U.S. dollar market of Kazakhstan: day results

/IRBIS, March 24, 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) -------------------------- -------------- ------------- ----------- ----------- Instrument 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 Weighted average rate 141.73(+0.16) Not indicated - - Volume of the session(mln) 8.335(+6.175) 0.680 0 0 Ask 141.73 141.74 141.71 141.75 Bid 141.75 141.77 141.91 142.00 Number of participants 18 10 3 3 -------------------------- -------------- ------------- ----------- ----------- Indicative US dollar quotations in the interbank market in the information system REUTERS at KASE sessions closing (disregarding settlement dates) -------------------------- -------------- -------------- ---------- ----------- Ask 141.72 141.72 141.70 Bid 141.77 141.76 141.80 ------------------------------------------------------------------------------- Notes: Best bid and ask prices at closing of the trades are shown as the Exchange quotations. In case of absence of such in the trade system of KASE, the last quotations marked by stars are given (in this case, for USD_TOM and for USD_SPOT - at 17:20PM). By indicative interbank quotations of the dollar in REUTERS information system, tenge lost 10 points in comparison with previous day closing on demand and 13 points on supply of the American currency. Restoration of short term liquidity of the banks had an immediate effect on the conjuncture of currency market today. The dealers were active practically in all sectors of U.S. dollar trades except for forward deals. However, no vivid trends in the dynamics of the quotations and prices of the American currency were registered after closing of the main session of KASE. In IRBIS analysts' opinion, it is explained by conducting two auctions for offering SS today: MEKKAM-6 and notes-42. Both issues were conducted with additional placements. The emitters were able to tie up KZT861.8 mln at the auctions, and thus, neutralize KZT837.0 mln that flowed into correspondent accounts of the banks after the repayment of notes-49. However, the fact that the auctions were held does not mean much. It is the fact that the dealers preferred SS rather than dollars and reinvested their funds into them counts. Probably, they are prudent about attractiveness of dollars as a financial instrument for near term. The National Bank, by setting the official rate lately, demonstrates its intentions to maintain current devaluation rate. It creates a concern. The Exchange market of the dollar has no clear trends. Therefore, short term notes seem to be attractive. Thus, repayment of SS today did not cause the demand in currency circulation sector in the afternoon. Dollar remained unchanged, so did the rates of the shortest money. In repo sector of KASE rates fell somewhat: the banks were attracting for 3 days at 5% APR, but the borrowing activity was not high. There is no such a pressing deficit of tenge any more. However, great volume of currency trades can empty correspondent accounts of the banks again today, as it did a week ago. Therefore, if the exchange rate of the dollar is to grow on Monday, this growth will be insignificant. More likely the official rate of the American currency that will be set by the National Bank for Monday, Tuesday and Wednesday will have most impact on the moods of the dealers. If this rate gets higher, the banks will raise the market. If not - the Exchange rate of the dollar is likely to remain unchanged.