U.S. dollar market of Kazakhstan: day results

/IRBIS, March 14, 00/ - Following is the table of major indicators of Kazakhstani market for U.S. dollar (more than 98% of country's all currency market). ---------------------------------------------------------------------------- US dollar trades at the Kazakhstan stock exchange (KASE) ----------------------- ------------- ------------- ----------- ----------- Toll USD TOM USD TOM USD TOM USD SPOT Session Main Additional. Evening Evening Time of trades (ALM) 10:15-11:00 11:30-15:30 14:00-18:00 14:00-18:00 Average weighted rate 141.34(-0.15) Not indicated - - Volume of session (mln) 4.440(-0.805) 0.650 0 0 Demand price 141.34 141.30 141.34 141.33 Supply price 141.35 141.40 141.36 141.40 Number of participants 19 7 4 4 ----------------------- ------------- ------------- ----------- ----------- Indicative US dollar quotations in the interbank market in the information system REUTERS at KASE sessions closing (disregarding settlement dates) ----------------------- ------------- -------------- ---------- ----------- Demand price 141.32 141.33 141.33 Supply price 141.36 141.39 141.39 ---------------------------------------------------------------------------- Notes: Best bid and ask prices at closing of the trades are shown as the Exchange quotations. By indicative interbank quotations of the dollar in REUTERS information system, tenge lost 1 point in comparison with previous day closing both on demand and on supply of the American currency. Today currency market was developing under the influence of growing deficit of free funds in correspondent accounts of the banks. Statements of currency dealers in their interview to REUTERS today can prove that, and rates for interbank "overnight" tenge deposits can prove it as well. These rates rarely went below 9/15% APR today, and by the end of the day they jumped up to 10/16% APR. On Monday evening they were twice lower. There are two reasons for the deficit to exist. Tax payments of the bank clients by the results of February made the correspondent accounts of the banks empty. And almost three week "race" on currency market, when quickly growing dollar was actively bought by BST, made the participants to buy excessive amount of dollars and the market to "overheat". It was hard for the banks to maintain such fast pace with their current level of monetary base. Therefore, from the second half of Monday the banks began to sell dollars to sustain their short term liquidity. Deficit of funds affected the SS market as well. Volume of trades at KASE on Monday was very small. Today the placement of MEKKAM-12 was not held at all. And at offerings of notes-49 on Tuesday investors created a demand that did not reach the announced volume of the issue. In current situation the movements of currency market indicators seemed logical. On the main session of KASE the exchange rate of the American currency subsided significantly under great supply of dollars from the banks of the second tier, and probably of their clients. The day session was demonstrated quite high activity showing a stable quotations and the inclination of tenge, based on the prices of concluded deals, towards further firming. In trades on TOM and SPOT terms dealers attempted to make a position games that did not bring a success, and the quotations along with their spreads were around weighted average of the main session of KASE. Indicative quotations out of the Exchange were generally reflecting current situation of the market as balanced. Taking into account these facts, it can be assumed that tomorrow the conjuncture of currency trades will not change significantly. In IRBIS analysts' opinion, deficit of funds in corresponded accounts of the banks will last up to March 16. Therefore, on the main session of KASE on Wednesday the exchange rate of the U.S. dollar is likely to remain on attained level, though it is possible that it will fell a few points more.