ANALYSIS: In June of 2006 volume of deals in KASE's repo sector increased by 20.4% against background of higher tenge demand

/IRBIS, Valeriy Khegay, Andrey Tsalyuk, July 6, 06/ - In June of 2006 Kazakhstan stock exchange (KASE) recorded 3,936 deals in the repo transactions sector for a total of KZT1,015.6 bn. or USD8,488.4 m. at the current rate effective on deals making dates. This is 78.3% of total turnover of KASE in this month (in May of 2006 - 66.7%). In comparison with May of 2006 volume of transactions increased by KZT172.2 bn. ($1,600.3 m.) or by 20.4% (by 23.2% in dollar terms). Relative to June of 2005 volume of transactions has grown by KZT90.2 bn. ($1,584.5 m.) or by 9.7% (by 23.0% in dollar terms). Stake of exchange's turnover in total volume of repo deals on Kazakhstan market in June on comparable operations totaled 99.5%, in May of 2006 - 95.0%. Structure of repo market turnover on KASE in June was as follows: - the stake of automatic repo transactions was 90.9% of the sector's turnover (KZT923.4 bn.), including deals in government securities (GS) - 71.7% (KZT604.5 bn.), deals in corporate securities (CS) - 19.2% (KZT194.9 bn.); - the stake of repo transactions made by nego deals method, was 9.1% of the sector's turnover (KZT92.2 bn.), including deals in GS - 0.6% (KZT5.6 bn.), deals in CS - 8.5% (KZT86.6 bn.). For comparison, structure of stock exchange's repo market in May of 2006 was as follows: autorepo - 91.8% (GS - 71.7%; CS - 20.1%); repo by nego method - 8.2% (GS - 1.1%; CS - 7.1%). The main difference of the analyzed month from the previous one on repo market is higher rate level of most liquid short money. For example, if weighted average value of indicator TONIA in May was 0.63% APR, in June it reached 1.44% APR. IRBIS specialists explained growth of repo rates in June with higher demand of market subjects for tenge. It was provoked by fall of sales volume on KASE and of USA dollar out of the stock exchange while there were at the same time growth of issue activity of National Bank on notes market. If before big volume of dollar repurchase by National Bank provided adequate inflow of free money, in June this inflow reduced, that led to stirring up of repo market and rates growth. The tables below characterize KASE's repo sector in June of 2006 on opening transactions in tenge (stake of the market in headings of tables is given in accordance with the actual volume of transactions, including repo opening and closing deals; information on direct deals with CS (8.5% of market) for the first time are not published due to very big size of the table). Automatic repo with GS - 71.7% of the market --------------------------------------------------------------------------- Repo rate, % APR Instrument ------------------------------------- Volume, Num- Stake of (currency, on first mini- maxi- on last weighted m. ber of market, term, days) deal mum mum deal average KZT deals % ----------- -------- ----- ----- ------- -------- --------- ------ -------- KZT_001 0.70 0.05 5.00 0.20 1.44 286,940.8 919 79.45 KZT_002 0.80 0.45 4.05 0.70 1.28 22,885.0 44 6.34 KZT_003 1.80 0.80 3.10 0.80 1.88 17,367.0 23 4.81 KZT_007 1.80 1.50 3.40 1.70 2.53 11,114.0 41 3.08 KZT_014 2.20 2.00 4.00 2.90 3.46 15,408.0 23 4.27 KZT_028 3.00 3.00 3.60 3.20 3.36 7,434.0 40 2.06 ----------- -------- ----- ----- ------- -------- --------- ------ -------- TOTAL 361,148.9 1,090 100 --------------------------------------------------------------------------- Automatic repo with CS - 19.2% of the market -------------------------------------------------------------------------- Repo rate, % APR Instrument ------------------------------------- Volume, Num- Stake of (security, on first mini- maxi- on last weighted m. ber of market, term, days) deal mum mum deal average KZT deals % ----------- -------- ----- ----- ------- -------- -------- ------ -------- ASBNb3_001 3.00 3.00 3.50 3.50 3.22 783.0 3 0.83 ASBNb4_001 3.50 2.50 4.00 2.50 3.50 628.0 5 0.66 ASFI_030 6.00 6.00 6.00 6.00 6.00 8,416.0 10 8.89 ASFIb5_001 2.50 700.0 1 0.74 ASFIb5_003 2.50 2.50 3.30 3.30 2.90 1,390.0 2 1.47 ASFIb5_007 4.00 3.75 4.00 3.75 3.92 2,090.0 3 2.21 ASFIb7_001 2.30 2.30 3.75 3.75 3.25 277.0 3 0.29 ASFIb7_007 5.00 80.0 1 0.08 ASFIb7_030 5.50 1,000.0 1 1.06 ATFB_001 3.00 2.50 4.00 3.50 3.32 2,405.0 7 2.54 ATFB_007 5.60 4.00 6.50 4.50 4.66 1,401.0 6 1.48 ATFB_028 7.00 7.00 9.00 9.00 8.84 876.0 6 0.92 ATFB_090 8.00 8.00 9.00 9.00 8.48 48.0 2 0.05 ATFBb4_001 3.75 3.50 3.75 3.50 3.68 647.0 4 0.68 ATFBb5_001 3.75 3.75 3.75 3.75 3.75 357.0 3 0.38 ATFBp8_007 4.00 100.0 1 0.11 BTAIb6_003 4.55 397.0 1 0.42 BTAS_001 7.00 2.00 7.00 7.00 6.68 5,775.5 16 6.10 BTAS_007 7.00 7.00 7.00 7.00 7.00 1,400.1 2 1.48 BTAS_030 6.50 6.50 7.50 7.00 6.94 26,043.0 39 27.49 BTAS_090 8.00 8.00 8.00 8.00 8.00 2,561.2 6 2.70 BTASb5_007 5.00 671.0 1 0.71 CSBNb4_001 2.30 2.30 4.00 4.00 3.47 1,176.1 5 1.24 CSBNb4_007 4.00 4.00 5.00 5.00 4.50 476.0 2 0.50 KKAGb2_001 2.00 117.0 1 0.12 KKAGb2_007 5.50 5.00 6.31 6.31 5.53 252.0 3 0.27 KKGB_001 4.00 3.50 4.00 3.50 3.70 300.0 4 0.32 KKGB_007 6.10 200.0 1 0.21 KKGB_028 8.00 7.00 8.00 8.00 7.73 113.0 3 0.12 KKGBp_001 3.50 3.50 3.50 3.50 3.50 406.0 2 0.43 KKGBp_003 3.50 203.0 1 0.21 KKGBp_007 4.75 4.75 6.50 6.50 5.33 303.0 3 0.32 KKGBp_014 6.50 240.0 1 0.25 KKGBp_028 8.00 8.00 8.00 8.00 8.00 570.0 3 0.60 KZTC_001 3.00 3.00 5.00 3.33 3.32 14,305.3 81 15.10 KZTC_007 5.50 5.00 7.00 7.00 6.08 3,138.1 31 3.31 KZTC_028 6.50 6.50 9.00 9.00 7.91 4,195.1 23 4.43 KZTC_090 8.00 25.0 1 0.03 KZTCb1_028 6.50 12.0 1 0.01 KZTK_007 4.00 4.00 4.50 4.50 4.24 303.0 2 0.32 KZZN_001 3.50 3.50 3.50 3.50 3.50 200.0 2 0.21 KZZN_003 3.50 96.0 1 0.10 KZZN_007 4.75 100.0 1 0.11 NRBNb4_001 2.00 2.00 2.00 2.00 2.00 500.0 2 0.53 NRBNb4_003 3.30 3.30 5.00 5.00 4.14 751.0 2 0.79 NRBNb4_007 4.00 4.00 5.00 5.00 4.50 769.0 2 0.81 NRBNb5_003 3.30 3.30 5.00 5.00 4.15 561.0 2 0.59 NRBNb5_007 4.00 4.00 5.00 5.00 4.50 561.0 2 0.59 NRBNp6_028 6.60 6.50 6.60 6.50 6.54 378.1 8 0.40 ORDB_007 6.00 6.00 6.00 6.00 6.00 152.0 2 0.16 ORDB_014 6.50 76.0 1 0.08 PRKRb1_028 6.50 24.0 1 0.03 ROSA_030 11.00 234.0 1 0.25 TEBN_090 8.00 32.0 1 0.03 TEBNp_090 8.00 73.0 1 0.08 TSBNb1_028 6.50 79.0 1 0.08 TSSMb1_028 9.00 250.0 1 0.26 TXBNb1_028 6.50 33.0 1 0.03 TXBNb2_028 6.50 28.0 1 0.03 UTMK_030 9.00 8.00 9.00 9.00 8.42 4,842.1 10 5.11 VTBN_007 7.50 7.50 7.50 7.50 7.50 202.0 4 0.21 ZIG_b1_028 7.00 7.00 7.00 7.00 7.00 400.0 2 0.42 ----------- -------- ----- ----- ------- -------- -------- ------ -------- TOTAL 94,721.6 340 100 -------------------------------------------------------------------------- Repo on direct deals with GS - 0.6% of the market ----------------------------------------------------------------------------- Repo rate, % APR Term of ----------------------------------------- Volume, Num- Stake of repo, on first mini- maxi- on last weighted m. ber of market, days deal mum mum deal average KZT deals % ------- -------- ----- ----- ------- -------- ------- ------ -------- 1 0.73 100.0 1 6.12 28 3.45 3.45 3.50 3.50 3.45 220.5 6 13.50 30 3.50 3.50 3.50 3.50 3.50 322.3 6 19.74 31 2.00 90.0 1 5.51 93 5.10 200.0 1 12.25 95 5.10 156.0 1 9.55 96 5.10 156.0 1 9.55 97 5.10 5.10 5.10 5.10 5.10 272.0 2 16.66 98 5.10 116.0 1 7.10 ------- -------- ----- ----- ------- -------- ------- ------ -------- TOTAL 1,632.8 20 100 ----------------------------------------------------------------------------- [2006-07-06]