U.S. dollar market of Kazakhstan: day results

/IRBIS, Apr.10, 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 TOD USD TOD 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 142.71(+0.31) Not indicated - - Volume of the session(mln) 3.895(-3.870) 4.305 0 0 Ask 142.73 - - - Bid 142.75 142.96 - - Number of participants 19 10 0 0 -------------------------- -------------- ------------- ----------- ----------- Indicative US dollar quotations in the interbank market in the information system REUTERS at KASE sessions closing (disregarding settlement dates) -------------------------- -------------- -------------- ---------- ----------- Ask 142.75 142.58 142.58 Bid 142.82 142.68 142.68 ------------------------------------------------------------------------------- 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 2 points in comparison with previous day closing on demand and remained unchanged on supply of the American currency. By the results of the day currency market makes ambiguous impressions. Only the morning session of KASE seemed logically sound, where the dollar was moving upward confidently and steadily throughout the trades. After opening at KZT142.50 the market rose up to KZT142.75 per dollar in 45 minutes. Resulting growth in weighted average exchange rate was even more. Such behavior of the market is explained by the liquidity of the banks in tenge, which can be considered, based on overnight quotations, excessive. In the afternoon the situation has changed. In the day session of KASE each subsequent deal was made at lower price than the previous one. Supply was obviously over the demand, which was quite high, based on the volume of the day trades (see the table). Even the decrease in the short money by the end of the day down to 3.5/5% APR did not correct the situation. Demand was not as much as supply, and the dollar was losing points. By analyzing the situation, IRBIS specialists came to a conclusion, that today the market conjuncture was mainly determined by a large supplies of USD from the clients of the banks (it is possible that those were exporters). The dollar was hardly purchased much than needed, since there are enough free tenges in correspondent accounts of BST, and the market does not seem to be overheated. Based on the behavior of market indicators, tenge should gain some points on the main session of KASE on Tuesday. However, high liquidity in tenge and quite possible absence of such a large supply of dollars from BST, as it was today, can change the situation. The market is absolutely dynamic.