Interview of the General Director of “Armenbrok” Company Aram Kayfajyan to Mediamax Agency and Banks.am portal

- “Armenbrok” Training Center has been functioning for already half a year. It is meant for people, who want to trade in international fund markets. What do the courses teach and how demanded are they?

- The goal of our courses is to train our potential customers and develop in Armenia the culture of directing savings to capital markets. We carry out free of charge and paid courses. The free of charge courses are of familiarization nature and consist of two parts: investment activity in the world fund market and activity in international currency market (Forex).

If the participant of the free of charge course takes interest in one of the directions, he/she can continue training already on paid basis and get specialized in investment activity in fund markets or in Forex market. We train the participants of the first course how to trade and invest in the best international securities, and the participant of the second – how to act in the currency market, starting from hedging and up to speculations.

The paid courses are of practical nature: the participants get the chance to make their first steps in the given direction.

I should note that individuals prefer to attend our courses, and mainly – the youth.

- Does “Armenbrok” share its experience in the international fund and currency markets with participants of the courses?

- Yes, we also carry out activity in the international fund market, investing both in conservative and in high risk instruments. Our experience is demonstrated in the process of practical classes.

For instance, one can note that in 2009, the fluctuations of fund indices and prices for stocks of leading companies provided for a very high income for people, who invested in these instruments. It is notable that Russian index of RTS grew by 130%, MICEX – by 115%, prices for Google stocks increased by 93%, Apple – by 132%, prices for Sberbank (Savings Bank) and VTB shares increased by 260% and 103% respectively.

However I want to note that we do not carry out speculative activity: this does not correspond to the principles of our company. Our direction is the portfolio investments.

- Does the number of Armenian players in the international fund markets increase? Is it probable that along with development of the culture of investing in international capital market, the local market will also get the stimulus? For instance, two-way quoting is carried out as to shares of “Artsakh HPP”, the issuer pays dividends, but the secondary market remains passive…

- “Artsakh HPP” stocks are a really good investment tool. Of course, for us it is more preferable for the savings of the population to be directed to the local market of capital. This was and remains the main direction of our company.

Nevertheless, in terms of an international investor, the shares of companies, quoted in Armenia, are considered high risk shares and the opportunity to invest in the most reliable securities in the world, provided by us, will demonstrate the local investment potential in the course of time.

As of today, the competition in Forex market is very strong in Armenia, and the volume of portfolio investments is still small.

- By the way, let’s speak of high risk instruments: NASDAQ is considered a platform of highly technological companies, the shares of which at the initial stage contain high risk and are subject of abrupt fluctuations. In Armenia, there are numerous beginner IT companies, of vital importance for which are venture investments. How much will listing on the exchange cost such companies?

- One should note that the listing and maintenance of listing on “NASDAQ OMX Armenia” Stock Exchange itself is a process, which does not require volume expenses and any big, healthy and transparent enterprise in Armenia may afford being listed without much effort and expenses.

It’s another question what opportunities “NASDAQ OMX Armenia” can offer the companies, quoted on it: the degree the presence of resources and their flows, liquidity, tools that are provided for.

And if the company has not so far worked transparently and intends to carry out full-fledged IPO, it should take into account the fact that the sum, spent for this process, will make about 5% from the volume of resources, which the issuer intends to attract in the capital market; and this will happen in case if the resources are attracted at terms, most convenient for the issuer.

At the same time I should note that I believe that local companies, which want to be listed on foreign fund platforms, should first create a particular volume of free circulation securities on the local fund exchange, and only after this they should be listed on foreign exchanges.