Investors purchased major stock holdings (more than 1% of authorized capital of JSC) of 8 issuers. It should me mentioned that investors pay special attention to enterprises of transportation sector. For the period considered major stock holdings of 4 companies of transportation sector were purchased.

In particular, 30% of Chust tuman MTF (Machine tractor fleet of Chust region), 28% of 78th-Avtokorhona (78th - Moto car enterprise) and others were purchased. The fact that for the last two weeks more than 5 announcements appeared in press, regarding the intention of share purchasing in enterprises of transportation sector also confirms growing interest from investors in this sector. As a result of such a high interest, last week the share of transportation sector in total turnover made 7%.

As a result of significant deals on purchasing of preferred stocks of Uztransgas and common stocks of Mubarek neftegazmontaj (Mubarek oil and gas installation) in the secondary market for foreign currency, trade turnover of oil and gas sector made about US$81,000. Oil and gas sector occupied second place in the rating of largest trading volumes and its share was 15%.

Receiving a license allowing security trading activities by Socrat-Asia, a company which is a part of Socrat Group (Ukraine), can be justly considered as one of the most important events of the last week. According to the opinion of our analysts, this fact is confirmation of investment attractiveness of our local market.

Market leaders

For the period considered, common stocks of Investment Fund Foykon showed the largest price growth. The growth was 371.75%. It should be mentioned that in the beginning of the week there was only one deal registered on stocks of Foykon. This deal was not security alienation by an investor, but a security loan in exchange for a debt issue, i.e. repo deal.

Total turnover on these stocks made US$7,400 (or 10 million soums). Second and fourth place in the rating of top gainers are occupied by preferred and common stocks of Toshkent don mahsulotlari (Tashkent grain-crop products (51% is owned by JSC Uzdonmahsulot (Uz grain-crop products)).

Price growth on stocks of this issuer, perhaps, is associated with this issuer’s inclusion into official listing of UzSE “Tashkent”. Also preferred stocks of Uzbektelekom went up. In general, during the last week securities of 6 out of 27 companies grew.

Top losers

Food producing enterprise Yoggar share price fell by 45% during the period considered. During five trading days, stocks of this issuer were traded only two days. During these days, investors purchased two stocks of the enterprise. Other issuers included in the list of top 5 losers lost 25-26%. Such companies as Uzneftegazdobicha (Uzbek oil and gas production), Uzpromstroybank (Uzbek industrial construction bank), Uzbek coal and other leading companies of local market went down. It should be mentioned that prices on stocks of many issuers at UzSE “Tashkent” are significantly lower than their book value.

According to the words of Alexander Smaliy, First Deputy Chairman of the Board of Socrat Group, the stock exchange of Uzbekistan is in the stage of development right now. Therefore Socrat Group sees a great potential of new market, because most local companies are undervalued.

Most active

As it was said above, during the week several major purchases of large stock holdings were registered. Thus, in the rating of most active the leading position belongs to Uzshaharsozlik LITI (32.8% are owned by MS INTERTRADE LLP). In the middle of the week investor purchased 15.36% of authorized capital of Uzshaharsozlik LITI, the amount of transaction was US$363,100 (or more than 60% of total turnover of the last week). Also top 5 of most active includes representatives of banking sector. The fourth place is occupied by repo deal on purchasing of 20 thousand stocks of Foykon.

During two days foreign investors purchased common stocks of Mubarek neftegazmontaj. In total more than 6 thousand stocks (or 4% of authorized capital of the company) were acquired. Those deals were worth US$72,000, which helped the issuer to occupy second place in the rating of most traded according to the results of the week. Third place belongs to Chust tumani MTF. In the beginning of the week investor acquired 30.49% of authorized capital (or blocking stock) of this enterprise for US$11,560.

In general it can be said that during the last week UzSE “Tashkent” had developed both in terms of “quality” and quantity. Significant stock holdings of several issuers were acquired. Issuers more actively use such instruments of capital attraction as repo deals.

Source: Essential Investments (www.ei.uz)