Consulting company

Avesta Investment Group

Avesta Investment Group announces the launch of the first stock market index the Uzbekistan Compisite Index

Avesta Investment Group announces the launch of the first stock market index the Uzbekistan Compisite Index (UCI), which has been developed to specifically suit for the securities market of Uzbekistan. Uzbekistan Composite Index is the first stock market index to track the general movement on the stock market in Uzbekistan, and is designed to function as a convenient and practical instrument to navigate on the stock market for both local and foreign investors.

Uzbekistan Composite Index is based on stocks of 19 companies – seventeen banks, the state-owned insurance company “Kafolat”, and a flour-milling company OJSC “ToshkentDonMahsulot” listed on the main stock exchange “Toshkent”. The value of the index is calculated and updated on daily basis, with each stock carrying a specific weight based on the volume of trades and transactions with the stock. The maximum allowable weight for an individual company in the index is limited to 15%. The index only takes account of the price movements of stocks, and is independent of the company statutory fund size. This exempts any statutory fund size based influence on the index of excessively large companies.

The principle mathematical formula used to determine the value of the index is:
UCI = Σ(pn*gn*kn), where
pn – day’s closing price of nth stock;
gn – nth stock’s weight adjusting coefficient;
kn – additional adjustment coefficient for nth stock (for example, for stocks with par value of 100 UZS = 10, for 10 000 UZS = 0,1);

Too exclude the sharp influence of non-ordinary trades at significantly discontinuous price levels compared to the previous trades, a three day maximum rise and fall limit is set for each stock included in the calculations of the UCI index. These limits are determined and made available to the public in advance. In the event, the stock price movement is beyond the allowable limit, the limiting value is used in the calculation of the index. The base value, or the starting value of the Uzbekistan Composite Index on 01.01.2008 is 1 000 points determined as a function of par value of each stock. The following main tendencies and developments are expected on due course:
• Volatility of the UCI will increase as stocks of new companies are included in calculation;
• The number of listed companies is set to rise because of the mandatory listing requirement;
• Minimum requirements for stocks to be included in the UCI will rise;
• Uzbekistan Composite Index is a unique reflection of activity on Uzbekistan’s stock market.