Finance

Home page

Finance

Secondary market of shares is virtually idle in Azerbaijan

03 October 2008 13:56 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. The total of transactions in the secondary market shares at Baku Stock Exchange reached AZN 650 000 during the first 3 quarters of 2008, a 98.8% decline on last year.
Baku Stock Exchange said in a report that the proportion of shares secondary market in the total exchange turnover made 0.01%. This suggests that the secondary market shares is virtually idle or doesnâ€™t exist at all.
The volume of placement of shares in the primary market amounted to AZN 135.5 million, a 23% drop on the same period last year.
The decline in the primary market can be attributed to a decrease of placement of shares by banks.
The drop in the secondary market almost to zero is a consequence of the lack of interest in this segment. Against this backdrop, market participants preferred over-the-counter market where the price and the actual amounts remain outside control.