Tashkent Stock Exchange (TSE) has released its results for 1Q24, revealing a significant decrease in trading volume y/y.

The results report, compiled by the TSE and Avesta Investment Group, highlights key trends and notable performances within Uzbekistan's stock market.

According to the data, total trading volume on the TSE in 1Q24 reached UZS171.9bn ($13.5mn), 9.7-fold less versus the 1Q23 recorded volume. This steep drop, according to Avesta, can be attributed to several significant merger and acquisition (M&A) transactions that occurred in 2023. When focusing solely on the main board and excluding large transactions, the volume decreased by only 2.9 times.

Despite the overall decline, the number of transactions completed during 1Q24 increased to 133,638. This represents a 2.9-fold increase y/y.

The AVEX Index, a key indicator of market performance, experienced a modest increase of 3.9% during 1Q24, reaching a peak of 2,985 points.

The top 10 issuers with the highest trading volume included DORI (Dori-Darmon) and UNVB (Universal Bank) and METQ (Maxsuselektrtarmoqqurilish), with DORI accounting for nearly 35% of total volume. UNVB contributed 10.7% in terms of transactions.

The top 10 issuers by the number of transactions, predominantly banks, were led by SQBN (SQB “O’zsanoatqurilishbank”), representing 26.4% of all deals. UZTL (Uztelecom) also stood out at 6.3% of transactions, despite a 36.7% decline in its share price.

Notable changes in share prices were observed, with IPKY (Ipak Yo’li Bank) and IPTB (Ipoteka Bank) experiencing the highest increase in closing prices at 75.3% and 15.2%, respectively. Conversely, CBSK (Chilonzor Trade Complex), HMKB (Hamkorbank) and IPTBP (Ipoteka Bank again) saw declines in their closing prices.

The over-the-counter (OTC) TSE trading volume increased, reaching UZS 1.3 trillion in the first quarter, marking a 44.4-fold expansion y/y.

UzReport, a local news agency, dominated the OTC market, representing 96.2% of total trade volume.

In addition to insights into the stock market performance, the financial report on the quarter also provides a look at the State Debt Securities (SDS) market. There were UZS 23.3 trillion of placements on the SDS during 1Q24, offering an average annual yield of 17%.