REVIEW: KASE debt capital market in May 2011

/IRBIS, June 10, 2011/ - In May 2011 the Kazakhstan Stock Exchange (KASE) on corporate bonds in all market sectors recorded 136 deals totaling 13,364.4 million tenge or 91.8 thousand U.S. dollars at current exchange rates at the dates of transactions. The said amount is 68.2% of the monthly trading volume on the corporate securities market (in April 2011 - 80.0%) and 0.7% of the total trading volume in all sectors of the market (2.7%). Recall, April 5, 2011 in the trade system of KASE held special offerings were KZP01Y07D853 (SKKZb22) of Fund Samruk-Kazyna (Astana). The issuer had planned to place 75.0 billion of bonds KZP01Y07D853 (whole volume of registered bonds of this issue). The subject of bargaining is the value of the coupon rate bonds, expressed as a percentage per annum up to two decimal places, which is also considered by the issuer as to the yield to maturity for a buyer. The auction was attended by 30 members of KASE, who submitted 85 bids , including 77 limited market and 8. At the end of the application period in 1977 had left active warrants to purchase 128 147.0 million of bonds, including 69 limited (120 to purchase 536.0 million of bonds) and 8 of the market (to buy 7 611.0 million of bonds). Thus, the volume of demand at the auction amounted to 170.9% of the volume of proposals. Coupon rate (yield to maturity) in the active limit orders ranged from 4.50% pa to 8.00% per annum, reaching in average terms, 5.98% per annum. The volume of active orders, the proportion of pension market had 52,3%, the share of Kazakhstan's second-tier banks (STB) - 36,6%, broker-dealers - 2,0% and their customers - 9,1%. As a result of trade, the issuer has established cut-off price at the level of 99.9974%, which corresponds to the coupon rate (the yield to maturity for a buyer) 5.89% per annum, and granted at this price 27 nominations, placing thus in 19,447.0 million of bonds. The amount of involvement in this case amounted to 19,484,675,321.31 tenge. According to data of Central Securities Depository JSC (Almaty), all transactions at the time of publication of this information were fulfilled. 20.6% of total volume of outstanding bonds was redeemed by the subjects of the pension market, 32.6% - STB, 0.7% - broker-dealer companies, 46.1% - by customers of broker-dealers. Price background of corporate bond market in May 2011 was as follows: of the 54 items of the bonds involved in the transaction on the secondary market at a discount traded debt instruments 34 items, with a premium - 20 names. Most overbought looks TXBNb5, the weighted average net price of which amounted to 149.21% oversold - VITAb5 (15.70%). Recall that in April 2011 from 74 denominations of bonds involved in the transaction on the secondary market at a discount traded debt instruments 48 items, with a premium - 26 names. Most overbought look TXBNb5, the weighted average net price of which amounted to 124.70% oversold - TEBNb16 (62.29%). The weighted average net price of corporate bonds on the secondary market in May fell to 93.5% compared with 97.3% in April 2011. Per month on deals yield to maturity for a buyer increased for 18 instruments (in April 2011 - 29), decreased from 30 instruments (39), 6 instruments were traded for the first time (5). Below are the tables, characterizing this segment of exchange market in May 2011. Tab. 1. Statistic characteristic of corporate bonds market on KASE in May 2011 (indicators are given taking into account direct deals) ----------------------------------------------------------------------- Trend to ------------------ --------- -------- Indicator Apr Mar Apr 2011 2011 2010 ------------------------------------------- -------- --------- -------- Trades volume, th., USD 91,850.5 4.7 times -2.8% Trades volume, m., KZT 13,364.5 4.7 times -3.6% Number of deals 136 -62.8% -50.2% Day average number of deals 7 -61.0% -52.7% Day average volume of deals, th. USD 4,592.5 4.4 times -7.7% Day average volume of deals, m. KZT 668.2 4.4 times -8.4% Number of instruments, 54 -27.0% -18.2% involved in deals Stake of nego deals (number), % 1 +1.5 pp +1.1 pp Stake of nego deals (volume), % 0.4 +0.4 pp +0.3 pp Participation of pension assets, % gross 13.0 +0.7 pp -14.3 pp Participation of physical entities, % gross 15.1 +8.1 pp -7.7 pp Participation of non residents, % gross 13.6 +3.2 pp +11.3 pp Number of exchange's members, 38 -17.4% -5.0% who made deals Market concentration, %* 54.4 -4.5 pp -5.1 pp ----------------------------------------------------------------------- * Indicates the percentage of the total corporate bond trading, which accounts for most traded securities (their number is 5% the total number of items of corporate bonds, involved in the transaction). Tab. 2. Sector structure of the trading volume in May 2011 corporate bonds on KASE * ------------------------------------------------------------------- Stake from total volume of trades(%) in: -------------- ----------- ------------- Branch May 2011 April May 2010 2011 -------------------------- -------------- ----------- ------------- Finance 76.5 90.1 80.0 Main consumer sector 17.3 0.8 16.8 Telecommunication services 4.7 0.7 0.02 Primary sector 1.4 7.5 1.0 Industry 0.1 0.2 0.1 Discretionary 0.01 - 0.03 consumer sector Utilities sector - 0.7 1.8 Public health - - - Energy - - 0.4 Information technologies - - 0.01 ------------------------------------------------------------------- *branch classification of turDecer structure was made in compliance with list of classification headings of Global Industry Classification Standard (GICS) Standard and Poor's Tab. 3. Main indicators of KASE corporate bond market in May 2011 -------------------------------------------------------------- Market. value of Index Volume of Volume of debt, KASE_BY, Index Index trade, deals, Date USD m. % APR KASE_BP KASE_BC th. USD m. KZT -------- -------- -------- ------- ------- --------- --------- 29.04.11 40,206.3 14.35 479.26 322.70 2,671.6 388.8 03.05.11 40,181.6 14.35 479.26 322.57 423.7 61.8 04.05.11 40,176.1 14.35 478.07 322.39 317.3 46.3 05.05.11 40,182.5 14.46 476.59 321.50 3,757.7 547.5 06.05.11 40,187.6 14.38 478.05 322.13 1,709.0 249.0 10.05.11 40,131.8 14.39 476.96 321.42 631.6 92.2 11.05.11 40,134.4 14.86 472.50 319.21 13,134.4 1,914.3 12.05.11 40,139.2 14.85 474.79 320.57 3,258.4 474.9 13.05.11 40,119.1 14.85 472.50 319.66 7,252.2 1,056.9 16.05.11 40,097.3 14.84 471.10 317.74 46.9 6.8 17.05.11 40,084.7 14.87 470.52 317.25 1,945.6 283.6 18.05.11 40,103.7 14.87 470.93 319.45 11,348.2 1,652.3 19.05.11 40,120.1 14.84 471.51 320.15 5,124.1 745.4 20.05.11 40,105.9 14.84 469.37 318.46 3,656.8 531.0 23.05.11 40,113.0 14.84 470.60 318.84 1,334.1 193.8 24.05.11 40,067.1 14.84 468.95 318.51 5,073.5 737.6 25.05.11 40,088.1 14.83 469.22 318.88 2,029.3 294.8 26.05.11 40,095.9 15.07 465.23 316.33 6,330.4 919.0 27.05.11 40,091.9 14.76 466.99 317.73 5,865.0 852.2 30.05.11 39,982.5 14.74 467.01 317.24 17,872.1 2,597.5 31.05.11 39,981.8 14.72 466.51 318.00 740.4 107.7 -------- -------- -------- ------- ------- --------- --------- Trend -224.5 +0.4 -12.7 -4.7 % -0.6 +2.6 -2.7 -1.5 -------------------------------------------------------------- Tab.4 Change of corporate bonds lists, traded on KASE, in May 2011 -------------------------------------------- Bonds: Issuers: Category of ------ ----- ------ ----- admission number trend number trend ------------------ ------ ----- ------ ----- Rated 112 +3 34 +2 ------------------ ------ ----- ------ ----- Non-rated first subcategory 92 -3 25 0 Non-rated second subcategory 31 -1 21 -1 Buffered 4 -2 3 -2 ------------------ ------ ----- ------ ----- Total 239 -3 70 -2 -------------------------------------------- Tab. 5. Summary data on deals with corporate bonds on KASE in May 2011 (purchase and sale without consideration of nego deals) ------------------------------------------------------------------------ Yield to maturity for purchaser, % APR: Code of ------ ------ ---------------- -------------- Volume of For At a last deal: last 365 days: bond ------ --------- ------- ------ deals, Number on KASE min. max. yield Trend, % min. max. th. USD of deals ------- ------ ------ ------ --------- ------- ------ --------- -------- ABDIb1 27.00 29.00 29.00 +2.0 27.00 36.00 29.8 5 ------- ------ ------ ------ --------- ------- ------ --------- -------- AESOb1 12.50 12.89 12.50 -0.5 11.80 13.00 100.3 2 ------- ------ ------ ------ --------- ------- ------ --------- -------- ASBNe13 13.23 15.16 14.32 13.22 15.66 356.9 3 ------- ------ ------ ------ --------- ------- ------ --------- -------- ASBNe8 11.60 11.60 11.60 +0.5 11.09 11.60 349.3 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BRKLb1 6.35 6.35 6.35 +0.1 6.00 7.50 644.8 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BTAIb14 34.00 34.00 34.00 34.00 37.89 0.4 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BTAIb3 12.13 12.13 12.13 +3.1 9.00 92.34 16.4 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BTAIb9 13.00 13.00 13.00 -0.000002 6.80 30.00 23.4 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BTASe10 8.56 8.56 8.56 8.56 8.56 190.3 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- BTTRb1 9.52 9.52 9.52 +0.001 8.64 9.52 1,989.3 2 ------- ------ ------ ------ --------- ------- ------ --------- -------- CBH_b1 22.41 22.41 22.41 +0.02 20.00 22.41 7.7 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- CCBNb4 7.00 7.00 7.00 6.00 9.00 35.2 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- CCBNb6 10.00 10.00 10.00 8.00 12.00 41.5 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- CCBNe3 12.21 12.22 12.22 11.21 12.22 362.2 2 ------- ------ ------ ------ --------- ------- ------ --------- -------- CSBNb6 12.00 12.00 12.00 -1.0 12.00 19.95 37.3 2 ------- ------ ------ ------ --------- ------- ------ --------- -------- CSBNb7 12.00 12.00 12.00 12.00 14.00 15.1 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- CTECb1 14.00 14.00 14.00 14.00 16.00 21.0 2 ------- ------ ------ ------ --------- ------- ------ --------- -------- EUBNb3 8.90 10.00 10.00 +1.5 8.00 13.00 1,327.1 7 ------- ------ ------ ------ --------- ------- ------ --------- -------- EUBNb9 8.70 8.70 8.70 -0.000003 8.00 11.00 1,200.1 1 ------- ------ ------ ------ --------- ------- ------ --------- -------- EXBNb1 14.50 17.00 14.50 11.35 17.00 758.4 3 ------- ------ ------ ------ --------- ------- ------ --------- -------- EXBNb2 14.50 18.50 18.50 +0.0001 10.71 18.50 12.6 2 HSBKb10 9.50 10.46 10.46 -1.1 9.00 11.60 55.3 3 HSBKb12 10.00 10.00 10.00 8.00 10.00 853.9 1 HSBKe3 6.30 6.30 6.30 6.30 7.14 3,957.8 1 HSBKe4 4.29 4.50 4.29 -0.2 4.29 7.57 14,578.8 4 KDTSb1 12.75 12.75 12.75 -0.3 12.00 21.38 11.5 1 KKGBb4 10.50 10.50 10.50 -0.9 10.00 12.21 11.7 1 KKGBb5 11.60 11.60 11.60 +0.9 8.30 11.60 577.2 2 KKGBe4 7.14 7.58 7.34 -1.6 7.14 11.92 627.4 4 KMGZb4 8.29 8.39 8.29 7.58 8.48 4,360.1 3 KZIKb11 8.95 12.00 8.95 8.95 12.00 9,734.2 2 KZIKb16 11.50 11.50 11.50 +0.00001 9.00 11.50 2,420.7 3 KZIKb2 8.30 8.30 8.30 8.00 13.00 874.8 1 KZIKb21 8.00 8.00 8.00 +0.00001 8.00 8.00 3,554.3 2 KZIKb3 8.20 11.70 8.20 8.20 13.50 4,218.9 5 KZIKb4 9.90 9.90 9.90 -0.1 9.50 14.45 532.4 2 NRBNb7 11.00 11.00 11.00 -0.4 9.00 12.00 7,615.6 2 NRBNe2 8.05 8.05 8.05 8.05 9.31 111.3 1 ORDKb2 12.00 16.00 12.00 +0.00002 12.00 16.02 609.3 17 PRKRb4 7.30 7.50 7.50 6.15 8.50 774.8 2 RGBRb6 13.02 13.02 13.02 +0.5 10.00 16.00 3.7 1 SKENb1 11.50 11.50 11.50 11.50 11.50 13,800.4 1 SKKZb22 5.60 5.60 5.60 -0.1 5.60 5.89 705.5 1 SKKZb23 4.50 6.40 5.70 +1.2 4.50 6.50 11,819.5 11 TEBNb16 11.91 11.91 11.91 -2.0 11.91 14.00 79.6 1 TEBNe1 -1.51 -1.51 -1.51 -1.51 -1.51 8.4 1 TSASb1 28.64 28.64 28.64 +3.6 25.00 28.64 458.8 2 TSBNb4 5.00 5.00 5.00 +0.001 5.00 11.08 7.9 6 TSBNb5 10.01 10.01 10.01 -0.01 10.01 16.00 30.4 1 TXBNb3 6.40 7.00 7.00 +2.0 5.00 9.00 1,269.6 2 TXBNb5 3.20 3.20 3.20 -3.3 3.20 7.06 64.3 2 VITAb5 152.64 152.64 152.64 120.00 277.13 5.8 2 ZERDb1 12.00 16.00 12.00 -4.0 5.00 119.00 44.1 3 ------- ------ ------ ------ --------- ------- ------ --------- -------- 53 91,297.0 132 ------------------------------------------------------------------------ Comments: Securities were sorted in alphabetical order according to codes of bonds. Trends are given in percentage points (1pp = 100 basis points) relative to the last deal of previous month - April 2011. [2011-06-10]