Tashkent Stock Exchange to Broadcast Its Indices on Bloomberg Platform
Starting November 10, the exchange will introduce new UPI indices; this could lay the groundwork for launching ETFs in Uzbekistan
Instead of the old index (UCI), which previously indicated whether 'stocks in Uzbekistan are rising or falling,' a set of three new indices called Uzbekistan Prime Index (UPI) will launch on November 10, along with a unified analytical platform, Umetryx.
Thus, the exchange is transitioning to global standards. Previously, a large state-owned company with enormous capitalization could 'overwhelm' the index with its size, even if its shares were barely traded on the exchange. Now, the market will be measured in three different ways.
1. UPI — a classic calculation based on the total value of companies.
2. UPI FF (Free Float) — the most transparent indicator. It accounts only for shares that are actually traded on the exchange and available for purchase by ordinary individuals and investors, rather than sitting idle with the state or a single owner.
3. UPI EW (Equal Weight) — the 'equal rights' index. Each company in the list is given the same weight (e.g., 5% or 10%), so that giants do not overshadow small but fast-growing businesses.
UPI quotes and data will be broadcast to international financial systems (Bloomberg, Refinitiv, Cbonds). For Uzbekistan’s market, this is a significant step: foreign funds and investors will no longer need to manually search for data on Tashkent—they will see analytics directly in their work terminals.
This is perhaps the most interesting development for ordinary private investors. The emergence of clear and recognized indices creates a foundation for launching ETFs (exchange-traded funds) in Uzbekistan. This means that in the future, individuals will not need to separately select and purchase shares of a dozen different companies—they can buy a single 'Uzbekistan index' security and invest in the entire market at once.
However, not all companies will be included in the index. To have a company’s stock included in the UPI, the business must have been profitable in the previous year, have at least 5% of its shares in free float, and demonstrate real, active trading (liquidity).
