On July 30, KASE amended Methodology of Securities Valuation

/KASE, July 31, 09/ - By Kazakhstan Stock Exchange (KASE) Council decision of July 30, 2009 were approved changes and additions # 8 (amendments) to the KASE internal document "Methodology of Securities Valuation" (Methodology). The need in amendments was caused by: - approval by the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) on July 3, 2009 of additions and changes # 13 to Rules of Repo Transactions Implementation, approved by the KASE Council decision on May 28, 2009; - bringing the Methodology in line legal acts in force; - government securities (GS) reclassification for optimal application of described in the Methodology market value and yield defining algorithms; - editorial corrections. According to amendments: - was extended the list of goals, for which the Methodology established securities valuation order for repo transactions opening prices calculation; - market prices values of securities, excluded from securities list, admitted to circulation on KASE, to calculate repo transactions opening prices, current market value, reimbursement payment shortage, reimbursement payment amount and repo deal closing amount in case of its early execution at repo transactions execution by the "nego" method, are equated to zero; - was excluded the information on government special compensation treasury bonds (MAOKO) due to their maturity and absence in the Government of the Republic of Kazakhstan of the plan on their repeated issue, and the information on indexed treasury obligations of the Republic of Kazakhstan (MEIKAM) due to their absence in circulation and references to them in effective Rules on Government Treasury Obligations of the Republic of Kazakhstan Issue, Placement, Circulation and Maturity; - for valuation GS are not divided to five, as previously, but six groups; given this all indexed GS are transferred from the second and fourth groups to the fifth or sixth groups (depending of their terms to maturity) to accumulate similar securities in one group for more precise description of their market prices and yield calculation algorithm, at that the fifth group includes indexed GS, to the maturity date of which from their valuation date remains not more than 720 days, and the sixth group includes indexed GS, to the maturity date of which from their valuation date remains more than 720 days; - it was defined that the indexed GS yield, to the maturity date of which from their valuation date remains not more than 720 days (the fifth group GS), will be calculated by the same algorithm as calculated for the second and third groups GS; - it was defined that indexed GS market prices, to the maturity date of which from their valuation date remains not more than 720 days (the fifth group GS), for purposes specified in sub-items 1) and 2) of the Methodology preamble, will be discounted by 10 %, and indexed GS market prices, to the maturity date of which from their valuation date remains more than 720 days (the sixth group GS) - by 15 %. Amendments were submitted to AFS for approval and will be given effect from the first working day following the day of their approval. The Methodology revised text will be published on KASE website after AFS approval. [2009-07-31]