Premier charged leadership of Samruk to activate work for development Kazakhstan stock market

/INTERFAX-KAZAKHSTAN, Astana, January 24, 07/ - The prime-minister of Kazakhstan Karim Masimov commissioned leadership of Kazakhstan holding for state assets management Samruk JSC to activate the work for development of the domestic stock market. "There was some progress last year (on this issue. - IF-K). They moved under a strain, there were resistance and a lot of questions. On the whole, ... I pose an objective ahead of you in 2007 to intensify this work," noted K. Masimov, speaking at the expanded board of the state holding on Wednesday. "That is, firstly, we must develop our Kazakhstan stock market," added the premier. As a positive example, he cited the sale at the end of 2006 of stock of Kazakhtelecom (in the structure of Samruk) to the public of the republic. At the same time, the head of the state drew his attention to an insufficient explanatory work of the state holding among citizens about advantages of purchasinf shares of Kazakhtelecom. K. Masimov again stated about necessity to sell small stockholdings, which are attractive for investors of Kazakhstan companies among as large as possible number of citizens of the republic. "On the whole, the objective is that our each citizen - all 15 million 365 thousand (I looked the latest statistics) - had an opportunity to own at least a small stockholding," he noted. As it is known, one of tasks of the state holding Samruk is the effective management of the national companies entrusted to it with farther bringing their shares to the stock market. In its turn, Sauat Mynbayev, the chairman of the Board of Samruk JSC, at the board noted that "steps in this direction (for development of the stock market. - IF-K) were undertaken, however, it should be taken into account that the holding will not be able to provide satiety of the corporate stock market". "Firstly, he explained, there are restrictions for privatization and sale of strategic assets - these are main railways, oil-pipe lines, gas pipelines, power transmission lines". "Secondly, we should not be in a hurry to bring to the stock market the companies, which did not pass procedure on cardinal improvement of corporate management, since first, this is a risk for investors, second, cost of this companies initially will be lowered. At least, these companies must pass a huge preparatory workб" stressed S. Mynbayev. At that, he noted, "We can already increase our presence on the domestic corporate market of debt instruments". The management of the state holding Samruk, established by the head of the state in January of this year, currently has state-owned shares of five companies: Kazakhtelecom JSC, Kazpost JSC, companies for electric networks management KEGOC JSC, oil and gas company NC KazMunayGas JSC and the railway company Kazakhstan temit zholy JSC (KTZ). Kazpost, KEGOC, KazMunayGas and KTZ are fully state-owned companies. Besides, according to the resolution of the government dated October 24, to the state holding state-owned assets of 17 more companies must be transferred, including strategic branches of economy, in particular, Kazakhstan-British Air Astana JV (state-owned stockholding of 51%). State- owned shares of 14 out of these JSCs have been already transferred to Samruk. [2007-01-24]