/KASE, August 27, 11/ - As previously informed, by Kazakhstan Stock Exchange
(KASE) Board of Directors decision of March 31, 2011 was approved new version
of KASE internal document "Methodology of Securities Valuation"
(The Methodology).
The Methodology has been approved by the Committee on Regulation and
Supervision of Financial Market and Financial Organizations of the National
Bank of the Republic of Kazakhstan (FSC NBK) on August 9, 2011 and will
become effective from August 23, 2011.
The following changes have been made to the Methodology new version:
- he order of GS grouping for their valuation has been changed;
- the procedure for valuation of non-indexed GS has been changed;
- approach to valuation of corporate bonds has been changed;
- criteria used for separation of shares in liquid and non-liquid ones
for their valuation have been changed;
- a procedure of valuation of securities not valued so previously has
been determined;
- discount rates for market prices of corporate bonds designed for their
use in auto repo transactions have been changed;
- discount rates for market prices of GS designed for their use in auto
repo transactions have been adjusted due to a change in the CS grouping
procedure.
As a result of changes made:
- all non-indexed GS (MEKKAM, MEOKAM, MEUKAM and notes of the National
Bankи) have been united in one group; their valuation will be made based
on yield values which were obtained by approximating of transactions'
parameters 60 calendar days before the valuation date;
- indexed GS (MOIKAM, MEUJKAM and MUIKAM) have been united into one group;
their valuation will be made based on the projected (according to the
inflation rate) yield to maturity;
- MAOKAM have been groped separately; their market prices will be calculated
based on their yield values from transactions in the past 15 effective days
preceding the valuation date (if the number of effective days is not
sufficient - based on the value of the security's current coupon);
- the procedure of valuation of municipal GS has been changed; however it
remained similar to the procedure of valuation of corporate bonds;
- the procedure of valuation of foreign government (FGS) securities
and securities of international financial institutions (IFOS) has
been determined similar to the procedure of valuation of corporate
bonds issued according to the legislation foreign states;
- Criteria of shares' liquidity have been removed from the Methodology;
and for the market valuation the lists of liquid and non-liquid shares
will be used with the lists being drawn up according to KASE internal
document "Methodology of Securities Liquidity Indicators Defining";
- corporate bonds are valued at the price of the best ask quotations
(and not at the yield of those quotations, as it was the case before),
whereas:
- bonds traded in "net" prices, are valued daily ("net" price determined
based on the best ask prices once a week, plus the interest accrued as
on the date of valuation);
- bonds traded in "dirty" prices are valued once a week based on the best
ask quotations.
Beginning the date of the Methodology new version effect the Methodology
previous version will be considered invalid.
We remind that the file with data on equity and debt securities market
valuation for the period from August 31 to September 4, 2011 will be
formed according to the Methodology new version.
The text of Methodology is available on KASE website at
http://www.kase.kz/files/normative_base/met_ocen_zb_eng.pdf
[2011-08-27]