/KASE, September 7, 09/ - The Exchange Council of Kazakhstan Stock
Exchange (KASE) on July 30, 2009 approved changes and additions No. 8 (the
Amendments) to the KASE internal document "Securities Valuation
Methodology" (the Methodology).
The Amendments were agreed with the Agency of the Republic of Kazakhstan on
Regulation and Supervision of Financial Market and Financial Organizations on
September 3, 2009 and made effective September 4, 2009.
The Amendments were required due to the following:
- accord of AFS on July 3, 2009 of changes and additions No. 13 to the Rules
on Repo Transactions, approved by the KASE Exchange Council on May 28,
2009;
- bringing the Methodology in compliance with corresponding normative and
legal acts;
- reclassification of government securities (GS) for purposes of application of
market price and yield determination algorithms specified in the Methodology;
- editorial and specifying amendments of the Methodology.
The Amendments:
- extend a list of purposes, for which the Methodology sets the securities
valuation order, for purposes of repo transaction opening price calculation;
- equal to zero market price of securities, de-listed from KASE, for purposes of
calculation of repo transaction opening price, current market value,
compensation package deficit, compensation package sum and repo closing
transaction sum at its early execution at carrying out nego repo transactions;
- remove information on government special compensation treasury obligations
(MAOKO) due to maturity as the Kazakhstan government has no plans to
recurrently issue such bonds, and information on indexed treasury obligations
of the Republic of Kazakhstan (MEIKAM) as no such bonds are in circulation
and current Rules on issue, placement, circulation, service and maturity of
government treasury obligations of the Republic of Kazakhstan do not
mention such instruments;
- for valuation purposes GS are divided into six groups (earlier five); at that,
all indexed GS were transferred from the second and fourth groups to the fifth
and the sixth (depending on the term before maturity) to have securities with
similar characteristics in the same group for the sake of more accurate
description of calculation of market value and yield, at that, the fifth group
included indexed GS, with 720 or less days before maturity, the sixth group
included indexed GS with more than 720 days before maturity after valuation;
- specify, yield of indexed GS, with less than 720 days before maturity after
valuation (GS of the fifth group), shall be determined according to the same
algorithm, at which the yield is determined for GS of the second and the third
group;
- specify, market price of indexed GS, with less than 720 days before maturity
after valuation (GS of the fifth group), for purposes, set in sub-items 1) and
2) of a preamble of the Methodology, shall be discounted by 10 %, and market
price of indexed GS, with over 720 days before maturity after valuation (GS of
the sixth group) - 15 %.
The renewed text of the Methodology will be released at the KASE website at
http://www.kase.kz/files/normative_base/met_ocen_zb.pdf in the nearest time.
[2009-09-07]