The Tashkent Stock Exchange witnessed significant fluctuations and notable transactions during the trading period from November 27 to December 8, 2023, the report of Karen Srapionov, partner at Avesta Investment Group indicates. The market reflected robust activity with a total trading volume amounting to UZS 8.6bn ($699,675), marking a notable upsurge of 41.4% compared to the preceding fortnight. However, the total number of traded securities saw a slight decline, amounting to 88, down by two from the prior period.
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Sectoral Insights:
Leasing conglomerate Hamkor Invest Lizing (HKIL3) emerged as a dominant player, contributing a staggering 57.7% to the overall turnover with a single substantial bond transaction, reflecting the significant role of this entity in the market.
Elektroqishloqqurilish (EQQU), focusing on construction materials, claimed an 11.2% share in the turnover, followed by Ohangaroncement (OHSM) at 4.4%. Despite their substantial contribution, the prices of these top securities remained stable throughout the period.
However, Uzbektelecom (UZTLP) garnered attention by entering the top ranks but faced a considerable decline of 46.43% in its closing price, marking an intriguing development amidst the market dynamics.
Market Movements:
Within the realm of liquid stocks, entities such as Hamkorbank (HMKB), Uzmetkombinat (UZMK), and Qizilqumcement (QZSM) experienced minor increases in their closing prices, with 1.74%, 3.33%, and 4.06% respectively. Conversely, Uzbektelecom (UZTLP), Uzbek Commodity Exchange (URTS), Biznes Finans (BFMT3V2), and UzAuto Motors (UZMT) observed a moderate decline in their closing prices, -46.43%, -0.57%, -1.02%, and -0.01% respectively, adding complexity to the market trends.
The AVEX index, a pivotal barometer of market performance, experienced a marginal 0.2% uptick during this trading period, signifying a nuanced trajectory amidst the overall market scenario.
Economic Landscape:
In parallel with stock market activity, Uzbekistan's economic landscape has seen various compelling developments.
- Uzbekistan emerged as the largest seller of gold globally, selling 11 tons in October, solidifying its position in the precious metals market.
- Venture capital in Uzbekistan witnessed a substantial six-fold year-on-year growth, attracting $4mn in H1 2023.
- Multilateral organizations like the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD) pledged substantial funds to support small and medium-sized businesses and bolster green initiatives, respectively.
- Initiatives such as the development of "green" industries and digital inclusion programs have received significant financial backing from international entities, marking a progressive shift towards sustainability and technological advancement in the Uzbek economy.
Business Expansion and Ventures:
The business landscape in Uzbekistan showcased a vibrant spectrum of both local and international endeavors:
- Notable international entities like Rieter, Sportmaster, and Papa John's made their entry into the Uzbek market, signifying a growing appeal for foreign investments and franchises.
- Collaborations and joint ventures between local and foreign entities in sectors like textiles, automotive, retail, and technology indicate a promising future for diversified industries within Uzbekistan.
Market Dynamics and Ratings:
S&P's actions in monitoring and affirming ratings for several key entities such as UCG, Almalyk Mining JSC (AGMK), and Uzbekneftegaz JSC (UZNG) underscore the market's vigilance and response to disclosures and operational performances of major players. The affirmation of Uzbekistan's sovereign credit ratings by S&P, despite the revised outlook for UZNG, provides a backdrop of stability amidst fluctuations.
The Tashkent Stock Exchange portrayed a mix of stability, volatility, and promising developments across various sectors, indicating a dynamic landscape with both challenges and opportunities for investors and stakeholders.
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