REVIEW: Government Securities market on KASE in December 2011

/IRBIS, January 19, 2012/ - In December 2011 the Kazakhstan Stock Exchange (KASE) in the sales sector, including placement, were recorded 122 transactions totaling 92,131.0 million tenge (equivalent to 622.6 million U.S. dollars), which was 5.1% of total trading volume on KASE (in November 2011 - 4.7%). Relative to November 2011 the volume of trading in the sector rose by 4.1%, relative to December 2010 - increased by 24.7%. Ministry of Finance of Kazakhstan in December 2011 held 9 auctions at KASE on placement of bonds: December 5, 2011 an auction on placement of short-term treasury bills of the Ministry of Finance MEKKAM-12 release 121 (KZK1KY011214, MKM012_0121; 100 tenge, 05.12.11 - 05.12.12, actual/actual) was held. Subject of bargaining advocated the price of bonds. It was originally planned to place the bonds at 15 000 million tenge. The auction was attended by seven primary dealers, who filed 9 active applications. Total volume of orders (demand volume) was 9,242.4 million tenge. Price of the bond filed by active bids varied from 98.1354% to 98.5221%, in average terms, 98.3234% of face value. As a result of trade, the issuer granted the application for the purchase of 43.3 million bonds for 4,264.2 million tenge (28.9% of the proposed amount of bonds). Weighted average price of bonds satisfied bids was 98.4044% of face value. December 7, 2011 an auction on placement of medium-term treasury bills of the Ministry of Finance MEOKAM-36 release 83 (KZK2KY030833, MOM036_0083; 1,000 tenge, 12/07/11 - 12/07/14, 30/360), was held. The subject of trades performed the coupon rate. It was originally planned to place bonds worth KZT 10,000.0 mln. The auction was attended by 10 primary dealers that have filed 14 active applications. The total amount of active orders (demand volume) amounted to KZT 10,489.0 mln. Coupon submitted by active bids varied from 2.85% to 6.00% per annum, in average terms, 3.5597% per annum. As a result of trade, the issuer has established the rate at 3.10% per annum, thereby satisfying the application for $ 9 166.7 million tenge (91.7% of the proposed amount of bonds). December 14, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUKAM-seventh edition of 108 (KZKDKY090071, MUM108_0007; 1,000 tenge, 14/12/11 - 14/12/20, 30/360) was held. The subject of trades performed the coupon rate. It was originally planned to place bonds worth KZT 15,000.0 mln. In the auction was attended by eight primary dealers, 14 active applications submitted. The total amount of active orders (demand volume) amounted to 15 200.0 million tenge. Coupon submitted by active bids varied from 4.68% to 5.90% per annum, in average terms, 5.2199% per annum. As a result of trade, the issuer has established the rate at 5.00% per annum, meeting the request for 8,600.0 million tenge (57.3% of the proposed amount of bonds). December 15, 2011 an auction was held on additional placement of long-term treasury bills of the Ministry of Finance MEUKAM-156 of the fourth issue (KZKDKY130042, MUM156_0004; 1,000 tenge, 21/09/11 - 21/09/24, 30/360). Subject of bargaining was net price of the bonds. It was originally planned to place 15.0 million of bonds. The auction was attended by five primary dealers, filed 9 active applications. The total amount of active orders (demand volume) amounted to 11,171.2 million tenge. Net price of the bonds filed by active bids varied from 93.3204% to 100.4435%, in average terms, 99.0667% per annum. As a result of trade, the issuer granted the application for purchase of 9.5 million bonds for 9,481.3 million tenge (63.6% of the proposed amount of bonds). Net price of the bonds in the satisfied bids was 98.1448%. December 21, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUKAM-120 tenth issue (KZKDKY100102, MUM120_0010; 1,000 tenge, 12/21/11 - 21/12/21, 30/360) was held. The subject of trades performed the coupon rate. It was originally planned to place bonds worth KZT 15,000.0 mln. The auction was attended by 21 primary dealers who submitted 19 active applications. The total amount of active orders (demand volume) amounted to 24,262.4 mln. Coupon submitted by active bids varied from 5.00% to 6.00% per annum, in average terms, 5.5713% per annum. As a result of trade, the issuer has established the rate at 5.30% per annum, thereby satisfying the application for 9,830.0 million tenge (65.5% of the proposed amount of bonds). December 23, 2011 an auction was held on additional placement of short-term government treasury bills of the Ministry of Finance MEKKAM-12 release 121 (KZK1KY011214, MKM012_0121; 100 tenge, 05.12.11 - 05.12.12, actual/actual). Subject of bargaining was net price of the bonds. It was originally planned to place 150.0 million of bonds. The auction was attended by six primary dealers who have filed 8 active applications. Total volume of orders (demand volume) amounted to KZT 11,587.2 mln. Net price of the bonds filed by active bids varied from 97.4067% to 98.4830%, in average terms, 98.1964%. As a result of trade, the issuer granted the application for the purchase of 78.0 million bonds worth 7,681.7 million tenge (52.0% of the proposed amount of bonds). Net price of the bonds in the satisfied bids was 98.4830%. December 26, 2011 an auction was held on additional placenent of state long-term treasury bills of the Ministry of Finance MEUKAM-156 of third edition (KZKDKY130034, MUM156_0003; 1,000 tenge, 25/01/11 - 25/01/24, 30/360). Subject of bargaining was net price of the bonds. It was originally planned to place 15.0 million of bonds. The auction was attended by 4 primary dealer who submitted five active applications. The total amount of active orders (demand volume) amounted to 4,666.3 million tenge. Net price of the bonds filed by active bids varied from 96.9588% to 99.9904%, in average terms, 97.7167% per annum. As a result of trade, the issuer granted the application for purchase of 3.3 million bonds worth 3,490.9 million tenge (22.2% of the proposed amount of bonds). Net price of the bonds in the satisfied bids was 99.9904%. December 28, 2011 an auction was held on additional placement of state long-term treasury bills of the Ministry of Finance MEUKAM-108 of seventh edition (KZKDKY090071, MUM108_0007; 1000 tenge, 14/12/11 - 12/14/20, 30/360). Subject of bargaining was net price of the bonds. It was originally planned to place 15.0 million of bonds. The auction was attended by six primary dealers, 13 active applications submitted. The total amount of active orders (demand volume) amounted to KZT 11,314.9 mln. Net price of the bonds filed by active bids varied from 93.2153% to 99.9955%, in average terms, 98.0185% per annum. As a result of trade, the issuer granted the application for purchase of 3.0 million bonds worth 3,005.7 million tenge (20.0% of the proposed amount of bonds). Net price of the bonds in the satisfied bids was 99.9955%. December 29, 2011 an auction on placement of long-term treasury bills of the Ministry of Finance MEUJKAM-240 of the first issue (KZKAKY200012, MUJ240_0001; 1,000 tenge, 12/29/11 - 29/12/31, 30/360) was held. Subject of bargaining was fixed coupon. It was originally planned to place bonds worth KZT 20,000.0 mln. The auction was attended by 15 primary dealers that have filed 23 applications active. The total amount of active orders (demand volume) was 167,006.2 million tenge for a nominal value of bonds. As a result of trade, the issuer has established a fixed rate coupon of 0.01% per year, meeting the application for purchase of 25.0 million bonds (125.0% of the suggested amount). Statistical indicators of the secondary market GS in December 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 - 4.2% (53.2%) of the market -------------------------------------------------------------------------- 8 - 14 0.50 0.50 0.50 0.50 197.0 2 15 - 28 0.50 0.50 0.50 0.50 (0.50) 87.0 9 92 - 181 1.30 1.30 1.30 1.30 (1.42) 198.9 1 -------------- ------- ------ ------ --------------- -------------- ------ Total 482.9 12 (11 615.8) (17) -------------- ------- ------ ------ --------------- -------------- ------ Coupon GS: МЕОКАМ, МЕUКАМ, МЕUJКАМ - 95.8% (46.7%) of the market -------------------------------------------------------------------------- Less than 730 0.97 2.25 2.10 1.99 (2.10) 3,460.5 16 731 - 1095 2.70 3.09 3.09 2.83 (2.95) 1,578.5 5 1461 - 1825 2.80 3.40 3.36 3.19 (3.78) 4,240.8 9 More than 2191 4.95 5.42 5.09 5.17 (5.06) 1,848.0 13 -------------- ------- ------ ------ --------------- -------------- ------ Total 11,127.7 43 (10,182.0) (26) -------------- ------- ------ ------ --------------- -------------- ------ TOTAL 11,610.6 55 (21,797.7) (43) -------------------------------------------------------------------------- The share of exchange trading volume of total transactions in the Kazakhstan's GS secondary market in Kazakhstan in December 2011 amounted to 87.0% (in November 2011 - 91.2%). [2012-01-19]