The exchange rate pays investors to liquidate the shares on the Damascus Stock Exchange ... so their prices drop
The Executive Director of the Damascus Securities Market, Abdul-Razzaq Qasim, stated that the reasons for the decrease in stock prices expressed by the decrease in the value of the index are mainly due to fluctuations in the exchange rate during the last period as a result of the conditions experienced by the Syrian economy, as the exchange rate plays a pivotal role in any economy, Especially in terms of its impact on financial markets, given that there is a causal relationship between the general stock price index and the exchange rate, which has had an impact on the performance and preferences of investors in the market, as many of them went to liquidate their shares (selling them) and this has led to an increase Offer in some shares For listed companies, and thus falling prices.
He pointed out that there is still fear and hesitation among investors of fluctuations in the exchange rate, so there is no significant liquidity pumping in the money market, and the capital increases made by many companies also contributed to the decline in stock prices as well, which led to a decrease in the price of The stock because of the reference price adjustment for that security.
And Qasim said that the market has achieved great increases in trading volumes and values during the current year (2019), where the volume of trading since the beginning of the year until 15/12/2019 reached about 64 million shares, with a total value of approximately 26.5 billion Syrian pounds, distributed over 17.122 transactions, Compared with the volume of trading during the year 2018 amounted to about 30.7 million shares, with a total value of 25.9 billion pounds distributed over 21,778 transactions.
He pointed out that trading volumes doubled to reach a growth rate of 108 percent, and thus the average daily trading volume evolved to 283 thousand shares.
The total market value of all listed companies exceeded one thousand billion Syrian pounds in this period of 2019, as it increased by 51 percent due to the inclusion of shares of Syriatel, MTN and Al Badia Cement Company in the market, and the capital increase of many of the listed companies.
The banking sector came first with a circulation exceeding 87 percent of the total value of trading during the year 2019, followed by the insurance sector with a percentage exceeding 6 percent of the total value of trading.
As for the most traded stocks during the year 2019 in terms of trading value, we find in the forefront the shares of Bank of Syria and the Gulf with a value of 9 billion pounds, and then the shares of Syria International Islamic Bank with a value of 5.2 billion pounds, and Al Baraka Bank - Syria with a value of approximately 3 billion pounds.
Qasim pointed out the inclusion of the shares of three public joint stock companies in the market during the year 2019, which are Syriatel and MTN and Raya Communications and Badia Cement Company with a capital exceeding 14.6 billion pounds, and the market is currently communicating with the Arab Company for Tourist Establishments and the Arab Orient Insurance Company for being one of the companies achieving the conditions for listing in the market However, there are some pending issues on the Arab Company for Tourist Establishments that must be addressed before listing, especially those aspects of that company’s relationship with the Ministry of Tourism in terms of standardizing the types of shares that are in the company where there is a real problem with listing them because they have Different (excellent or normal) nature.
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