According to a new report published by Allied Market Research, titled, "Armenia Stock Market by Type, and Issuer Type: Opportunity Analysis and Industry Forecast, 2018-2026", the Armenia stock market was valued at $5,601,849,231.9 in 2017, and is estimated to reach $11,497,532,470.0 by 2026, registering a CAGR of 8.0% from 2018 to 2026.
The stock market is an aggregation of buyer and sellers of stock that represent ownership of organization that includes private business and government organization. The private companies need funds and therefore sell stock and bond in the market. The companies used fund receives from the investors for expanding their business activities. In addition, the government used issuing bonds and stock to finance projects such as universities, hospitals, building schools, building bridges, constructing roads, power plants and other public projects.
The stock market is allowing investors to acquire a company’s equity interest in the form of stock shares and allowing them a stake in the company's profits. The stock market investment is contributing for producing more goods and services in the Armenia business market and support the economic growth of the Armenia government. The stock market allows companies to sell and issue their shares to the common public with the process of initial public offerings (IPO). This activity assists companies to boost necessary capital from investor.
The significant growth of the Armenia stock market share owing to the central bank of Armenia introduced incentive support to banks for making bonds with investors that surge in profitable of investment than deposits. In addition, the private sector of Armenia identified improvement in the business climate by communicating with investors, business associations, and representatives of trading partners. The private sectors identified corruption and investors difficulties for purchasing shares of stock in Armenia market and overcome it. This is another important factor to surge the stock market in Armenia.
Furthermore, a new development strategy of the stock market plays a significant role in the Armenia capital market such as the creation of new products and services that are in high demand in the financial market. Armenia people can access the stock exchange and trading information through their computers and smartphones. This is an important factor to boost individual investors in the Armenia stock market growth.
However, Armenia stock market industry witnessed continuous decline, owing to faster growth of regular spending at the expense of capital expenditure. Conversely, increase in cooperation between Armenian security exchanges, government, and the central bank of Armenia gives long term potential growth of Armenia stock market size. Furthermore, investing in the stock market provides decent investment opportunities to investors and companies such as encourage investors to increase their saving by providing tolerable benefits and provide adequate capital for companies to make investments and sustain their business.
Based on type, the auction is having largest share of the Armenia stock market growth during the forecast period owing to convenience sell stock through an auction in the Armenia capital market. Based on issuer type, private organization is having largest share of Armenia stock market trends owing to convenient investment services and investment facilities that lead to better professional activities in the capital market.
Key Findings of the Study:
- Depending on type, the government bond segment is projected to grow at the highest rate during the forecast period.
- Banks is anticipated to dominate the market in 2018, and will continue this trend throughout the forecast period.
The key players operating in the Armenia stock market analysis include ACBA Credit Agricole CJSC, Ameriabank CJSC, ARARATBANK, Ardshinbank CJSC, Armenian Economy Development Bank, Black Sea Trade & Development Bank, Converse Bank, FINCA, Inecobank CJSC, and Unibank OJSC.