AVESTA Overview: March 3 - 14
Biweekly overview on Uzbekistan securities markets by Avesta Investment Group & Europe-Uzbekistan Association for Economic Cooperation
TASHKENT STOCK EXCHANGE
During the period, trading volume on the Tashkent Stock Exchange reached 24.2bln UZS, driven primarily by M&A transactions, which accounted for over 90% of total turnover. A total of 80 securities were traded, unchanged from the previous two weeks.
Newly listed UTHK, a manufacturer of motor vehicle components, was included in the Privatization market segment and accounted for 45.4% of turnover with trades totaling 10.97bln UZS. ARST and NGQS contributed a combined 44.7%, with transactions of 7.67bln UZS and 3.1bln UZS, respectively. UNVB and URTS made up 37% and 1.8%, with URTS trading activity linked to the closing of the shareholder register ahead of the AGM on March 19.
Among the top gainers, UNVB and BFT3V2 rose by 11.1% and 10%, respectively. Meanwhile, URTS and ALKB declined by 15.6% and 7.5%. URTS dropped from 3,699 UZS to 3,121 UZS per share, likely due to a previous price surge following the AGM announcement, with a correction after the investor register closed for dividend eligibility.
AVEX (Avesta Equity Index) decreased by 1.5% over the two-week period.
AVESTA EQUITY INDEX
*The AVEX index describes the general market trend by covering the top 20 listed companies, in a particular quarter, with the highest liquidity and transaction turnovers on the Tashkent Stock Exchange. The index is a sum of the daily stock prices multiplied by the weighted average coefficients given to selected companies. The base date is 01/01/2021 (1000).
Turnover breakdown
FINANCIAL NEWS
ECONOMICS
Fitch downgraded Kapital Sugurta's (ex. KASU) rating from B to B- with stable outlook;
French Development Agency (AFD) to allocate €30mln to Business Development Bank JSCB (BRBN) to support female entrepreneurship and promote gender equality in Uzbekistan;
EBRD to provide €15mln to Yuria-Pharm to support its expansion and enhance energy efficiency in Ukraine and Uzbekistan;
Business Development Bank JSCB (BRBN) signed a €20mln cooperation agreement with the Union of Arab and French Banks (UBAF) to strengthen trade finance and establish correspondent relations;
JV Nurlikum Mining between French Orano and Navoi Uranium will have Japan's Itochu Corporation joining as a minority shareholder. The companies signed an agreement for uranium production at the South Dzhangeldy deposit;
Holten Group LLC, owner of International Beverages Tashkent, has acquired Burger King Kazakhstan;
French Voltalia signed a 25-year electricity sale contract in Uzbekistan for its hybrid solar, wind, and energy storage cluster;
Uzbekistan and France established a strategic partnership. They discussed creating an Uzbek-French Investment Council, with a potential first meeting at Tashkent Investment Forum (TIF) this year. To boost interregional ties, the parties agreed to hold the first Forum of Regions in Samarkand in 2026;
TBC Uzbekistan obtained a license for its insurance subsidiary, TBC Sugurta;
SQB JSCB (SQBN) and Societe Generale Bank signed a €150mln cooperation agreement to finance projects;
According to Fitch Ratings' forecasts, in 2025, Uzbek and Kazakh banks may become leaders in eurobonds issuance among the CIS countries;
IT Park Ventures allocated $650k to three startups. The largest share, $250k, went to Datatruck, a platform automating financial and operational processes in freight transportation, primarily focused on the U.S. market;
East Can Solutions to open aluminum can factory in Tashkent for $90mln, including $18mln loan from IFC;
According to WB, absence of remittances from abroad could increase Uzbekistan's poverty rate from 9.6% to 16.8%;
In February, foreign reserves increased by 4.7%, rising from $42.9bln to $44.9bln, while gold reserves declined by $0.2bln;
Foreign trade turnover in January increased by 7.1% y-o-y and amounted to $4.5bln including a 4.4% increase in imports, up to $3.2bln and a 14.1% increase in exports up to $1.3bln;
Central Bank of Uzbekistan purchased 8 tons of gold, making it the largest gold purchaser in the world;
Uzbekistan Railways JSC and Uzmetkombinat JSC (UZMK) agreed on mutual import substitution, replacing certain previously imported products with locally produced alternatives.