Armenia's capital market is too small to significantly reflect external shocks – expert

 
YEREVAN, April 6. /ARKA/. The Armenian capital market is still too small to significantly reflect external shocks, stated Anna Kazaryan, head of equity research at Sirius Capital.

"So far, the main reflection of external shocks has been a slight increase in bond yields," she said in an interview with ARKA news agency.

At the same time, she noted, Armenia's capital market is gradually developing: more placements are taking place, more issuers are entering the market, and interest in debt instruments in the domestic market is growing.

"However, it's impossible to say that individual placements have had a significant impact on overall market trends recently," she emphasized.

Kazaryan noted that the influence of an external shock cannot be completely ruled out, as it affects the behavior of institutional investors, who are the main driving force, as well as the country's macroeconomic indicators.

"However, internal structural factors also pose a challenge. "For example, market liquidity, despite growth, remains low," she added.

Responding to a question about the key factors that will determine a strong second quarter for the Armenian capital market, Kazaryan said investors will approach investment decisions with caution.

"Of course, an improved geopolitical backdrop or the emergence of interesting investment stories within the country would be good incentives. The Armenian bond market has historically been concentrated in the banking sector, and diversification of issuers would in itself be a structural positive," she concluded.