Unicorn IFC JSC (Kazakhstan) had spread its prognosis of US dollar growth rates to tenge, EURO to US dollar and LIBOR rates USD in current year

29.05.08 22:07
/IRBIS, Dinara Mukasheva, May 29, 08/ - Unicorn IFC JSC (Almaty) provided IRBIS agency with prognosis, dated April 30, 2008 of change of US dollar rate growth to tenge, EURO to US dollar and LIBOR rates USD in medium term prospect. Prognosis of LIBOR rate USD According to company's analysts, at the current moment the market estimates decreasing of FRS rate by 0.25% to 2% (possibility - 80%). Economic growth this year won't exceed 2%, what doesn't let to decrease discount rate lower than 1.5%. At that, if accumulated liquidity, added in economic with the purpose to support functioning of financial system, will shift in consumer economic sector, there will be rise of price. As result, FRS will have to stop rate reducing from 2%. Our forecast of LIBOR rate is based on suggestion that dynamic of FRS rate will be within the limits indicated above. In addition, we expect increasing of rate to 2.25% this autumn, if inflation expectations will be realized' - is said in the announcement. Prognosis of USD/KZT rate Unicorn IFC JSC examines two sources (factors) of influence on USD/KZT rate: - influence of external dynamic of US dollar rate to world currencies. However, considering the total dynamic of US dollar reduction of price, influence of this factor on tenge devaluation is excluded; - runoff of tenge capital from economic. At that, considerable tenge trade on the market finished by its sharp cheeping - in this case there is a small possibility of considerable interventions from the direction of National Bank. In the whole, company's analysts expect that summer period will be rather calm; at fist, because of low volatility on the world markets at indicated time. The major risk of tenge devaluation is forecast during autumn-winter period, when trade activity will raise and risk of dollar devaluation will become more serious. Prognosis of EUR/USD rate According to specialists of Unicorn IFC JSC statistic data on GDP growth in USA and decision of FRS USA on changing of discount rate of federal funds are the main determinant, which will influence EUR rate. The first one made more influence on EUR/USD dynamic. Analysts don't expect significant positive change as a result of FRS rate decreasing. Further decreasing of FRS rate (lower than 2%) will contribute to accumulation of inflation expectations in economic, what won't lead to positive perception by the market. At that, any value lower than 0.5% GDP will contribute to recession expectations of investors and make devaluation pressure on USA/EUR. Unicorn IFC JSC - is managing company, providing the services of trusting management on international stock markets, markets of Kazakhstan and Russia and providing specialized strategies for solving of individual investment tasks of client. In Kazakhstan was registered the opened shares investment fund Unicorn-shares of Kazakhstan. Unicorn IFC currently is the member of Kazakhstan Stock Exchange (KASE) of "К", "Р" and "Н" categories. Forecast of specialists of Unicorn IFC JSC is available on the web site of KASE at : - LIBOR rate USD at http://www.kase.kz/files/mix/unic_libor_300408.pdf - USD/KZT rate at http://www.kase.kz/files/mix/unic_usd_300408.pdf - EUR/USD rate at http://www.kase.kz/files/mix/unic_eur_300408.pdf [2008-05-29]