Wednesday, February 2 2011 11:38
Exchange trading results and what the brokers cash on
ArmInfo. NASDAQ OMX Armenia has summed up the results of 2010. Corporate bonds trading value in 2010 was AMD 2.8 bln, which is 70% less than the same of the previous year. During the year 3 new issues of corporate bonds with total value of AMD 2.25 bln, including corporate bonds by ARARATBANK jsc and two issues by Shen-Concert jsc, were registered. Executive Director of NASDAQ OMX Armenia Armen Melikyan presented these data at a press conference on Tuesday.
He said that in the non-exchange market (transactions served by the Central Depository of Armenia) the volume of transactions with corporate bonds amounted to about AMD 740 mln, i.e. almost twice as little as in the stock exchange. "It turns out that the market of corporate bonds in Armenia is more interesting and considered to be more or less accomplished that the market of shares", said Melikyan and added that in fact the market of shares is also interesting, but the exchange market of shares is not developed.
Thus, in 2010 the non-exchange volume of transactions with shares made up AMD 125 bln (36 mln shares). In 2009 this index was AMD 33 bln. In addition, in 2010 AMD 122 bln shares were placed in the non-exchange market; the exchange volume of transactions made up AMD 124 mln and increased by 30% as compared with 2009.
Melikyan preferred not to specify the reason of such disproportion between the exchange and non-exchange turnovers. However, it is obvious that for a certain group of people - brokers - the non-exchange market is the main source of good gains. Value traded in foreign currency market was AMD 281.6 bln (USD 754.4 mln), 24.4% lower than the same of the previous year. In 2010 all the trades were concluded only in US Dollars, while no trades in Euro were registered.
REPO trading also saw 26% reduction of value traded to AMD 3.8 bln. REPO trades were mainly concluded with corporate bonds, while only one trade was concluded with stocks of ARARATBANK jsc (ARBK). This year the 5th issue of bonds by "Shen-Conern" cjsc (SHNCB5) appeared among instruments traded with REPO agreements. Government bonds market was rather active in 2010 with almost doubled value traded of AMD 5.6 bln. 76.8% of total value traded fell to the share of mid-term government bonds. Number of trades also grew 1.4 times up to 460 trades.
Stock market saw a 30% increase of value traded, which is quite notable taking into account the fact that starting from 2006 this market didn't show any positive growth trend. During the year the most value traded was concluded with stocks of "ARAX" jsc (ARAX), "ARMECONOMBANK" jsc (HEZB) and "Artsakh HEK" (AHEK). Market capitalization as of year end comprised AMD 52.6 bln, which is only 0.9% less than the same of the previous year. To note, today corporate bonds of 5 issuers and shares of 12 issuers are listed at the exchange. The bonds of 1 issuer are listed Abond, those of the rest 4 issuers are listed Bbond. No shares are listed in A category, the shares of 3 issuers are listed in B category, and those of the rest 9 issuers are listed in C category.
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