Tenge strengthening continues on KASE, but the banks do not hasten to support this tendency

/IRBIS, 04.08.99/ - The regular trade for US dollar and deutsche mark was held on KASE (Kazakhstan stock exchange) with participation of 25 banks. At the opening of the trade an exchange rate was 131.82 tenge per dollar. As a result of five transactions, carried out during the first five minutes, the rate of a dollar was lowered to 131,75 tenge, but then it returned to 131,78. Then five-minute pause came into the market, after which the trade was continued in the compromise price interval 131,75-131,76. The session was closed with the quotations 131,76 (demand) and 131,77 (supply); during the final phase the rate of dollar somewhat increased. It is necessary to note, that the parity of the supply and demand was observed today, as well as yesterday. 190 transactions were made for USD. The average weighted rate has amounted to 131,76 tenge which is by 0,07 tenge less than that of yesterday. Volume of the session was $8,940 m (by $4.305 m less than yesterday). The fluctuation rate during the trade did not exceed 0,05%. One hour after closing of the trades the exchange rate of US dollar on over- the-counter market of the Kazakhstan were 131,70 (demand) and 131,80 (supply) tenge. We can notice, that today, as well as yesterday, the speculative components prevail in the behaviour of the banks of the second tier. However, they could not realise the rate difference in view of weak demand, and the dealers were compelled to close the positions at the price of opening. In IRBIS analysts' opinion, such events show that the banks do not hasten to support the increasing tendency of the tenge rate and are not interested in contraction of their hard currency net position. One transaction totalling DM15,000 was made for deutsche mark at the price of 72.10 tenge. In comparison with the last session the rate has grown by 12 items (KZT0,12), total volume has decreased by DM5.000. At the session closing the exchange rates of DM against tenge were 72,00 (demand) and 72,10 (supply). There was no transaction for Euro. On the moment of closing the European currency quotation were: 140,76 (demand) and 140,95 (supply).