Almost all of KFB’s turnover was generated by initial public offerings of corbamag

Trading turnover on the Kyrgyz Stock Exchange from 28 September to 2 October reached 2.68 billion KGS. Almost all trading activity was concentrated in the primary market. Transactions involving corporate securities already in circulation amounted to only a few million KGS.

In the primary market, 119 transactions totalling 2.66 billion KGS were recorded over the week. By comparison, turnover in the secondary market for corporate securities amounted to 3.69 million KGS — approximately 720 times less.

Thus, the high total turnover of the Kyrgyz Stock Exchange during this period primarily reflects the volume of new issues, rather than investor activity in the secondary market.

Corporate bonds accounted for the bulk of primary market trading. Securities issued by ‘Kaindy Kant’, ‘Dos-Kredobank’ and ‘MFK InvesCor SA’ accounted for a total of 2.09 billion KGS. A further 567.68 million KGS came from trades in ‘Kyrgyzneftegaz’ shares.

In total, corporate securities accounted for 99.2 per cent of the exchange’s turnover for the week. Government securities accounted for just 0.8 per cent.

On the secondary market, 52 transactions totalling 3.69 million KGS were recorded over the same period. Investors traded shares in ‘Kyrgyzneftegaz’, ‘Airports of Kyrgyzstan’, ‘Mbank’, ‘Ashar Invest’ and the Bishkek Machine-Building Plant.

The trading pattern reveals a noticeable gap between raising capital via the stock exchange and the subsequent trading of securities. Companies are able to generate large volumes through initial public offerings, but liquidity in the secondary market remains significantly lower.

The official list of the Kyrgyz Stock Exchange includes securities from 36 companies. The volume of trading in listed corporate securities for the week amounted to approximately 2.66 billion KGS. Of this, 570.49 million KGS came from trades in shares of ‘Airports of Kyrgyzstan’, ‘Mbank’ and ‘Kyrgyzneftegaz’, whilst a further 2.09 billion KGS were accounted for by bonds issued by ‘Kaindy Kant’, ‘MFK InvesCor SA’ and ‘Dos-Kredobank’.