SCS main activities in 2005 was aimed at expanding securities market

Activities of the State Committee on Securities under the President of the Azerbaijan (SCS) in 2005 was aimed mostly at expanding the securities market, introduction of stimulating mechanisms for the active use of the securities market, attracting investors and reducing the investment risks, the SCS chairman Gyunduz Mammadov told the news conference today dedicated to the results of the SCS activities, noting the progress achieved is the result of economic processes, measures on the development of regions, entrepreneurship.

Along with this, one of the problems for which decision measures will be taken this year is that the securities market is focused practically in the capital city and it needs to be distributed among the regions. To this end, stimulating conditions are to be set up for the stock market professional participants. SCS proposes to the professionals, engaged in dealer's and broker's activities to open branches in the regions, however, it is not lucrative for them from the commercial point of view to diversify their operations in the securities market, Mammadov thinks.

He informed of the positive dynamics in the stock market. During the last year 84 issuers registered 108 issues of stocks at SCS for the total amount of 225,7 million ?ZN, while in 2004 there were 62 issues of shares by 50 issuers in the volume of 91,9 million ?ZN. The growth is about 2,5 times. The most active in this market are the banks, as 54 issues for the amount of 146,2 million AZN have been performed by 32 banks. In 2004 only 24 banks were involved in this market, which registered 34 issues of stocks for 61,7 million AZN.

Last year 23 Joint Stock Companies (JSC) were established in the framework of the privatization process, which registered issue of shares for 6,8 million AZN, and in 2004 there were only 10 issues for 4,4 million AZN. Five issues for 3,8 million AZN were performed last year by four insurance companies and in 2004 there were 4 issues for 2 million AZN. Issues of shares by leasing companies differ despite equal number both the issues and issuers (in 2005 – for 502,000 AZN, in 2004 - for 700,000 AZN). Remaining 23 JSC issued shares in 24 emissions for the amount of 68,4 million AZN. (In 2004, 10 JSC issued for 23,1 million by 12 issues).

Placement of shares for 70 million AZN by nominal was held through Baku Stock Exchange (BSE). 1081 deals on buy and sell, 7 transactions on corporate bonds for 1,1, million AZN, 8 transactions on T-bills for 36 million AZN, 47 deals on notes for 24,9 million AZN were made last year through BSE.