At KASE dollar rose due to speculative demand pressure

/IRBIS, Aug. 13, 99/ - The next trades with the US dollar, Deutsche mark were held at KASE. 22 banks participated in trades. The trades were opened with the US dollar at the level of 131.55 tenge per unit of the currency. From this price the dollar began to soar. In the first half of the session demand exceeded supply, and as a result at 25th minute of the trades dollar reached the level of 132.14 tenge per unit of the currency. High demand was created by speculative moods of the banks of the second tier. Knowing the flexibility of the market dealers began to purchase dollars hoping to capitalize on the exchange rate differences during the trades. When dollar was at 132.14 dealers began to fix their profits which increased the supply over the demand. This brought the dollar back to 131.90. Final phase of the trades went with rising demand, but its second "wave" was not as high as the first one. The dollar exchange rate did not go up higher than 132.05 and decreased again in last seconds of the trade. The session was closed at 131.94 (demand) / 132.05 (supply). 133 deals were made on US dollars. The weighted average dollar exchange rate has made 131.89 tenge per unit of the currency, and compared to the results of the previous session rose by 0.29 (29 points). The trade volume of the session - $5.850 mln. - has decreased relative to that of the latest trades by $0.845 thousand. The exchange rate fluctuation during the trade was 0.45%. One hour after closing of the trades at over-the-counter market dollar was quoted at 131.85 (demand) / 132.05 (supply) tenge per unit of the currency; two hours later - 131.93 / 132.15. Analysts at IRBIS did not expect the trades to behave like this. At opening the exchange was surprisingly flexible, and it created an organized demand from the banks of the second tier. Nobody resisted strengthening dollar, and exporters' earnings were twice as little as it was a day ago. Traders behavior was influenced by high volume of state securities redemption on Thursday. By employing these means and making use of very low opening level of the exchange the traders tried to form the bulls market and they succeeded at it. Four deals totaling DEM 115 thousand were made on Deutsche marks. This amount is higher compared with that of the previous trades by DEM 50 thousand. The weighted average rate has made 72.08 tenge for 1 mark. Compared to the results of the previous fruitful session mark's exchange rate has increased by 0.27 tenge (27 points). At closing of the session Deutsche mark was quoted at the level of 72.05 (demand) / 72.19 (supply) tenge per unit of the currency. One deal was made on Euro for an amount of EUR 5 thousand. This amount is lower compared with the latest fruitful trades by EUR 30 thousand. The weighted average rate has made 140.30 tenge for 1 Euro. Compared to the results of the latest fruitful trades Euro's exchange rate has increased by 0.35 tenge (35 points). At closing of the session European currency was demanded at 140.65 per unit of the currency with no supply.