On first KASE trades dollar was apt to grow, but the market is stable

/IRBIS, Jan.06, 00/ - The morning trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 23 banks participated in the trades. Today the trades in US dollars opened at 138.55 tenge per unit. Total of 75 deals were made. Weighted average dollar exchange rate equaled to 138.59 (+0.34) tenge per unit. Volume of the session - $5,290 mln (-$7,830 mln). Exchange rate fluctuation during the trade - 0.06%. The trades were closed at 138.60/62 tenge per dollar. First trades of the year went relatively quiet. In IRBIS analysts' opinion, two factor were the determinants of the market conjuncture today: long absence of trades (due to working schedule of Kazakhstan center for interbank clearing) and events on the market for cash currency. Long absence of the trades brought about increased demand for USD from the banks of the second tier. Number of participants, who bought dollars today, remarkably exceeded that of selling dealers. Speculative component in traders' behaviors was minimal at that: mainly banks were only buying or selling dollars. Events on the market for cash currency were as follows. The reaction of the market to cancellation of purchasing tax on foreign currency was quick, as a result exchange booths of the banks began to work actively. Using the holidays, employees of this sector of the currency market raised the exchange rate of the dollar much higher than Exchange's level. Solvent demand of the population for cash dollars increased, and it caused reciprocal demand at KASE. These factors had one sided effect on dealers' behaviors: demand went up at KASE. For this reason exchange rate of the dollar was apt to grow throughout the session, sometimes falling back, but returning to previously attained level. Stable price compromise, supported by representative volumes of deals, was found in last 7 minutes of the trade at 138.60 - 138.61. However, it should be noted despite upward market aspiration, exchange rate of the dollar did not reach the latest levels of exchange booths of the financial capital of Kazakhstan. No uncontrolled situations were observed during the trades. The National Bank did not have to sell USD to stabilize the exchange rate, which tells much about the market. By the results of the trade it seems as if the market will try to find a new equilibrium point, which may be a little higher than that of last days of the year. But not much. So far, there are no reasons for principal changes in the currency sector. One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 138.58/61 tenge per unit, two hours later - 138.59/63. Deutsche mark, morning session, TOD: no deals. Closing quotations - 72.87/73.75 tenge for mark. Euro, morning session, TOD: no deals. Closing demand - 142.35 tenge for euro with no offer.