A significant M&A transaction involving KPBA shares which amounted to UZS 156.7bn ($12.4mn) at UZS 950 per share accounted for 86.5% of the total turnover due to which trading on the Tashkent Stock Exchange (TSE) soared to UZS 186bn ($14.7mn) representing a 23.9-fold increase over the previous period as reported by the Avesta Investment Group.
Other notable M&A deals included ATSZ for UZS 1.2 bn ($ 95,331) at UZS 16,242.98 per share, JASM for UZS 1.1bn ($ 87,386) at UZS 54,866 per share and METQ for UZS 541.1mn ($ 42,986) at UZS 13,051 per share. The total number of securities traded increased to 84, ten more than the previous period. Excluding the impact of KPBA and ATSZ transactions, UZMT emerged as the largest contributor accounting for 72.8% of the turnover. Bond transactions comprised 6.4% of the volume, a decrease from 20.2% in the previous period. In terms of price movements IPKY and TRSB saw their closing prices rise by 21.01% and 15.18% respectively, while UZMT and BFMT3V2 experienced declines of 2.11% and 0.11%. AVEX decreased by 8.8% during these two weeks.
In economic developments, Uzbekistan recorded a seasonal deflation of 0.24% in June resulting in a year-on-year inflation rate of 10.6%. Almalyk Mining JSC (AGMK) announced plans to invest $15bn to double its copper production capacity. Additionally, Chinese company MingYuan plans to construct a $1.2bn technology park in the Jizzakh region. The Czech firm Nymwag is set to build a factory capable of producing 2,000 wagons annually. Canadian company Condor Energies will initiate a multi-well workover campaign for eight gas-condensate fields in Uzbekistan. The Agency for Strategic Development has proposed the construction of a $60mn shopping mall in the Tashkent region.
Regulatory changes are also on the horizon with Uzbekistan planning to lift price caps on medical products and over-the-counter drugs that were introduced in 2017. Korea Western Power (KOWEPO) has launched a significant greenhouse gas reduction project in Uzbekistan which is expected to cut approximately 120,000 tons of greenhouse gas emissions over the next decade. Chinese company Shiyan Zhenke Industrial Technology will invest $40mn in a plant in Fergana to produce special equipment.
In the financial sector, the International Finance Corporation (IFC) will provide a sustainability-linked loan of $250mn to Coca-Cola Icecek and its subsidiaries in Uzbekistan, Tajikistan and Iraq. Spain is exploring the possibility of hiring workers from Uzbekistan to address a labor shortage of around 700,000 in its construction sector. S&P assigned Navoi Mining JSC (NGMK) a BB- rating with a stable outlook while Fitch assigned Kapitalbank JSCB (KPBA) a B rating with a stable outlook. S&P Global upgraded Kapitalbank's rating from B to B+ with a stable outlook. The National Bank of Uzbekistan JSC (NBU) placed bonds on the London Stock Exchange in two tranches totaling $411mn including $300mn in 5-year USD-denominated bonds and UZS 1.4 trillion ($111mn) in 3-year UZS-denominated bonds.
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