Activity on Securities Market of Azerbaijan Fell

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