KRX exchange to invest $6 in Uzbek stock exchange
TASHKENT. Aug 25 (Interfax) - The State Property Management Committee of Uzbekistan and Korea Exchange (KRX) have signed a general cooperation agreement to update the Uzbek stock exchange.
The agreement was signed during a visit to Uzbekistan by Korean President Lee Myung-bak, the Committee reported.
KRX will invest around $6 million in the project.
The agreement envisages an expansion of the partnership between the two countries' stock exchanges, IT solutions to upgrade the Uzbek stock exchange infrastructure, including online share trading, and the search for new partners for online IPOs.
The Uzbek State Property Committee and KRX signed a memorandum of understanding in December 2010. A working committee was set up to look at the situation on the stock market. In July 2011, an agreement was signed that envisaged KRX participation in upgrading stock market infrastructure in Uzbekistan. It proposes to supply and install new hardware and software.
Current infrastructure includes the Toshkent exchange with 12 branches in the regions and the Elsis-savdo electronic off-market trading system. The stock market serves a two-tiered depository system consisting of a central depository and over 30 second-level depositories, the Elsis-Clearing settlement and clearing chamber, more than 30 analytical, consulting, rating, evaluation and audit organizations and 312 investment institutes (investment funds, management companies broker and dealer firms).
Trading volume on the Uzbek stock exchange in 2010 grew 120% year-on-year to 1.68 trillion sum. Primary placements grew 90% to 1.096 trillion sum and secondary market turnover jumped 200% to 585.2 billion sum.
Korea Exchange is the world's largest exchange for derivatives deals and is one of the top 20 exchanges for capitalization. It trades shares bonds and futures. KRX was established through a merger of the Korean Futures Exchange and KOSDAQ. The Korea Composite Stock Price Index KOSPI reflects the share prices of all companies traded on the exchange.
The official exchange rate on August 25 stood at 1734.14 sum/$1.