JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
NASDAQ OMX ARMENIA
FUTURE OUTLOOK
In 2013, NASDAQ OMX Armenia plans to:
• continue improving the technical
infrastructure of the stock exchange and the
central depository;
• continue expanding the range of services
provided to listed companies and trading
members;
• provide complex exchange services in
financial market;
• carry on with efforts to promote initial public
offerings of equities in the Armenian market;
• continue efforts towards increasing public
awareness of the Armenian securities market.
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
After several years of double-digit economic
growth, Armenia faced a severe economic
recession with GDP declining more than 14%
in 2009, despite large loans from multilateral
institutions. Sharp declines in the construction
sector and workers’ remittances, particularly
from Russia, led the downturn. The economy
began to recover in 2010 with 2.1% growth,
and picked up to 4.6% growth in 2011, before
slowing to 3.8% in 2012.
In 2012 according Doing Business 2013’s recent
report Armenia advanced from 50th to 32nd
position among 185 countries. According to this
report, Armenia improved some of its indicators,
in particular, “provision of construction permits”
(46th), “electricity supply (101st)”, “protection of
investors” (25th), and “taxation” (108th). Also,
regress with regard to the following indicators
was recorded: “registration of enterprises”,
“loans”, “international trade”.
Capital Market Developments
In 2012 stock market preserved positive growth
trend with value traded reaching up to US$
1.02 mln, almost doubling the previous year’s
volumes. Market capitalization as of year end
reached US$ 132.1 mln, slightly decreasing
over the same of 2011. Corporate bonds market
saw 41% reduction in volumes with total value
amounting to US$ 1.03 mln. REPO trading
also saw 6.6 times reduction of value traded
to US$ 929 thsnd. Government bonds market
was rather active in 2012 with value traded of
US$ 10.4 mln. Structure of government bonds
trading also changed this year: 11% fell to
the share of trading in short-term government
bonds, 24% - in long-term government bonds
and 64% - in mid-term government bonds.
Value traded in foreign currency market was
US$ 752mln, exceeding the previous year’s
volumes by 7%. Credit resources market saw
value traded of US$ 15.1 mln in 2012. This year
average monthly value traded amounted to US$
1.3 mln, 2.2 times exceeding the same of the
previous year. Weighted average rate of credit
resources varied within maximum of 11.3% and
minimum of 4%.
In 2012 range of instruments, offered in
Armenian capital market was enhanced to
include credit contracts with maturity of 7
days, as well as foreign currency nominated
corporate bonds, issued by local companies,
which is quite importaint development in terms
of fostering attraction of foreign investments to
Armenian capital market.
Regional cooperation was also kept in the
focus and in October, 2012 the 1st Armenian-
Georgian Financial Markets Forum was held
in Armenia, attracting 57 officials from over 30
companies, operating in financial sectors of
Armenia and Georgia, including representatives
of international organizations. The Forum
covered recent developments in Armenian and
Georgian financial systems, features of each
market’s infrastructure and regulatory issues,
Armenian pension reform and its expected
impact on capital markets. Forum participants
also discussed issues and ways of mutual
cooperation, noting that financial sectors of both
countries should be developed jointly, based on
new technological solutions.
The expected launch of new second pillar
pension system in Armenia in 2014 will boost
the activity in the capital market, so the
Depository worked closely with the Government
of Armenia and the Central Bank of Armenia to
create necessary preconditions for introducing
the reform and servicing pension accounts and
custodian information system.
Key Information Contacts
NASDAQ OMX www.nasdaqomx.com
The Central Bank of Armenia www.cba.am
The Central Depository of Armenia www.nasdaqomx.am
CONTACT INFORMATION
Contact Name Ms. Eugenia Evoyan E-mail eugenia.evoyan@nasdaqomx.am Website www.nasdaqomx.am
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