Market of corporate bonds

From mid-July, after an unprecedented inactivity on “NASDAQ OMX Armenia”, which lasted for 2 weeks, activity has been registered concerning deals with corporate bonds. The volumes of deals reduced and overall reduction of interest rates is observed.

“Armswissbank” Investment Department Director Karen Turyan informed Mediamax that the demand for corporate bonds, and particularly ones, issued by banks, occurred as a result of abrupt decrease of yield for governmental bonds.

“Cascade Investments” Investment Manager Yeghishe Qerobyan also believes that the fact that the market has stirred up is directly related with imbalance, which occurred in markets of governmental and corporate bonds, to be more exact, with the difference in yields of the two types of bonds. 

“While the yields for governmental bonds experience reduction (prices grow), the market of corporate bonds has started remaining behind this tendency”, Yeghishe Qerobyan stated, adding that last week this given imbalance became more attractive, and certain investors started purchasing corporate bonds, quoted lower, as compared to market prices.

“It is obvious that exactly as a result of their actions, interest rates in this market started to reduce”, Investment Manager of “Cascade Investments” stated.

Market of governmental bonds

“From July 21 to 24, 2 auctions on placement of short-term and medium-term governmental bonds were held, during which demand for short-term bonds was unprecedented, exceeding the offer 6 times, and the demand for medium-term bonds exceeded the offer 1.6 times”, Mediamax was informed in “Renesa” Investment Company, which specializes in the market of governmental bonds.

The company noted that last week the interest rates for short-term bonds, as compared to previous auctions, decreased by 1.5 percentage points, and the yield for medium-term bonds – by almost 2 percentage points. In the same period, the Central Bank (CB) of Armenia provided one more long-term REPO for the term of 91 days and with the volume of 2 387 134 289 AMD.

“Despite the fact that the current week is the last one in July, and only 1 auction on short-term (3 months) bonds will take place, nevertheless, we consider that the unprecedented demand will be preserved, and the interest rates will continue reduction”, “Renesa” notes.

Currency market

Watching the deals on foreign currency on the Stock Exchange in the period between July 21 and 24, “Renesa” Company notes that, as compared to the beginning, at the end of the week the exchange rate for USD grew for 2.44 points (from 365 to 367.44 AMD per USD).

“Analyzing the data, one can establish that demand for USD has increased and we forecast that the exchange rate will continue growth, but will not exceed the limit of 370 AMD”, “Renesa” notes. 

Market of Stocks

In the recent days, “ARAX” OJSC stocks were admitted to trading in free “C” market of “NASDAQ OMX Armenia” Stock Exchange. Stocks of “Artsakh HPP” OJSC are at the stage of listing.

According to Investment Manager of “Cascade Investments” Yeghishe Qerobyan, the officially announced number of investors into “Artsakh HPP” stocks gives grounds to assume that trading with the company’s stocks will be relatively active.

“In case with “ARAX” OJSC, I believe that delisting is possible in future. One can assume this basing on a major deal, which followed the listing of the company’s stocks”, Yeghishe Qerobyan stated, adding that, most likely, the company underwent listing to reduce expenses, related to the major deal, “which is more cheap, when one concludes it on the platform of Stock Exchange”.