REVIEW: Government Securities market on KASE in July 2011

/IRBIS, August 11, 2011/ - In July 2011 the Kazakhstan Stock Exchange (KASE) in the sales sector, including placement, were recorded 116 transactions totaling 71,489.8 million tenge (equivalent to 489.5 million U.S. dollars), which was 3.5 % of total trading volume on KASE (in June 2011 - 3.9%). Relative to June 2011 the volume of trading in the sector declined by 16.2%, relative to July 2010 - by 27.2%. Ministry of Finance of Kazakhstan in July 2011 held 4 auctions at KASE on placement of bonds: July 8, 2011 an auction on placement of short-term treasury bills of the Ministry of Finance MEKKAM-12 of issue 117 (KZK1KY011172, MKM012_0117; 100 tenge, 08.07.11 - 08.07.12, actual / actual) was held. Subject of bargaining played a bond's price. It was originally planned to place bonds worth 13,000.0 mln. The auction was attended by 12 primary dealers who filed 24 active applications. Total volume of orders (demand volume) was 53,828.0 million tenge (421.2% of the offered volume of bonds). As a result of trade, the issuer granted the application for the purchase of 130.0 million of bonds at 12,794.8 million tenge (100.0% of the offered volume of bonds). The weighted average price of bonds satisfied bids was 98.4217%, the minimum (cut-off) - 98.4058%, maximum - 98.4252%. July 13, 2011 an auction on placement of government treasury bills of the Ministry of Finance MEOKAM-60 of release 39 (KZK2KY050393, MOM060_0036, 1000 KZT, 13.7.11 - 13.7.16, 30/360), was held. The subject of trades performed the coupon rate. It was originally planned to offer bonds for 11,000.0 million tenge. The auction was attended by 21 primary dealers who filed 48 active applications. Total volume of active bids (demand volume) amounted to 39,270.0 million tenge (357.0% of the offered volume of bonds). Coupon submitted by active bids varied from 3.00% to 6.00% per annum, in average terms, 4.2415% per annum. As a result of trade, the issuer has established the rate at 3.80% per annum, meeting the request for 11,000.0 million tenge (100.0% of the offered volume of bonds). July 20, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUKAM-144 of the fourth issue (KZKDKY120043, MUM144_0004; 1000 KZT, 20.7.11 - 20.7.23, 30/360) was held. The subject of trades was the coupon rate. It was originally planned to offer bonds worth 15,000.0 mln. The auction was attended by 18 primary dealers who have filed 52 applications active. Total volume of active bids (demand volume) amounted to 47,642.0 million tenge (397.0% of the offered volume of bonds). Coupon submitted by active bids varied from 4.70% to 6.00% per annum, in average terms, 5.3458% per annum. As a result of trade, the issuer has established the rate at 4.97% per annum, meeting the request for 19,066.7 million tenge (127.1% of the offered volume of bonds). July 28, 2011 the specialized auction on placement of long-term treasury bills of the Ministry of Finance MEUJKAM-69 third edition (KZKAKY080034, MUJ069_0003; 1000 KZT, 28.7.11 - 28.7.19, 30/360). Subject of bargaining played a fixed coupon. It was originally planned to offer bonds worth 15,000.0 mln. The auction was attended by 14 primary dealers, 25 active bids were submitted. Total volume of active bids (demand volume) was 163,581.0 million tenge for a nominal value of bonds (1090.5% of the offered volume of bonds). As a result of trade, the issuer a fixed rate coupon of 0.01% per annum, meeting the application for purchase of 15.0 million bonds (100.0% of the suggested amount). Statistical indicators of the secondary market GS in July 2011 are shown in table (in brackets - the comparable figures of the previous month). ------------------------------------------------------------------------- Yield to maturity for the buyer, %APR Term ------------------------------------- Volume, m. KZT Number till maturity min max last till maturity min max ------------- ------- ------ ------ --------------- -------------- ------ Discounted GS (KZT): MEKKAM, National Bank's notes - 0.2% (17.5%) of the market ------------------------------------------------------------------------- 15 - 28 0.51 0.51 0.51 0.51 3.0 1 37 - 42 0.66 0.66 0.66 0.66 (0.39) 22.0 3 ------------- ------- ------ ------ --------------- -------------- ------ Total 25,0 4 (7,060.5) (8) ------------- ------- ------ ------ --------------- -------------- ------ Coupon GS: МЕОКАМ, МЕUКАМ, МЕUJКАМ - 99.8% (82.5%) of the market ------------------------------------------------------------------------- 731 - 1095 2.80 2.92 2.80 2.91,(2.69) 2,117.8 3 1096 - 1460 2.93 2.93 2.93 2.93,(3.95) 538.5 1 1461 - 1825 3.10 4.29 3.50 3.84,(4.15) 5,314.8 34 1826 - 2190 3.70 4.29 3.70 3.83,(4.27) 348.2 2 более 2191 4.50 4.97 4.65 4.67,(4.72) 5,284.1 12 ------------- ------- ------ ------ --------------- -------------- ------ Total 13,603.4 52 (33,222.2) (104) ------------- ------- ------ ------ --------------- -------------- ------ TOTAL 13,628.4 56 (40,282.7) (112) ------------------------------------------------------------------------- The share of exchange trading volume of total transactions in the Kazakhstan's GS secondary market in July 2011 amounted to 96.2% (in June 2011 - 72.8%). [2011-08-11]