At KASE dollar exchange rate decreased due to high supply, but demand is gradually increasing

/IRBIS, Aug.23, 99/ - At KASE because of technical reasons the next trades with the US dollar, Deutsche mark were held from 11:00AM to 11:30AM Almaty time. 22 banks participated in the trades. The trades were opened with the US dollar at 131.62 tenge per unit of the currency. Immediately after opening of the session dollar jumped up and on the third deal its price reached 131.70. American currency could not remain at this level for long. Under the influence of great supply of the dollar its exchange rate began to decrease quickly and at the 8th minute went down to 131.58 tenge per unit of the currency. Significant decrease of dollar's price made buyers active at 11th minute of the session. Demand exceeded supply shortly and it caused a compensatory increase of the exchange rate up to 131.61 tenge per unit of the currency. Further trades were held in market equilibrium reached at 131.60 tenge per dollar. Prices for isolated operations deviated from this number by 1 point. The trades were closed at 131.59 (demand) / 131.60 (supply). 158 deals were made on US dollars. The weighted average dollar exchange rate has made 131.60 tenge per unit of the currency, and compared to the results of the previous session went down by 0.24 tenge (24 points). The trade volume of the session - $9.925 mln - has decreased relative to that of the latest trades by $4.940 mln. The exchange rate fluctuation during the trade was 0.09%. The trades show great supply of dollars by the banks of the second tier. However, there are some exceptions. Significant reduction in price of American currency brought up its active purchase at 131.58 - 131.60 which does not mean prevailing supply over demand. Today's market can be characterized as being in equilibrium where speculative component in behaviors of the banks was explicit. Major operators of the market were buying more than they were selling which can make the dollar exchange rate trend to reverse soon. It seems as if banks are trying to "swing" the market at maximum within 131.50 - 132.20 price interval capitalizing on exchange rate differences because of impossibility of changing dollar exchange rate in one direction (increase or decrease). For traders it is impossible to remain on long or short positions for a long time. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 131.60 (demand) / 131.66 (supply) tenge per unit of the currency. 4 deals were made on Deutsche marks. The weighted average rate has made 71.96 tenge for 1 mark. Compared to the results of the previous trades it went up by 0.46 tenge (46 points). Trade volume - DEM100 thousand. At closing of the session Deutsche mark was quoted at 71.75 (demand) / 71.80 (supply) tenge per unit of the currency. Two deals were made on Euro. The weighted average rate has made 139.99 tenge for 1 Euro. Compared to last trades it has increased by 0.15 tenge (15 points). The trade volume - EUR35 thousand. At closing of the trades Euro was quoted at 140.10 (demand) / 140.20 (supply) tenge per unit of the currency.