ANALYSIS: In October 2007, shares market on KASE started to steady

08.11.07 21:30
/IRBIS, Dinara Mukasheva, November 8, 07/ - In October 2007 2,413 deals were registered with shares in all sectors, including deals, made on the special trading floor of the regional financial center of Almaty (STF RFCA) on Kazakhstan stock exchange (KASE) for a total of KZT52,141.2 m. or $431.5 m. at the current exchange rate on dates, on which deals were made. The specified amount makes 56.7% of the month turnover of the market of corporate securities on KASE (in September - 23.5%) and 1.6% of the entire month exchange turnover (0.7%). Statistic characteristic of shares market on KASE in October and September of year 2007 ------------------------------------------------------------------------------------ Month: ----------------------- Trend October 2007 September October 2007 Indicator 2007 to September 2007 ---------------------------------------- ------------ --------- ----------------- Trades volume, th. USD 431,525.7 206,721.6 +108.7% Trades volume, m KZT 52,141.2 25,218.1 +106.8% Including on offerings, th. USD - - Х including on offerings, m. KZT - - Х including on STF RFCA, th. USD 17,839.1 36,956.5 -51.7% including on STF RFCA, m. KZT 2,156.3 4,491.1 -52.0% Number of deals 2,413 1,369 +76.3% Number of instruments, involved in deals 53 50 +6.0% Average day number of deals 110 65 +68.2% Average day volume of deals, th. USD 19,614.8 9,843.9 +99.3% Stake of nego deals (number), % 3.6 5.0 -1.3 pp Stake of nego deals (volume), % 6.2 11.3 -5.1 pp Part of pension assets, % on gross 13.0 20.5 -7.5 pp Part of physical entities, % on gross 18.3 18.6 -0.4 pp Number of exchange's members, 54 50 +8.0% who made deals Market concentration, %* 58.5 59.2 -0.7 pp ------------------------------------------------------------------------------------ *it is specified percentage out of the entire shares turnover, which is numbered by most traded securities (their number is 5% out of the total number of share denominations, included in traded lists of KASE) After two-month "pique", the situation on shares market gradually evens out in October - total volume of trades increased twice over the month. During October the development dynamics was flat enough despite of some events of the beginning of the month that gave something to talk about pessimistic thinking. For domestic companies, October started relatively tensely against the background of decrease of credit ratings of the Republic of Kazakhstan from S&P down to "ВВВ-" and data of the National Bank on reduction of deposit base of banking sector and inflation growth. However, after certain fall at the beginning of the month, the market closed in October at quite positive indicators. The given dynamics is fully illustrated by KASE index as it is shown below. The strongest fall came on October 4 ( by 7.3% in comparison with the value of the previous month) that was fast corrected during the following days. Overall by the results of month, KASE index has formed with positive trend. In the analyzed month, price parameters of the common stocks of Halyk saving bank of Kazakhstan JSC, Bank TuranAlem JSC and Exploration Production KazMunayGas JSC grew on KASE by 44.3%, 14.9% and 9.7% respectively. Common shares of Kazkommertsbank JSC and Kazakhtelecom JSC decreased in their prices by 24.4% and 2.5%. The leader of falling became the common shares of Alliance Bank JSC that have decreased since the beginning of the month by 72.5% to KZT17,000.01 per share. The main fall on foreign markets have been experienced by Kazakhstani banks that, in principal, meet the apprehensions of investors that were related to banking and construction sectors. By the results of October, on London stock exchange, GDR prices for the common shares of Halyk saving bank of Kazakhstan JSC decreased by 7.6%, the ones of Kazkommertsbank JSC fell by 10.4%, those of Alliance Bank JSC - by 15.4%. In the given range, the most remarkable is falling of equity instrument of Kazkommertsbank JSC and Alliance Bank JSC. Regarding to the first issuer, here Moody's agency brought troubles by putting for reconsideration with negative outlook all ratings of the bank (excluding the rating on deposits in foreign currency) on October 4. Moody's analysts were put on their guard by a too rapid growth of bank's assets - by 24.5% in the first half-year and high concentration of their credit portfolio, 25% of which account on loans to the companies in construction sector. As a result, shares quotations of the banks lost about 13% on global markets during three days. In the situation with Alliance Bank JSC, decrease in the value of shares is related, first of al, to information about reduction of deposit base of bank by $225 m. that, in consequence, was compensated by the capital of a bank's shareholder. Inaccurately interpreted information of possible change in credit covenants has also negatively affected the stock quotations of this bank. Against the background of decrease in quotations of banking sector, stable growth was demonstrated by equity securities of: Exploration Production KazMunayGas JSC (+8.5%) and KAZAKHMYS PLС company (5.5%). The given rise follows the concept of actual development of international raw material markets where there is deficit of demand almost for all main commodities' groups. Over October of 2007, the prices for oil increased on average by 15.8%, by far exceeding the psychological benchmark of $90 per barrel of oil. Although the speculative moments play not the last role in the sharp growth of oil prices, the pointed tendency has rather objective basis - such factors can be included to the pricing group as growing tense in the Near-Eastern region because of Turkish-Kurdish problem, reduction in the global commercial stocks of oil and the situation on mortgage market of the U.S. that acquires permanent character. According to the annual report of International energy agency, the probability of continuation of this dynamics remains in the short term. In the situation with KAZAKHMYS PLС, the message about diversification of company's assets through the acquisition of 18.8%-stake in Eurasian Natural Resources Corporation PLC has played its role. Moreover, the traditional high level of demand for the company's products remains. Despite of certain decrease in copper prices during the reported period, a sharp increase is forecasted for copper prices in the last quarter of the current year and for the beginning of 2008. Sufficiently low commercial stocks of the "red metal" on the three biggest exchanges, deficit of large-scale copper extracting projects and problems with manufacturing results of a number of middle companies create a suitable ground for a further growth of prices for copper against the background of copper consumption in China, India and Brazil. Overall, by the results of October, the growth of weighted average day prices was shown by 37% of share denominations involved in deals, 46% of shares showed reduction, 15% - unchanged trend, prices of 2% of share denominations had nothing to be compared with. The corresponding indicators of September are: 42%, 52%, 6%. The next shares demonstrated the maximal trends as of month's results: LNAT grew by 463.5%, ZNGRp fell in price by 87.1%. Below are given the tables, characterizing the shares market of KASE in the analyzed month more fully. Changes in list of shares, traded on KASE, in October 2007 (end of month, change over the month) --------------------------------------------------------- Shares: Issuers: ------------- Instruments ------------- Category of ------ ----- ------ ----- admission number trend number trend number trend ------------ ------ ----- ------ ----- ------ ----- A 46 0 46 0 31 0 B 48 +1 48 +1 40 +1 ------------ ------ ----- ------ ----- ------ ----- A+B 94 +1 94 +1 71 +1 ------------ ------ ----- ------ ----- ------ ----- N 5 0 5 0 5 0 A+B+N 99 +1 99 +1 76 +1 ------------ ------ ----- ------ ----- ------ ----- C (STF RFCA) 18 0 18 0 10 0 A+B+C+N 98 +1 117 +1 76 +1 --------------------------------------------------------- Notes: "A", "B" - categories of the official list of KASE; "C" - the category of the official list of the special trading floor of the regional financial center of Almaty (STF RFCA); "А+В" - the official list of KASE; "А+В+N" - the main trading floor of KASE; "A+B+C+N" - totally on KASE, including STF RFCA; in connection with launching STF RFCA, within a security (share) of one denomination two exchange instruments can go with, which are different with the trading code, conditions of trades performance and of payment completion. Changes of KASE index for different periods at the moment of trades' closing on October 31, 2007 (basis actual/365) ------------------------------------------------------- Change: -------------- Period % % APR --------------------------------------- ------ ------ For previous 30 days +3.7 +41.3 Since the beginning of the current year +9.2 +11.1 (since January 1, 07) For the last 365 days (year) +49.4 +49.4 For year 2006 +274.1 +274.1 Since the beginning of year 2005 +308.5 +168.6 ------------------------------------------------------- Main indicators of exchange market of purchase and sales of shares in October of year 2007 ---------------------------------------------------------------------------- Market ca- Volume of Volume of Number of pitalization, deals, deals, deals Data m. USD KASE Index th. USD m. KZT ---------------- ------------- ---------- --------- --------- --------- September 28, 07 57,711.06 2,545.79 18,775.0 2,271.0 104 October 1, 07 57,650.18 2,560.72 467.3 56.5 33 October 2, 07 59,242.78 2,681.17 15,212.6 1,840.4 99 October 3, 07 56,013.14 2,612.81 5,098.4 616.8 102 October 4, 07 54,302.18 2,422.47 5,919.9 716.2 157 October 5, 07 54,131.49 2,443.75 14,481.8 1,751.4 107 October 8, 07 54,871.63 2,453.19 24,655.9 2,980.9 163 October 9, 07 54,419.17 2,446.88 8,572.5 1,036.8 129 October 10, 07 55,726.42 2,550.66 37,997.8 4,596.2 62 October 11, 07 55,670.41 2,546.62 33,703.0 4,075.7 107 October 12, 07 56,412.85 2,631.79 46,460.4 5,613.4 209 October 15, 07 57,943.24 2,665.42 13,850.3 1,671.2 108 October 16, 07 57,999.20 2,624.99 11,631.4 1,404.4 143 October 17, 07 57,948.28 2,625.35 5,431.0 656.0 46 October 18, 07 57,882.57 2,630.13 7,083.6 855.3 82 October 19, 07 57,698.37 2,613.95 5,403.3 651.4 99 October 22, 07 55,919.26 2,539.61 20,817.5 2,512.9 116 October 23, 07 55,971.00 2,569.02 72,096.1 8,706.3 55 October 24, 07 56,037.70 2,535.52 48,803.4 5,894.0 130 October 28, 07 56,728.75 2,581.99 3,842.3 464.1 57 October 29, 07 56,860.29 2,613.37 19,308.6 2,332.1 94 October 30, 07 56,291.78 2,616.56 13,150.0 1,589.0 155 October 31, 07 56,938.76 2,640.83 17,538.7 2,120.3 160 ---------------- ------------- ---------- --------- --------- --------- Trend -772.3 +95.0 % -1.3 +3.7 ---------------------------------------------------------------------------- Results of trades in shares on KASE in October 2007 in purchase and sales sector (including nego deals) ---------------------------------------------------------------------------------- Price, tenge per share: ---------------------------------------------------------- Volume Num- on last deal for last 365 days: ---------------- -------------------- of deals, ber Shares trend th. de- code min. max. price % min. max. USD als ------- --------- ---------- ---------- ----- --------- ---------- --------- ----- aASND 55,000.00 55,000.00 55,000.00 5,060.00 55,000.00 11.4 2 aATFBp 3,350.00 4,000.00 3,801.00 3,350.00 5,750.00 59.3 3 aHSBKp1 322.00 350.00 350.00 300.00 350.00 8,265.9 3 ALKZ 1,500.00 1,600.00 1,500.00 -11.8 1,400.00 3,500.01 141.8 4 ASBN 14,000.00 64,000.00 17,000.01 -73.6 11,100.00 69,000.00 612.5 26 ASBNp1 11,200.00 19,000.00 13,100.00 +11.0 10,000.00 25,000.00 3,825.7 18 ASFI 9,700.00 10,500.00 9,700.00 -7.6 8,100.00 14,000.00 48.7 3 ASFIp 10,000.00 10,000.00 10,000.00 0 4,001.00 11,500.00 8,183.2 2 aTEBNp 2,521.75 2,700.00 2,700.00 +3.9 1,500.00 2,702.50 9,502.6 2 ATFB 8,800.00 10,150.00 9,150.00 -11.6 7,500.00 14,000.00 996.7 26 ATFBp 3,220.00 5,500.00 4,100.00 +2.5 2,800.00 6,500.00 2,585.6 42 ATFBp8 4,000.00 6,500.00 5,300.00 +29.3 1,500.00 8,999.00 122,720.9 248 BTAS 850.01 116,000.00 100,000.00 -7.4 850.01 157,275.00 14,858.5 212 CCBN 1,000.00 1,595.00 1,493.00 +0.9 1,000.00 2,050.00 33,968.4 331 CSBN 5,300.00 6,100.00 6,100.00 0 3,383.00 8,000.00 278.4 23 CSBNp 2,175.00 2,175.00 2,175.00 0 700.01 3,505.00 22.7 1 DNBN 3,105.00 3,220.00 3,220.00 +7.7 1,400.00 6,727.50 45.4 4 EXBN 2,900.00 2,900.00 2,900.00 2,000.00 3,700.00 1.8 2 EXBNp 1,920.00 2,100.00 2,000.00 0 1,100.00 2,200.00 205.6 17 GB_KZMS 3,400.00 3,700.00 3,500.00 +12.9 3,047.50 3,700.00 529.3 12 HSBK 540.00 619.00 615.00 +53.0 280.00 781.00 2,065.9 49 HSBKp 290.00 333.50 333.50 +7.6 290.00 333.50 2,566.4 3 HSBKp1 290.00 322.00 295.00 0 200.00 345.00 627.5 30 KIBN 110.00 350.00 320.00 -18.0 110.00 1,150.00 147.4 13 KKGB 650.00 969.99 800.00 -5.9 650.00 1,550.00 18,043.0 427 KKGBp 271.00 354.00 346.00 +15.3 190.00 499.00 29,889.4 204 KMSO 49,282.00 49,282.00 49,282.00 49,282.00 49,282.00 132.5 4 KZTC 21,600.00 21,600.00 21,600.00 -3.6 11,100.00 48,000.00 1.8 1 KZTCp 2,600.00 3,105.00 2,700.00 -15.6 1,044.00 8,750.00 92.1 8 KZTK 38,000.01 44,000.00 38,002.00 -9.5 28,000.00 55,000.00 1,568.6 44 KZTKp 14,500.00 19,999.00 15,500.00 -10.4 8,950.00 27,100.00 523.6 35 LNAT 5,000.00 9,999.00 9,999.00 1,649.44 9,999.00 228.8 13 NFBN 4,350.00 5,176.15 5,176.15 +1.5 2,012.50 7,622.50 2,825.8 25 NRBN 17,500.00 25,000.00 22,000.00 -23.2 17,500.00 62,250.00 267.3 12 NRBNp6 12,650.00 12,650.00 12,650.00 12,650.00 40,000.00 16.5 1 ORDB 4,000.00 4,000.00 4,000.00 0 2,807.17 4,600.00 22.8 1 PDES 920.00 1,042.00 920.00 0 843.03 1,100.00 1,017.3 2 RAHT 3,000.00 3,500.00 3,400.00 1,000.00 4,000.00 54.7 3 RDGZ 15,600.00 18,200.00 17,500.55 +5.4 11,300.00 18,600.00 75,890.8 339 RMXR 2.50 2.50 2.50 +66.7 1.00 4.95 93.1 2 SHMO 2,715.00 2,715.00 2,715.00 2,715.00 2,715.00 48,611.7 1 TEBN 6,500.01 7,509.60 7,500.00 0 3,550.00 9,000.00 1,356.4 18 TEBNp 2,347.83 2,900.00 2,500.00 0 1,100.00 3,300.00 4,295.3 54 TSBN 2,600.00 3,157.59 2,660.00 -11.3 1,510.00 4,550.00 6,098.6 40 TSBNp 1,800.00 1,800.00 1,800.00 -14.3 1,300.00 2,415.00 20.8 1 UTMK 27,000.00 27,000.00 27,000.00 0 25,000.00 28,750.00 264.2 11 UTMKp 10,000.00 10,000.00 10,000.00 1,500.00 15,000.00 530.0 1 ZERD 3.97 3.97 3.97 +3.1 1.50 4.50 107.6 1 ZNGRp 1,292.74 1,292.74 1,292.74 450.00 10,000.00 517.1 1 ------- --------- ---------- ---------- ----- --------- ---------- --------- ----- 49 404,741.4 2 325 ---------------------------------------------------------------------------------- Notes to the table: The table reflects only those shares, with which deals were made by method of open trades. Trends (change, %) are given relative to the last deal of the previous month (September 1-31, 2007). If there were no deals last month, trend is not calculated. Top-10 of the most liquid listing shares of KASE in October 2007, including STF RFCA --------------------------------------------------------------------------- Base of liquidity indicator calculation (Kl): ------------------------------------ Position Liqui Volume Number Number Position in October Share dity of deals number of KASE of in 2007 symbol indica KZT, of deals mem bers result August, tor(Kl) mln days 2007 ---------- ------ ------- -------- -------- -------- ------ -------- 1 KKGB 2.6 2,180.9 427 66 22 1 2 RDGZ 2.4 9,167.5 339 55 22 2 3 CCBN 2.1 4,102.3 331 44 22 4 4 ATFBp8 1.9 14,833.5 248 21 20 23 5 BTAS 1.6 1,795.3 212 38 20 3 6 KKGBp 1.5 3,610.9 204 32 17 5 7 HSBK 0.9 249.8 49 30 13 6 8 HSBKp1 0.724 75.8 30 10 22 8 9 KZTK 0.723 189.4 44 18 15 10 10 TSBN 0.6 737.4 40 17 12 17 --------------------------------------------------------------------------- Notes to the table: for calculation of Kl are used only data on deals, which were made in the sector of KASE's secondary market by one of methods of open trades. Description of methods of calculation of the given indicator is available in corresponding chapter of the document, published at http://www.kase.kz/mix/rsp.pdf in Russian language and at http://www.kase.kz/eng/mix/rsp.pdf in English language. 10-top most capitalized companies of KASE whose shares are in official securities list of the exchange (to the moment of trades closing by specified dates) ----------------------------------------------------------------------------------- As of October 31, 07: as of September 28, 07: Change: --------------------- ----------------------- ---------------- Company code po- capi- stake po- capi- stake capi- on KASE (the same si- taliza- of the si- taliza- of the taliza- stake, code is used for ti- tion, compa- ti- tion, compa- tion, % common share) on m USD ny, % on m USD ny, % m USD points ----------------- --- -------- ------ ---- --------- ------ -------- ------ GB_KZMS 1 13,608.4 23.90 1 12,046.2 20.87 +1,562.2 +3.03 RDGZ 2 10,433.5 18.32 2 9,636.8 16.70 +796.7 +1.63 BTAS 3 6,034.5 10.60 3 6,559.1 11.37 -524.7 -0.77 HSBK 4 5,282.7 9.28 4 3,529.4 6.12 +1,753.3 +3.16 KKGB 5 4,161.3 7.31 5 4,350.5 7.54 -189.2 -0.23 KZTK 6 3,753.0 6.59 6 3,850.3 6.67 -97.3 -0.08 ATFB 7 2,055.3 3.61 7 2,073.4 3.59 -18.2 +0.02 CCBN 8 1,583.3 2.78 8 1,406.8 2.44 +176.6 +0.34 ASBN 9 1,398.6 2.46 9 5,178.1 8.97 -3,779.5 -6.52 TEBN 10 1,285.5 2.26 10 1,198.8 2.08 +86.7 +0.18 ----------------------------------------------------------------------------------- Not to the table: Stake of the company, % - indicator, calculated by ratio of market capitalization of the company to total capitalization of exchange market of shares of KASE's official list of securities and expressed in percentage. This indicator at the session closing as of October 31, 2007 was $56,939.2 m. There were 94 shares of 70 issuers in official securities list of KASE. A full list of codes of issuers with the names of companies is published at http://www.kase.kz/instruments/nzb_code.htm [2007-11-08]