In the two months of this year, the market for local government and corporate securities in Azerbaijan amounted to 527 million manat. It is only 16.2% compared to the same period in 2014. This is due to the loss of investor interest in debt securities due to their low liquidity.
According to the State Securities Committee, the turnover of corporate securities decreased slightly, by only 3% to 474 million manat. In this exchange and OTC market shares based on their placement (total 24.8 million manat) decreased by 89% .The corporate segment of the securities market is held due to the secondary trading of credit institutions and the Mortgage Fund. From the beginning, the share of the secondary market was 92% of corporate trade.
This year, the volume of trade government securities (53 million manat) is only 2% against the same period of 2014, as repo operations on notes of the Central Bank has been stopped.
A downturn in the stock market leads to a loss of income of professional participants. Many investors do not seem interested in this market, as it is not secure and the most sensitive to adverse economic developments. ------08D
Economics
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Azerbaijan began the new year with significant hikes in gas, electricity, water, and medication tariffs, sparking widespread concern among citizens over the financial burden on households. While officials defend the measures as necessary for economic sustainability, critics warn of challenges tied to stagnant wages and pensions.
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As of January 1, Europe has ceased contract-based transit of Russian gas through Ukraine. Kyiv announced it would not renew agreements to traffic gas from the "aggressor nation" through its territory. The decision marks a pivotal moment in Europe’s efforts to reduce reliance on Russian energy, a dependency that supplied nearly 50% of the continent’s gas imports before the war in Ukraine.
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Azerbaijan's Tariff Council has approved a decision to regulate the maximum wholesale and retail prices of registered medicines, with the new pricing caps coming into effect on January 2, 2025.
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Azerbaijan's Tariff Council has approved tariffs for connecting construction sites to water supply and wastewater systems for the first time, addressing a previously unregulated sector with inconsistent charges, the council announced on January 2.
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