ANALYSIS: In May 2007 GS market on KASE had liven up a little bit on the background of increased tenge liquidity

/IRBIS, Ruslan Dzubaylo, Andrey Tsalyuk, June 12, 07/ - In May 2007 on Kazakhstan stock exchange (KASE) 129 deals were registered in government securities (GS) purchase and sale sector for the total of KZT81,592.5 m. (equivalent of $675.4 m.), which was 2.7% out of the total exchange turnover of the month (in April - 2.5%). Relative to April 2007 the sector's turnover increased by 6.7% in tenge (7.6% in dollar terms), relative to May 2006 - by 1.8% in tenge and dollar expression. In the primary market sector Ministry of Finance held on KASE two specialized trades for re-offering of MEKAM. On May 10 was executed on KASE so-called repeated opening (re-offering) of MEUKAM-84 of 84 issue (KZKDKY070016, MUM084_0001; KZT1,000, March 14, 07 - March 14, 14, annual coupon, 6.75% APR, 30/360), for the amount of the face value of KZT16.5 bn. with payment at the day of deals' making. Demand did not exceed 9.1% out of the announced volume of offering and was formed by only one bank and satisfied in full volume. 2 deals were executed for purchasing of 1.5 m. bonds for a total of borrowing KZT1,509.0 m. or equivalent of $12,576.7 th. While term ahead of repayment was 2,464 days, bonds had been offered under 6.83% APR. On May 30 the Ministry of finance conducted on KASE the re-offering of MEUJKAM-72 of the first issue (KZKAKY060010, MUJ072_0001; KZT1,000, April 27, 07 - April 27, 13, fixed annual coupon, 0.05% APR + inflation, 30/360), on which it was planned to sell 14,500,000 bonds with settlements at the day of deal-making. "Dirty" price of bonds was the subject of trades. Demand made 119.0% from announced volume of offering. Ministry of finance by 14 deals borrowed to the budget KZT14.5 bn. (equivalent $119.2 m, the whole planned volume), selling the bonds under the forecasted yield 7.75%-8.06% APR, with term ahead of maturity 2,127 days. Average weighted yield of re-offering made 7.91% APR. Results of May on the exchange primary market of GS had showed that investors are still show the interest mainly to securities, which protect them from inflation risks. The yield under which they are bale to buy bonds, must be significantly higher than is observing on secondary market on securities of the same circulation term and investment quality. In the secondary market sector of GS did not surprised May by anything. The structure of turnover and volume of operations remained almost the same as in April. The yield was changing insignificantly. At that for short positions it had raised a little and for long - decreased. Statistical indicators of this sector are given in the table (in parentheses - comparative indicators of the previous month). ------------------------------------------------------------------------- Yield to maturity for the buyer, %APR ---------------------------- Term ----- ---- ---- ------------ Volume, m. KZT Number till maturity min max last WA at market price of deals -------------- ----- ---- ---- ------------ ------------------- --------- Discounted GS (KZT): National Bank's notes - 83.3% (88.6%) of the market ------------------------------------------------------------------------- less 8 2.79 5.10 4.50 4.51 (1.89) 19,531.0 17 8 - 14 4.69 4.71 4.71 4.70 (4.56) 8,173.0 9 15 - 28 4.70 5.40 4.71 5.00 (4.61) 8,071.9 10 29 - 36 5.10 5.10 5.10 5.10 (5.20) 2,290.4 3 43 - 56 5.45 5.46 5.45 5.45 (5.41) 4,482.2 5 57 - 63 5.45 5.45 5.45 5.45 (5.17) 11.5 1 64 - 91 5.40 5.45 5.40 5.43 (5.40) 1,039.5 5 92 - 181 5.69 5.95 5.80 5.85 (5.89) 10,916.6 7 182 - 364 6.50 6.50 6.50 6.50 ( -) 94.0 2 -------------- ----- ---- ---- ------------ ------------------- --------- Total 54,610.0 (58,740.1) 59 (63) -------------- ----- ---- ---- ------------ ------------------- --------- Coupon GS (KZT): MEOKAM, MEUKAM - 16.7% (11.4%) of the market ------------------------------------------------------------------------- less than 730 3.35 8.50 8.50 5.75 (5.97) 4,600.4 23 731 - 1095 -0.72 6.19 6.18 4.66 (6.11) 3,615.5 12 1096 - 1460 5.60 6.27 6.12 6.13 (6.14) 618.2 6 1461 - 1825 6.00 6.00 6.00 6.00 (5.96) 495.8 1 1826 - 2190 5.50 5.50 5.50 5.50 ( -) 673.5 1 more than 2191 4.30 5.51 5.50 5.31 (6.09) 961.8 6 -------------- ----- ---- ---- ------------ ------------------- --------- Total 10,965.1 (7,554.3) 49 (40) -------------- ----- ---- ---- ------------ ------------------- --------- Coupon GS (USD): bonds of Astana city - 0.01% (0.004%) of the market ------------------------------------------------------------------------- less than 730 9.50 9.50 9.50 9.50 (9.50) 6.7 5 -------------- ----- ---- ---- ------------ ------------------- --------- Total 6.7 (2.8) 5 (2) -------------- ----- ---- ---- ------------ ------------------- --------- GRANDTOTAL 65,581.8 (66,297.2) 113 (105) ------------------------------------------------------------------------- Stake of exchange turnover in total volume of purchase and sale deals of Kazakhstan secondary market of GS in May increased to 39.1% (in April it made 36.3%). [2007-06-12]