ANALYSIS: In April 2008 turnover of KASE's shares market had decreased sharply, notwithstanding favorable situation on foreign markets

15.05.08 22:32
/IRBIS, Dinara Mukasheva, May 15, 08/ - In April 2008 1,506 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 KZT14.2 bn. or $118.2 m. at the current exchange rate on dates, on which deals were made. The specified amount makes 38.5% of the month turnover of the market of corporate securities on KASE (in March - 73.8%) and 0.5% of the entire month exchange turnover (1.5%). Statistic characteristic of shares market on KASE in April of year 2008 -------------------------------------------------------------------------- Month: ---------------------- Trend April, March, April 2007 Indicator 2008 2008 ---------------------------------------- --------- ------------ ---------- Trades volume, th. USD 118,171.4 -55.9,% -66.1,% Trades volume, m KZT 14,239.9 -52.2,% -66.4,% Including on offerings, th. USD - Х Х including on offerings, m. KZT - Х Х including on STF RFCA, th. USD 51.3 0.0003,times 2.2,times including on STF RFCA, m. KZT 6.2 0.0003,times 2.1,times Number of deals 1,506 +21.3,% +2.0% Number of instruments, involved in deals 42 +16.7,% -12.5% Average day number of deals 68 +4.8,% -2.7% Average day volume of deals, th. USD 5,371.4 -61.9,% -67.6,% Stake of nego deals (number), % 647.3 -61.9,% -68.0,% Stake of nego deals (volume), % 3.5 +0.4,pp +0.4,pp Part of pension assets, % on gross 6.9 +0.9,pp -2.5,pp Part of physical entities, % on gross 10.2 +0.7,pp +2.7,pp Part of nonresidents, % on gross 22.4 +5.6,pp -16.3,pp Number of exchange's members, 32.1 +7.3,pp +24.7,pp who made deals Market concentration, %* 47 0 +14.6,% -------------------------------------------------------------------------- *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) In April Kazakhstan share market froze in stagnation - turnover market during analyzing period showed the least result, fixes during last 22 months. Though in March the main stake (61.7%) of turnover came to trades on STF RFCA (special trades on selling 570,848 of common shares KZ1C34560017 of Khabar agency JSC and offering of 250,000 common shares KZ1C45320013 of Kazakhstan Mortgage Company JSC), however the stake of deals on the secondary market and on the main floor in April is less than corresponding index of March. The fall of domestic market of shares bears individual character, as in April the world exchange floors showed optimistic growth on the background favorable information that decline of USA economic reached the lest position. In particular, developed markets grew in April by 5.15% after decline by 8.95% in March and developing markets showed the growth by 7.49 % after decreasing by 5.11% in March (according to Standard & Poor`s). The key moment in declining of analyzing segment of KASE market was the high level of worry about further deepening of problems of bank sector of Kazakhstan, which is forward movement of local market of shares. Investors, keenly reacting on minor events, connecting with emerging markets showed recession of activity on claims of international rating agencies that liquidity risks and assets quality of Kazakhstan banks are not exhausted yet. According to Standard & Poor`s analysts, the question about assets quality are not decided and will be only acute, at that, turbulence restraining on world markets makes additional pressure on Kazakhstan bank sector. The same points of view has Fitch Ratings, considering that assets quality of Kazakhstan bank system worsened much, compare to the end of 3-d quarter, 2007, though depreciation of credits in bank sector, in the whole, hasn't reached peak points. In this situation, investors took the waiting position and sharply decreased trade activity practically on all share securities, traded on KASE in April (it is demonstrate decreasing of index of market concentration). As it was said before, the shares of bank sector were purchased limply, the only exception was common shares of ATF Bank JSC, the volume of deals on which exceeded in 43.2 times the results of March (detailed information see ANALYSIS: Liquidity rating of KASE listing shares on secondary market in April and first 4 months of 2008). On LSE the prices of GDR on common shares of Halyk Savings Bank of Kazakhstan JSC decreased by 2.4% (- 9.6% in March). Alliance Bank JSC - by 11.8% (-18.5%), Kazkommertsbank JSC increased by 1.5% (-8.4%). Prices of GDR on common shares of other Kazakhstan companies were holding the custom line: Exploration Production KazMunayGas JSC grew by 17.9% (+3.9% in March), permanent increasing prices on oil contributed to it. Share securities of KAZAKHMYS PLС in London, by the results of April, decreased by 0.9% (+3.3% - in March). The indicated was connected with uncertainty about merging of this company with Eurasian Natural Resources Corporation Plc (ENRC) - the committee on merger set deadline - May 16 when ENRC should announce whether it will or won't make proposal to KAZAKHMYS PLС. Besides, quotations of KAZAKHMYS PLС began to fall after announcement of vice minister of finance of Kazakhstan republic Daulet Ergozhin that the government till the end of April will determine the amount of export tax, which plans to introduce relative to production of mining complex. By the results of April the weighted average day prices on KASE increased of 38% shares denominations, decreased - 60% denominations, there was nothing to compare with the prices of 2% of shares. The maximum trends by the results of month showed the following shares: ROSA increased by 46.3%, AZNO declined by 44.6%. Next month, new fall of share market turnover is possible, due to the fact that April 29 Standard & Poor's reviewed the forecast on sovereign credit rating of Kazakhstan republic from "stable" to "negative", because of the fact that "worsening of assets quality of Kazakhstan bank system in accordance with difficulties of financing borrowing will lead to weakening of tax and budget and foreign trade balance indexes and negatively influence financial flexibility and perspective of economic growth¬. And though the same day the agency admitted credit ratings of contractor, appropriated by 12 Kazakhstan banks, decreasing of forecast on country ratings is a serious reason for further decreasing of investment attractiveness of domestic market of shares. 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 April 2008 (end of month, change over the month) --------------------------------------------------- Shares: Issuers: Category of ------------ Instruments ------------ admission number trend number trend number trend ------------ ------ ----- ------ ----- ------ ----- A 46 +1 46 +1 32 +1 B 47 +1 47 +1 41 +1 ------------ ------ ----- ------ ----- ------ ----- A+B 93 +2 93 0 70 +2 ------------ ------ ----- ------ ----- ------ ----- N 5 -1 5 -1 5 -1 A+B+N 98 +1 98 +1 75 +1 ------------ ------ ----- ------ ----- ------ ----- C (STF RFCA) 24 0 24 0 17 0 A+B+C+N 98 +1 122 +1 78 +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 April 30, 2008 (basis actual/365) -------------------------------------------- Change: ----------- Period % % APR -------------------------------- ----- ----- For previous 30 days +0.6 +7.7 Since the beginning of year 2008 -2.0 -6.1 For last 365 days (year) +1.1 +1.1 For year 2007 +12.2 +12.2 Since the beginning of year 2007 +9.9 +7.5 -------------------------------------------- Main indicators of exchange market of purchase and sales of shares in April of year 2008 ----------------------------------------------------------------- Market ca- Volume of Volume of Number of pitalization, deals, deals, deals Data m. USD KASE Index th. USD m. KZT ---------- ------------- ---------- --------- --------- --------- Mar 31, 08 55,189.5 2,567.10 29,306.4 3,537.0 59 Apr 1, 08 54,550.5 2,597.46 1,390.0 167.6 30 Apr 2, 08 55,121.7 2,615.45 799.2 96.4 43 Apr 3, 08 54,912.4 2,594.24 1,112.4 134.0 25 Apr 4, 08 54,618.0 2,571.74 3,886.0 468.7 39 Apr 7, 08 82,542.9 2,585.95 5,245.7 632.4 55 Apr 8, 08 83,936.8 2,611.39 5,574.9 672.0 64 Apr 9, 08 86,076.1 2,610.74 4,399.4 530.4 90 Apr 10, 08 86,895.6 2,613.55 8,305.6 1,001.1 87 Apr 11, 08 87,956.9 2,654.29 13,657.6 1,646.0 134 Apr 14, 08 87,425.5 2,636.87 643.0 77.4 30 Apr 15, 08 89,472.8 2,624.31 3,600.8 433.3 93 Apr 16, 08 90,992.4 2,604.82 1,573.7 189.3 59 Apr 17, 08 93,064.0 2,607.85 4,787.9 576.7 63 Apr 18, 08 91,746.3 2,644.26 18,900.8 2,278.9 125 Apr 21, 08 89,248.2 2,633.37 9,188.5 1,107.6 48 Apr 22, 08 90,181.7 2,638.92 7,505.8 904.1 92 Apr 23, 08 90,094.9 2,654.40 4,684.5 563.8 73 Apr 24, 08 92,592.2 2,638.40 8,219.5 990.0 94 Apr 25, 08 90,653.8 2,619.66 5,244.9 632.0 80 Apr 28, 08 90,186.5 2,618.73 3,990.6 480.9 62 Apr 29, 08 89,843.3 2,588.51 849.2 102.2 44 Apr 30, 08 89,318.0 2,583.25 4,611.4 555.1 76 ---------- ------------- ---------- --------- --------- --------- Trend 34,128.5 16.15 % +61.8 +0.6 ----------------------------------------------------------------- Results of trades in shares on KASE in April 2008 in purchase and sales sector (including nego deals) -------------------------------------------------------------------------------- Price, tenge per share: -------------------------------------------------------- on last deal for last 365 days: Volume Num- --------------- --------- ---------- of deals, ber Shares trend th. de- code min. max. price % min. max. USD als ------- --------- --------- --------- ----- --------- ---------- --------- ----- ASBN 19,500.00 21,700.00 19,500.00 -15.2 14,000.00 67,970.00 134.2 9 ASBNp1 10,500.00 11,000.00 10,500.00 -8.7 10,500.00 25,000.00 44.3 3 ASFI 22,728.00 22,728.00 22,728.00 0 9,315.00 22,728.01 123.3 8 ASFIp 11,000.00 13,650.00 13,650.00 +36.5 5,305.00 14,500.00 87.9 4 aTEBN 6,850.00 6,850.00 6,850.00 6,850.00 7,705.00 51.3 2 ATFB 8,500.00 10,180.94 9,300.00 +7.0 8,100.00 14,000.00 2,407.3 37 ATFBp 5,181.82 5,700.00 5,181.82 3,001.00 6,500.00 244.0 5 ATFBp8 5,675.11 5,801.00 5,700.00 2,850.50 8,999.00 3,809.4 16 AZNO 6,000.00 6,000.00 6,000.00 6,000.00 11,605.51 160.9 1 BTAS 64,001.00 72,900.00 66,250.00 -8.6 850.01 157,275.00 16,516.4 161 CCBN 1,450.00 1,800.00 1,500.00 -0.7 1,000.00 2,050.00 9,170.5 133 CSBN 5,272.50 5,790.00 5,272.50 -5.0 5,150.00 8,000.00 452.7 19 CSBNp 2,280.00 2,280.00 2,280.00 1,777.85 3,505.00 56.7 3 DNBN 3,600.00 3,900.00 3,900.00 +8.3 2,000.00 6,727.50 176.3 3 EXBN 2,500.00 2,500.00 2,500.00 2,500.00 3,450.00 58.1 2 GB_ENRC 2,600.00 3,465.00 3,118.50 2,600.00 3,465.00 448.4 59 GB_KZMS 3,602.00 4,100.00 3,800.01 +0.8 2,640.00 4,105.00 513.1 26 HSBK 500.00 518.00 501.00 +1.0 402.00 740.00 14,622.9 88 HSBKp 285.00 285.00 285.00 0 285.00 333.50 26.9 1 HSBKp1 320.98 322.00 321.00 0 290.00 353.00 785.3 26 KIBN 330.00 363.00 330.00 -4.8 110.00 1,150.00 48.7 7 KKGB 920.00 1,000.00 942.00 +0.7 600.00 1,400.00 3,106.1 61 KKGBp 370.00 428.95 370.00 -5.1 255.00 499.00 928.5 23 KZIS 57,000.00 57,500.00 57,000.00 57,000.00 73,600.00 4,798.4 2 KZTC 14,000.00 21,700.00 14,000.00 14,000.00 48,000.00 176.5 8 KZTCp 1,820.00 1,850.00 1,820.00 -9.0 1,044.00 8,750.00 30.6 2 KZTK 31,500.00 32,700.00 31,800.01 +0.9 31,500.00 50,500.00 2,307.8 34 KZTKp 16,200.00 17,500.00 16,200.00 -8.5 14,500.00 25,000.00 283.6 15 MMGZp 9,500.00 13,450.00 12,000.00 -11.1 7,500.00 16,050.00 306.0 19 NFBN 4,900.00 4,900.05 4,900.00 -0.4 2,530.00 6,957.90 112.8 5 NRBN 20,000.00 20,010.00 20,000.00 -0.2 17,500.00 52,300.00 12.9 2 ORNK 8.00 8.00 8.00 8.00 9.20 0.5 1 PDES 920.00 920.00 920.00 920.00 1,095.59 69.5 3 RAHT 2,700.00 2,700.00 2,700.00 1,000.00 4,200.00 0.1 1 RDGZ 17,400.02 21,570.00 20,301.00 +12.2 13,000.00 24,595.00 44,503.0 617 ROSA 585.00 585.00 585.00 580.00 722.77 11.2 1 TEBN 6,000.00 7,095.00 7,095.00 +1.4 4,450.46 9,000.00 2,658.8 22 TEBNp 2,550.00 2,690.00 2,550.00 -5.6 1,733.75 3,200.00 77.5 8 TSBN 2,000.00 2,100.00 2,020.00 -3.8 1,680.01 4,500.00 661.1 13 TSBNp 1,110.00 1,110.00 1,110.00 1,070.00 2,415.00 6.4 2 ZERD 3.85 3.85 3.85 +9.7 3.50 4.50 58.2 2 ------- --------- --------- --------- ----- --------- ---------- --------- ----- 41 110,048.1 1,454 -------------------------------------------------------------------------------- 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 (March 1-31, 2008). If there were no deals last month, trend is not calculated. Top-10 of the most liquid listing shares of KASE in April 2008, including STF RFCA ------------------------------------------------------------------- Base of liquidity indicator calculation (Kl): --------------------------------- Position Share Liqui Volume number Number Number Position in April symbol. dity of deals of deals of KASE of in 2008. indica KZT, mem bers result October, tor(Kl) mln days 2007 -------- ------- ------- -------- -------- -------- ------ -------- 1 1 RDGZ 2.98 5,361.3 617 69 21 2 2 BTAS 1.53 1,990.2 161 45 19 3 6 HSBK 1.211 1,762.8 88 31 20 4 3 CCBN 1.210 1,104.9 133 27 22 5 4 KKGB 0.78 374.3 61 21 15 6 - GB_ENRC 0.75 54.0 59 20 16 7 8 KZTK 0.70 278.3 34 22 13 8 9 HSBKp1 0.65 94.7 26 7 22 9 7 KKGBp 0.52 111.8 23 15 11 10 20 ATFB 0.51 290.2 37 12 11 ------------------------------------------------------------------- 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 April 30, 08: as of March 31, 08: Change: ------------------- ------------------- --------------- po- capi- stake po- capi- stake capi- Companys` shot name si- taliza- of the si- taliza- of the taliza- stake, on KASE (all, except ti- tion, compa- ti- tion, compa- tion, % KAZAKHMYS PLС - JSC) on m USD ny, % on m USD ny, % m USD points -------------------- --- -------- ------ --- -------- ------ -------- ------ ENRC PLС 1 33,359.8 37.35 - - - - - KAZAKHMYS PLС 2 14,361.4 16.08 1 14,211.4 25.75 +150.0 -9.67 EP KazMunayGas 3 11,861.6 13.28 2 10,622.2 19.25 +1,239.4 -5.97 Kazkommertsbank 4 4,967.8 5.56 4 4,860.7 8.81 +107.1 -3.25 BTA Bank 5 4,590.1 5.14 3 5,027.4 9.11 -437.3 -3.97 National Bank 6 4,370.3 4.89 5 4,315.8 7.82 +54.5 -2.93 Kazakhtelecom 7 2,939.7 3.29 6 2,911.8 5.28 +27.9 -1.98 ATF Bank 8 2,219.2 2.48 7 2,028.7 3.68 +190.5 -1.19 Alliance Bank 9 1,597.3 1.79 8 1,874.7 3.40 -277.4 -1.61 Bank CenterCredit 10 1,591.6 1.78 9 1,704.6 3.09 -113.1 -1.31 ---------------------------------------------------------------------------- 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 April 30, 2008 was $89,318.0 m. There were 93 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 [2008-05-15]