Azerbaijan, Baku, 26 April / Trend A.Akhundov /
The State Securities Committee (SSC) of Azerbaijan has reported a great interest from global investors to the local market, the SSC chairman Rufat Aslanly told reporters on Friday.
"The Caucasus region is always at the centre of attention of global investors and Azerbaijan is a leader in the region in terms of economic status and investment attractiveness, Aslanly said.
According to him, not only are bonds on the list of interests of investors, but the stock market as well.
"When buying a bond, investors prefer government bonds to reduce their risks. However, given the stable condition of the state budget, the Ministry of Finance of Azerbaijan does not go for active issuance of government bonds. Traditionally in recent years, the Ministry of Finance released bonds in the second half of the year and in small quantities. Basically, this is done to maintain the activity of the financial market of the country. The Central Bank's bond equivalent yield is at a low level which is an indicator of macroeconomic stability and investors cannot meet their interest," Aslanly said.
As for the stock market he said, the supply on the local market is several times lower than the demand on the global market. Therefore, any tool entering the market buys up.
"Interest is being observed, but it is necessary to ensure the adequate supply to meet that interest. This is one of the directions of the state programme on the development of the securities market in Azerbaijan until 2020," Aslanly said.
During the first quarter, the corporate segment of the securities market has grown by 65 per cent including the stock market by 2.2 times, an increase in the initial public offering of 2.7 times and their secondary market by 1.9 times. The lag on the government bond market was at 42 per cent, and on the Central Bank's notes market at 45 per cent.