Fall in World Stock Exchange Indexes not to Affect Azerbaijan: SSC head
Azerbaijan, Baku, 23 January / corr. Trend I. Khalilova/ The low integration pace of Azerbaijani Stock Exchange market to the world stock exchange market, allowed the local security markets to avoid from the recent tendency of the drop in stock exchange indexes, Gunduz Mammadov, the chairman of the State Securities Committee said. These changes will not affect the stock exchange market of Azerbaijan, subsequently.
"It is quite a normal case, a market can't always be stable, and it is always subjected to the changes like growth and fall," Mammadov said. Azerbaijan currently is working on the introduction of the national stock exchange indexes on different instruments, but the world experience is still being studied, he said. The Warsaw Stock Exchange currently assists Baku Stock Exchange. In 2008, the number of exchanges and instruments are expected to rise in Baku Stock Exchange, Mammadov said. While, the deals on the cooperative stocks can decrease.
Since 2000, the volume of the securities market has been increasing annually by 1.5-2 times, but it is not the minimal indicator, he said.
Stock floatation is carried out on 50% of the issued stocks; the remaining part is sold through the closed subscription. Initial public offering share in a real sector is not so high, Mammadov said.
The volume of the ex-pit transaction is currently high, though the specific gravity will decrease after a couple of years.
"We want the security operations to be held in the open auctions, it will help to create a competitive atmosphere and maintain transparency, which is most important for the development of the market," Mammadov said.