Stagnation of the stock securities market of Ukraine: Are there prospects for growth?

In the article based on the results of comparative analysis of the dynamism of the securities market of Ukraine and its key component – the stock market, the trends are clarified and the directions of its further development are determined. The role of the stock market in the development of the country’s economy from the standpoint of its impact on various areas of activity and functional purpose is emphasized. According to the results of critical analysis of scientific works of modern economists and financiers in the field of studying the problems of stock markets functioning, the range of issues that deserve priority attention from the standpoint of identifying the problematic nature of their development and intensification of exchange activities are specified. The reasons for the downward dynamics and stagnation of development of the securities market of Ukraine from the standpoint of the international online platform Trading Economics in the period 2010-2020 are revealed. The tendencies of change of volumes of exchange trade in the securities market of Ukraine in comparison with dynamics of GDP by calculation of a partial indicator of influence on its dynamics in the period of 2015-2020 are defined. The presented comparative data on the volume of exchange and over-the-counter trade in the securities market of Ukraine revealed a tendency to change the focus of trade from the over-the-counter market to organized securities markets. It is established that the modern stock market of securities of Ukraine tends to a polycentric model, which is based on FB “Perspective” and FB “PFTS”, which in the study period accounted for 91.94-99.67% of exchange turnover, which indicates the processes of consolidation of securities trade in such a market. Analysis of the situation on the stock market of securities of Ukraine during the spread of COVID-19 (January-September 2020) revealed that in the study period compared to the same period in 2019, trading volumes increased by 3.14%, and this indicates a lack of pandemy impact on the dynamics of exchange trade in stock values. At the same time, the reason for such changes can be considered a significant previous decline in the domestic stock market and its gradual recovery, which would have had a faster growth rate, if not for the impact of the spread of COVID-19. It should also be noted the low activity of stockbrokers in the primary securities market, and relatively high in the secondary market, where Domestic government bonds were the most frequently traded, and trading was widespread in the spot market. Exit from the state of stagnation is possible if the National Commission on Securities and Stock Market adheres to the Strategy for the Development of the Financial Sector of Ukraine until 2025, the global financial market will be free of shocks similar to February-March 2020, there will be consolidated development of financial investment, organizational, legal and socially significant support of the country’s exchange activities.

stock market, stagnation, securities, stock trading, securities contracts, stock trade development trends, Ukraine