KASE revised "Deals volume and bonds yield estimation methodology"

/IRBIS, Apr.09, 01/ - By the decision of the Board of Kazakhstan Stock Exchange (KASE), new wording of "Deals volume and bonds yield estimation methodology" to be put in force on April 09. Amendments relate to more exact estimation of large bonds deals in tenge and reassessment of the Finance Ministry estimation basis for bonds. Previous wording of the document stated that the Exchange should pass the information on number of securities and dirty price (including accrued interest) to the Central depository with 6 decimal points accuracy. In the new wording, information includes number of securities and volume of deals in tenge rounded to two decimal points using mathematical rule. Previously, the dirty price was determined as the sum of clean price and non-rounded accumulated interest. If bonds were denominated in foreign exchange, dirty price was estimated in tenge at weighted average rate of the Exchange or at official rate of the National Bank (depending on bonds emission terms) effective on the day of the deal. Then, dirty price was rounded to sixth decimal point. New wording stipulates following methodology. First, volume of deals is defined at clean price: clean price stated in application is multiplied by number of bonds at face value. Second, accrued interest estimated as annual coupon rate is multiplied by number of bonds at face value and number of days since last coupon payment with consecutive division number of days in year. The latter should be stipulated in terms of bonds emission, section - time base of bonds. The resulted figures on clean price and accrued interest are summed up. If bonds are denominated in foreign exchange, dirty price was estimated in tenge at weighted average rate of the Exchange or at official rate of the National Bank (depending on bonds emission terms) effective on the day of the deal. Then, dirty price is rounded to two decimal points. The yields of MEKKAM, MEKAVM, MEOKAM, National Bank notes and discounted bonds of local executive bodies are calculated using the time basis: actual (calendar) number of days till maturity and 365 days in a year. Previously there were 364 settling days.