/IRBIS, December 2, 02/ - Following is the table of major indicators of Kazakhstan market for U.S. dollar (more than 99% of country's all currency market). Trends are shown relative to corresponding figures of previous day.

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Trades in U.S. dollars at Kazakhstan stock exchange (KASE)
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Instrument                    USD TOD        USD TOD       USD TOM      USD SPOT
Session                          Main    Additional.       Evening       Evening
Time of trades (AST)    10:15a-11:00a   11:30a-3:30p   2:00p-6:00p   2:00p-6:00p
Rate (KZT/USD)          155.06(+0.18)  154.98(+0.04)           (-)             -
Volume of session (m)  1.610(-20.230) 12.225(+6.175)     0(-0.100)             0
Bid                     155.05(+0.18)  154.93(+0.02) 154.95(+0.05)             -
Offer                   155.14(+0.24)  155.00(+0.05)           (-)             -
Number of participants         18(-4)         20(+6)         3(-1)             0
---------------------- -------------- -------------- ------------- -------------
Indicative U.S. dollar quotations in over-the-counter market in information
system REUTERS at closing of KASE sessions (disregarding settlement dates)
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Bid                     155.04(+0.20)  154.92(+0.01)               154.97(+0.01)
Offer                   155.10(+0.20)  154.97(+0.01)               155.02(+0.01)
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Notes: weighted average rate is given for main and evening sessions, for additional - closing rate; best ask and offer prices at closing of the trades are shown as the Exchange's quotations.

The main result of the day at US dollar market of Kazakhstan is ending of the new formation of top, which was caused by growth of USD's rate during last two weeks. At KASE's morning session the market was still mechanically going up. But in the afternoon the situation changed for banks started closing long positions on dollar and sell rather large lots of currency according to their clients' orders. This caused record high volume of the day session, the conjuncture of which was formed by offer volume, and during which USD sellers failed to keep dollar on achieved level. During the trade the market fell from 155.15 to 154.90 and by closing it became stable at 154.98.

This allows IRBIS specialists to say about the beginning of technical correction, which was forecasted as early as in last week. Depth of the correction was determined by technical support level at 154.67, 154.55 and 154.42. Breaking 154.42, which may occur in case of significant activation of exporters in the end of the first ten-day period of December, will lead the further tenge strengthening to 153.80. But it is not time yet to speak about it.

Two more important events should be mentioned too. The first one is additional floatation by KAZKOMMERTSBANK OJSC - one of the most active operators of Kazakhstan domestic money market lately - of euronotes of its daughter company Kazkommerts International B.V. for USD50 m. This may decrease potential demand for dollar at domestic market, and also promote to increase of USD offer volume at KASE, just like it was today.

The second event concerned repo-transactions market, at which resulting net-position of STB suddenly changed the other way round. According to results of the trade banks borrowed on repo more than KZT2.5 bn. This occurred mainly due to one bank and may be considered as local factor, which can not impact the money market's conjuncture. However growth of repo rates, which was formed today on all terms of borrowing, will promote to further development of correction downwards at US dollar market.

In the opinion of IRBIS analysts, on Tuesday tenge has significant chances to win back the lost points from dollar.

[2002-12-02]