says investing in shares should be considered as one part of a diversified approach to saving and investing.
