REVIEW: Government Securities market on KASE in May 2010

/IRBIS, June 14, 2010/ - In May 2010, on the Kazakhstan Stock Exchange (KASE) in the sector of sale of GS, including location, recorded 265 transactions totaling KZT131,280.0 million (equivalent to USD895.1 million), accounting for 6.3 % of total trading volume on KASE (in April 2010 - 4.1%). With regard to April 2010 trading volume in the sector fell by 7.1%, relative to May 2009 rose by 33.9%. Ministry of Finance of Kazakhstan in May 2010 held 6th auction at KASE on placement of bonds: May 5, 2010 an auction was held on placement of government treasury bills of the Ministry of Finance MEUKAM-144 of the first issue (KZKDKY120019, MUM144_0001; KZT1000, 05.05.1910 - 05.05.1922, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds in the amount of KZT10,000.0 million. In the auction was attended by 16 primary dealers, who submitted 36 active applications. Total volume of active bids (volume of demand) was KZT37,720.0 million (377.2% of the proposed bond volume). Coupon submitted by active bids ranged from 4.80% to 7.50% per annum, making in average terms, 6.1497% per annum. As a result of trade, issuing fixed rate at 5.50% per annum, thereby satisfying the request for KZT10,813.0 million (108.1% of the proposed amount of bonds). May 12, 2010 an auction was held on placement of government medium-term Treasury obligations Treasury MEOKAM-48 Release of 43 (KZK2KY040436, MOM048_0043, KZT1000, 12.05.1910 - 12.05.1914, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds in the amount of KZT14,000.0 million. Participated in the trades 9 primary dealers, who submitted 21 active applications. Total volume of active bids (volume of demand) was KZT25,613.0 million (183.0% of the proposed bond volume). Coupon submitted by active bids ranged from 3.99% to 6.00% per annum, making in average terms 4.9186% per annum. As a result of trade, issuing fixed rate at 4.15% per annum, thereby satisfying the request for KZT14,423.0 million (103.0% of the proposed amount of bonds). May 14, 2010 an auction was held on placement of government treasury bills of the Ministry of Finance MEUKAM-96 of the seventh edition (KZKDKY080072, MUM096_0007; KZT1000, 05.14.1910 - 05.14.1918, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds in the amount of KZT10,000.0 million. In the auction was attended by 14 primary dealers, who submitted 39 active applications. Total volume of active bids (volume of demand) was KZT27,501.0 million (275.0% of the proposed bond volume). Coupon submitted by active bids ranged from 4.30% to 7.50% per annum, making in average terms, 6.1555% per annum. As a result of trade, issuing fixed rate at 5.60% per annum, thereby satisfying the request for KZT10,000.0 million (100.0% of the proposed amount of bonds). May 18, 2010 an auction was held on placement of government treasury bills of the Ministry of Finance MEKKAM-12 issue 107 (KZK1KY121070, MKM012_0107; KZT100, 18.05.10 - 18.05.11, actual/actual). The subject of bargaining advocated bond price. It was originally planned to place the bonds at KZT18,000.0 million. In the auction was attended by 10 primary dealers filed on 24 active applications. Total bids (volume of demand) was KZT30,528.3 million (175.0% of the proposed bond volume). Price of bonds of an application was 98.1760% per annum. As a result of trade, the issuer granted an application for the purchase of 180.0 million of bonds at KZT17,671.7 million (100.0% of the proposed amount of bonds). May 20, 2010 an auction was held on placement of government medium-term Treasury obligations Treasury MEOKAM-60 production of 34 (KZK2KY050344, MOM060_0034, KZT1000, 20.05.1910 - 05.20.1915, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds in the amount of KZT14,000.0 million. In the auction was attended by 10 primary dealers, who submitted 27 active applications. Total volume of active bids (volume of demand) was KZT27,515.0 million (196,5% of the proposed bond volume). Coupon submitted by active bids ranged from 3.80% to 6.50% per annum, making in average terms, 5.2775% per annum. As a result of trade, issuing fixed rate at 5.00% per annum, thereby satisfying the request for KZT14,000.0 million (100.0% of the proposed amount of bonds). May 28, 2010 an auction was held on placement of government long-term treasury bills of the Ministry of Finance MEUZHKAM-192 third edition (KZKAKY160034, MUJ192_0003; KZT1000, 05.28.1910 - 05.28.1926, 30/360). The subject of bargaining played a fixed coupon. It was originally planned to place the bonds in the amount of KZT14,000.0 million. Participated in the trades 9 primary dealers, who submitted 18 active applications. Total volume of active bids (volume of demand) was KZT67,409.0 million for a nominal value of bonds (481.5% of the proposed amount of bonds). As a result of trade, the issuer has established fixed coupon rate at 0.01% per annum, thereby satisfying the request for KZT4,000.0 million (28,6% of the proposed amount of bonds). Statistical indicators of the secondary market in GS in May 2010 are given in the table (in brackets - comparable figures for previous months). ------------------------------------------------------------------------------ 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 -12.0% (7.3%) of the market ------------------------------------------------------------------------------ Less 8 0.20 0.20 0.20 0.20 50.0 1 8 - 14 0.25 1.00 1.00 0.78 (0.80) 3,662.4 6 15 - 28 0.75 0.75 0.75 0.75 (0.51) 51.0 1 43 - 56 1.30 1.30 1.30 1.30 2,995.4 2 92 - 181 1.25 2.37 1.25 1.71 (0.50) 339.6 2 182 - 364 1.50 2.00 1.70 1.74 (2.07) 123.1 5 -------------- -------- ------- ------- ------------- --------------- -------- Total 7,221.5 17 (5,319.4) (21) -------------- -------- ------- ------- ------------- --------------- -------- Coupon GS (KZT): MAOKAM MEOKAM. MEUKAM MEUJKAM -88.0% (92.7%) of the market ------------------------------------------------------------------------------ Less 730 0.85 2.90 2.80 2.63 (2.38) 3,990.5 8 731 - 1095 2.80 7.49 2.80 5.74 (4.95) 6,560.3 25 1096 - 1460 3.00 6.56 4.50 4.73 (5.74) 12,407.3 34 1461 - 1825 4.20 7.45 4.75 5.28 (4.75) 22,937.9 55 1826 - 2190 4.40 5.40 5.15 5.16 1,209.6 4 More 2191 4.40 5.80 5.70 5.50 (5.67) 6,045.1 32 -------------- -------- ------- ------- ------------- --------------- -------- Total 53,150.8 158 (67,943.0) (301) -------------- -------- ------- ------- ------------- --------------- -------- GRANDTOTAL 60,372.3 175 (73,262.4) (322) ------------------------------------------------------------------------------ The share of exchange trading volume of total transactions in the Kazakhstan's secondary market in May 2010 amounted to 59.0% (in April 2010 - 53.1%). [2010-06-14]