The Tashkent Stock Exchange (TSE) witnessed a notable shift in trading dynamics during 2023, marked by a total trading volume of UZS 2.6 trillion ($210.7mn).
This figure, however, reflects a 45.8% decrease compared to the robust UZS 4.8 trillion ($389mn) recorded in the previous year, 2022. Simultaneously, the number of transactions experienced a remarkable surge, reaching 399,218, almost five times higher than the preceding year's count of 80,723.
Driving Force: JETT Application's Impact on Retail Trading
The aggressive growth in the number of trades is attributed to the enhanced IT infrastructure of the JETT application. This development allowed retail clients to remotely open accounts, resulting in approximately 40,000 new accounts within the last couple of years. However, despite the surge in accounts, the total balance in these accounts remains relatively modest at UZS 20bn ($1.6mn).
AVEX Performance
AVEX exhibited robust growth, increasing by 86.5% in 2023, reaching a peak at 2,891.8 points. Notably, the share of trades on the main platform dropped from 26.6% to 17.6%, amounting to UZS 457.8bn ($37.1mn).
Industry Composition
An analysis of industry composition reveals the dominance of the banking sector, maintaining its leading position at 59.6% of the total turnover, down from 85% in 2022. The insurance sector surged fivefold to secure the second position, holding a 12.6% share.
Top Securities and M&A Transactions
The top 20 securities by trade volume in 2023 primarily featured M&A, privatization, and consolidation processes. Significant transactions included:
- Octobank (OCBK): CEO Iskandar Tursunov increased equity stake from 19.9% to 97.26%.
- Orta Osiyo Trans (ORST): UzSAMA sold a 51% equity stake to Hyper Partners for UZS 65bn ($5.2mn).
- Business Development Bank (BRBN): Sold a 100% equity stake in PFIS for UZS 51.6bn ($4.2mn).
- YGYM: 56% equity stake sold for UZS 40.9bn ($3.3mn).
- KUYM: 51% equity stake sold for UZS 23.4bn ($1.9mn).
Blue Chips Performance
Among blue chips, UZMT, UZMK, UNVB, URTS, and HMKB stood out, with varying share price trends.
Key IPOs of 2023
Three major IPOs took place in 2023:
- UzAuto Motors: Issued 2.7mn ordinary shares at UZS 72,500 ($5.88) per share.
- Uztelecom: Witnessed notable interest, resulting in a 25% increase in share price on the first day.
- Uzbekinvest: Emerged as a major IPO, with 29.7% of shares purchased by retail investors.
The OTC platform saw a total trade volume of UZS 178.5bn ($14.5mn), indicating a two-fold decrease from the previous year. Ingo-Uzbekistan Insurance dominated the OTC market, representing 52.9% of the total trade volume.
The total amount of placed State Debt Securities (SDS) reached UZS 10.2 trillion ($826.7mn), with an average annual yield of 17.1%. The number of Joint-Stock Companies (JSCs) reached 625, and private accounts increased by 38,000, totaling 748,000.
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