Azerbaijan's Unicapital OJSC predicts notable rise in operations with securities for 2021

Finance Materials 25 January 2021 17:26 (UTC +04:00)
Azerbaijan's Unicapital OJSC predicts notable rise in operations with securities for 2021

BAKU, Azerbaijan, Jan. 25

By Zeyni Jafarov – Trend:

The securities market in Azerbaijan has shown certain successes despite being newly formed compared to developed European countries, the head of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend on Jan.25.

According to Ibadov, given the increased interest of the Azerbaijani population in the investment sphere, the demand for this type of service is growing from year to year. Most of the financial markets are the securities market.

About 75 percent of the volume of issued securities is part of debt obligations. A significant part of the bonds (over 90 percent) are bonds of the Ministry of Finance, the Mortgage and Credit Guarantee Fund, as well as notes of the Central Bank, he said.

The department head pointed out that in the corporate market in recent years, there has also been a growing trend in bond placement. One of the main factors positively influencing the development of the corporate securities market is legislative and tax reforms.

“In general, despite the fact that 2020 passed in conditions of the COVID-19 pandemic, the activity of the corporate market hasn’t decreased," Ibadov further said. “On the other hand, the restoration of the territorial integrity of Azerbaijan in 2020 will also have a positive impact on the development of the investment sphere.”

“During 2021, the volume of government bonds issued by the Ministry of Finance in order to cover part of the expenses from the state budget and the repayment of overdue bonds will significantly increase compared to last year,” he added.

Concerning asset management in the capital market, the company’s representative stressed that this is a widespread and used type of service in international practice, aimed to gain income via attracting free funds from the population by investing them in various types of financial assets. The development of this area is a factor that directly affects the development of financial markets.

Due to the low level of inflation in Azerbaijan, as well as due to the damage caused to the economy by the pandemic, it can be predicted that the Central Bank will keep the discount interest rate low for some time and will contribute to an even greater decrease in inflation, which will directly have a positive effect on the local capital market, concluded Ibadov.


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