Corporate securities market in Azerbaijan expects rapid growth in 2012 (Photo)
Azerbaijan, Baku, Feb.7 /Trend I.Khalilova/
The current year will be one of the most significant for the Stock Exchange of Azerbaijan in the rapid development of the corporate securities market, chairman of the Baku Stock Exchange (BSE) Emin Aliyev told Trend.
"First of all, favorable macroeconomic situation and the steady growth of Azerbaijan's economy and as a consequence of the securities market contribute to this. The volume of trading on the market increases by almost 4.5 times for over the past five years. Second is the legislative framework that promotes progressive movement and motivates companies to domestic borrowing.
Third, the market develops institutionally, it means that the foundation for the development of the sector has already been laid and it is further strengthening," Aliyev said.
The corporate sector draws dividing line between the benefits of financing with the traditionally well-established banking and the stock market.
"Of course, the company must have a number of qualities, above all, financial and managerial. But, having found them, and providing an outlet to the stock market, the company receives a low-cost financial resource, not limited by a single investor. Company itself builds its policy of borrowing in terms of repayment terms and period, and, of course, creates a positive image, "- Aliyev said.
According to statistics, the corporate sector of the securities market on the stock exchange demonstrates a confident growth trend in recent years, Aliyev said. The average increase was 70 percent in the past five years. This occurred mainly due to the growth of the primary market of corporate bonds and shares.
"We expect that the growth of the sector will continue in 2012, especially in the primary market of corporate bonds, as revival of domestic borrowing by companies resident in the background of the ongoing financial crisis in Europe is expected," Aliyev said.