Complete results of placement of MEKKAM #237/3

/IRBIS, Aug.17, 99/ - On August 16 Ministry of Finance and the National Bank of Kazakhstan held 237th auction on placement of MEKKAM-3 (91 days). Announced volume of the issue is determined by the emitter at 400 million tenge. Size of satisfaction of noncompetitive applications is 50%. Following is the complete data compared with the previous comparable tranche: Type of the securities MEKKAM-3 MEKKAM-3 NSIN KZ43L1711993 KZ43L1011998 KASE trade code MKM 03 237 MKM 03 236 IRBIS registration number 237/3 236/3 Nominal value, tenge 100.00 100.00 Issuance date Aug.16, 99 Aug.09, 99 Circulation start date Aug.19, 99 Aug.11, 99 Redemption date Oct.17, 99 Oct.10, 99 Days in circulation 91 91 Number of Primary dealers 4 (-1) Demand, mln tenge 146.7 (-432.9) Weighted average yield on demand, % APR 22.70 (+1.74) Planned volume, mln tenge 400.0 (0) Actual volume, mln tenge 100.0 (-319.1) Cut-off price, % of nominal 95.25 (0) Weighted average price, % of nominal 95.25 (0) Maximum yield, % APR 19.95 (0) Weighted average yield, % APR 19.95 (0) Effective weighted average yield, % APR 21.49 (0) Ministry of Finance says that no application was given by non-residents. Sharp decrease of demand for this particular type of securities can be explained by a change of market conjuncture; tenge strengthening can turn into dollar exchange rate increase. IRBIS analysts say that it is still early to talk about trend changes in the market. Analysis of participants of the currency trades indicate this. But the risk of long term strengthening of the dollar is quite real. Tactics of the Ministry of Finance offering equal amounts of currency and MEKKAM-3 and MEKAVM-3 is appropriate in this case. Decreasing demand for MEKKAM due to devaluation expectations should increase demand for MEKAVM. It is seems to be the emitter's focus and it is implemented in the primary market for State Securities. It is not the end of a quarter when Primary dealers will be affected by the mandatory buyback of securities of the Ministry of Finance. Therefore, MEKKAM and MEKAVM emitter has a hard time and by manipulating with supply of common and indexed securities one can get good results. Probably, the Ministry of Finance tries to keep the yield of its securities at a level reached so far, which is important after the National Bank's re-financing rate had been lowered. However, the pressure from the investors is increasing according to today's placement.