The Tashkent Stock Exchange experienced a decline in trading activity from August 19 - August 23 with the total trading volume dropping to $142,932 (UZS 1.8bn), a significant 2.1 times decrease from the previous week. This reduction in volume is due to the absence of mergers and acquisitions (M&A) transactions as reported by the Avesta Investment Group.
In the prior week, M&A and restructuring deals had accounted for 32.6% of the turnover, with notable transactions involving UPAT shares for $69mn (UZS 878bn) and IPTB shares totaling $23,298 (UZS 293.4mn). Despite the lower volume, the total number of securities traded increased slightly to 66 up from 64 in the previous week. URTS was the primary contributor to the turnover, accounting for more than half of the total volume, while MATA and UZMK contributed 11.4% and 8.3% of the volume respectively. Bonds made up only 6.2% of the volume this week.
In terms of price movements, UZMK saw a 6.9% increase in its closing price making it one of the top performers while QZSM and UZMT also posted gains of 5.2% and 3.1% respectively. Conversely, BIOK, IPTB and BFMT3V2 saw declines in their closing prices with BIOK dropping by 6.4%, IPTB by 1.8% and BFMT3V2 by 1.4%. AVEX had a marginal increase of 0.2% during the week. The economic landscape of Uzbekistan was marked by several key developments including Indian Avee Broilers considering a $43mn investment in poultry meat production and trade and investment deals worth $2.5bn signed between Afghanistan and Uzbekistan. Chinese Shangdong Aipurui Steel Plate Co. Ltd. announced plans to construct a $120mn metalworking plant in Fergana, while Malaysian Sunview Group is exploring the construction of a 200MW solar power station in the region with a proposed investment of $150mn. In telecommunications, Perfectum Mobile announced a partnership with Vodafone, with Nokia selected as the equipment supplier and a total investment of $250mn expected including $100mn from the Finnish export credit agency.
Uzbekistan's foreign trade turnover for the first seven months of 2024 increased by 5.3%, reaching $36.8bn. This growth was driven by a 10.1% rise in imports which reached $22bn, though exports saw a slight decline of 1.1%, dropping to $14.8bn. In the banking sector, the Non-Performing Loan (NPL) ratio increased from 4.0% to 4.2% in July, with state-owned banks reporting a higher NPL ratio of 4.4% compared to 3.7% for private banks. This increase indicates a slight deterioration in asset quality within the banking system.
On the Tashkent Stock Exchange, Hamkorbank JSCB (HMKB) secured a $100mn equivalent credit line from FMO to support small and medium-sized enterprises (SMEs). Additionally, 93-Maxsus Trest JSC (MXUS) was listed on the exchange as of August 19th followed by Tashgiprogor JSC (TGPR) on August 22nd. Uzbekneftegaz JSC (UZNG) capitalized nearly $79.4mn (UZS 1 trillion) into its charter capital.
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