Securities Market Shrinks by a Third

The securities market in Azerbaijan is still unpredictable. Against the background of more than 2- fold increase in the corporate bond market turnover of government securities fell by 40 %.

According to the State Committee on Securities, the market turnover for the first nine months of this year amounted to 5.5 billion manat, which is 32 % less than in the comparable period last year. The reason for the collapse is the reduction of repo and counter- repo operations on the notes of the Central Bank, from 6.4 billion to 4 billion manat. A total volume of transactions in government securities by 541 transactions amounted to 4 385.7 million manat, which is 40 % less than in January -September 2012.

The corporate securities segment also showed a positive trend. Since the beginning of the year on shares and corporate bonds were concluded 3644 transactions that 8% more than in the first three quarters of last year. Turnover on them amounted to 1 140.1 million manat. This is 27% more than in the same period of 2012. Stock market turnover amounted to 448.2 million manat, increasing by 13%. The growth in market of stocks has been achieved at the expense of their OTC turnover. Although the SCS stopped publishing data on OTC turnover of shares, the comparison of transactions shows that the proportion of shares in the secondary market as high as 90 %. The secondary market of shares increased 2.4 times.

During the reporting period the volume of the IPO amounted to 324.8 million manat, which is 6% less than in January -September 2012.

The volume of corporate bond market amounted to about 692 million manat. It is 2.3 times more than the same period last year. The share of the secondary market is two-thirds (AZN 461.3 million) of the turnover of bonds. - 08D-