Yerevan /Mediamax/. Unprecedented inactivity for this year was observed from July 6 to 10 this week in “NASDAQ OMX Armenia” Stock Exchange in deals with corporate bonds.

The only deal within the entire past week was concluded on July 6 on HSBCB1 bonds of “HSBC Bank Armenia” at the sum of 306 thousand AMD.

The only deal this week was concluded on July 13 on the same bonds at the sum of 513 thousand AMD.

“Such inactivity is mainly related to gradual disappearance of the reasons of activity, which was observed earlier”, Portfolio Manager of “Cascade Investments” Yeghishe Qerobyan stated in an interview to Mediamax.

According to him, first of all investors’ concerns about the correlations of USD/AMD exchange rates become weaker, the fact consolidating their confidence for bonds, nominated in AMD.

“Secondly, reduction of interest rates (increase of prices) in the market of bonds and pouring of liquidity by the Central Bank allow owners of bonds gaining interesting revenues”, Yeghishe Qerobyan stated, noting that these factors have contributed to abrupt decrease of the number of people wanting to sell bonds, which has led to the above-mentioned inactivity.

According to Portfolio Manager of “Cascade Investments”, one can assume that if the above-mentioned 2 tendencies preserve, the market will stir up again, but already at the expense of the growth of the buyers’ number.

Investment Department Director of “Armswissbank” Karen Turyan accounts inactivity in the market of corporate bonds mainly by unbalanced interest rates, formed in various sections of the financial market, which forces investors keeping to an inactive stance and investing their means in more attracting market instruments.

According to Karen Turyan, the inactivity will preserve further on as well.

“Capital Asset Management” Investment Company believes that the inactivity is conditioned also by the time factor. “As the observations over the previous months showed, the volume of deals, concluded at the beginning of the month, usually are lower, as compared to the level at the end of the month”, Investment Consultant of “Capital Asset Management” Ani Vardanyan told Mediamax.

According to her, such passivity may also be the result of ending market maker’s status for certain bonds. On June 29, the market maker’s status of “Armswissbank” for “Valletta” bonds was ended (VALTB2 and VALTB3), basing on the corresponding request of “Armswissbank”.

“Capital Asset Management” believes that the given fact had negative influence on the volume of deals and liquidity of the market.

“The fact of ending “Armswissbank” status of a market maker for “Valletta” bonds is mainly conditioned exactly by an abrupt reduction of deals and passivity among investors”, Director of Investment Department of “Armswissbank” Karen Turyan informed Mediamax.

According to him, the decision to end the market maker’s function in the Stock Exchange was made jointly with “Valletta”, basing on the necessity to manage the resources more effectively.