Uzbek stock market on the rise

Finance Materials 15 August 2019 12:16 (UTC +04:00)

Baku, Azerbaijan, August 15

By Fakhri Vakilov - Trend:

In an analytical review of the capital market, financial analysts at Portfolio Investments LLC noted a major event on the stock market of Uzbekistan - the issue of 7-year corporate bonds of Asia Alliance Bank on July 16, Trend reports citing the July review of LLC Portfolio Investments.

Placement of these securities continues.

The annual rate of return on bonds of JSCB Asia Alliance Bank is 20 percent (refinancing rate of the Central Bank of Uzbekistan + 4 percent). The entire issue amounted to 50 billion soums (50,000 bonds at a price of 1 million soums).

The stock market of Uzbekistan is starting to develop. From news on legislative acts it follows that, in particular, state-owned blocks of shares may be sold below their nominal value.

Analysts' considerable expectations are associated with large-scale structural changes at Uzbekneftegaz JSC, the transformation of several oil and gas producing and gas processing organizations, and most importantly, IPO (initial public offering) / SPO (secondary public offering) of Uzbekneftegaz JSC and Uztransgaz JSC on the Republican Stock Exchange (RSE) of Tashkent and the international stock markets with maintaining a state share of at least 51 percent.

The relevant resolution of the head of state was adopted on July 9 of this year.

In addition, within the framework of the Decree of the President of Uzbekistan of July 19 this year, it is planned to attract investors through IPOs in the domestic and international stock markets of shares of at least two joint-stock companies that are part of Uzavtosanoat JSC.

Analysts note that in July, the volume of exchange trading amounted to 41.77 billion soums (1,954 transactions). In total, for the seven months of 2019, the total trading volume at the RSE “Toshkent” exceeded 186.5 billion soums (19,709 transactions).

The largest trading volume and the largest number of transactions in July 2019 was observed in the banking sector, where the total volume of transactions amounted to 37.93 billion soums with a share of 90.82 percent of the total exchange turnover, reads the message.

Portfolio Investments LLC is one of the leading and key companies in the securities market of Uzbekistan, which has been providing services to large private, corporate and foreign investors in the field of investment and consulting since 2012.


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