ANALYSIS: In September 2008 GS market remained active on extreme instability CS sector

/IRBIS, Valeriy Khegay, October 22, 08/ - In September 2008 on Kazakhstan Stock Exchange (KASE) 189 deals were registered in government securities (GS) purchase and sale sector, including offering for the total of KZT113,825.7 m. (equivalent of $950.6 m.), that was 2.2 % out of total exchange's turnover of the month (in August - 2.0 %). Relative to August 2008 the sector's turnover increased by 34.6 %. Relative to September 2007 it increased by 40.1 % in tenge and 42.6 % in dollar expressions. In September the Ministry of Finance carried out six auctions, during which it offered a record of KZT57.1 bn. bonds. September 3 the first September auction on placement of government short- term treasury obligations of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-6 of 183rd issue (KZK1KM061832, MKM006_0183; KZT100; 03.09.2008 - 03.03.2009, actual/actual) was held. Bond price was the subject of trade. Initially KZT5,000.0 m. was planned to borrow. 6 primary dealers participated in the trades, having submitted 9 active bids. Total volume of active bids (volume of demand) made KZT14,018.9 m. (290.0 % from the suggested volume). The yield varied from 6.70 % APR to 8.00 APR, making in average weighted expression 6.92 % APR. By results of trade, the issuer made cut off price at 96.7844 % (6.70 %APR), having satisfied bids on KZT5 807.1 m. (120.0 % from the suggested volume of bonds). September 10 auction on offering government mid-term treasury obligations of Ministry of finance of Kazakhstan Republic MEOKAM-24 of 74th issue (KZK2KY020743, MOM024_0074; KZT1 000, 10.09.2008 - 10.09.2010, 30/360) was held in the KASE trade system. Coupon rate was the subject of trade. Initially, KZT10,000.0 m. was planned to borrow. 8 primary dealers participated in the trades, having submitted 13 active bids. Total volume of active bids (volume of demand) made KZT18,300.0 m. at bonds` face value (183.1% from suggested volume of bonds). The yield varied from 7.98 % APR to 8.50 % APR, making in average weighted expression 8.03 % APR. By results of trade, the issuer set the rate of coupon at 8.00% APR and satisfied bids on sum KZT10,000.0 m.(100.0 % from the suggested volume of bonds). September 17 the regular auction on offering of government mid-term treasury obligations of Ministry of Finance of Kazakhstan Republic MEOKAM-36 of 67th issue (KZK2KY030676, MOM036_0067; KZT1 000, 17.09.2008 - 17.09.2011, 30/360) was held in KASE's trade system. Bond coupon rate was the subject of trade. Initially, KZT10,000.0 m. was planned to borrow. 11 primary dealers participated in the trades, having submitted 17 active bids. Total volume of active bids (volume of demand) made KZT24,960.0 m. at bonds` face value (249.6% from suggested volume of bonds). The yield varied from 8.40 % APR to 9.00 % APR, making in average weighted expression 8.59 % APR. By results of trade, the issuer set coupon rate at 8.45 % APR, having satisfied bids at KZT18 366.7 m. (183.7 % from the suggested volume of bonds). September 25 the auction on placement of government short-term treasury obligations of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-9 of 11th issue (KZK1KM090112, MKM009_0011; KZT100; 25.09.08 - 25.06.09, actual/actual) was held. Bond price was the subject of trade. Initially KZT10,000.0 m. was planned to borrow. 5 primary dealers participated in the trades, having submitted 14 active bids. Total volume of active bids (volume of demand) made KZT11,742.1 m. (123.9 % from the suggested volume). The yield varied from 7.25 % APR to 8.50 APR, making in average weighted expression 7.32 % APR. By results of trade, the issuer made cut off price at 94.8563 % (7.25 %APR), having satisfied bids on KZT10 737.7 m. (113.2 % from the suggested volume of bonds). September 26 repeated auction on offering government mid-term treasury obligations of Ministry of finance of Kazakhstan republic MEOKAM-36 of 67th issue (KZK2KY030676, MOM036_0067; KZT1 000, 17.09.2008 - 17.09.2011, 30/360) was held in the KASE trade system. Bond net price was the subject of the trade. Initially, KZT10,000.0 m. was planned to borrow. 4 primary dealers participated in the trades, having submitted 7 active bids. Total volume of active bids (volume of demand) made KZT549.8 m.(45.6% from suggested volume of bonds). The yield varied from 8.35 % APR to 9.00 % APR, making in average weighted expression 8.43 % APR. By results of trade, the issuer set cut off price at 98.5875 %APR, having placed bonds at KZT1 804.4 m. The yield in satisfied bids varied from 8.35 % APR to 9.00 % APR, making in average weighted expression 8.43 % APR. The same day the other repeated auction on placement of government short-term treasury obligations of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-12 of 90th issue (KZK1KY010901, MKM012_0090; KZT100; 02.07.2008 - 02.07.2009, actual/actual) was held. Bond net price was the subject of trade. Initially KZT10,000.0 m. was planned to borrow. 5 primary dealers participated in the trades, having submitted 13 active bids. Total volume of active bids (volume of demand) made KZT10,466.3 m. (110.6 % from the suggested volume). The yield varied from 7.47 % APR to 8.00 APR, making in average weighted expression 7.47 % APR. By results of trade, the issuer made cut off price at 94.5985 % (7.47 %APR), having satisfied bids on KZT10 428.5 m. (110.2 % from the suggested volume of bonds). Statistical indicators of GS secondary market in September and the structure of turnover are given in the table (in parentheses - comparative indicators of the previous month). ------------------------------------------------------------------------------ Yield to maturity for the buyer, %APR Term ------------------------------------ Volume, m. KZT Number till maturity min max last WA at market price of deals -------------- -------- -------- -------- ------- --------------- -------- Discounted GS (KZT):MEKKAM,National Bank's notes - 69.2% (16.4%) of the market ------------------------------------------------------------------------------ 8 - 14 3.50 5.50 4.50 4.45 1,718.2 5 15 - 28 5.70 5.90 5.76 5.86 6,403.6 10 29 - 36 5.60 5.76 5.76 5.71 13,889.5 8 37 - 42 5.90 5.90 5.90 5.90 993.7 1 43 - 56 5.70 5.70 5.70 5.70 34.8 1 182 - 364 7.24 7.70 7.46 7.34 16,207.1 10 -------------- -------- -------- -------- ------- --------------- -------- Total 39,247.0 35 (6,470.2) (8) -------------- -------- -------- -------- ------- --------------- -------- Coupon GS (KZT): MEOKAM, MEUJKAM, MUIKAM, MEUKAM - 30.8% (83.6%) of the market ------------------------------------------------------------------------------ less than 730 6.01 8.60 8.50 6.89 6,284.5 22 731 - 1095 8.00 10.00 8.00 8.27 2,533.6 22 1461 - 1825 14.15 15.41 14.15 15.14 462.1 4 1826 - 2190 8.50 20.63 8.50 17.34 4,029.8 35 More than 2191 5.50 20.10 17.83 17.84 4,124.2 18 -------------- -------- -------- -------- ------- --------------- -------- Total 17,434.2 101 (32,955.8) (132) -------------- -------- -------- -------- ------- --------------- -------- GRANDTOTAL 56,681.2 136 (39,426.0) (140) ------------------------------------------------------------------------------ The stake of exchange turnover in total volume of purchase and sale deals of Kazakhstan GS secondary market in September made 89.7% (in August - 75.3 %).r [2008-10-22]