REVIEW: Government Securities market on KASE in July 2010

/IRBIS, August 9, 2010/ - In July 2010, on the Kazakhstan Stock Exchange (KASE) in the sector of sale of GS, including location, recorded 202 transactions totaling KZT98,210.8 million (equivalent to USD665.5 million), accounting for 3.0 % of total trading volume on KASE (in June 2010 - 3.5%). With regard to June 2010 trading volume in the sector fell by 32.2%, relative to July 2009 rose by 37.3%. Ministry of Finance of Kazakhstan in July 2010 held 5th auction at KASE on placement of bonds: July 9, 2010 an auction was held on placement of government treasury bonds, Ministry of Finance MEUKAM-120 of the seventh edition (KZKDKY100078, MUM120_0007; KZT1000, 09.07.1910 - 09.07.1920, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds in the amount of KZT 14,000.0 million. In the auction was attended by 18 primary dealers, who submitted 44 active applications. Total volume of active bids (volume of demand) was 52 770.0 million KZT (376.9% of the proposed bond volume). Coupon submitted by active bids ranged from 5.50% to 9.00% per annum, making in average terms, 7.4642% per annum. As a result of trade, issuing fixed rate at 6.00% per annum, thereby satisfying the request for KZT 14,000.0 million (100.0% of the proposed amount of bonds). July 15, 2010 an auction was held on placement of government treasury bills of the Ministry of Finance MEKKAM-12 issue 109 (KZK1KY011099, MKM012_0109; KZT100, 15.07.10 - 14.07.11, actual/actual). The subject of bargaining advocated bond price. It was originally planned to place the bonds in the amount of KZT10,000.0 million. Participated in the trades' eight primary dealers, who submitted 20 active applications. Total volume of bids (the amount of demand) was KZT32,443.9 million (333.7% of the proposed bond volume). The average price of bonds of an application was 98.0369% per annum. As a result of trade issuer granted an application for the purchase of 181.7 million of bonds at KZT17,808.4 million (181.7% of the proposed amount of bonds). July 20, 2010 an auction was held on placement of government treasury bonds, Ministry of Finance MEUKAM-156 second edition (KZKDKY130026, MUM156_0002; KZT1000, 20.07.1910 - 20.07.1923, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds at KZT13,000.0 million. In the auction was attended by 18 primary dealers, who submitted 42 active applications. Total volume of active bids (volume of demand) was KZT45,352.9 million (348.9% of the proposed bond volume). Coupon submitted by active bids ranged from 5.50% to 8.50% per annum, making in average terms, 7.1538% per annum. As a result of trade, issuing fixed rate at 6.50% per annum, thereby satisfying the request for KZT13,000.0 million (100.0% of the proposed amount of bonds). July 22, 2010 an auction was held on placement of government medium-term Treasury obligations Treasury MEOKAM-48 Release 44 (KZK2KY040444, MOM048_0044, KZT1000, 07.22.1910 - 07.22.1914, 30/360). The subject of bargaining acted coupon. It was originally planned to place the bonds at KZT13,000.0 million. In the auction was attended by 16 primary dealers, received 32 active application. Total volume of active bids (volume of demand) was KZT28,698.0 million (220.8% of the proposed bond volume). Coupon submitted by active bids ranged from 3.30% to 6.00% per annum, making in average terms, 5.4376% per annum. As a result of trade, issuing fixed rate at 4.50% per annum, thereby satisfying the request for KZT10,558.0 million (81.2% of the proposed amount of bonds). July 29, 2010 an auction was held on placement of government treasury bonds, Ministry of Finance MEUZHKAM-204 of the fourth edition (KZKAKY170041, MUJ204_0004; KZT1000, 29.07.1910 - 29.07.1927, 30/360). The subject of bargaining played a fixed coupon. It was originally planned to place the bonds at KZT15,000.0 million. Participated in the trades 9 primary dealers that submitted 16 active applications. Total volume of active bids (volume of demand) was 63 312.0 million KZT for a nominal value of bonds (422.1% 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 KZT 15,000.0 million (100.0% of the proposed amount of bonds). Statistical indicators of the secondary market in GS in July 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 - 9.9% (13.8%) of the market ------------------------------------------------------------------------------ 8 - 14 0.20 0.20 0.20 0.20 (0.75) 670.0 1 37 - 42 1.20 1.20 1.20 1.20 372.5 1 64 - 91 1.00 1.00 1.00 1.00 500.0 1 92 - 181 1.00 1.70 1.10 1.19 (1.53) 698.3 5 182 - 364 1.90 1.90 1.90 1.90 (1.51) 490.7 1 -------------- -------- ------- ------- ------------- --------------- -------- Total 2,731.4 9 (4,886.2) (17) -------------- -------- ------- ------- ------------- --------------- -------- Coupon GS (KZT): MAOKAM MEOKAM. MEUKAM MEUJKAM - 90.2% (86.2%) of the market ------------------------------------------------------------------------------ Less 730 2.00 6.80 3.00 4.86 (2.59) 1,785.0 14 731 - 1095 3.34 7.21 3.00 5.25 (3.96) 2,287.0 10 1096 - 1460 3.90 4.49 3.92 4.16 (4.62) 4,993.0 23 1461 - 1825 4.50 7.13 4.90 5.69 (6.51) 3,736.6 12 1826 - 2190 5.65 6.00 5.70 5.77 2,643.2 9 More 2191 5.70 6.60 6.00 6.30 (6.03) 9,668.2 47 -------------- -------- ------- ------- ------------- --------------- -------- Total 25,113.0 115 (30,534.6) (111) -------------- -------- ------- ------- ------------- --------------- -------- GRANDTOTAL 27,844.4 124 (35,420.7) (128) ------------------------------------------------------------------------------ The share of exchange trading volume of total transactions in the Kazakhstan's GS secondary market in July 2010 amounted to 94.6% (in June 2010 - 94.6%). [2010-08-09]