The capitalization of Uzbekistan's securities market has grown more than threefold over the past two years and exceeded $25 billion. This was announced by the chairman of the National Association of Investment Institutions Anvar Irchaev.

Over the same period, the over-the-counter market turnover increased more than 40 times.

What the figures mean

"The result speaks for itself. The capitalization of the securities market has grown more than threefold over the past two years and, by our conservative estimates, exceeds $25 billion. The over-the-counter market turnover has grown more than 40 times over these couple of years," said the head of the association.

Why over-the-counter turnover grows faster

A 40-fold growth in the over-the-counter segment versus a threefold growth in capitalization is a ratio worth noting.

Over-the-counter transactions are concluded directly between parties, bypassing the exchange order book. This format is used for large block operations, placements among a limited circle of investors, and transactions with strategic buyers.

The outpacing dynamics of this segment mean that a significant portion of market activity occurs outside public trading — and therefore does not form quotations visible to retail investors.

Legislative changes

The new version of the "On the Capital Market" law provides for the development of instruments that were not previously available on the market:

  • Islamic securities;
  • bonds denominated in foreign currency.

At the same time, access for foreign custodians to the local market is simplified — a mechanism without which overseas funds find it difficult to store and account for acquired securities.

The bill passed first reading in the Legislative Chamber, adoption is expected by year-end.

Expansion to international platforms

The Association is working to expand interaction between local brokers and international financial institutions. Industry representatives held meetings in Hong Kong, with visits to London and Frankfurt planned.

What this means for private investors

The expansion of instruments is proceeding rapidly: foreign currency bonds from several issuers have been registered in recent weeks, mortgage securities and first REPO transactions have appeared.

At the same time, a structural problem persists, as market participants note: most of the issued bonds are traded abroad, and the liquidity of the local platform remains limited — experts estimate the discount for it at 15−25% when valuing assets.

Practical takeaway for investors: growth in capitalization reflects revaluation and the emergence of new issuers, but does not automatically mean that stocks have become easier to buy and sell at fair prices. Market depth is changing more slowly than its size.

This material is for informational purposes and does not constitute investment advice.