REVIEW: Government Securities market on KASE in October 2011

/IRBIS, November 4, 2011/ - In October 2011 the Kazakhstan Stock Exchange (KASE) in the sales sector, including placement, were recorded 123 transactions totaling 104,243.9 million tenge (equivalent to 704.8 million U.S. dollars), which was 3.3% of total trading volume on KASE (in September 2011 - 5.2%). Relative to September 2011 the volume of trading in the sector fell by 21.1%, relative to October 2010 - decreased by 28.2%. Ministry of Finance of Kazakhstan in October 2011 held 5 auctions at KASE on placement of bonds: October 3, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUKAM-168 of the first issue (KZKDKY140017, MUM168_0001; 1000 tenge, 03/10/11 - 10/03/25, 30/360) was held. The subject of trades performed the coupon rate. It was originally planned to place bonds worth 14 000.0 mln. The auction was attended by seven primary dealers, 13 active applications submitted. The total amount of active orders (demand volume) amounted to 23 100.0 million tenge (165.0% of the proposed amount of bonds). Coupon submitted by active bids varied from 4.90% to 6.00% per annum, in average terms, 5.3617% per annum. As a result of trade, the issuer has established the rate at 5.15% per annum, meeting the request for 14,666.7 million tenge (104.8% of the proposed amount of bonds). October 13, 2011 an auction on placement of medium-term treasury bills of the Ministry of Finance MEOKAM-24 Release 81 (KZK2KY020818, MOM024_0081; 1000 tenge, 10/13/11 - 13/10/13, 30/360) was held. The subject of trades performed the coupon rate. It was originally planned to place bonds worth KZT 14,000.0 mln. The auction was attended by 12 primary dealers that have filed 20 active applications. The total amount of active orders (demand volume) amounted to 33,280.0 million tenge (237.7% of the proposed amount of bonds). Coupon submitted by active bids varied from 1.50% to 3.50% per annum, in average terms, 2.3493% per annum. As a result of trade, the issuer has established the rate at 2.00% per annum, meeting the request for 21,666.7 million tenge (154.8% of the proposed amount of bonds). October 19, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUKAM-192 of the first issue (KZKDKY160015, MUM192_0001; 1000 tenge, 19/10/11 - 10/19/27, 30/360) was held. The subject of trades was the coupon rate. It was originally planned to place bonds worth KZT 15,000.0 mln. The auction was attended by 16 primary dealers that have filed 35 active applications. The total amount of active orders (demand volume) amounted to 43 001.0 million tenge (286.7% of the proposed amount of bonds). Coupon submitted by active bids varied from 5.00% to 7.00% per annum, in average terms, 5.6893% per annum. As a result of trade, the issuer has established the rate at 5.30% per annum, meeting the request for 15,333.3 million tenge (102.2% of the proposed amount of bonds). October 21, 2011 an auction on placement of short-term treasury bills of the Ministry of Finance MEKKAM-12 Release 120 (KZK1KY011206, MKM012_0120; 100 tenge, 21.10.11 - 21.10.12, actual / actual) was held. Subject of bargaining played a bond's price. It was originally planned to place bonds worth KZT 10,000.0 mln. The auction was attended by 3 primary dealers who submitted 4 active applications. Total volume of orders (demand volume) amounted to 8,125.0 million tenge (83.0% of the proposed amount of bonds). As a result of trade, the issuer granted the application for the purchase of 16.7 million bond to 1,640.4 million tenge (16.7% of the proposed amount of bonds). The price of satisfied bids was 98.4218% of face value. Statistical indicators of the secondary market GS in October 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 - 42.4% (59.9%) of the market -------------------------------------------------------------------------- 8 - 14 2.00 2.00 2.00 2.00 (1.01) 1,999.0 1.00 29 - 36 1.40 1.50 1.40 1.40 (1.06) 237.7 4.00 43 - 56 1.50 1.50 1.50 1.50 (1.40) 499.1 1.00 64 - 91 1.40 1.40 1.40 1.40 299.0 1.00 182 - 364 2.00 2.19 2.19 2.08 (1.62) 11,771.0 7.00 -------------- ------- ------ ------ --------------- -------------- ------ Total 14,805.9 14 (49,215.3) (35) -------------- ------- ------ ------ --------------- -------------- ------ Coupon GS: МЕОКАМ, МЕUКАМ, МЕUJКАМ - 57.6% (40.1%) of the market -------------------------------------------------------------------------- Less than 730 2.60 3.00 2.60 2.61 (1.64) 5,065.1 6 731 - 1095 3.00 3.58 3.10 3.19 (3.18) 2,615.5 8 1096 - 1460 3.64 5.00 3.64 4.32 262.8 2 1461 - 1825 3.55 3.95 3.55 3.60 (4.43) 152.7 2 More than 2191 4.90 5.48 4.97 5.16 (4.82) 12,034.9 38 -------------- ------- ------ ------ --------------- -------------- ------ Total 20,131.0 56 (32,946.0) (85) -------------- ------- ------ ------ --------------- -------------- ------ TOTAL 34,936.8 70 (82,161.3) (120) -------------------------------------------------------------------------- The share of exchange trading volume of total transactions in the Kazakhstan's GS secondary market in Kazakhstan in October 2011 amounted to 96.6% (in September 2011 - 92.6%). [2011-11-04]