At KASE dollar soars with unshrinking demand from the banks of the second tier and their clients

/IRBIS, Sep.08, 99/ - The next trades with US dollar, Deutsche mark and Euro were held at KASE. 21 banks participated in the trades. The trades were opened with the US dollar at today's lowest level - 134.49 tenge per unit of the currency. The third deal has fixed the dollar exchange rate at 134.80, but by the 16th minute of the session it reached 135.40 tenge per unit of the currency. During this time sellers could lead the market up by supporting artificial currency deficit on the trade floor. Under the influence of swelling expectations of devaluation buyers had to agree on increasing price of the dollar. 18th minute of the trades became a turning point in market conjuncture due to growing supply. Noticeable volume of clientele orders for selling dollars in dealers portfolios prompted them to increase supply volume which is also stimulated by high level of the market. As a result, supply exceeded demand temporarily that brought the dollar exchange rate down to 135.00 tenge per unit of the currency. New surge of demand made the dollar gain against tenge with less intensity in the second half of the trades. Now dollar was gaining points slowly and with short downward exchange rate corrections. However, very high demand for American currency allowed sellers to succeed anyway: at closing of the session dollar quotations against tenge made 135.24/29. 263 deals were made with US dollars. The weighted average dollar exchange rate has made 135.13 (+1.69). Trade volume of the session - $15.720 mln (+$8.905 mln). Exchange rate fluctuation during the trade was 0.52%. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 135.00 / 136.00 tenge per unit of the currency. Two hours later - 135.15 / 136.15. Despite of significant increase in speed of tenge, exchange market conjuncture did not change principally. As it used to be, major banks were both selling and buying dollars in approximately equal proportions. One sided demand almost did not exist. Results of dealers positions analysis allow to assume that banks were mainly satisfying clients' orders both for selling and buying American currency. However, it should be pointed out that speculative component in traders' behaviors was more apparent than it was yesterday. Despite the expectations, doubling the sale of 50% of exporters' earnings could not help to cope with the demand of the banks. Increase in dollar exchange rate during last two weeks had a psychological impact on participants, and high level of market saturation with free tenge allows them to materialize expectations of the devaluation. 4 deals were made with Deutsche marks. The weighted average rate has made 73.52 tenge for 1 mark (+1.52). Trade volume - DEM70 thousand (+135 thousand). At closing of the session Deutsche mark was quoted at 73.10/55 tenge per unit of the currency. One deal was made with Euro at 143.75 tenge per unit of the currency. Trade volume - EUR100 thousand (+90 thousand). Compared to last trades Euro exchange rate grew by 295 points (2.95 tenge). At closing of the session Euro was offered at 143.45 tenge per unit of the currency, without any demand.