ANALYSIS: In September 2007 activity of GS market on KASE decreased to the usual level

/IRBIS, Ruslan Dzyubaylo, October 12, 07/ - In September of 2007 on Kazakhstan stock exchange (KASE) in GS purchase and sale sector 64 deals for a total of KZT81,233.0 m. are registered (equivalent to 666.9 m. US dollar), which amounted 2.3% of the total exchange turnover of the month (in August - 4.8%). Relative to August of 2007, the turnover of the sector decreased by 56.8% in tenge and by 55.5% in dollar terms; relative to September 2006, it increased by 28.3% in tenge and by 33.0% dollar terms. In sector of primary market the Finance ministry conducted four auctions to offer MEKAM. On September 12, by specialized trades method was conducted the auction for offering of governmental short-term discount treasury liabilities of Ministry of finance MEKKAM-3 of the 302nd issue (KZK1KM033021, MKM003_0302; KZT100, KZT15.9 bn; September 12, 07 - December 12, 07, annual/ actual). Total volume of active bids reached KZT14,620,213,000.00 that made 97.5% of the offered volume and price varied, according to demand, from 96.8607% (13.00% APR) to 98.2847% (7.00% APR) By results of trades, the issuer made cut-off at the maximal price of demand at 98.2847% (7.00% APR) and satisfied bids for purchases of 50,000,000 bonds to the sum of KZT4,914,235,000.00, offering by that 32.8% of announced volume. Thus, all bonds were offered at the net price of 98.2847% (7.00% APR) for 91 days of circulation term. All deals were executed. On September 19, by specialized trades method was conducted the auction for offering of governmental short-term treasury liabilities of Ministry of finance MEKKAM-3 of the 303rd issue (KZK1KM033039, MKM003_0303; KZT100, September 19, 07 - December 12, 07, annual/ actual). Ministry of finance planned to raise KZT10.0 bn. on specialized trades. Total volume of submitted bids totaled KZT859,392,996.00 that made 9.6% of the offered volume. The price in the limited bids varied from 95.9340% (17.00% APR) to 96.8607% (13.00% APR), having totaled in the weighted average expression 96.1321% (16.14% APR). In the total amount of demand 88.0% were controlled by bids of one of pension funds of Kazakhstan, 12% - by a bid of brokerage-dealership organization. After studying demand parameters, Ministry of finance recognized the auction as frustrated "due to the price that was formed unsatisfactorily by submitted bids". On September 26, by specialized trades method the auction for offering of governmental short-term treasury liabilities of Ministry of finance MEKKAM-3 of the 304th issue (KZK1KM033047, MKM003_0304; KZT100, KZT10.0 bn; September 26, 07 - December 26, 07, actual /actual) was conducted. Total volume of 23 active bids reached KZT21,726.2 m. that made 217.3% of the offered volume. By results of trades, the issuer made cut-off at the price of 98.2700% (7.0196% APR) and satisfied bids for purchases of 105,000,000 bonds to the sum of KZT10,319,200,000.00, offering by that 103.2% of announced volume. Thus, prices of the satisfied bids varied from 98.2700% (7.0612% APR) to 98.2800 (7.0196% APR), having totaled 98.2781% (7.0275% APR) in the weighted average expression for 91 days of circulation term. 38.1% of bonds were purchased at the expense of assets of one of the pension funds, 61.9% were bought by STB' clients. All deals were executed. On September 28, by specialized trades method the auction for offering of governmental short-term treasury liabilities of Ministry of finance MEKKAM-3 of the 304th issue (KZK1KM033047, MKM003_0304; KZT100, KZT10.0 bn; September 26, 07 - December 26, 07, actual /actual) was conducted. Total volume of 17 active bids reached KZT16,389.4 m. that made 163.9% of the offered volume. By results of trades, the issuer made cut-off at the price of 98.3100% (7.0500% APR) and satisfied bids for purchases of 140,000,000 bonds to the sum of KZT13,764,580,000.00, offering by that 140.0% of announced volume. Thus, prices of the satisfied bids varied from 98.3100% (7.0500% APR) to 98.3218 (7.0000% APR), having totaled 98.3184% (7.0143% APR) in the weighted average expression for 89 days of circulation term. By the auction's results, 28.6% of bonds were purchased at the expense of assets of one of the pension funds, 71.4% were bought by STB' clients. All deals were executed. On secondary market sector decrease in activity was observed at first glance. In fact, the market returned to its normal state after unusually high volume in August that was caused by the National Banks repurchases of its notes. Statistic indicators of Kazakhstan GS purchase and sale sector in September and the structure of the secondary market turnover are given in the table (in parentheses - comparable indicators of previous month). --------------------------------------------------------------------------------- Yield to maturity for a buyer,% year. Maturity ------------------------------------- Volume, m. term, last weighted tenge in Number days min max deal average market price of deals -------------- ------ ------- ------ --------------- ------------------ --------- Discount GS (KZT): notes of National bank - 99.6% (80.4%) of the market --------------------------------------------------------------------------------- less than 8 9.00 9.00 9.00 9.00,(9.18) 34,545.2 19 8 - 14 5.90 5.90 5.90 5.90,(9.73) 99.8 1 15 - 28 4.00 13.00 11.00 9.52,(8.39) 7,988.5 7 29 - 36 8.00 8.00 8.00 8.00,(9.11) 380.1 1 92 - 181 5.08 8.94 8.94 5.08,(6.07) 6,327.6 5 182 - 364 5.86 8.00 8.00 5.87,(7.17) 1,162.8 2 -------------- ------ ------- ------ --------------- ------------------ --------- Subtotal 50504.0 (185199.7) 128 (128) -------------- ------ ------- ------ --------------- ------------------ --------- Coupon GS (KZT): МЕОКАМ, MUIKAM - 3.3% (0.4%) of the market --------------------------------------------------------------------------------- less than 730 3.58 7.50 7.50 6.80 ( -) 465.6 5 731 - 1095 6.27 6.28 6.27 6.28 (12.00) 888.8 4 1826 - 2190 7.00 18.61 7.00 15.50 (18.40) 300.4 3 more than 2191 8.80 8.80 8.80 8.80 ( -) 76.1 1 -------------- ------ ------- ------ --------------- ------------------ --------- Subtotal 1731.0 (720.1) 13 (8) -------------- ------ ------- ------ --------------- ------------------ --------- TOTAL 52235.0 (185919.8) 48 (136) --------------------------------------------------------------------------------- Exchange turnover share in total volume of purchase and sale deals of Kazakhstan GS secondary market in September decreased to 61.8% (in August it was 75.8%). [2007-10-12]