Trades at KASE demonstrated an equilibrium USD market

/IRBIS, Sep.29, 99/ - The next trades in US dollar, Deutsche mark and Euro were held at KASE. 25 banks participated in the trades. Today the trades were opened in the US dollar at 140.55 tenge per unit of the currency. During the first four minutes the dollar exchange rate went down to 140.40 with minimum amount of deals - the traders were getting the feel of the market. In 2-3 minutes the sellers were able to bring the price of an American currency back to the opening level with growing volume of the deals. After a short correction of the exchange rate down to 140.54 tenge the market got steady, which lasted till the end of the session. All this time the dollar has been traded within 140.50-140.56 price range without a particular trend. The trades were closed at - 140.51/53 234 deals were made in US dollars. Weighted average dollar exchange rate made 140.52 (+0.57). Volume of the session - $10.725 mln (-$9.075 mln). Exchange rate fluctuation during the trade was 0.11%. Today the banks were active both on selling and buying US dollars. However, the number of dealers engaged in pure selling exceeded those who bought: 6 out of 25 participants only sold dollars. Although, their contributions to the total volume of deals were insignificant. Operators with large volumes both bought and sold leaving the trade floor with net positions close to the zero. Hard to say about the source of the currency. Probably, it came from the exporters' earnings. The banks were possibly selling their own resources too. Results of the market conjuncture analysis show a noticeable strain relief in the sector of currency circulation. The market quickly normalized. No massive selling of an American currency by the banks of the second tier has been observed on the market. Supply has been completely balanced by demand, which seemed to be quite high despite the apparent shortage of free funds. Such situation on the market allows the analysts at IRBIS to presume that the dollar exchange rate correction was skin deep and temporary. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 140.45/55 tenge per unit of the currency. Two hours later the quotations did not change and remain below the Exchange's level, observed at the end of the trades. No deals were made in Deutsche mark. At closing of the session Deutsche mark was quoted at - 75.55/80 tenge per unit of the currency. No deals were made in euro. At closing of the session euro was offered at 148.00 tenge per unit of the currency.