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VOLUME 06 ISSUE08
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PUBLISHED DATE: - 31-08-2024
DOI: -
https://doi.org/10.37547/tajmei/Volume06Issue08-09
PROSPECTS OF INCREASING THE ROLE OF
COMPANIES IN ATTRACTING PORTFOLIO
INVESTMENTS TO THE NATIONAL ECONOMY
Vasikov Abduvahob Ravshan ogli
PhD student of Kimyo International University in Tashkent, Uzbekistan
INTRODUCTION
At the current stage of deepening economic
reforms, special attention is being paid to
improving their participation in the capital market
by gradually reducing the state's participation in
the authorized capital of large joint-stock
companies operating in our country. The results of
the analysis show that in recent years, the
participation of joint-stock companies in the capital
market, in particular, the volume of trading
operations in the securities market, tends to
increase. At the same time, the implementation of
promising strategies in this direction by the state is
of great importance in the development of the
capital market.
In the Development Strategy of the New Uzbekistan
for 2022-2026, "gradual liberalization of capital
movement in our country and privatization of large
enterprises and their shares (shares), including
through the stock exchange, and further
liberalization of the leading sectors of industry and
the economy, as well as completion of the
transformation processes" [1] economy defined as
one of the main goals in the field. Under this,
following the changes in the external environment,
coordination of corporate financial policy, the
introduction of modern corporate management
methodology, development of relations with the
financial market in the formation of additional
sources of financial support, the introduction of
international
standards
in
financial
risk
management,
implementation
of
financial
technologies in optimization of capital structure
are carried out. increase is one of the current
issues.
Review of literature
Some studies are being carried out by domestic and
foreign economists on the role and importance of
the capital market in the development of the
RESEARCH ARTICLE
Open Access
Abstract
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country's economy, the transformation of the
capital market and the application of modern
approaches. The capital market is a part of the
financial market, where the so-called "long-term
money", that is, funds with a term of more than one
year, are realized. In the capital market, free capital
and investments are redistributed to various
profitable financial assets [2]. The capital market is
a market of medium and long-term financial
instruments, that is, it includes not less than one
year in terms of the return period of investments.
This feature is expressed from the point of view of
being convenient for attracting large capital in this
market and has a real impact on the processes
taking place in the economy [3].
In the theory of investment, the capital market is
classified as a market that provides an opportunity
to obtain income through investment, including
guaranteed income, free form or external financing,
taking into account the return of borrowed sources.
The main purpose of the capital market is to
distribute the available funds of lenders among
borrowers who use them to finance their business
in the most profitable way [4].
In addition to the definition of the capital market
proposed by M.I. Kasimova, it can be said that "the
capital market is an economic relationship
between the subjects of economic activity, which,
on the one hand, creates a demand and, on the
other hand, a supply of investment products." In
this regard, M.I. Kasimova legally "links" the capital
markets to investment goods, that is, money,
securities and other forms of value, the purpose of
which is to make a profit. Both long-term and short-
term capital and liabilities are widely traded in the
capital market. In the economic literature, the
money (short-term) market is distinguished, and
this is explained only by the period of attraction of
financial resources. In essence, as an economic
category, "capital" as a value is characteristic of the
capital market, in which added value is created and
in which long-term and short-term means are used
[5].
The author of a scientific monograph on modern
views of the financial market and its structural
segments is Ivanova V.V. , "The financial market is
the field of financial transactions using financial
instruments" [6].
The complexity of clarifying the essence of the
concept of the capital market is that its
infrastructure is closely related to the money
market, which is considered a part of the financial
market, and financial instruments are the same for
the capital market and the money market. The
volume of financial resources attracted to the
capital market, methods of attraction and
attracting financial instruments are interconnected
with specific segments of the capital market and
their specific characteristics.
METHODOLOGY
The article examines the capital market, the role
and importance of the capital market in the
development of the national economy, and the
scientific developments of economists aimed at
elucidating
its
scientific
foundations.
Mathematical-statistical modeling, comparative
analysis, correlation and regression, and logical
reasoning methods were also used in the research.
ANALYSIS AND RESULTS
By the end of 2023, the dynamics of the stock
market in Uzbekistan had an upward trend
compared to previous years. In particular, by the
end of the year, 411,870 trade transactions with a
total value of 2.71 trillion soums were recorded. A
total of 28.08 billion securities of 107 issuers
participated in these transactions. In 2023, the
average number of daily deals concluded on the
exchange's trading platforms was 1,660 units, the
average daily volume of transactions was 10.94
billion soums, and the average daily number of
securities traded was 113.23 million units. If these
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indicators are compared with last year's indicators,
in 2023, a positive change in the average number of
daily trade transactions can be noted. In 2022, the
average number of transactions was 327, and by
the end of 2023, this figure reached 1,660, and the
growth rate was 408.17 percent. Positive changes
in this indicator were caused by the launch of the
Jet.uz mobile application for stock trading.
In 2023, 398,808 deals were concluded with shares
of 93 issuers in the G1 - "Main Board" section,
which is the main trading floor of the "Stock
Market" stock market. The largest volume of
transactions was made with 157.35 billion soums
of ordinary shares of "Octobank" ATB /OCBK/. T1-
"Nego Board" trading area, i.e., in the negotiation
auction mode, in the department where
transactions are concluded with packages of
securities, the volume of which is at least 1% of the
total number of issued securities, with securities of
28 issuers in the period under review, with a total
value of 1.91 trillion 148 transactions worth soums
were recorded. The largest volume of transactions
was made with ordinary shares of "Solutions LAB"
JSC /SOLA/, which amounted to 672.68 billion
soums or 24.80% of the total stock exchange
volume. 3 tests on the "FoP Board" trading area and
"Koqon biokimyo" JSC, intended for the placement
of securities by the issuer as a result of the
implementation of securities trading transactions
or the issuance of the "Securities clearing and
delivery without payment" method without cash
settlements, 1 large transaction worth 248.38
billion soums were carried out with the securities
of
SAAP Nego – A special application acceptance platform
1
№
Issuer
Ticker
The end
date of the
selection
The
starting
price of
one share,
UZS
Share
price
based on
the
results of
the
selection,
UZS
Number
of shares
offered
The total
amount
of the lot
placed
according
to the
results of
the
selection,
mln. UZS
1.
JSC «Qoqon yog-
moy»
KUYM 03.02.2023
32906,0
32906,0
710170
23368,8
2.
JSC «Yangiyol yog-
moy»
YGYM 03.02.2023
2407,94
2407,94
17008225
40954,7
3.
JSC «Qashqadaryo
parmalash ishlari»
QAPI
20.02.2023
1036,94
1379,0
10900900
15032,3
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4.
JSC «Andijon
tajriba-sinov zavodi»
ATSZ
10.03.2023
13130,34
16242,98
307625
4996,7
5.
JSC «Xojaobod
texnologiik transport
boshqarmasi»
XTTB
27.03.2023
13144,94
13144,94
164814
2166,4
6.
JSC
«Urganchkormmash»
URGK 11.04.2023
22523,0
22523,0
130182
2932,08
7.
JSC «Matbuot
tarqatuvchi»
MATA 27.04.2023
17901,0
17918,91
260000
4658,9
8.
JSC «Neft va Gazni
ishlab chiqarishni
tamirlash»
NGIS
04.12.2023
11272,73
11284,01
51018
575,6
9.
JSC «ORGRES»
ORGS 27.11.2023
32652,03
32684,69
205600
6719,9
At the end of 2023, a competition was held to
identify a potential investor for the purchase and
sale of securities on the TQQMP Nego platform, and
because of the competition, transactions with
shares of 9 issuers were carried out on the trading
platform "Nego Board" (Table 1). As of the end of
2023, there are 175 securities of 117 issuers in the
"Tashkent" RFB stock exchange quotation sheet, of
which 112 are stock issuers, 2 are stock and bond
issuers, and 5 are bond issuers only. In the stock
quote sheet, stock issuers are divided into three
categories. Among them:
- In the "Premium" category - 1 issuer, "Republic of
Uzbekistan Commodity Exchange" JSC /URTS/;
- 85 issuers in the "Standard" category;
- There are 25 issuers in the "Transit" category.
In 2023, stock exchange transactions were carried
out with securities of issuers of 10 different sectors
of the economy, while the most transactions were
carried out with securities of issuers of the banking
and industrial sectors. 229,898 transactions were
concluded with securities of banking sector issuers,
which made up 55.82% of the total number of
exchange transactions (Figure 1).
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Figure 1. The number of transactions in 2023 in economic sectors of the Republic
of Uzbekistan (pieces)
2
36,798 transactions were concluded with
securities of 12 issuers in the industrial network
(8.93% of the total number of exchange
transactions). Securities in the banking sector
accounted for 35.83 percent of the total volume of
stock market transactions, and the total volume of
transactions concluded with issuers in this sector
amounted to 971.97 billion soums. The volume of
transactions with securities of issuers in other
sectors amounted to 702.69 billion soums, and this
indicator made up 25.90% of the total stock
exchange volume. Transactions concluded with
securities from joint-stock companies in the agro-
industry and energy sectors amounted to 597.74
billion soums and 119.45 billion soums,
respectively. The least amount of transactions was
17.76 billion and 13.90 billion, respectively, with
securities in the construction and leasing sectors.
Soum deals were concluded (Fig. 2).
The largest volume and the largest number of
transactions concluded with issuers' securities
were recorded with the issuer's securities located
in Tashkent. The total number of all 291,746
transactions with the securities of issuers in this
area is 2.02 trillion. was soums and made up
74.57% of the total volume of stock exchange
trades. The next place in terms of volume of
transactions occupied by the securities of Fergana
region issuers, the volume of trading of securities
of joint stock companies located in this region was
571.46 billion.
229898
36798 31819 28018 22697 20816 20085 18521
2579
639
0
50000
100000
150000
200000
250000
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Figure 2. Volume of transactions in economic sectors of the Republic of
Uzbekistan in 2023 (in %)
3
In 2023, the total market capitalization of equity
issuers showed a slight upward trend and recorded
an increase of 83.22% compared to the figure at the
beginning of the period. During this period, the
maximum level of market capitalization is 170.87
trillion. soum recorded on November 3, 2023. The
lowest value market capitalization occurred on
January 20, when the total capitalization of issuers
was 89.80 trillion. makeup soum. Several factors
influenced the growth of capitalization, in which
the initial value of the indicator in the amount of
92.47 trillion soums increased to 144.02 trillion
soums by the end of the considered period. One
such factor was the beginning of stock exchange
trading with ordinary shares of UzAuto Motors JSC
/UZMT/ from February 20, 2023, after the
completion of the IPO. The average trading price of
shares with a nominal value of 5,000.00 soums was
68,000.00 soums. The next significant factor that
caused the growth of the market capitalization is
the fact that the shares of "Khalq Bank" JSC /XKBK/
were included in the list of stock exchange
quotations. The total market capitalization of this
issue is more than 7.35 trillion soums. The steady
growth of the trading price of some issuer's shares
also caused positive changes in the market
capitalization of the issuers of shares.
In our opinion, the goal of the development of the
capital market in our country is to make it one of
the main financial markets of the economy by
creating an effective market for all categories of
investors and capital accumulation. As directions of
market development, it is necessary to develop
electronic platforms to provide different choices to
investors by introducing modern types of
securities, as well as to increase financial literacy in
"entering" the international capital market.
CONCLUSIONS AND SUGGESTIONS
It is important to ensure the effectiveness and
35.83
25.9
22.03
4.4
4
2.85
2.45
1.36 0.51 0.65
Banks
Others
Agrobusiness
Energy
Industrials
Insurance
Transportation
Communications
Construction
Leasing
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independence of the single mega-regulatory
mechanism in improving state regulation of the
capital market. In this process, to improve
independent decision-making, it is necessary to
pay special attention to the creation of a
mechanism for stimulating the activities of non-
governmental organizations in the development of
the securities market, based on international
practical experience.
Capital market development depends on many
factors, including macroeconomic stability,
political stability, level of regulation and
supervision, availability of infrastructure and
technological
innovation,
availability
of
information, investor knowledge and confidence in
the system. These factors are interrelated and
together determine the level of development and
stability of the capital market.
To encourage the development of the capital
market, it is necessary to improve the legal and
regulatory environment, strengthen anti-fraud
measures, improve the risk management system,
increase financial literacy, develop technological
infrastructure, ensure access to information and
create effective mechanisms for protecting the
rights of investors. These tasks in the market can be
performed not only by regulatory organizations,
but also by capital market development
institutions,
market
participants,
non-
governmental organizations, and individual large
institutional investors who have the opportunity to
create and shape business practices in the markets.
A developed capital market allows for the efficient
allocation of investment resources. The capital
market, along with the redistribution of investment
resources, allows to increase in the total added
value produced in the country's economy and the
efficiency of resource use. The development of the
capital market undoubtedly helps attract third-
party capital for companies, which stimulates the
implementation of projects and innovative ideas.
Also, the development of the capital market helps
to create additional new jobs by improving the
corporate governance mechanism, increasing
business transparency, stimulating competition,
and increasing the efficiency of capital allocation.
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