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APA-Economics announces the launch of Financial Stability Indices for the first time in Azerbaijan

29 November 2008 11:43 (UTC +04:00)

This relative development reflects both the relative rates of volume and liquidity.
From December 1, 2008, APA-Economics begins to calculate the Financial Stability Indices for government securities, taking to account the need to draw attention to the securities market of Azerbaijan and to increase investorsâ€™ interest in this segment and to calculate the single rate that reflects current market situation.
Thus, APA-Economics conventionally marked the index for short-term treasury bills of the Ministry of Finance as AGBI (Azerbaijan Government Bonds Index) and the index for short-term notes of National Bank of Azerbaijan as ANBDÄ° (Azerbaijan National Banks Debts Index).
Indexes will be updated daily on www.apa.az.
Both the indices are similar and are in the same way. However, given the difference in issue date for securities, as well as potential issuers and investors, it is better present the indices separately.
The index is calculated taking into account the two changing parameters (the amount in circulation of securities and current prices).
The index is expressed in the fractional number if greater than one.
Indices reflect the dynamics of the volume in circulation of securities and current prices.
Note that in order to prevent a sharp or biased decline in the indices on the day of repayment, the volume of the-same-day issue payment is included into the formula for calculating the index.
Indices also include additional placement because it increases the circulation volume.
The drop in the index to below â€œ1: is a sign of inadequate market situation, as this can occur as a result of the withdrawal of the securities by the issuers.
In turn, this points to the instability of the current market situation.
In general, the functions of AGBI and ANBDÄ° is to reflect the stability or instability of the market, which is an important indicator for investors participating or aspiring to participate in the market.