STOCK MARKETS ARE GROWING ON UNPRECEDENTED GOVERNMENT BAILOUT PROGRAMS

/IRBIS, October 14, 08/ - October 13 trades on stock floors of Asia and Europe were closed positively after rise on the USA markets on Friday. Dow Jones Index grew by 11.08 % to 9 388 points, high-tech NASDAQ - by 11.81 % to 1 844 points, S&P 500 - by 11.58 % to 1 003 points. On Monday European indexes followed the USA example: German DAX grew by 11.4 %, French CAC 40 - by 11.08 % and Britain FTSE - by 8.26 %. Asian ailing markets, by results of Monday showed optimistic dynamic: technical index of Hong Kong Stock Exchange Hang Seng grew by 5 %, exceeding 17 000 points. Japanese Nikkei by day results, showed record growth by 14.15 % to 9 447.57 points, at that shares of 202 of total 225 including companies increased by 10 %. Kazakhstan Stock market also provides us with grounds for optimism. On closing market KASE index grew by 5.66 %. The leaders are - shares of Kazakhmys (+22.9 %), Halyk Bank (+13.1 %), Kazkommertsbank (+22.7 %). The main reason for investors` optimism is announcements on synchronize activities of world financial centers governments on struggle with world recession. Thus, last Sunday, leaders of 15 Eurounion countries adopted a range of measures on extraordinary summit, providing government insurance of inter- bank loans, support of ailing financial organizations and partial nationalization of banks. Total volume of Eurozone financial sector government support will make $2.3 trl. The Great Britain government announced on October 13 on its willingness to finance Royal Bank of Scotland, HBOS Plc and Lloyds TSB Group in amount of 37 bn. pound sterling. On Monday France, Germany and Spain was known to provide EUR960 bn. for guarantee of inter-bank loans; besides, shares redemption of bad banks is provided in state ownership in amount that equivalents to 3 % GDP. Currently the USA Federal Reserve System engaged in correction of $700 bn. range of events, which will be directed for purchase of frozen assets of the banks and for recapitalization program of major American banks. Regulators of Asia, Australia and New Zealand countries announced on the same measures: Indonesia increased the ceiling of bank deposits guarantees in 20 times, Hong Kong government examines possibility of using its all currency reserves for financial system support. In this regard, announcements of the President of Kazakhstan on the government session on Monday in Astana look adequate. According to results of the session, the decision was made on allocation of $10 bn. from the National Fund for financing of high-priority measures realization on economy stabilization in 2009 - 2010. Besides, the President ordered to accelerate creation of stress assets fund, on which $1 bn. (at the expense of assets, not developed by administrators of government programs) will be allocated form the republican budget. In total the project of stress assets fund creation kept discussing since July, 2008, when the Prime Minister of Kazakhstan Karim Masimov instructed the heads of cross-sectional ministries and agencies to examine the possibility of creation of such fund, assigned for redemption of banking bad assets. Table. World indexes dynamic (in %) ------------------------------------- Index 16:00 ALT Trend ------------------- --------- ----- Asia-Pacific region ------------------- --------- ----- Nikkei 225 9,447.57 +14.2 ------------------- --------- ----- Hang Seng 16,832.88 +3.2 ------------------- --------- ----- NZSE 50 2,948.97 +6.0 ------------------- --------- ----- Seoul Composite 1,367.69 +6.1 ------------------- --------- ----- Shanghai Composite 2,017.32 -2.7 ------------------- --------- ----- Jakarta Composite 1,555.97 +6.4 ------------------- --------- ----- KLSE Composite 966.06 +1.6 ------------------- --------- ----- Taiwan Weighted 5,291.56 +5.4 ------------------- --------- ----- Europe ------------------- --------- ----- ATX 2,491.40 +10.4 ------------------- --------- ----- BEL-20 2,337.72 +0.6 ------------------- --------- ----- CAC 40 3,700.32 +4.8 ------------------- --------- ----- DAX 5,294.77 +4.6 ------------------- --------- ----- FTSE 100 4,457.54 +4.7 ------------------- --------- ----- CIS ------------------- --------- ----- RTS Index 845.81 +6.9 ------------------- --------- ----- MICEX Index 741.64 +11.3 ------------------- --------- ----- KASE Index 1,085.42 +5.4 ------------------------------------- IRBIS agency gives notice that the material given above is not an offer or recommendation to sell or buy shares on KASE. Any one using the material while taking investment decisions does not make IRBIS agency responsible for possible losses, resulting from such decisions. [2008-10-14]