KASE: in general, balanced and liquid market for dollar with high demand and supply

/IRBIS, Oct.07, 99/ - The next trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE). 26 banks participated in the trades. Today the trades were opened in the US dollar at 141.80 tenge per unit. At the beginning phase of the trade the dollar went down to 141.60 (minimum mark of the day) in four minutes - opening price was too high. And the volumes of the deals were minimal. The reasons for such a fast decrease of the exchange rate is not understandable. More likely, not all dealers have joined the trades yet. Fall of the dollar price brought about a surge of demand, which was fully used by the sellers. Beginning the seventh minute of the session the exchange rate of an American currency soared and reached the level of 141.90 tenge per unit. Rest of the trades went on with an active work of the dealers and in an almost balanced market. Dollar was traded within 141.80 - 141.91 price range, and its price grew a few times with subsequent downward corrections afterwards. The trades were closed at - 141.82/83 tenge per dollar. 283 deals were made in US dollars. Weighted average dollar exchange rate made 141.81 (-0.09). Volume of the session - $11.635 mln (-$5.825 mln). Exchange rate fluctuation during the trade was 0.22%. Volume of an American currency supply remains high. Four banks were selling dollars in significant amounts. Worth to mention the cautious behavior the banks showed towards their currencies on sale: deal after deal the seller persistently raise the market by making small transactions and taking the most out of demand. Such tactics ensured a prevailing growth of the price of an American currency throughout the session and don't seem to be fulfillment of clients orders for mandatory sale. Some other features of dealers' behaviors also display that a big chunk of the dollars sold today belongs to the banks themselves. At the same time, it is obvious that exporters' earnings had a noticeable impact on the stability of tenge. Despite decreasing trade volume for last three days, demand for the dollar from the banks of the second tier and their clients does not shrink. Today it was completely balanced by supply, but will remain massive (practically all participants could not help buying) and stable. In general, absolutely free market was observed on the trade floor, and the trade results reflect objective proportions of demand and supply. By the results of the trade it seems as if the market is not quite stable. Its major operators are "stuffed" with an American currency and would be glad to buy some more, but no way to do so. Therefore, a speculative component is rising. Some influence is being made by major operators' sale of dollars to maintain their short term liquidity. More likely, effects of this factor will be temporary. One hour after closing of the trades on over-the-counter market of Kazakhstan dollar was quoted at 141.90/142.10 tenge per unit, two hours later - 141.95/142.00. No deals were made in Deutsche mark. At closing of the session Deutsche mark was quoted at 77.45/87 tenge per unit of the currency. No deals were made in euro. At closing of the session euro was quoted at 152.00/36 tenge per unit.