At KASE demand for dollars does not diminish, but their strengthening rate decreased

/IRBIS, Aug.27, 99/ - The next trades with the US dollar, Deutsche mark were held at KASE. 25 banks participated in the trades. The trades were opened with the US dollar at 132.00 tenge per unit of the currency. Dollar reached the maximum level of 132.02 at the very beginning of the session then plummeted under the pressure of increasing supply, and by the 9th minute of the trades its price dropped to 131.86 tenge per unit of the currency. While dollar was decreasing demand was getting high. At this level buyers became so active that the dollar bounced back at 131.93. Further, dollar kept growing though not so fast as it did at the start of the session. By the end of the session dollar was traded within 131.94 - 131.96 price interval. The session was closed at 131.95 (demand) / 131.96 (supply). 270 deals were made on US dollars. The weighted average dollar exchange rate has made 131.93 tenge per unit of the currency, and compared to the results of the previous session went up by 0.02 tenge (2 points). The trade volume of the session - $16.225 mln - has increased relative to that of the latest trades by $6.610 mln. The exchange rate fluctuation during the trade was 0.12%. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 131.94 (demand) / 132.03 (supply) tenge per unit of the currency. After two hours - 131.92 / 132.02. Just like yesterday, demand for dollars was over their supply. Some dealers were only buying dollars on the trade floor, whereas "exclusive" sellers were absent. The market was characterized by prevailing speculative behavior of the dealers: 5 out of 24 participants get out of the trades with zero net positions, thus turning over $2.9 mln. High volume of trades were apparently caused by speculative actions of the banks rather than by mandatory sale of exporters' earnings. Also, three day long weekend is coming and the banks do not want to keep their tenge for such a long time, thus converting free assets into currency for placing them in foreign banks. High demand from the banks of the second tier can be explained by this circumstance. It should be mentioned that the market was close to equilibrium and the trend of strengthening dollar could reverse on Monday. 3 deals were made on Deutsche marks. The weighted average rate has made 70.62 tenge for 1 mark. Compared to the results of the previous trades it went up by 0.27 tenge (27 points). Trade volume - DEM40 thousand. At closing of the session Deutsche mark was quoted at 70.60 (demand) / 70.65 (supply) tenge per unit of the currency. 1 deal was made on Euro. The weighted average rate has made 138.85 tenge for 1 Euro. Compared to last trades it has increased by 0.39 tenge (39 points). The trade volume - EUR25 thousand. At closing of the trades Euro was quoted at 138.00 (demand) / 138.38 (supply) tenge per unit of the currency.