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Uzbek Stock Exchange turnover falls by more than 20%

Business Materials 9 April 2014 17:51 (UTC +04:00)
The turnover of the Uzbek Republican Stock Exchange (RSE) Toshkent decreased by 20.5 percent in January-March 2014, compared to the same period last year to 12.5 billion soums, the stock exchange reports.

Tashkent, Uzbekistan, April 9
By Demir Azizov- Trend:

The turnover of the Uzbek Republican Stock Exchange (RSE) "Toshkent" decreased by 20.5 percent in January-March 2014, compared to the same period last year to 12.5 billion soums, the stock exchange reports.

Since the beginning of the year some 37.873 million units of shares (3.8 times growth in comparison with the same period in 2013) from 51 joint-stock companies (52 JSCs previous year) in the total amount of 7.8 billion soums (decrease by 26.4 percent) were sold at the exchange auctions. Furthermore, some 4,100 units of corporative bonds of three issuers worth 4.7 billion soums were sold compared to 5,000 units of bonds of the same amount of issuers worth 5.1 billion soums in the previous year.

In January - March, the share of securities of the companies operating in the financial sector accounted for 88.1 percent of the exchange stock market turnover (79.6 percent in January - March, 2013), including the banks - 80.7 percent, insurance and leasing companies - 7 and 0.04 percent respectively.

The share of the primary market in the exchange turnover structure made up 65.8 percent compared to 63.2 percent in the previous year, the turnover of primary market of securities increased by 1.1 times - up to 8.2 billion soums.

The additional emission of shares in the structure of the primary market made up 4.2 billion soums (1.9 billion soums in the first quarter of 2013), and corporate bonds - four billion soums (5.1 billion soums in the first quarter of 2013).

Secondary market share decreased by 34.2 percent from 36.8 percent in January - March 2013, and its turnover fell by almost two times - to 4.3 billion soums. The volume of traded amount of shares on the secondary market amounted to 3.7 billion soums (8.1 billion soums in the previous year), corporate bonds - 0.6 billion soums (one million soums in the previous year).

One of the reasons for the decline in trading activity in the secondary market is still a shortage in supply of large, financially stable companies distinguished by relatively with higher liquidity and investment appeal. The majority of these shares are state-owned and not a resource for the secondary market.

The sale of securities on FCC was not implemented at the RSE "Toshkent" in January - March, 2014.

"Toshkent" stock exchange was established in 1994. Its founders are investment, brokerage and insurance companies, as well as the State Property Management Committee of Uzbekistan.

The stock exchange organizes primary placement and secondary trading of assets and bonds of privatized companies with approximately 370 issuers being allowed to participate in trading. More than 100 investment institutions are members.

Total trade turnover at the stock exchange decreased by 45.4 percent in 2013 compared to the same indicator of 2012 to 93.2 billion soums.

The official exchange rate on April 9 is 2267.74 UZS / USD.

Translated by S.I.
Edited by C.N.

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