ANNUAL REPORT 2015
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
BAKU STOCK EXCHANGE
2014 has been a positive year in terms of the trading volumes and
development in the corporate sector.
Fariz Azizov
Chairman of Baku Stock Exchange
Significant quantitative and qualitative results
were achieved on the capital market of the country
in 2014. First, it has been a positive year in terms
of the trading volumes and development in the
corporate sector. The BSE has ended the last year
with AZN 12,930 million of total turnover. As a result, the liquidity of these securities and
the demand for them increased on the secondary
market, and subsequently on the primary market,
especially on the corporate securities market.
As a result, transactions in this market segment
increased by 2.2 times.
Secondly, trading platform of derivative financial
instruments began operating on July 21. As a result,
the volume of transactions on commodity and
foreign currency derivatives reached AZN 4.3 billion
within six months. This is one-third of the total
volume of transactions on the securities market. Until 2014, the income of BSE was mainly formed
due to the transactions with the state securities,
including repo transactions and reverse repo with
notes of the Central Bank of Azerbaijan. Starting
from 2014, the transactions of the private corporate
sector began to dominate and reached two-thirds
of the transactions in the securities market.
Third, we were able to finally launch the liquidity
mechanisms on the secondary market and
competitive pricing on the exchange trading. This
means that we created a market making institution
in 2014. The number of financial instruments
provided with liquidity reached 13 in 2014.
Transactions with bonds have also started in the
stock market for financing such regional projects as
Southern Gas Corridor. This was the first time not
only in Azerbaijan’s but also in the region’s capital
markets when such a large regional project was
key HigHligHts Of tHe year
Companies and market capitalization
Number of listed companies
Domestic companies
Foreign companies
Number of new listings
Domestic market capitalization (USD million)
Trading
Value of share trading (USD million)
Number of share trades (thousand)
Value of bond trading (USD million)
Number of bond trades (thousand)
31.12.2014 30.09.2015
1
1
0
0
26,786,000 71
64
4
3
78,028,321.27
1,312,607,985.51
5,477
4,392,296,526.06
0.483 7,885,643,845,41
2,068
5,377,583,643.41
0.5
financed with the financial instruments that were
issued in the regional platform of the financial
markets.
Although such external economic factors like
drop in oil prices by more than half within several
months and recent devaluation of local currency
manat inevitably affected us and have led to
significant decrease in our income, we possess
quite a serious financial and institutional platform
to resist the challenges. We have quite optimistic
goals for 2015 towards which we are consistently
moving. The improvement of the legislation and
specific tax regime for transactions in the stock
market, conducting debut IPO, the formation of the
first stock index, the further development of the
market maker institute, the expansion of trade in
derivatives, etc. are among these goals.
“
Significant quantitative
and qualitative results
were achieved on the
capital market of the
country in 2014.
”
ABOUT BAKU STOCK EXCHANGE
Established: 2000
Chairman: Fariz Azizov
Address: Baku, Sabail, Bulbul 27
Contact name: Nurana Heydarova
E: [email protected]
T: (+994 12) 498 98 20
W: www.bfb.az
FULL MEMBERS
13