Baku, Azerbaijan, May 7
By Kheyraddin Nasirzade – Trend:
A slight increase will be experienced in the government securities market in 2019, Tural Bayramov, CEO of Xalq Kapital Investment Company, told Trend.
He noted that this market, despite the growth, will not differ much in volume from last year’s figures.
The CEO noted that today the stock market, as a whole, is stable, but no serious development can be observed yet. Bayramov singled out government securities as the main relevant instruments on the market. As for the corporate securities market, there is no particular activity in this segment either - a number of operations are carried out, but their volume is very small.
Bayramov did not rule out the possibility of an increase of turnover at the secondary stock market, which will be linked to an increase in the authorized capital of some state-owned companies. To this end, it is planned to implement several projects on corporate securities – but, according to the CEO’s subjective opinion, the execution of the projects is not expected in such large volumes as, for example, with government securities.
Speaking about the most popular instruments of the stock market, Bayramov noted that short-term government bonds issued in the national currency are in great demand due to the low risk percentage, since banks, being the main market participants, mainly use this tool.
According to the Baku Stock Exchange, the total turnover of exchange transactions for all instruments on the exchange in January-March 2019 amounted to 4.65 billion manats, which is 16.7 percent less than the same period of 2018.
The volume of government securities market made up 3.7 billion manats (a 40.7-percent increase over the year), with the turnover of the corporate securities market making up12.7 million manats (a decrease by 2.7 times), and the volume of the market for derivatives making up 794.8 million manats (a decrease by 3.2 times).