The Tashkent Stock Exchange witnessed a significant drop in trading volume during the recent period amounting to just $230,353.4 (UZS 2.9bn) representing a staggering 63-fold decrease compared to the previous period. The primary reason for this sharp decline was the absence of any major mergers and acquisitions (M&A) transactions which had previously bolstered trading volumes as reported by the Avesta Investment Group.
Previously an M&A transaction involving KPBA shares accounted for 86.5% of the turnover totaling $12.5mn at a price of UZS 950 per share. However, the lack of similar transactions in the current period led to the drastic reduction in overall trading volumes. Even when excluding the impact of M&As, the turnover still decreased by 10.7 times compared to the previous period. The number of securities traded also saw a decline with 77 securities traded seven fewer than the previous period. Bonds continued to be a significant contributor to the turnover on the exchange with BFMT3V2 and IFMT4 together accounting for 46.5% of the total volume. Among stocks UZMK, URTS and IPKY were the top contributors each accounting for approximately 8% of the turnover. Price movements in major stocks were also noteworthy. The closing price of IPKY declined by almost 29% while UZMK experienced a price drop of 6.9% and URTS saw a decline of 1.2%. Additionally, AVEX decreased by 3.3% over the two-week period.
In economic news, the first half of 2024 saw over 3.5mn foreign tourists visiting Uzbekistan marking an increase of 415,000 or 13% compared to 2023. The Uzbek-Iranian Petrochemical cluster 'Petrochem' near Bukhara is set to launch production in autumn with an annual output valued at $240mn. Uzbekistan's foreign reserves decreased from $36.6bn to $36.3bn, a 0.8% decline though physical gold reserves increased by 0.3mn ounces, reaching 11.7mn ounces or $27.3bn. Almalyk Mining JSC (AGMK) exports decreased by 21.8%, reaching $283.3mn including 23,760 tons of copper (a 20.8% decline) and 12,702 tons of zinc (a 27.6% decline) products in the first half of 2024. Fitch has affirmed Xalq Bank JSCB with a BB- rating and a "Stable" outlook. Banking NPL in June reached 4.0%, including 4.4% for state-owned banks and 3.3% for private banks.
The Asian Development Bank (ADB) will provide Uzbekistan with a $100mn loan to modernize 230 perinatal medical centers. The largest logistics hub in Samarkand "Samarkand-Logopark" covering an area of over 40,000 sq.m., is set to open in 2025. The Japan Bank for International Cooperation (JBIC) will invest in a portfolio of joint initiatives worth over $3.7bn in Uzbekistan. China's Henan province plans to invest $400mn in developing coal mines in Uzbekistan. TBC Bank Uzbekistan attracted $38.2mn from EBRD, IFC and its parent company to introduce new financial products. Delivery automation startup Delever secured $100,000 from Aloqa Ventures.
Fitch assigned Navoi Mining JSC (NGMK) a BB- rating with a Stable outlook. Fitch Ratings affirmed Uzbekistan’s Microcreditbank with a ‘BB-’ rating and a stable outlook. Biokimyo JSC (BIOK) attracted a $1.9mn (UZS 24.5bn) loan from Ipak Yuli Bank JSCB (IPKY) under the collateral of main production buildings. TBC Bank JSCB established a 100% subsidiary, Qulay Insurance LLC, with an initial capital of $1.7mn (UZS 22bn) expected to apply for a life insurance license. Kogon yog-ekstraksiya zavodi JSC (KYEZ, KYEZP) was delisted from the Tashkent Stock Exchange as of July 17, 2024.
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