ANALYSIS: In December 2007 repo rates on KASE have continued falling due to subsequent growth of liquidity

/IRBIS, Valeriy Khegay, January 11, 08/ - In December 2007 at Kazakhstan stock exchange (KASE) in the sector of repo operations 5,906 deals were registered for a total of KZT1,760.2 bn. or USD14,500.0 m. at the current rate on dates of concluding deals, which is 57.0% of the total turnover of KASE in the given month (in November 2007 - 59.4%). Compared to November 2007 the volume of transactions decreased by KZT491.6 bn. ($4,156.7 m.) or by 21.8% (by 22.3% in dollar terms). Relative to December 2006 the volume of transactions increased by KZT64.5 bn. ($1,241.1 m.) or by 3.8% (by 9.4% times in dollar terms). Stake of the exchange turnover in the total volume of repo deals at the Kazakhstan market in December on comparable operations totaled 100%, in November 2007 - 100%. Structure of repo market turnover at KASE in analyzed month was as follows: - the stake of automatic repo transactions was 94.4% of the sector's turnover (KZT1,661.1 bn.), including deals in government securities (GS) - 75.7% (KZT1,332.7 bn.), deals in corporate securities (CS) - 18.7% (KZT328.4 bn.); - the stake of repo transactions, conducted by nego deals method was 5.6% of the sector's turnover (KZT99.1 bn.), including deals in GS - 0.4% (KZT7.5 bn.), deals in CS - 5.2% (KZT91.6 bn.). For comparison, structure of stock exchange's repo market in Novmber, 2007 was as follows: autorepo - 93.7% (GS - 78.4%; CS - 15.3%); repo by nego method - 6.3% (GS - 0.4%; CS - 5.9%). In December, 2007 on repo market, decrease in repo rates continued. IRBIS specialists are intended to explain is mainly by a considerable inflow of export earnings and gradual reconstruction of deposit base of second tier banks, which suffered because of liquidity crisis that has started in summer of passed year. That contributed to decrease of need in borrowed capital, which resulted in decrease in quantity and volume of deals on repo market. As it often occurs, on the eve of year closing the participants conducted so called annual final entries. For the purpose of realization of lending plan for year 2007, some banks had to borrow "short-term" money, which explains some leaps of rates in the second half of December. Below tables are given, which characterize primary segments of repo market of KASE in December 2007 on opening operations in tenge (market's stake in titles of tables is given according to the actual volume of operations, including deals of opening and closing repo; information on direct deals with CS (5.9% of the market) are not published due to a very big volume of the table). Automatic repo with GS - 75.7% of the market ------------------------------------------------------------------------ Repo rate, % APR Instrument Volume, Num- Market ------------------------------------- ber (currency, on first mini- maxi- on last weighted KZT of share, term, days) deal mum mum deal average m. deals % ----------- -------- ----- ----- ------- -------- --------- ----- ------ KZT_000 1.00 0.70 1.00 0.70 0.80 1,500.0 2 0.22 KZT_001 2.00 0.10 11.00 8.00 2.60 554,602.3 1266 81.72 KZT_002 1.50 1.50 8.50 6.00 3.46 17,832.0 30 2.63 KZT_003 9.00 3.00 9.00 5.50 5.48 23,240.0 40 3.42 KZT_007 5.10 4.00 11.00 11.00 6.55 28,513.0 63 4.20 KZT_014 6.00 5.00 11.00 7.00 7.82 24,044.0 33 3.54 KZT_028 9.50 6.00 11.00 6.00 9.00 28,936.0 84 4.26 ----------- -------- ----- ----- ------- -------- --------- ----- ------ TOTAL 678,667.4 1,518 100 ------------------------------------------------------------------------ Automatic repo with CS - 18.7% of the market ------------------------------------------------------------------------- Repo rate, % APR Instrument ------------------------------------- Volume, Num- Market (security, on first mini- maxi- on last weighted m. ber of share, term, days) deal mum mum deal average KZT deals % ----------- -------- ----- ----- ------- -------- --------- ------ ------ ASBNb3_007 10.50 9.50 10.50 9.50 10.25 584.0 5 0.34 ASBNb4_007 9.50 9.50 10.00 10.00 9.75 251.0 2 0.15 ASFIb5_001 4.80 4.00 6.00 4.00 5.44 478.0 6 0.28 ASFIb5_003 7.70 7.70 8.00 8.00 7.95 386.0 2 0.23 ASFIb5_007 9.50 4.00 10.50 10.20 9.90 1,248.0 9 0.74 ASFIb5_014 10.50 9.00 11.25 11.00 10.64 619.0 13 0.37 ASFIb7_001 6.00 957.0 1 0.57 ASFIb7_003 8.00 7.50 8.00 7.50 7.96 955.0 2 0.56 ASFIb7_007 9.50 9.00 10.20 10.20 9.92 1,553.0 7 0.92 ASFIb7_014 12.30 11.00 12.30 11.00 12.14 910.0 2 0.54 ASFIb9_001 6.00 3.00 6.00 3.00 5.19 3,500.0 4 2.07 ASFIb9_003 7.00 6.00 7.00 6.00 6.50 1,200.0 2 0.71 ASFIb9_007 9.00 9.00 9.00 9.00 9.00 92.0 4 0.05 ASFIb9_028 11.00 65.0 1 0.04 ASFIp_014 11.50 1,000.0 1 0.59 ASFIp_028 12.50 12.50 12.50 12.50 12.50 6,004.0 4 3.55 ATFBb3_001 5.00 5.00 6.00 6.00 5.04 1,700.0 3 1.00 ATFBb3_003 8.00 345.0 1 0.20 ATFBb3_007 10.00 5.00 10.00 5.00 9.30 557.0 5 0.33 ATFBb4_001 5.00 5.00 8.00 5.50 5.87 1,152.0 5 0.68 ATFBb4_002 10.00 8.00 10.00 8.00 9.46 1,642.0 8 0.97 ATFBb4_014 10.50 10.00 12.00 11.00 11.31 1,118.0 7 0.66 ATFBb5_007 9.50 1,000.0 1 0.59 ATFBb6_001 5.00 5.00 9.00 5.50 6.45 302.0 3 0.18 ATFBb6_028 12.00 12.00 12.00 12.00 12.00 460.0 3 0.27 BRKZe2_001 5.00 5.00 5.50 5.50 5.17 300.0 3 0.18 BRKZe2_003 9.50 349.3 1 0.21 BRKZe2_014 11.00 11.00 11.00 11.00 11.00 211.0 2 0.12 BRKZe3_014 11.00 600.0 1 0.35 BRKZe4_001 9.50 29.9 1 0.02 BTAIb6_001 5.50 52.0 1 0.03 BTAIb6_007 9.50 9.00 10.00 10.00 9.50 391.0 3 0.23 BTAIb6_014 12.00 10.00 12.00 10.50 11.79 612.0 8 0.36 BTAS_001 6.00 3.00 12.00 6.00 5.87 15,738.6 71 9.29 BTAS_007 10.00 9.00 12.00 9.50 10.49 8,275.9 59 4.89 BTAS_030 11.00 9.00 17.00 15.00 12.66 7,814.7 22 4.62 BTAS_090 12.00 11.00 12.00 12.00 11.99 4,753.4 12 2.81 BTASb1_007 9.00 9.00 10.00 9.50 9.38 832.1 13 0.49 BTASb2_028 11.00 24.0 1 0.01 BTASb3_014 10.00 93.0 1 0.05 BTASb4_001 5.00 5.00 5.00 5.00 5.00 340.0 2 0.20 BTASb4_014 10.75 10.75 10.75 10.75 10.75 900.0 2 0.53 BTASb5_001 5.50 5.50 6.00 6.00 5.81 125.0 2 0.07 BTASb5_007 9.00 8.00 10.00 10.00 9.06 377.0 5 0.22 BTASb5_014 9.00 9.00 11.00 11.00 10.50 706.0 7 0.42 BTASb5_028 11.50 11.50 11.50 11.50 11.50 71.0 2 0.04 BTASb7_001 5.00 5.00 9.00 6.00 6.14 1,174.0 7 0.69 BTASb7_007 14.00 9.00 14.00 10.00 9.62 1,454.0 8 0.86 BTLZb1_001 6.00 3.00 6.00 3.00 4.69 4,145.0 5 2.45 BTLZb1_003 6.00 400.0 1 0.24 CCBN_001 5.00 5.00 9.00 5.50 7.05 280.0 4 0.17 CCBN_007 10.00 9.50 11.00 11.00 9.85 1,476.0 8 0.87 CCBN_014 11.00 11.00 12.00 11.00 11.49 1,820.0 10 1.07 CCBN_030 9.00 9.00 12.50 12.50 9.42 227.0 2 0.13 CCBN_090 12.00 12.00 12.00 12.00 12.00 3,589.0 2 2.12 CCBNb13001 5.00 5.00 6.00 6.00 5.09 615.0 3 0.36 CCBNb13003 8.00 300.0 1 0.18 CCBNb13007 10.00 9.00 10.00 9.00 9.32 502.0 3 0.30 CCBNb13014 11.00 182.0 1 0.11 CCBNb14007 9.00 9.00 9.50 9.50 9.42 218.0 3 0.13 CCBNb14028 12.00 150.0 1 0.09 CSBNb4_007 10.00 10.00 11.00 11.00 10.50 964.0 4 0.57 CSBNb5_001 8.00 8.00 8.00 8.00 8.00 352.0 2 0.21 CSBNb5_007 10.00 9.50 10.00 10.00 9.84 476.0 3 0.28 CSBNb6_007 9.00 9.00 11.00 11.00 9.99 396.0 4 0.23 DNBN_028 13.00 13.00 13.00 13.00 13.00 197.0 5 0.12 DTJLb1_007 10.50 10.50 10.50 10.50 10.50 132.0 2 0.08 EUBNb3_001 4.80 4.80 7.70 7.70 6.17 495.0 4 0.29 EUBNb3_007 10.00 9.00 10.50 10.00 9.75 1,357.0 8 0.80 EUBNb3_014 10.50 10.00 11.50 11.00 10.75 1,779.0 11 1.05 EUBNb3_028 11.20 15.0 1 0.01 GLOTb2_028 12.00 12.00 12.00 12.00 12.00 150.0 3 0.09 HSBKb11001 5.00 31.0 1 0.02 HSBKb9_001 5.00 5.00 9.00 6.00 6.24 270.0 7 0.16 HSBKp1_001 5.00 4.00 6.00 5.00 5.04 28,370.0 29 16.75 HSBKp1_007 9.50 9.00 9.50 9.00 9.20 592.0 3 0.35 KKGB_001 5.00 5.00 5.00 5.00 5.00 49.0 5 0.03 KKGB_007 9.00 9.00 11.00 11.00 10.77 88.0 3 0.05 KKGB_028 11.00 47.0 1 0.03 KKGBb2_007 10.00 9.00 10.00 10.00 9.67 1,216.3 7 0.72 KKGBb2_014 10.00 10.00 11.00 11.00 10.78 1,292.2 5 0.76 KKGBb2_028 10.70 10.70 10.70 10.70 10.70 38.1 3 0.02 KKGBp_014 10.00 10.00 10.50 10.50 10.26 17.0 2 0.01 KZIKb15001 6.00 6.00 6.00 6.00 6.00 1,950.0 2 1.15 KZIKb15003 9.00 9.00 9.00 9.00 9.00 1,950.0 2 1.15 KZIKb2_028 11.00 235.0 1 0.14 KZIKb8_007 9.50 780.0 1 0.46 KZIKb9_001 5.50 350.0 1 0.21 KZIKb9_003 7.00 423.0 1 0.25 KZTCb1_007 9.50 9.50 11.00 11.00 10.22 132.0 5 0.08 KZTK_001 5.00 12.0 1 0.01 KZTK_003 8.00 31.0 1 0.02 KZTK_007 9.50 9.50 10.00 10.00 9.67 92.0 3 0.05 NFBN_028 20.29 9.00 20.29 12.00 13.60 2,233.0 16 1.32 NRBNb2_001 5.50 5.50 6.00 6.00 5.77 654.0 6 0.39 NRBNb2_007 9.50 9.00 10.00 9.50 9.55 888.0 4 0.52 NRBNb2_014 10.50 10.50 11.25 11.25 10.74 369.0 2 0.22 NRBNb4_001 5.50 5.50 6.00 6.00 5.75 423.0 2 0.25 NRBNb4_007 9.50 9.00 11.00 11.00 9.65 639.0 5 0.38 NRBNb5_001 5.50 5.50 6.00 6.00 5.88 2,646.0 5 1.56 NRBNb5_007 9.50 9.00 10.00 9.50 9.38 1,934.0 4 1.14 ORDB_003 13.80 13.80 13.80 13.80 13.80 270.0 2 0.16 ORDB_007 10.00 10.00 14.50 14.50 13.94 200.0 4 0.12 ORDB_014 13.80 12.00 14.00 14.00 13.33 771.0 10 0.46 ORDB_028 14.50 13.20 14.50 14.50 14.25 955.0 12 0.56 ORNKb1_014 10.00 10.00 13.50 10.00 12.73 222.0 4 0.13 PRKRb2_003 7.00 600.0 1 0.35 PRKRb2_007 10.00 9.50 10.00 9.50 9.89 720.0 3 0.43 PRKRb2_014 9.50 23.0 1 0.01 PRKRb2_028 11.00 10.60 11.50 11.50 11.46 1,603.0 4 0.95 RDGZ_001 5.00 5.00 7.50 5.50 5.69 3,275.1 12 1.93 RDGZ_007 9.50 9.50 10.00 9.50 9.69 6,211.1 17 3.67 RDGZ_014 10.50 10.50 11.00 11.00 10.75 2,009.0 3 1.19 RGBRb3_001 5.00 5.00 9.50 5.00 5.50 372.0 9 0.22 RGBRb3_007 10.50 9.50 10.50 9.50 9.85 142.0 4 0.08 RGBRb4_001 5.00 5.00 6.00 6.00 5.39 330.0 5 0.19 ROSA_007 11.00 11.00 11.00 11.00 11.00 200.0 2 0.12 ROSA_028 13.00 13.00 13.00 13.00 13.00 180.0 2 0.11 ROSA_090 12.00 120.0 1 0.07 TEBN_001 3.00 3.00 6.00 6.00 5.02 1,854.0 9 1.09 TEBN_007 11.00 11.00 11.50 11.50 11.17 750.0 3 0.44 TEBN_014 12.00 7.00 12.00 7.00 8.76 555.0 3 0.33 TEBN_030 15.00 32.0 1 0.02 TSBN_001 5.50 5.50 5.50 5.50 5.50 174.0 2 0.10 TSBN_007 11.00 10.00 11.00 10.00 10.67 273.0 7 0.16 TSBN_014 11.50 176.0 1 0.10 TSBN_030 12.00 12.00 12.00 12.00 12.00 37.0 2 0.02 UTMK_007 14.00 14.00 14.00 14.00 14.00 6,000.2 12 3.54 ----------- -------- ----- ----- ------- -------- --------- ------ ------ TOTAL 169,325.4 690 100 ------------------------------------------------------------------------- Repo on direct deals with GS - 0.4% of the market --------------------------------------------------------------------------- Repo rate, % APR Term of ----------------------------------------- Volume, Num- Market repo, on first mini- maxi- on last weighted m. ber of share, days deal mum mum deal average KZT deals % ------- -------- ----- ----- ------- -------- ------- ------ ------ 0 0.00 78.3 1 3.42 1 0.04 0.01 2.00 0.01 1.59 380.0 4 16.60 4 7.00 7.00 7.00 7.00 7.00 147.6 2 6.45 7 8.00 5.00 9.00 9.00 5.06 1,021.4 3 44.61 9 7.00 7.00 8.00 8.00 7.53 299.3 4 13.07 12 10.25 46.9 1 2.05 13 10.00 210.0 1 9.17 23 8.02 20.0 1 0.87 91 5.50 85.9 1 3.75 ------- -------- ----- ----- ------- -------- ------- ------ ------ TOTAL 2,289.5 18 100 --------------------------------------------------------------------------- [2008-01-11]