In order to sell 1% of the free float market cap of ZSE, one would need 78 days.

It is a known fact that relatively low liquidity is an ongoing challenge for not just Croatia and Slovenia, but also other regional markets. Some of the reasons behind this could be a relatively low free float of market capitalization, a small investment universe, lack of a large retail investor base, etc.

For today, we decided to calculate how many days one would need, to sell 1% of the total market capitalization of regional stock exchange markets.  The stock exchanges we observed were ZSE, LJSE, BELEX and BVB.

It does not come as a surprise that Romanian stock exchange market is the most liquid, having in mind that average daily turnover was EUR 8.33m (YTD) and market cap EUR 44.14bn. To sell 1% of market cap on Bucharest Stock Exchange, one would need 53 days, which is the lowest of all observed stock exchanges.

Slovenia comes next with a significantly lower average daily turnover of EUR 1.43 in 2021. However, the market cap of the exchange is significantly lower, so one would need 63 days to sell 1% of the market cap.

Meanwhile for ZSE, one would need 178 days to sell the same. However, if we were to take into account the free-float market cap, the figure would amount to 78 days.

Time Needed to Sell 1% Market Cap