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Azerbaijan’s stock market turnover exceeds non-oil GDP’s 25 per cent

Business Materials 29 April 2013 12:45 (UTC +04:00)
In the first quarter of 2013 the volume of the securities market in Azerbaijan reached 1.7 billion manat, comprising 12.9 per cent of GDP and 25.2 per cent of non-oil GDP.
Azerbaijan’s stock market turnover exceeds non-oil GDP’s 25 per cent

Azerbaijan, Baku, April 27 / Trend A.Akhundov /

According to the report of the State Securities Committee (SSC) on the performance results for the first quarter of 2013 published on Friday, in the first quarter of 2013 the volume of the securities market in Azerbaijan reached 1.7 billion manat, comprising 12.9 per cent of GDP and 25.2 per cent of non-oil GDP.

Despite the decline of the government securities segment for a number of reasons in the reporting period, the corporate securities market demonstrated a dynamic growth.

'As a result of the revival trend on the primary and secondary market of corporate stocks and bonds, the corporate securities sector increased by 65 per cent to 146 million manat. The increase of the capital requirements to banks by the Central Bank of Azerbaijan contributed to the growth of financing the stock market banks. During the reporting period the stock market has grown 2.2 times to 92 million manat, the primary market increased 2.7 times and the secondary market by 1.9 times.

'During the first quarter of the year, the number of transactions on the corporate bond market increased by 50 per cent, and the market volume amounted to 54 million manat. Meanwhile, the bonds market of the Azerbaijan Mortgage Fund increased 2.6 times to 29 million manat with the primary market increasing 2.2 times and the secondary market threefold. The amount of bonds offered by private companies grew by nine per cent to 18.5 million manat', the report says.

Along with the soft stimulating monetary policy pursued by the CBA, the Ministry of Finance of Azerbaijan did not issue government bonds during the reporting period, which eventually led to a reduction in the government securities market by 42 per cent to 1.5 billion manat.

The official exchange rate for April 27 is 0.7846 AZN / USD.

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