U.S. dollar market of Kazakhstan: day results

/IRBIS, Dec 03, 01/ - Following is the table of major indicators of Kazakhstan market for U.S. dollar (more than 99% of country's all currency market). Trends are shown relative to the figures of previous day. ------------------------------------------------------------------------------------- Trades in U.S. dollars at Kazakhstan stock exchange (KASE) ------------------------------------------------------------------------------------- Instrument USD TOD USD TOD USD TOM USD SPOT Session Main Additional. Evening Evening Time of trades (AST) 10:15a-11:00a 11:30a-3:30p 2:00p-6:00p 2:00p-6:00p Rate (KZT/USD) 149.28(+0.33) 149.35(+0.30) - - Volume of session (m) 19.395(+10.615) 0.300(-4.000) 0 0 Bid 149.30(+0.33) 149.31(+0.27) 149.25(+0.20) - Ask 149.31(+0.33) 149.40(+0.35) 149.50(-) - Number of participants 16(-1) 11( 0) 3 3 ------------------------------------------------------------------------------------- Indicative U.S. dollar quotations on interbank over-the-counter market in information Indicative U.S. dollar quotations on interbank over-the-counter market in information system REUTERS at closing of KASE sessions (disregarding settlement dates) ------------------------------------------------------------------------------------- Bid 149.30(+0.36) 149.30(+0.29) 149.35(+0.35) Ask 149.35(+0.36) 149.35(+0.29) 149.40(+0.35) ------------------------------------------------------------------------------------- Notes: weighted average rate is given for main session. for additional - closing rate; best ask and offer prices at closing of the trades are shown as the Exchange's quotations the best prices for ask and bid at the closing of trades are given. Today the structure of Kazakhstan's currency market was very favorable for US dollar. From one hand, secondary tier banks fulfilled their reserve requirements of the National Bank and problems with short-term liquidity were left behind. Quotations of the shortest money the most part of the day were held at the level of 2/5% APR and by the evening decreased down to1/4% APR, In repo sector of KASE rates were higher - 5.03% APR in one day at the general market and 5.49% APR - overnight at automatic repo floor (indicator TONIA). However, relative to the last week values of these indicators decreased substantially. From the other hand, at the exchange floor there was a dramatic decrease of currency gain inflow form exporters side typical for the beginning of each month. In aggregate an influence of these two factors assisted fast growth of dollar rate to tenge in the first half a day. Afternoon the situation changed. It seemed that whole demand for dollar, which worked at KASE in the morning, was satisfied and the market kept silence. At day session of the exchange dollar successes were held at the new level (149.35) by the single deal and traders quotations at KASE and over-the-counter were not dynamic. Noticeable expansion of spreads showed the absence of unambiguous estimation of situation by traders. According to day results the market didn't look as overheated one. Only the significant volume of opened at KASE repo (KZT3,371.0m) which appeared to be less than closing volume (2,371.9m) was drawn attention to. This lets to think about possible speculations with dollar on Tuesday since current speed of tenge devaluation for last 4 days has reached 38.3% APR. At the existing price of the shortest money an appearance of speculative demand is very possible. At the forecasting it should be taken into account that during last time there was a significant volume of GS maturity on a week - KZT2,408.2m. This money is able to support the banks liquidity and their speculative movements at currency market but the main mass of this money will be at STB accounts only on December 07. The market indicators unambiguously show the dollar rate rise on Tuesday. However, IRBIS specialists are prone to consider achieved today speed of dollar rate as a maximum and furthermore it should decline.