In order to sell 1% of the market cap of ZSE, one would need 126 days. However, we note if we were to take into account the free-float market cap, the figure would be relatively lower.

It is known 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, a 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 the Romanian stock exchange market is the most liquid, keeping in mind that the average daily turnover was EUR 10.3m and the market cap EUR 43.9bn. To sell 1% of the market cap on the Bucharest Stock Exchange, one would need “only” 43 days, which is the lowest of all observed stock exchanges. LJSE closely follows the Romanian stock exchange with 50 days needed. However, we note that the average daily turnover is significantly lower, amounting to EUR 1.7m, but the lower average daily turnover is also tied to a much lower market capitalization on the Slovenian stock exchange.

Meanwhile for ZSE, one would need 126 days to sell the same. This is a direct result of both very high market capitalization on ZSE combined with slightly lower turnover compared to the Slovenian stock exchange market. However, if we were to consider the free-float market cap, the figure would be relatively lower.

Time Needed to Sell 1% Market Cap