At KASE USD exchange rate grew due to Friday impulse

/IRBIS, Feb.7, 00/ - The morning trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 18 banks participated in the trades. Today the exchange market changed much and was characterized by high activity of the most of the banks. In IRBIS specialists' opinion, it was due to an impulse given by a few Friday participants to the exchange and interbank markets. By the end of last week they were able to determine by the general mood of the dealers and their tactics that the dollar is oversold a little, and the market is somewhat "short" and has a support level. In such conditions the growth of USD exchange rate could have a success. Stable, well balanced market of the dollar could be well "shaken" this time, and it has been done successfully. Precise assessment proved to be good. Traders, who were in short positions for so long, began to close them and gradually, and with some caution, buy dollars even at growing prices. Deals made in dollars on Friday at KASE with SPOT terms (settlements on Tuesday) had a certain psychological impact on the participants. By the results of the trade weighted average rate has settled at 139.51 tenge per dollar and it was higher than the current price of the American currency on Friday. Today the trades in US dollars opened at 139.57 tenge per unit. Total of 100 deals were made. Weighted average dollar exchange rate equaled to 139.58 (+0.19) tenge per unit. Volume of the session - $7.595 mln (+$2.205 mln). Exchange rate fluctuation during the trade - 0.04%. The trades were closed at 139.59/60 tenge per dollar. Throughout the session the dollar was traded within a quite wide 139.55/60 price interval. A number of times the exchange rate of the American currency changed its directions because of complex position game of the dealers. But, the resulting movements of the market corresponded to growing trend. Demand of BST was a little greater than supply. Results of the trade show that dealers comprehend a speculative nature of the impulse given on Friday, and therefore, they are not in hurry to increase the demand for dollars. In current situation there are no grounds for a serious firming of the dollar. However, the trend was conceived, because it "started" on time, and the market is turning around now. Dealers weight each next step and they are very cautious. It seems as if nobody is waiting for a significant growth in the exchange rate of the dollar, since the market is still balanced. But gradual rise in the price of USD is more likely to be supported by the participants for some time. One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 139.58/62 tenge per unit, two hours later - 139.59/61. In the day session of KASE with TOD payment terms at 12:30PM the dollar was at 139.56/61. Dynamics of the quotations also indicate a cautious and ambiguous attitudes of the dealers to changes in the conjuncture. Deutsche mark, morning session, TOD: no deals. Closing offer - 71.10 tenge for mark, no demand. Euro, morning session, TOD: no deals. Closing quotations - 136.67/139.35 tenge for euro.