Corporate market declined by 58.6%

In the first half of 2012 the turnover of corporate securities (SEC) in the National Depository Center (NDC) was 229.2 million manat at face value. That's 323.5 million manat or 58.6% less than in the comparable period in 2011. The collapse of the market is mainly associated with a reduction in the primary market, but the situation in the secondary securities market is not better.

According to NDC, the turnover of SEC was 85.9 million manat. This is 42.6% less than in January-June 2011. The volume of outstanding securities totaled 89.8 million manat, which was 77.5% fewer than during the same period last year.

The high rate of growth in this background shows the growth of OTC Operations for SEC. While the January-June 2010 volume of OTC transactions was 10.4 million manat, for the same period of the subsequent years this figure was 15.5 million, respectively, and 53.5 million manat.

The number of OTC transactions for the year increased by 44% to 373, despite the fact that NDC tariffs of OTC purchase and sale of SEC are twice the stock exchange ones. OTC, as a rule, regards transactions with large blocks of securities, in publishing which the insiders are not interested. - 08B-