Favourable conditions created for Azerbaijan securities’ market
Azerbaijan, Baku, Feb. 13 / Trend I.Khalilova /
Favourable conditions for trading on the Azerbaijan securities market have been created, but due to lack of awareness cannot find a universal application, chairman of the board of the Baku Stock Exchange (BSE) Emin Aliyev believes.
"Our stock market has something to show. A few years ago companies saw commercial banks as the only funding source for carrying out their projects, but now they are beginning to think about the possibilities of the capital market," Mr Aliyev told Trend on Monday.
He said the introduction of corporate management practices, availability of appropriate financial statements, plus support of the state are necessary and available components that allow companies to think about borrowing from the stock market to carry out their projects.
"However it is necessary to not only think but also modernise challenges dictated by the market," the BSE head believes. Securities of the Bakcell mobile operator appeared on the corporate bond market in late 2011.
"The issue and take up of the mobile operator's bonds to 40 million manat has been very successful. This is a very good example which will lead the other companies not only in telecommunications but also from other segments of the economy," Mr Aliyev said.
He noted elaboration of the new law "On securities and stock markets" will also contribute to substantial activity, as well as positive trends and vectors directing comprehensive market dynamics.
"Elaboration of this bill is inseparably linked to study of the relevant world experience. Coverage of the bill is broad and affects interests of all parties concerned," Mr Aliyev said.
Improving the legal framework for the securities market is one of six main areas of the state programme of the development of the securities market for 2011-2020 which was adopted in May 2011.
In addition, the programme reflects such areas as the institutional development of the market, development of supply and demand, promotion of collective investment, promotion of financial transparency and encouragement of the implementation of corporate governance standards at enterprises and promotion of awareness and increase in the market potential of its professional members.
In 2012, the volume of transactions in the stock market is expected to reach 10 billion manat due to an increase in the circulation of the corporate securities' market.
The total turnover of transactions on all sectors at the Baku Stock Exchange in 2011 amounted to 8.43 billion manat, or 3.78 times more compared to 2010.
The official exchange rate is 0.7863 AZN to $1 on Feb. 13.