At KASE - balanced and inactive market for the dollar

/IRBIS, Nov.29, 99/ - The morning trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 16 banks participated in the trades. Today the trades in US dollars opened at 137.70 tenge per unit. Total of 29 deals were made. Weighted average dollar exchange rate equaled to 137.73 (+0.06) tenge per unit. Volume of the session - $340 thousand (-$2,555 mln). Exchange rate fluctuation during the trade did not exceed 0.06%. The trades were closed at 137.70/74 tenge per dollar. Today the situation on the exchange market for the dollar corresponded to that of a normal market with absence of mandatory sale of exporters' earnings. It took 20 minutes for the participants to reach a price compromise. But even after the fist deal market did not get active. Only in last five minutes traders made a series of operations within 137.70 - 137.78 tenge per dollar price range. It is impossible to talk about the trends in changing in the exchange rate of the dollar because the market was very "narrow", volatile and practically illiquid. Very low session volume is not the only distinctive feature. There were no active market participants in the list of traders who made the deals. Speculative component of the trade was equal to zero, because the banks were either buying or selling dollars. One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 137.71/75 tenge per unit. In the morning session of KASE with TOD payment terms at 12:00 the dollar was quoted with a wide spread - 137.52/90. By 12:45AM only one demand existed for the dollar at 137.52 in trade system of KASE. Deutsche mark, morning session, TOD: 13 deals, weighted average rate - 71.45 (-0.35) tenge per unit, volume - DEM90 (+75) thousand. At closing of the session Deutsche mark was quoted at 71.42/45 tenge per unit. Euro, morning session, TOD: no deals. At closing of the session euro was asked for 137.95 tenge per unit with no offer.