Misty Processes in OTC Market

The volume of OTC trading in the period from September 30 to October 30 for the second time this year broke the record, surpassing 36.2 million manat.

According to the Baku Stock Exchange statistical information for the period indicated, transactions were recorded on 1,554,214 shares. Exchange, despite the regulatory legal acts, did not disclose these transactions, but only grouped them by type of issuers whose shares are traded on a monthly interval. The analysis of these documents shows that during this period was concluded the sale of 50,000 shares of a financial company. As the face value of the shares of this company is 0.24 AZN, it can be assumed that it is JSC International Bank of Azerbaijan. The volume of transactions on other securities of financial companies amounted to one thousand pieces of 8 million 362 thousand manats.

Comparison of the figures shows that in the last days of October a deal was made for 28,638 shares for a total of more than 22.9 million manat. The transaction price per share amounted to 800 manat. Thus, the BSE has left one mystery for investors. Probably, in this case, the counterparty is an insider, which is also subject to full disclosure (except for the names of parties to the transaction). Overall, the total amount of transactions in shares of companies in other economic activities has exceeded 24 million manat.

The total amount of transactions on 812,494 shares of industrial enterprises amounted to 3 753.5 thousand manats.

For comparison, the volume of 204 exchange transactions in October amounted to 342.7 thousand manat, of which 150.6 thousand manats fall on the shares of Holcim (Azerbaycan).

The State Securities Committee and the World Bank (donor of the government for the development of the capital market) still do not notice the neglect by Baku Stock Exchange of the rules to ensure the transparency of the OTC stock market. - 08B