Capitalization of NASDAQ OMX Armenia increased by 7% in 2017 to 143 billion drams
20.02.2018,
15:27
In an exclusive interview with ARKA news agency the director of the NASDAQ OMX Armenia stock exchange Hayk Yeganyan said the capitalization of the exchange in 2017 increased by 7% amounting to 143 billion drams.
YEREVAN, February 20, /ARKA/. In an exclusive interview with ARKA news agency the director of the NASDAQ OMX Armenia stock exchange Hayk Yeganyan said the capitalization of the exchange in 2017 increased by 7% amounting to 143 billion drams.
He said the main trend of the past year was a high activity in the corporate bonds market that surged by 83%. The record growth in the number of transactions in corporate bonds - 11 billion drams -was secured by a string of regulatory advantages, provided by the Central Bank to local commercial banks, he said. In particular, it has become much more profitable for banks to raise funds through bond issues rather than by attracting deposits.
‘Regarding the composition and structure of the reserves for raised funds it's all about privileges. At the same time, the time span when the refinancing rate was lowering - from the middle of 2016 to 2017 - became a good ground for offering alternatives to deposits,’ he said, adding that in order to increase the activity of other instruments, legislative changes are needed, in particular, regarding taxation on shares. For example, brokerage deals today are subject to VAT. Previously, they were not subject to VAT, and now their services have risen by 20%,’ Yeganyan said.
Some 20 Armenian companies were listed at the exchange in late 2017. A total of 12 billion drams worth transactions with shares were effected last year at the stock exchange (183 transactions ), down from 20.5 billion drams worth transactions (84 transactions) in 2016. Transactions with corporate bonds amounted to 10.9 billion drams (630 transactions) against 5.9 billion drams (511 transactions) in 2016. Also transactions with REPO / SWAP tools increased by about 38 times. -0-
He said the main trend of the past year was a high activity in the corporate bonds market that surged by 83%. The record growth in the number of transactions in corporate bonds - 11 billion drams -was secured by a string of regulatory advantages, provided by the Central Bank to local commercial banks, he said. In particular, it has become much more profitable for banks to raise funds through bond issues rather than by attracting deposits.
‘Regarding the composition and structure of the reserves for raised funds it's all about privileges. At the same time, the time span when the refinancing rate was lowering - from the middle of 2016 to 2017 - became a good ground for offering alternatives to deposits,’ he said, adding that in order to increase the activity of other instruments, legislative changes are needed, in particular, regarding taxation on shares. For example, brokerage deals today are subject to VAT. Previously, they were not subject to VAT, and now their services have risen by 20%,’ Yeganyan said.
Some 20 Armenian companies were listed at the exchange in late 2017. A total of 12 billion drams worth transactions with shares were effected last year at the stock exchange (183 transactions ), down from 20.5 billion drams worth transactions (84 transactions) in 2016. Transactions with corporate bonds amounted to 10.9 billion drams (630 transactions) against 5.9 billion drams (511 transactions) in 2016. Also transactions with REPO / SWAP tools increased by about 38 times. -0-
