KASE will calculate yields of all domestic bonds of Ministry of Finance, National Bank and municipals on actual/365 basis

/IRBIS, Apr 17, 01/ - As it has been informed earlier, by the decision of the Board of the Kazakhstan Stock Exchange (KASE), from April 9 changes and amendments into the internal document of the KASE "Calculation methods of the deal amounts and bond yields" was introduced. One of the reasons for changing the Method is the switch of the Ministry of Finance of Kazakhstan to a new calculation basis for its bonds issued after April 2, 2001. KASE considers it necessary to clarify that from this date the yields to maturity for all domestic GB of Kazakhstan, except for MEAKAM, which are displayed in the trading monitors of the trading system will be calculated on a single basis: real (calendar) days till maturity and 365 calculation days in a year (actual/365). It applies to the yields shown in information of the agency IRBIS concerning the secondary market and the indicators posted on the Exchange's web site. These measures are taken in spite of the fact, that the National Bank of Kazakhstan, as far as the IRBIS and the KASE informed, is not going to change the calculation basis for its notes (now it is actual/364), and innovations of the Ministry of Finance apply only to the securities issued after April 2, 2001. The grounds for the innovation at the KASE are the need to calculate the returns of the instruments that belong to one type, by a single algorithm. Otherwise, the traders will not be able to correctly compare the quotations of the securities at the trades and will have to have additional information on the issue date of the securities in hand. Moreover, different calculation basis for the same types of the securities (for example, MEOKAM) makes it impossible to create a representative average market indicators by the results of the trades. Except for MEAKAM, whose offer appeared in purchase-sale sector of the KASE for the first time today. It is explained by the structure of this paper, which was initially designed like a eurobonds (coupons are paid annually on June 25 and December 25 irrespective of the actual number of days). Therefore, at the KASE for MEAKAM the calculation basis 30/360 is used, as well as for the euronotes of Kazakhstan, bonds of international financial organizations and corporate bonds. It should be noted also, that NSB and MEIKAM are not quoted at the KASE at dirty prices, and the selection of a certain calculation basis for determining the yields to maturity of these bonds by using the deal price is upon the discretion of the participants of the trades. So far, these bonds appear rarely at the KASE. KASE also informs that all rates in repo sector are calculated by the Exchange on actual/365 basis now.