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Financial Markets

JULY 17-28 & AUGUST 31-4 , 2023: Markets Overview

Avesta Investment Group presents the bi-weekly overview of Uzbekistan's financial market.

Aug 8, 2023

TASHKENT STOCK EXCHANGE

Over the last two trading weeks of July, thanks to M&A transactions with MKPT and BGPT, the trading volume of the RSE Toshkent exceeded 10 billion UZS, which is 2.6 times higher than the figures for the first two weeks of July. The number of completed transactions made up 16,801, decreasing by 3%, however. Overall, 82 (+6) types of securities were traded this week, with the Top-10 providing 92.3% of the stock exchange's total turnover.

Only MKPT accounts for about 25.5% of the total turnover. The M&A transaction was carried out at a price of 75,448 UZS per share, totaling more than 2.56 billion UZS.

The BGPT transactions amounted to almost the same volume of turnover as MKPT, with a closing price of 42,000 UZS, accounting for 25.4% of the total turnover.

UZMK and BFMT3 followed next with relatively active trading, yet the trade volume gap is considerable.

AVESTA EQUITY INDEX (AVEX)

*AVEX is an index that describes the general market trend by covering the top 20 listed companies with the largest number and volume of transactions on the Tashkent Stock Exchange. The calculation of AVEX is based on the daily price of companies' stocks with their weighted average, which is determined by companies' liquidity and transaction turnovers.

FINANCIAL NEWS

OVERVIEW

S&P Global upgraded Kapitalbank's JSCB (KPBA) rating from B- to B with a Stable outlook.
Madad Invest Bank JSC approved and registered capitalization of the retained earning for 50bln UZS into new shares.
KDB Bank Uzbekistan JSC allocated 2.29trln UZS and 2.2trln UZS into the interbank loans with JPMORGAN CHASE BANK.
UzRTSB JSC (URTS) allocated a 100bln deposit at 18% interest with Trastbank JSCB (TRSB).
Kapital Sugurta JSC (KASU) investing 10bln UZS into the shares of Anorbank JSC.
Dori-Darmon JSC (DORI) announced liquidating and acquiring its subsidiary Sirdarya regional Dori Darmon LLC.
Hayot Bank JSCB announced the establishment of the Hayot Ijara LLC subsidiary - most likely a microfinance/BNPL subsidiary for non-collateralized lending based on Islamic banking principles.
Mr.Muxıtdınov Xamıdulla Nurıtdınovıch became the owner of a 25% stake in Apex Bank JSCB worth 30bln. UZS.
SQB JSCB (SQBN) will attract $50mln convertible debt from ADB in addition to the existing $125mln already drawn from IFC and EBRD. Bank will also attract a $40mln subordinated loan from IFC, and issue $100mln green bonds at the local and international markets under the guidance of IFC. Also, approved the decision to distribute at least some dividends every year and move toward privatization of the bank by the end of 2024 (currently Rothschild & Co attracted as advisors). Ministry of Economics and Finance will convert existing 1.28trln UZS loans into subordinated loans to support the capital adequacy level of the bank.
Average banking NPL decreased to 3.4% by 1H2023, including 3.1% for retail loans and 3.5% for corporate borrowings.
The government moved the deadline for the privatization and IPOs of the state-owned banks, including the privatization of SQB (SQBN) by the end of 2024, IPOs of Qishloq Qurilish Bank JSC (KKBN) by March 1st, 2024, Asakabank JSC (ASBU) by the end of 2025, Xalqbank, Aloqabank (ALKB), Agrobank (AGBA), Mikrokreditbank (MCBA), National Bank - by the end of 2024.
Jahon ixtisoslashtirilgan aralash mollari savdo kompleksi JSC (JMSK) was delisted from Tashkent Stock Exchange from August 1st, 2023.

DIVIDENDS

Hamkorbank JSCB (HMKB) approved the capitalization of retained earnings for 215bln UZS and will distribute 2 bonus shares per one existing. Distribution will be made according to the register closing by the 10th day after the state registration of the prospectus of issue.

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