Corporate Market Grew by 6%

In January, the corporate segment of the securities market increased by 6% to 322.7 million manat. Growth was achieved by increasing the turnover of the secondary corporate bonds, according to the report of the State Committee for Securities.

The share of bonds was 93.7% (302.6 million AZN) of the corporate market. The corporate bond market has increased in comparison with January 2014 by 54%. In January the amount of the bond placement (13 million manat) decreased by 42%.

The stock market fell by international standards, with a decline of 81%. Seven transactions included shares totaling 18.6 million manat, while in January of last year the capital attracted from 105 investors amounted to 106.7 million manat. The volume of secondary market shares amounted to 1.5 million manat. However, this insignificant turnover was more than three times higher than in January last year. The subject of sale is mostly small stakes.

According to the report of SSC, in the first month of this year, activity on government securities fell to a minimum, since the repo operations on them practically ceased. The volume of transactions fell by 97% to 33.6 million manat.

At the same time, an analysis of the market of derivative securities shows that investors lack the supply of investment instruments. In January, the number of FOREX transactions fixed at the Baku Stock Exchange was 6,971, which was 14 times more than in the corporate and public sectors of securities combined. The volume of these transactions exceeded 1.5 billion manat. ----08D