Despite dollar exchange rate decrease at KASE, it's still early to talk about market stabilization

/IRBIS, Sep.13, 99/ - The next trades with US dollar, Deutsche mark and Euro were held at KASE. 23 banks participated in the trades. The trades were opened with the US dollar at 135.50 tenge per unit of the currency. Immediately the dollar exchange rate plummeted to 135.44 and after a short bounce up to 135.46 continued its descent, by reaching the lowest level on trades today - 135.42 tenge per unit of the currency at 10th minute of the trades. This phase of the session went with apparent excess of supply over demand, but was characterized by insignificant volume of deals - $1.5 mln. The second phase of the trade began with rapid strengthening of the dollar, whose exchange rate reached 135.48 tenge per unit of the currency at 14th minute due to growing demand. This phase was characterized by traders active behavior. Banks began to sell large volumes of dollars trying to make each next deal at higher exchange rate than the previous one, and inexorable demand did not resist the game. Final phase of the trades went in an equilibrium market at 135.48 tenge per dollar, and only at the end of the session the dollar exchange rate grew a little bit: at closing of the session dollar quotations against tenge made 135.48/50. 237 deals were made with US dollars. The weighted average dollar exchange rate has made 135.46 (+0.15). Trade volume of the session - $12.685 mln (+$7.050 mln). Exchange rate fluctuation during the trade was 0.06%. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 135.39/49 tenge per unit of the currency. Two hours later - 135.43/53. The market conjuncture is still formed by a high demand of the banks of the second tier, which is apparent from a relatively large volume of the trades. Probably, noticeable portion of American currency supply came from mandatory sale of exporters' earnings. In general, the market seemed to be in equilibrium. Any out of the control phenomena are behind. Spreads of over-the-counter market quotations narrowed down to normal levels. No deals were made with Deutsche marks. At closing of the session Deutsche mark was quoted at 71.90/73.03 tenge per unit of the currency. 1 deal was made with Euro at 142.40 tenge for 1 Euro. The Euro exchange rate has decreased compared to previous trades by 50 points. Trade volume - EUR15 thousand (0). At closing of the session no quotations existed on Euro.