AS OF OCTOBER 2 KASE DISCONTINUES CALCULATION OF KASE_B* SERIES INDICATORS DUE TO SWITCHING TO RELEASE OF NEW BOND MARKET INDICATORS

/KASE, September 8, 2017/ – Following a decision of Kazakhstan Stock Exchange (KASE, or the Exchange) dated July 25, 2017 revised KASE internal document "Methodology of Stock Market Indicators Calculation" (Methodology) was approved, with effect as of October 2, 2017. The new edition of the Methodology was developed based on the current same-name internal document and defines the list of stock market indicators and the procedure of their calculation. In accordance with the new edition of the Methodology, KASE will calculate the following new indicators of the exchange market of corporate bonds instead of currently calculated KASE_B* series indices*: for the Exchange's Main Market (series KASE_BM*): 1) KASE_BMC – index of "clean" prices; 2) KASE_BMY – yield indicator; for the Exchange's Alternative Market (series KASE_BA*): 1) KASE_BAC – index of "clean" prices; 2) KASE_BAY – yield indicator. Due to the above-mentioned, the methodology of forming corporate bond market indicators was changed. It stipulates the following: 1) selection criteria for forming the indicators universe of series KASE_BM* and KASE_BА* were changed (see below); 2) it was defined that the universe of series KASE_BM* must contain at least seven titles of bonds, and the universe of series KASE_BA* – at least four; 3) a mechanism of restricting the impact of the same-title bonds' parameters on values of indicators of series KASE_BM* и KASE_BА* was introduced; 4) for eliminating the impact of non-market factors on values of indices KASE_BMC and KASE_BАC – change in the index universe of rebalancing of indices with purpose of restricting the impact of the same-title bonds' parameters – the methodology of use of the adjustment coefficient was changed; 5) calculation of the "dirty prices" index was discontinued because that index doesn't carry important information for understanding the market conditions at the current level of liquidity of corporate bonds on KASE. For forming of the inverses of indicators of KASE_BM* and KASE_BА* series the following selection criteria were defined: 1) bonds must be denominated in tenge and not be indexed upon the exchange rate of the tenge to the foreign currency; 2) bonds must be traded in "clean" prices, and the yield of bonds to maturity must be calculated by the Exchange's information systems automatically; 3) there must be a market-maker for the bonds; 4) the Exchange must have details of the number of bonds being offered; 5) the bonds issuer must not have unsettled debts on payment of coupon interest and/or principal debt on bonds he issued. Also, editorial amendments and specifications were added to the Methodology, as well as all amendments made earlier were summarized. Indicators of series KASE_BM* and KASE_BА* are calculated since September 1, 2017. Initial values of indices KASE_BMC and KASE_BAC are taken as 100 as on that date. The Exchange will release values of new indicators starting from October 2, 2107. From the same date the calculation and release of indicators of series KASE_B* will be discontinued. As of the effective date of the new edition of the Methodology, the current Methodology will be acknowledged invalid. The new edition of the Methodology will be released on KASE website not later than September 15, 2017. [2017-09-08]