The Tashkent Stock Exchange recently witnessed a marked reduction in trading volume from August 19 - August 30 with the total value of transactions amounting to nearly $728,675.93 (UZS 9.2bn). This represents a significant 51.9% decline week on week attribured to mergers and acquisitions (M&A) transaction as reported by Avesta Investment Group. The number of transactions also decreased by 11.5%, totaling 16,742.
A notable reduction in the number of securities traded was observed, with 72 securities being exchanged, down by five from the previous period. A major M&A-related deal involving OCBK shares, valued at $396,019.53 (UZS 5bn) at UZS 1,000 per share, accounted for more than half of the trading volume during this period. Other significant M&A transactions included CIMA shares worth $71,544.89 (UZS 903.3mn) at UZS 44,449 per share and MATA shares valued at $24,838.34 (UZS 313.6mn) at UZS 17,000 per share. Together, these M&A transactions contributed to 67.9% of the total turnover on the exchange. Bonds made up 7.8% of the trading volume, while URTS emerged as the most actively traded stock, contributing 12.9% to the turnover over the two-week period. Most securities in the top 10 by volume saw their closing prices rise, with QZSM (+29.1%), UZMK (+14.3%), and URTS (+11.5%) achieving double-digit growth. AVEX experienced a modest increase of 0.8% during the same period.
In foreign trade developments, Uzbekistan's turnover grew by 5.3% in the first seven months of 2024 reaching $36.8bn. This growth was primarily driven by a 10.1% increase in imports, which rose to $22bn while exports saw a slight decline of 1.1%, dropping to $14.8bn. Notable trade and investment deals included a $2.5bn agreement between Afghanistan and Uzbekistan, and an announcement by Chinese company Shangdong Aipurui Steel Plate Co. Ltd. to construct a metalworking plant in Fergana, valued at $120mn. Additionally, Malaysian company Sunview Group is considering the construction of a 200 MW solar power station in Fergana, with an estimated investment of $150mn.
In the telecommunications sector, the owner of Perfectum Mobile announced a strategic partnership with Vodafone. Nokia has been selected as the equipment supplier for this network expansion with new investments totaling $250mn, including $100mn provided by the Finnish export credit agency. Uzbekistan’s tourism sector also showed strong growth with nearly 4.2mn tourists visiting the country in the first seven months of 2024, marking a 15.3% increase compared to the same period last year.
In the mortgage sector, the average monthly payment has risen to nearly $237.61 (UZS 3mn), reflecting the increasing costs in the housing market. Additionally, BMB Holding launched a new agribusiness facility in the Jizzakh region valued at $36mn. In the energy and natural resources sector, coal production in Uzbekistan reached 3.4mn tons in the first seven months of 2024, showing a 12.4% year-on-year increase. The country also saw a substantial rise in gas imports which amounted to $983.7mn, a 4.9-fold increase compared to the previous year. In the banking sector, non-performing loans (NPL) experienced a slight increase with the ratio rising from 4.0% to 4.2% in July. State-owned banks reported an NPL ratio of 4.4%, while private banks had a lower ratio of 3.7%. Despite this, the sector remains robust, with Navoi Mining JSC securing a $150mn loan from MUFG and TBC UZ attracting a $25mn loan facility from BlueOrchard. Moreover, Fitch Ratings affirmed the country’s BB- rating with a stable outlook.
The Tashkent Stock Exchange also saw two new listings in August, with Tashgiprogor JSC (TGPR) and 93-Maxsus Trest JSC (MXUS) being added to the official roster. Hamkorbank JSCB (HMKB) also made headlines by securing a $100mn equivalent credit line from FMO to support small and medium-sized enterprises (SMEs). Furthermore, Uzbekneftegaz JSC (UZNG) capitalized nearly $79mn (UZS 1 trillion) into its charter capital, reinforcing its financial position within the energy sector. Kazakh company Kaspi.kz announced its interest in participating in the upcoming privatization tender for the HUMO payment system operator, marking a significant potential investment in Uzbekistan’s financial infrastructure. In the poultry industry, Indian company Avee Broilers is considering a $43mn investment in poultry meat production in Uzbekistan.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)