Bond transactions dominated market activity contributing to more than half of the total turnover at 67.7%. Among the bonds, BFMT3V2 led with 45.8% of the turnover followed by HMBK1 at 18.9% and IFMT4 at 2.1%. In terms of stocks, the highest contributions to the total volume came from UNVB (8.9%), EQQU (7.5%), and URTS (4.0%).
During the recent trading period the Tashkent Stock Exchange (TSE) experienced a notable decline in activity with the total trading volume amounting to nearly UZS 14.1bn marking a 45.8% decrease compared to the previous two weeks. The number of securities traded totaled 79 three less than the previous period as reported by Avesta Investment Group.
Several securities saw significant price changes. UZTL experienced the highest increase at +7.2%, followed by UZMK at +5.0%. Conversely, UNVB and URTS saw declines of 13.9% and 3.3%, respectively. Other top securities by volume either remained stable or exhibited minor fluctuations. Additionally AVEX increased by 1.3% during this period.
In economic news S&P affirmed Uzbekistan's sovereign credit rating at BB- with a stable outlook. Canadian Condor Energies announced a $582mn investment in oil and gas production in the Bukhara region. SQB JSCB (SQBN) secured a €165mn syndicated loan from Deutsche Bank. Inflation in May reached 2.8% month-over-month or 10.55% year-over-year and the state debt stood at $34.9bn representing 38.4% of GDP in 2023. Uzbekistan aims to join the World Trade Organization (WTO) by 2026. Hyper Partners will build a 500MW photovoltaic power plant in the Namangan region and China Datang Overseas Investment will invest $150mn for a 263 MW photovoltaic power plant in the Tashkent region. Russia also plans to construct a small nuclear power plant in Uzbekistan.
The crypto sector contributed $3.5mn to the state budget in Q1 2024 and new flights have been launched between Doha and Tashkent. Iranian Petrochem will launch a $273mn chemical cluster in the Bukhara region with a production capacity of 460,000 tons per year. The President instructed to identify 20 areas with the highest tourism potential in the Kashkadarya region attracting $50mn for each. Revenue of Beeline Uzbekistan for 2023 amounted to UZS 3.15 trillion, an increase of 22.6% year-over-year. Car production increased by 1.5 times reaching 114,600 units in the first four months of 2024. Russian VEB.RF will invest $3.3bn in various projects in Uzbekistan including the construction of a nuclear power plant. Non-performing loans (NPLs) in April rose from 4.5% to 4.8% with 5.3% for state-owned banks and 3.8% for private banks. The World Bank will provide $100mn to improve social services in Uzbekistan and Domino's Pizza opened its first restaurant in Tashkent.
Corporate developments included the supervisory board of Biokimyo JSC (BIOK) recommending paying dividends of UZS 2,400 per share and Uzbekistan Airports JSC establishing Airports Training Center LLC. Boshtransloyiha JSC will conduct project and design work for Uzbekistan Railways JSC on the Bukhara-Misken railroad worth approximately UZS 3bn. TBC Bank JSCB will provide a UZS 25bn loan to TBC Fin Service LLC. Hamkorbank JSCB (HMKB), Uzvtorcvetmet JSC (UIRM) and Akhangarancement JSC (ex. OHSM) decided not to pay dividends for the 2023 fiscal year. Fitch affirmed a BB- rating with a stable outlook for Almalyk Mining JSC (AGMK) and assigned a BB- rating with a stable outlook to TBC Bank Uzbekistan.
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