Armenia presents prospects of stock market development

PanARMENIAN.Net - He said that NASDAQ OMX Armenia creates essential conditions for the capital market development.

Armenia was the first among CIS countries to host OMX stock operator. Meanwhile, the country’s government and Central Bank have assisted considerably the development of stock market.

Melikyan advised potential issuers to undergo listing in Armenia, as the tariff policy is rather attractive here.

Referring to the exchange’s plans, he attached importance to introduction of a new trade system and depository system, as well as transfer to T+3 mechanism.

Besides, NASDAQ OMX Armenia will be working on attraction of new IPO to the Armenian capital market.

The conference agenda included both official and unofficial events, during which interested parties can discuss cooperation opportunities.

“The past year was successful enough, however with uneven recovery of the stock market,” said Sergey Lyalin, Cbonds CEO. “The Russian market has completely recovered. In Armenia and Ukraine, where the corporate sector is weakly developed the reanimation path was a bit different.”

He also mentioned that the number of people showing interest in neighbor countries’ stock market is growing.

For his part, first vice president of Promsvyazbank Artem Kostandyan emphasized that “exchange of experience will help crisis management and financial market improvement.”

Vice Chairman of the Central Bank of Armenia Vache Gabrielyan said that Armenia has good outlooks for developing the corporate bonds market.

“The banks, assets of which total 93% in the financial system of Armenia, dominate in the market, while assets of investment companies make 1-1.5% of the market,” he said. “The deals amounted to AMD 4.2bln during the first quarter of 2010, of which 75% are deals on corporate bonds. Armenia has created favorable conditions for foreign investors, what is proved by the fact that 75% of commercial banks in Armenia are based on foreign capital.”

The national currency depreciated by 25%, what has hindered development of the market.

Currently, Armenia’s economy is recovering, and 8.8% increase was recorded during five months of 2010. Besides, the government manages to control inflation to bring its annual rate to 5.5%. The Dram is also strengthening.