At KASE trades exchange rate of the U.S. dollar aims for further decrease

/IRBIS, Feb.1, 00/ - The morning trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 15 banks participated in the trades. Today the trades in US dollars opened at 139.36 tenge per unit. Total of 42 deals were made. Weighted average dollar exchange rate equaled to 139.35 (-0.03) tenge per unit. Volume of the session - $6.075 mln (+$5.705 mln). Exchange rate fluctuation during the trade - 0.01%. The trades were closed at 139.35/36 tenge per dollar. Today the conjuncture of the Exchange trades changed a little. The market became noticeably active. Almost all traders, who were registered in the trade system of KASE, made the deals. The banks of the second tier (BST) were obviously willing to sell dollars. It was the direction towards which the USD market-maker of the Exchange worked today, and who always monitors the conjuncture of interbank market delicately. The tendency of BST to sell dollars was not due to a decline in their short term liquidity, since there are still a lot of free funds on the market. The banks leave the sluggish market of USD giving preference to other financial instruments. Throughout the session the dollar was traded within a narrow 139.35 - 139.36 tenge per unit interval. The exchange rate did not show an explicit inclination towards a decrease or increase, which implies of balanced market. However, some part of dealers' behaviors prove the prevalence of dollar supply over the demand of the banks and their clients. Most of the turnover (83-84%) was under the control of only three participants - two sellers and one buyer. Deal volumes of other traders were insignificant and could not affect the formation of the dollar exchange rate during the trades. It should be said most of the dealers, who took part in today's trades, were solely buying or selling dollars. Speculative component was weak. Trade results show a splash of the Exchange market activity, which may be caused by two reasons. The first - by the beginning of an experiment at KASE: in February banks received a chance to work on Exchange trades in foreign currencies without paying commissions. The second reason, is probably, the need of BST to shorten their currency position before participating in auctions for offering state securities of the Ministry of finance and the National Bank. One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 139.32/35 tenge per unit, two hours later quotations did not change. In the day session of KASE with TOD payment terms at 12:00PM the dollar was not quoted: for technical reasons the session was stopped. Deutsche mark, morning session, TOD: no deals. Closing quotations - 69.10/71.00 tenge for mark. Euro, morning session, TOD: no deals. Closing quotations - 134.71/139.24 tenge for euro.