Stock market sharply reduced in Azerbaijan

Baku. 18 January. REPORT.AZ/ Narrowing of the liquidity of the financial sector of Azerbaijan led to the diversion of investors, ensuring the flow of investments from shares more liquid corporate bonds denominated in local and foreign currency.

Report informs referring to the State Securities Committee, in 2015 the number of transactions on the corporate bond market has grown by 39%, the volume - by 2% to 3.5 bln AZN.

Although the primary market for corporate bonds in comparison with 2014 decreased by 25% to 1.6 bln AZN, the growth in trade in these instruments in the secondary market at 47% - up to 1.9 bln AZN provided positive dynamics of the market of corporate bonds.

During the reporting period the volume of transactions in the market of corporate securities reached 4.2 bln AZN. Although, stagnation marked at primary market of corporate securities, secondary market transactions in these instruments increased by 59% to 2.3 bln AZN.

Stock market decreased compared with the previous year due to the fact that the process of raising requirements for minimum capital of commercial banks that are active participants in the stock market ended. Thus, the decline in the share placement by 76% led to a reduction of market transactions by 49% - up to 656.9 mln AZN.

The downturn in the corporate securities market has led to a reduction in the volume of transactions in the securities market at an annual rate of 21% to 10.5 bln AZN.