Azerbaijani stock market expects to increase turnover on corporate securities in 2011

Business Materials 20 January 2011 16:55 (UTC +04:00)

Azerbaijan, Baku, Jan. 20 / Trend I. Khalilova /

The turnover of corporate securities on the stock market of Azerbaijan increased by more than 65 percent as of 2010. It is expected to maintain these rates in 2011, the chairman of the State Committee on Securities Rufat Aslanli said.

"Our main goal is to increase the share of corporate securities. The stock market is usually formed on its basis. As a result, the share of corporate securities increased from 10 percent up to 25 percent on the market," he said.

In general, he noted the dynamic growth in trade of shares, bonds and debt tools. The operations with corporate securities and debt securities increased by 2-3 times on both the primary and secondary markets.

The dynamics was ensured on the stock market mainly due to operations on the secondary market, Aslanli said.

He said that a new tool is expected to appear on the stock market this year.

"This tool will appear on the stock market over the coming months," he said.

This tool will ensure conducting repo transactions with investment securities.

The repo transactions were carried out with notes of Azerbaijan Central Bank (CBA) up to now. According to the new rules, participants of the securities market will be able to conduct repo transactions among themselves on stocks and bonds.

This type of tool is provided for portfolio investors, mainly banks and other financial institutions to solve their problems with short-term liquidity.

The total turnover of transactions on all instruments at Baku Stock Exchange (BSE) in January-December 2010 amounted to 2.23 billion manat and decreased by 32.9 percent compared to 2009.

The corporate securities market increased two times, reaching 707.326 million manat. It is explained by the volume of transactions in corporate bonds by 2,3 times, while the number of transactions increased by 1.7 times up to 214.

The state securities market reduced by 1.95 times, reaching 1,522,98 million manat. It was stipulated by reducing repo transactions by 2.33 times, although the number of transactions slightly decreased (by 4.73 percent).

The official exchange rate is 0.7974 manat to $1.