Baku. 17 February. REPORT.AZ/ Azerbaijan securities marked featured growth in 2016; significant qualitative changes also took place along with positive quantitative indicators.
Report informs, Financial Market Supervision Chamber stated.
The Chamber says, last year securities market reached 14 026 bln AZN, featuring 33% growth in comparison with 2015. Primary market grew 4.5-fold to reach 8.669 bln AZN. As a whole corporate securities market featured 2-fold, government securities market more than 40% growth.
In reporting period, initiatives from real sector players and financial institutions to increase capital through stock market led to 39% increase of operations in stock segment of corporate securities market to reach total 913 mln AZN volume. Especially, increase of authorized stock capitals by banks to meet demands for capital was a major factor stipulating growth of stock market.
In general, amount of deals in primary stock market made up 563 mln AZN, which is 2 times more than that in previous reporting period. Deals for corporate securities increased 2.2-fold in comparison with figure in the same period of previous year and amounted 7.833 bln AZN. Funding of state projects through securities market stimulates high growth dynamic in corporate bonds market; as a result, amount of corporate bonds placed in AZN soared 4.6-fold to hit 7.5 bln AZN.
During this period both primary and secondary markets for corporate bonds traded in foreign currency featured growth. Thus, corporate bonds placed in foreign currency soared 13-fold to reach 182 mln AZN, volume of operations in secondary market increased 4.1 times to reach 75.6 mln AZN.
Last year internal debt policy carried out by finance ministry, as well as issue of notes by Central Bank of Azerbaijan (CBA) to alleviate pressure on manat determined growth dynamics of volume of operations in government securities market. Deals in government bonds market amounted 567 mln AZN, which is 27.2 times higher than that in 2015. Secondary market of government bonds reached 146 mln AZN after 7-fold increase. In the context of economic processes in the country, price limit for provided orders for government bonds wasn’t determined, aiming at shaping profitability in the market based on demand and supply. As a result, profitability indicators for government securities featured growth unlike previous years. Average profitability for short-term government bonds placed in AZN rose to 13.07 in 2016. Profitability of only medium-term government bonds placed with foreign currency made 3%.
During last year CBA placed notes in stock market after 2-year delay to carry out monetary policy. Total value of notes placed through auction was 268.7 mln AZN. Average profit from CBA notes was 14.86% during last year.
In reporting period, 4 168 bln AZN currency-based and 272 mln AZN commodity-based trade operations have been carried out through derivative financial tools at derivatives platform of Baku Stock Exchange. Total volume of derivative financial tools market was 4.440 bln AZN, which features 28% drop in comparison with previous year.
Repo operations with government bonds carried out last year amounted 2 mln AZN - 15.6-fold less than in 2015.