Manipulation with shares of Holcim-Azerbaijan

At a May 20th at the Baku Stock Exchange trading session was recorded transaction minority interests of Holcim (Azerbaijan) costs 86 manat for 1 share. Experts believe that after the announcement in March of this year, high-dividend on the stock exchange transactions have been aimed at misleading investors.

Even the professional participants of the securities market in Azerbaijan do not conceal that the stock market is the only platform for the conclusion of transactions targeted. Almost all transactions are made at par value of the shares and of Holcim (Azerbaijan) is one of the few exceptions. Even after the announcement of this year's dividend transactions were by no more than 55.37 manats per share (April 22). However, on 25 and 28 April at the exchange transactions were recorded at a fantastic price - 383 manats per share and Turan news agency wrote about this criticism. The fact that according to the regulations of BSE, the transaction price per share may not exceed 20 % of the price recorded in the previous trading session. Immediately it was share price inflation by 6.9 times.

After doing this for a long time transactions for the purchase and sale of shares of Holcim (Azerbaycan) were suspended. Brokerage firms, as well as the main party buying the shares (LLC Azeri Invest Company) could not explain what was happening. In an interview with Turan, they argued that investors are willing to offer for a standard package of shares (186 shares per one minority shareholder - a member of personnel of the cement plant) is not more than 16,000 manat to the condition that the November 50% dividend will get a new shareholder. "Excessive increase in prices is a clear sign of manipulation of prices," claimed brokers.

However, there is another version: in increasing stock prices might be interested portfolio investors: European Bank for Reconstruction and Development and the state-run Azerbaijan Investment Company. They own 10 % of shares of Holcim (Azerbaijan). According to their strategy, they leave the ranks of shareholders to achieve certain tasks.

According to the "Rules to prevent abuses in the securities market ", approved by the State Committee for Securities, one of the types of such abuse is price manipulation (paragraph 1.4.1 of the Regulations).

The Rules (paragraph 5.1.7 ) painted manifestations of price manipulation , one of which is the provision of transactions or orders that give a false and misleading information about the prices of securities or of the supply and demand for them. JSC Holcim (Azerbaijan) does not comment on what is happening.

Note that stock prices Holcim ltd, the controlling shareholder of Garadagh cement plant, are more restrained dynamics over the last 12 months, the exchange price per share ranged from 63-81 Swiss Franc (EUR 1 = CHF 1.2223). On May 21 for its shares they gave 78.3 CHF. - 08B-