FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
NASDAQ OMX ARMENIA
CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK
While Armenia’s economy showed some
signs of improvement as compared to 2010
the outgoing year has also been marked by
inflation pressures and unemployment. At 2011
the national budget deficit was Dram14.8bn
(US$40m) in the first eight months of the year,
significantly smaller than the Dram26.5bn
deficit in the year-before period. Armenian
economy this year was again assessed as less
competitive than its neighbors’.
Real GDP grew by 1.2% year on year in the first
quarter and 3.9% in the second quarter. During
the first quarter services and industry remained
the principle drivers of increase. One of the
economic sectors that showed improvement
is agriculture, which was declared as one of
the priorities at the end of last year. Showing
a significant rise in 2011, agriculture plays
an important role in the Armenian economy.
Construction fell by 3.6% year on year, which
can be half accounted for by base effects.
Industrial production expanded by 24.7% year
on year in June and by 20.2% in the second
quarter. This was driven by developments in
mining and metallurgy, which benefited from
higher world prices for base metals in the first
half. In June the mining subcomponent rose by
12.9% year on year.
Export increase of 31.1% year on year
outpaced imports increase, of 11%. However, at
US$603.3m, exports were dwarfed by imports,
which reached US$1.89bn. Sharp increase
in exports was driven by large year-on-year
increases in exports of minerals, metals and
food-processing products. Exports of foodstuffs
and agricultural products could rise further in
the coming years with the expected opening
of the first tax-free zone in Armenia, on the
premises of the Zvartnots International Airport in
the capital, Yerevan
The government’s fiscal position has improved
since 2010, owing to improvements to
tax collection and only a modest increase
in government spending. The Ministry of
Finance reported a national budget deficit of
Dram6.56bn in the first half of 2011, down from
Dram16.9bn in the year-before period.
Budget revenue increased by 9% year on year
robustly in the first half. The robust increase was
driven by taxes and other national duties, which
generated nearly 80% of total revenue.
Capital Market Developments
The year of 2011 was quite active for NASDAQ
OMX Armenia and Central Depository of
Armenia in terms of activation of international
cooperation and establishing relations
with foreign counterparts. The Companies
succeeded to participate in a number of
important international specialized events, like
Saint Petersburg International Economic Forum,
presenting Armenian capital market experience
of preparing markets to integration, and
Central Securities Deposittories World Forum
11 (CSD 11) as well as to host International
Joint Conference of CIS Stock Exchanges
and Association of Eurasia Central Securities
Depositories in Yerevan.
Key Information Contacts
NASDAQ OMX www.nasdaqomx.com
The Central Bank of Armenia www.cba.am
The Central Depository of Armenia www.nasdaqomx.am
PAGE 98
In 2011 NASDAQ OMX Armenia launched the
range of new services, including opening of
pre-trading call auction in corporate securities
market, organization of first ever corporate
bonds IPO at the Exchange via special
securities placement module of the trading
system. The relevant Exchange and Depository
rules, software systems were amended to
ensure provision of this service.
In 2011 stock market preserved positive growth
trend with value traded reaching up to AMD
200.3 mln, about 57% over the same of the
previous year and showed a 2,3% grow in
market capitalization. On corporate bonds
market 91 trades for total value of AMD 708.98
mln were concluded, which is 75% lower than
the same of the previous year. REPO trading
also saw 45.6% reduction of value traded to
AMD 2.05 bln. 58 trades in REPO agreements
were concluded this year. Government bonds
market was rather active in 2010: 39.2% fell to
the share of trading in short-term government
bonds, 76.8% - in long-term government bonds
and 28.9% - in mid-term government bonds.
Value traded in foreign currency market was
AMD 283.5 bln (US$ 760 mln), which is 0.6%
greater than the same of the previous year.
Credit resources market saw value traded
of AMD 2,734 bln in 2011. This year average
monthly value traded 3.5 times exceeded the
same of the previous year.