‘Azerbaijan’s corporate securities market needs development’ (Exclusive)

Business Materials 11 January 2018 20:45 (UTC +04:00)

Baku, Azerbaijan, Jan. 11

By Anvar Mammadov – Trend:

The corporate securities market has a very small share in the total turnover in the Baku Stock Exchange (BSE), BSE chairman Vugar Namazov said in an interview with Trend Jan. 11.

He said that a lot of work must be carried out for the development of the corporate securities market.

"In general, 2017 was a record year for the BSE with a turnover of 13.6 billion manat in 2017,” he said. “The trading is carried out in five markets, namely, state securities market, stock market, market of debt instruments, market of repo transactions and derivatives market.”

“If we do not take into account derivative instruments, a big part of the market (about 80 percent) accounts for the state securities market, which shows that a lot of work should be carried out to develop the private sector," Namazov said.

Namazov added that the state securities market could play the role of a model for the corporate securities market, especially in IPO.

"We have all seen how the issue of SOCAR bonds increased interest in mass issuance of bonds,” he said. “We have already completed the listing of Unibank and METAK company. A similar step aimed at mass issuance of securities is also necessary for the stock market. All expect someone to take the first step and if it is successful, the rest will follow this example. Therefore, a role model, that is, a big company that could carry out a big issue of securities, is very important for us."

According to the Baku Stock Exchange, the total turnover of stock transactions on all instruments on the BSE in 2017 amounted to over 13.6 billion manat, which is 2.4 times more than in 2016.

The state securities market turnover amounted to 6.07 billion manat (7.3-fold growth for the year), corporate securities market turnover - 1.62 billion manat (3.9-fold growth) and the derivatives market turnover - 5.9 billion manat (33.6 percent).