Securities Market: Six Months’ Figures
Over the first six moths of 2007, Kazakhstan Stock Exchange (KASE) transactions totalled $151.9 billion or 18,686.9 billion tenge. This amount comprises transactions at all sectors, including transactions on the special trading floor of Almaty’s Regional Financial Centre (RFCA). The indicator grew 2.65 times in terms of dollars and 2.58 times in terms of tenge (Table 1, 2).
Government Bonds Market
The overall level of government bonds purchase and sale transactions, inclusive of bonds issued by local executive bodies, reached 500.7 billion tenge ($4.071m) in KASE over the first six months of 2007. The growth was 1.81 times or 1.86 times in terms of dollars compared to the same period of 2006 (Table 3). It should be noted that these transactions did not exceed 837.1 billion tenge ($6,621.5 million) during the entire 2006.
In addition to the National Bank, thirty-seven companies participated in government bonds purchase and sale transactions. The ten most active ‘K’ category KASE members accounted for 90.9% of the government bonds turnover. The top ten by share of transactions in the overall turnover of trades (the sum of purchased and sold bonds) on the secondary market was as follows: HSBC Bank Kazakhstan (19.0%), Halyk Savings Bank of Kazakhstan (15.4%), Bank TuranAlem (14.7%), Kazkommertsbank (13.6%), ATF Bank (13.4%), Alliance Bank (5.3%), Citibank Kazakhstan (3.5%), Zhetysu specialised asset management company (3.1%), Almaty Investment Management (1.6%), and GRANTUM Asset Management (1.3%). The rating of every participant was estimated in terms of tenge; only open trade transactions made in KASE were considered.
Over the first six months of 2007, KASE purchase and sale transactions, including transactions on the special trading floor of RFCA, came up to $4.560 billion or 558.3 billion tenge (Table 4). The indicator grew by $3,759.9 million (457.4 billion tenge), i.e. 5.7 times (5.5 times). It should be noted that the purchase and sale of shares in KASE, including placements (for example KazMunayGas Exploration&Production) and subscriptions at the secondary market via the KASE trade system (KAZAKHMYS’ shares), was estimated at $4,026.6 million or 511 billion tenge in 2006.
A total of 60 companies participated in trades during the first six months of 2007. The ten most active KASE members of “A”, “P” and “H” categories accounted for 88.6% of the overall turnover of shares (including the KASE main floor and the special trading floor of RFCA). They are rated according to their participation in overall market transactions as follows: VISOR Capital (49.7%), Almaty Investment Management (8.6%), TuranAlem Securities (7.5%), BCC Invest (5.4%), RESMI Finance & Investment House (5.1%), RBNT Securities (3.8%), Kazkommerts Securities (3.0%), Bailyk Asset Management (2.2%), First Brokerage House (1.9%), and RESMI Investment House Almaty (1.4%).
Table 5 shows the liquidity rating of listed companies whose shares were traded in the Kazakhstan Stock Exchange in June 2007. They accounted for 92.1% of the overall turnover of shares market in KASE. This high concentration was caused by a series of operations with ordinary shares of Alliance Bank (ASBN). Analysts explain these actions by a forthcoming global offer of these shares in a form of global depository receipts (GDR) at the London Stock Exchange. ASBN (26th position in May) and ATFBp (20th), HSBK (11th) entered the list of liquid ten ousting out KZTK and KZTKp (issued by Kazakhtelecom) and KKGB (Kazkommertsbank). Transactions with a total of 48 names of shares were made in the KASE open secondary market.
Corporate Bonds Market
During the period from January to June 2007, the volume of purchase and sale transactions with corporate bonds in KASE, including transactions at the special trading floor of RFCA, reached $2,232.3 million (274.5 billion tenge). The indicator rose by $432.1 million (24%) or 46.7 billion tenge (20.5%) (Table 6). In 2006, the indicator was $3,015.5 million or 380.2 billion tenge.
A total of 50 companies participated in trades during the first six months of 2007. The list of the most active KASE members, which fall in “?”, “?” and “?” categories, is as follows: TuranAlem Securities (33.1%), Astana Finance (15.7%), Almaty Investment Management (8.2%), First Brokerage House (6.1%), Alliance Bank (4.5%), BCC Invest (3%), RESMI Finance & Investment House (2.8%), Temirbank (2.6%), Astana Finance (Astana) (2.4%), and Investment Resources (2%). These ten companies accounted for 80.4% of overall bonds purchase and sale transactions in KASE. Only KASE open trade transactions were considered.
Foreign Exchange Market
During the first six months of 2007, the volume of foreign exchange transactions amounted to $40,101 billion, showing a growth of $27,413.8 million or 3.16 times, when compared to the same period of 2006. In terms of tenge, the figure rose 3.07 times (Table 7).
According to the Irbis information agency, the average market exchange rate of tenge vs. dollar — which represents the average figure of all transactions of main (morning) KASE sessions from 1 January to 30 June 2007 — stood at 123.22 tenge per dollar and 122.91 tenge per dollar in terms of all KASE transactions. The appreciation rate of the tenge to the dollar is estimated at 7.49% per year as at 30 June 2007. The tenge rate increased by 3.69% in nominal value during the first six months of 2007, compared with 5.06% during 2006.
Twenty-six second-tier banks participated in currency transactions in KASE from January to June of the current year. The main players were: Kazkommertsbank (15%), Alliance Bank (13%), Nurbank (12%), Halyk Savings Bank of Kazakhstan (9.9%), ABN AMRO Bank Kazakhstan (9.6%), Bank TuranAlem (6.5%), Citibank Kazakhstan (6.1%), Bank Caspian (5.9%), ATF Bank (2.7%), and Bank CenterCredit (2.3%). Each bank’s position was defined according to its share of the transactions in overall dollar, euro and rouble trades in the KASE trade system. The position of each bank was expressed in total tenge equivalent as per the current exchange rate of every transaction. The ten leaders accounted for 90.9% of the total foreign exchange trades.
According to the data shown in Table 8, repo transactions increased by 2.47 times in terms of tenge (2.53 times in terms of dollars) to 12,424.5 billion tenge ($100,971.8 million) when compared to the same period of 2006. The indicator reached 14,345.3 billion tenge ($113,985.1 million) during 2006.
During the first six months of 2007, 63 companies participated in repo transactions apart from National Bank: Bank TuranAlem (17.2%), Kazkommertsbank (12%), Halyk Savings Bank of Kazakhstan (8.7%), ATF Bank (7.3%), Almaty Investment Management (5.5%), Alliance Bank (4.7%), Bank Caspian (4.4%), Bank CenterCredit (4%), Temirbank (3.8%), and TuranAlem Securities (3.4%). A company’s place was defined according to the share of its transactions in the overall turnover of trades (the sum of purchased and sold repos). All repos were taken into consideration disregarding the sector (automatic repo or direct transactions) and repo subject (governmental bonds of non-governmental bonds). The position of every participant was expressed in the transaction currency, i.e. tenge. The first ten companies accounted for 71% of this sector of the market.
Disclaimer: the above information should not be considered as an offer or recommendation to sell or purchase securities in KASE. Using this information by any individuals or legal entities to make investment decisions should not entail author’s responsibility for any possible losses or damages proceeding from such investment decisions.
By Tatyana Kudryavtseva,
based on information provided by Irbis
The Brand of Kazakhstan is Being Created Today Birzhan Kaneshev
Where Does the Brand Start? Yevgeniy Zharkin
The Tree of Diversification: Prescriptions for Growth Sergey Gakhov
Our Telecoms Charge Ahead; Kaznet Grinds to a Halt! Alexander Vassilyev
Civil Aviation: Takeoff or Letdown? Sergey Smirnov
Railways. The Quadrature of a Wheel Pair Sergey Smirnov
Atlas Copco. Growth Strategy Hans Hedensjö
Pension Funds. Re-assessing Values Editorial
Securities Market: Six Months’ Figures Tatyana Kudryavtseva
Second Advent. Scheme for Placing SPO Yuliya Feller