BAKU STOCK EXCHANGE
The main achievement of the Baku Stock
Exchange (BSE) in 2003 was the creation of the
necessary regulations and facilities in order to
increase trading volume in equities. The results
of the BSE’s performance in 2003 confirm that
we were able to carry out most of the difficult
tasks that had confronted us at the beginning
of the year.
Salim Kriman
President
The results of the
BSE’s performance in
2003 confirm that we
were able to carry out
most of the difficult
tasks that had
confronted us at the
beginning of the year.
We have reviewed our internal regulations and,
with the assistance of foreign experts, have
made the Exchange more flexible for market
participants.
The shareholders of the BSE are leading Azeri
and foreign banks and investment companies.
The share of one shareholder in the capital of
BSE is equal to US$ 61,250. The supreme
decision-making authority of the Baku Stock
Exchange is the General Shareholders Meeting.
At the moment the BSE is involved in several
international technical assistance programs
which we hope will facilitate a positive outcome
in the near future.
Approval of new trade regulations by the
Supervisory Council and the State Securities
Committee has brought about an increase in
activity in the corporate securities market
sector. In 2003 trade volume in the equities
secondary market reached US$ 3.5 million,
3.2 times more than in 2002. Stocks of 188
issuers were traded on the BSE.
HISTORY AND DEVELOPMENT
The establishment of a stock exchange was a
necessary step in the creation of a modern
stock market in Azerbaijan. Due to its
geopolitical location Azerbaijan is an important
regional center of business activity. In this
respect the availability of a stable and
developed securities market plays a substantial
role in the raising of investors' confidence in the
economy of Azerbaijan and the region.
During 2003 trade in the secondary market
increased almost 3 times in comparison with
2002. The increase in liquidity of this sector has
influenced the rate of return, which has
decreased from 10% to 7% in local currency.
FUTURE OUTLOOK
Legal bodies (banks, investment funds, broker
firms) involved in professional activities in the
securities market with special license from the
State Committee for Securities under the
auspices of the President of the Azerbaijan
Republic can become members of the BSE.
The main goals of the BSE for 2004 are to:
• increase the awareness of capital markets in
Azerbaijan by supplying quality information
and analysis;
• develop new financial products such as
bonds and equities;
• attract new local and foreign investors to the
national capital market;
• introduce Azerbaijan capital markets to the
international marketplace; and
• improve internal regulations of the Baku
Stock Exchange.
The trading floor of the BSE is equipped with 30
computerized trading stations, 18 of which
belong to the shareholders of the Exchange.
The other 12 are available for new members.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
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