BAKU, Azerbaijan, Jan. 18
By Klavdiya Romakayeva - Trend:
The volume of transactions over the past year on Uzbekistan’s stock exchange increased by 31.7 percent despite COVID-19 pandemic, and amounted to more than half a trillion soums ($48 million), Trend reports referring to Avesta Investment Group.
According to Avesta, the total volume of transactions on Toshkent Republican Stock Exchange amounted to 557.9 billion soums ($53.4 million).
It is reported that at the end of 2020, the market capitalization of all companies in Uzbekistan on the exchange amounted to approximately 50.1 trillion soums ($4.7 billion), which is four percent less than at the beginning of last year.
Experts attribute this to a decline in the value of state-owned banks' assets.
It was noted that the market capitalization of "free-float" (free-float shares available to private investor) was estimated at 2.96 billion soums ($283 million).
In total, the number of transactions on the exchange in 2020 of amounted to 36,059 transactions. Compared to 2019, their number increased by 10.6 percent. Avesta explains the increase by the entry of foreign investors into the Uzbek market.
In addition, the total number of securities that took part in the trades reached 122, while in 2019 there were only 122 of them. Throughout the year, 52 companies were listed on the exchange and only five left it. As a result, the number of companies on the list amounted to 146.
Avesta's experts noted that despite the COVID-19 crisis in the world and especially in the economy of Uzbekistan, the market is growing and changing in a positive direction in its structure.
The growth in turnover was mainly provided by several large privatization and M&A (mergers and acquisitions) transactions
Furthermore, experts said that the increase in deals was provided by large companies such as Quartz, which traded every day, as well as Hamkorbank (HMKB) and Kyzylkumcement (QZMS). “Their securities are most often traded by retail and institutional portfolio investors.”
It was also noted that in terms of sectors, banking has become the most traded. The total volume of transactions of financial institutions is estimated at 326.6 million soums ($31,150) or 56.5 percent. In 2020, 30 types of securities were traded there, including two bonds and 19 ordinary shares of 20 different banks.
Moreover, most of the securities on the list, including the shares of seven banks, decreased in price by 3-51 percent.
The most significant growth was noted in the shares of Kyzylkumcement, mainly in 4Q2020. According to financiers, this was due to the good results for 9M2020 and high dividend payments.
The same situation was noted with the shares of Toshkentvino Combine, but the growth in the price of the company's securities amounted to only 25 percent. Avesta's experts explain this by much less liquidity, both in terms of turnover and the number of transactions.
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