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Number of transactions on Uzbek stock exchange nearly triples

Finance Materials 19 August 2019 15:12 (UTC +04:00)

Baku, Azerbaijan, Aug 19

By Fakhri Vakilov- Trend:

The total volume of transactions on the Republican Stock Exchange (RSE) “Tashkent” in the first half of the year reached 144.7 billion soums, which is almost 15.3 percent lower than in the same period in 2018, Trend reports with reference to Avesta Investment Group company.

The company reported that the main reason for this decrease is related to the placement of bank shares last year in accordance with the new requirements for the minimum authorized capital from the Central Bank of Uzbekistan.

Banks were forced to increase their registered capital to 100 billion soums. The average daily trading volume for the first six months of 2019 amounted to 1.4 billion soums, which is 1.17 times lower than in the same period of the previous year.

The number of transactions reached 17.628, which is almost three times higher than in the first half of 2018. The total number of types of securities that participated in the RSE transactions amounted to 100 units. The number of transactions has increased significantly due to the activation of foreign portfolio investors and local personal accounts, read the message.

The average daily number of transactions on the exchange in the first half of the year was 144.

Shares of Qyzylqumcement and Qoqon Mexanika Zavodi plants were daily traded at the RSE “Tashkent” for 122 days out of 122 working days, which is 1.7 times higher than in the first half of 2018. Kvarts showed similar results - 121 days, which is 1.14 times higher than in the first half of the previous year.

Kvarts and Qoqon Mexanika Zavodi traded on average 11 million and 13.1 million soums per day. The daily trading volume for Qyzylqumcement is 87 million soums.

“We can conclude that the Uzbek market is turning into a much more retail and realistic platform, where the main volumes of operations are carried out due to real demand and offers of investors, and not just because of administrative requirements, which leads to a decrease in volumes and an increase in the number of deals,” the Avesta Investment Group commented.

Banks account for the largest share of all transactions, reaching 85 percent of turnover, compared to 66 percent of the same period in 2018. The second place is occupied by the cement industry with 8 percent, and the third place belongs to engineering with 5 percent.

Among the top 10 banks, Turkiston Bank’s shares have the largest trading volume of 29.3 billion soums, or 20.26 percent of all transactions, and the largest share of shares of the total authorized capital that passed during the auction (27.98 percent), read the message. Kapitalbank also has a significant amount of transactions worth 20.6 billion soums with almost 20 percent of the capital traded on the stock exchange, and Hamkorbank with 16.83 billion soums, which is 2.4 percent from the bank’s equity, occupies the third place in the top ten.

Furthermore, the top-10 market includes eight banks in terms of transactions, which confirms the largest share of banks in trade.

Qyzylqumcement and Qoqon Mexanika Zavodi are in the top10 non-banking companies. The top 10 companies accounted for more than 93.1 percent of the exchange’s turnover, while in the first half of 2018 this figure reached only 78 percent.

($1 = 9057.56 soums on Aug 19)

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