Volume of sale and purchase of state Securities at KASE - KZT75.3 million

/IRBIS, 06.08.99/ - Results of the regular trades with internal State Securities (SS) at Kazakhstan stock exchange: Yield to Maturity, % per year Days ----------------------------- Volume, till Best Best million Currency redemption Average demand supply tenge -------- ---------- ------- ------ ------ -------- KZT 7 13.03 KZT 14 14.90 KZT 15 15.14 -------- ---------- ------- ------ ------ -------- USD 56 7.89 75.3 USD 358 11.50 15.50 -------- ---------- ------- ------ ------ -------- TOTAL 75.3 Yield of the indexed state securities is calculated using the official rate established by the National Bank effective on the date of a transaction (132.10 tenge per dollar). No transactions with the coupon bonds were made. It can be said that the ban on conducting direct transactions in the SS purchase-sell sector of KASE does not render the organizational component of the market active. In recent times KASE controlled on average 99.8% of the SS secondary market turnover, and on August 04 this number decreased to 53.9%. The main problem is narrow market. Lack of mass quoting of the securities by the stock exchange members causes undesired interception of the offers on previously agreed and planned deals by the third parties. The dialers are not used to trade with state securities in KASE system with the efficiency and the professionalism of the currency traders. The position of the Ministry of Finance also plays a negative role in the development of free and organized state securities market; the ban on purchasing the Ministry of Finance's debt liabilities without participation of primary dialers even at the stock exchange is still in force. As a result, a member of KASE with the right to participate in state securities trade and with an account in the Central depositary, is allowed to strike a deal on Ministry of Finance's state securities only through the primary dealers. Also, he needs to pay commissions to the primary dealer, whereas KASE does business in the SS sector without taking any commissions.