The Tashkent Stock Exchange (TSE) experienced a surge of activity in October 2023, signaling a promising trajectory for Uzbekistan's economic landscape. Several key factors contributed to this noteworthy month, encompassing stock market milestones, successful bond debuts, and a surge in over-the-counter (OTC) platform transactions, Avesta Investment Group reported.
TSE Trading Records
October saw the TSE break records with a total trading volume reaching a staggering UZS 20.7bn (around $1.7mn), marking an 8.5-fold increase compared to the same period in 2022. The exchange witnessed a flurry of activity, completing 39,439 transactions during the month. AVEX, a key index, experienced a commendable 7.2% increase, reaching its peak at 2,891.8 points.
Top 10 Securities
Trading activity within the TSE was largely driven by mergers and acquisitions (M&A) as well as restructuring processes. The top 10 securities, ranked by trade volume, showcased diverse dynamics. IPTBP emerged as the leading contributor, constituting nearly 14% of the total turnover. Despite its high trading volume, IPTBP faced a notable 19.54% price decrease.
A standout performer was YGGR, which, with a single transaction, contributed 10.64% to the total turnover. This was driven by a substantial deal worth UZS 2.2bn (around $180,000) at 9,270.08 UZS per share ($0.75)—a significant move for YGGR since its listing on the stock exchange in 2020.
Stock Price Movements
Among the listed stocks, IPKY and CBSK distinguished themselves with the highest increases in their closing prices, surging by 59.5% and 36.8%, respectively. In a positive trend, most listed securities displayed upward movements in their closing prices, underscoring the robust health of the TSE.
OTC Platform Surge
Simultaneously, the OTC platform witnessed substantial growth in October, with a total trade volume reaching UZS 2.1bn (over $170,000) and 4,769 transactions conducted. Humans Companies dominated the OTC market, commanding approximately 38.3% of the total trade volume. This surge underscores the expanding diversity of traded assets beyond traditional exchanges.
Central Securities Depository Metrics
October revealed a robust Central Securities Depository, housing a total of 620 Joint Stock Companies (JSCs) with a combined authorized capital of UZS 186.6 trillion (over $15bn). Impressively, the state's share in the authorized capital of these JSCs accounted for 84.7%, signaling a significant government presence in the corporate landscape.
International Bond Debut
Uzbekistan made history on October 9, 2023, with the successful debut of local currency-denominated green bonds valued at UZS 4.25 trillion (~$349mn). Additionally, the nation issued USD-denominated Eurobonds worth $660mn on the London Stock Exchange, attracting almost three times oversubscription. Citibank played a pivotal role as the Sole Green Structuring Bank in this landmark financial move.
Debt Securities and Economic Prospects
The total amount of placed State Debt Securities (SDS) in regulation for October 2023 reached UZS 1.5 trillion (around $122mn) boasting a 16.5% average annual yield. The Alliance for Water and Climate Risk Insurance (AWACRI) currently exceeds the Central Bank rate by 6.89%, indicating favorable market dynamics.
Funds accrued from the green bonds issuance are earmarked for eligible green expenditures outlined in Uzbekistan’s Sustainable Development Goals (SDG) framework. This strategic move aligns with Uzbekistan's commitment to sustainable development and positions the nation as a key player in the global financial arena.
October 2023 proved to be a transformative month for the Tashkent Stock Exchange, with soaring trade volumes, diverse stock performances, successful international bond debuts, and an expanding OTC market.
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