Corporate bonds market in Azerbaijan grow 2.5 times annually

Business Materials 15 November 2010 12:04 (UTC +04:00)

Azerbaijan, Baku, Nov. 15 / Trend N. Ismayilova /

Activity on the Azerbaijani securities market grew during the first three quarters of this year amid a soft monetary policy and a series of institutional reforms affecting primary and secondary securities market operations, the Azerbaijani State Committee for Securities reported.

The soft monetary policy had an impact on state securities. As a result, the volume and profitability changed compared to the same period last year. Profitability amounted to 2.15 percent and the volume of transactions to 2.119 billion manat in the first three quarters, compared to one percent and 754 million manat, respectively, over the same period last year.

The corporate debt market's dynamics were positive during the reporting period, with the stock market showing a slower trend. Overall, stability was observed on the corporate securities market.

The primary and secondary corporate bond markets increased by 2.5 times over the first nine months of this year compared to the same period last year. The stock market dropped by 48.2 percent. Azerbaijani Mortgage Fund bonds were the main source of growth in the corporate bond market. Their share of the total primary bond market was 96 percent and 99 percent of the secondary market.

There was a revival on the primary equity market in the third quarter compared to early 2010. However, in total, the abolishment of tax exemptions used in investment securities, as well as slowing down the privatization process, had an impact on the activity of the stock market.

The official exchange rate is 0.7999 manat to $1.