In January 2002 volume of all transactions at KASE reached $1,641.5m, a 2.4 time increase against similar period of 2001

/IRBIS, Feb 4, 02/ - In January 2002 total volume of transactions made in all sectors of the KASE reached an equivalent of $1,641.5m, or KZT249.1bn. Compared to similar period of 2001 (January), turnover increased 2.35 times measured in dollars and 2.46 times measured in tenges. Meanwhile, relative to previous month - December 2001 - turnover declined by 19.1% in dollars, and 18.6% in tenge. Following is the table of volumes of deals made at KASE in January 2002, as well as dynamics of the turnover structure of the Exchange (in millions USD unless otherwise indicated). The calculation was made in terms of dollars. ----------------------------------------------------------------- To relative month of 2001: To relative month: --------------------- --------------------- Market January trend: trend: sector 2002 January ------------- December ------------ KASE 2001 m USD % 2001 m USD % ------------- ------- ------- ------ ------ -------- ------ ----- Foreign 151.8 126.2 +25.6 +20.3 249.5 -97.7 -39.2 currency 9.2% 18.1% 12.3% ------------- ------- ------- ------ ------ -------- ------ ----- Futures 97.8 0.0 +97.8 +100.0 520.9 -423.1 -81.2 contracts 6.0% 0% 25.7% ------------- ------- ------- ------ ------ -------- ------ ----- GS 1,349.5 564.7 +784.7 +139.0 1,156.1 +193.3 +16.7 82.2% 80.9% 57.0% ------------- ------- ------- ------ ------ -------- ------ ----- CS 42.5 6.8 +35.7 +525.9 101.4 -58.8 -58.0 2.6% 1.0% 5.0% ------------- ------- ------- ------ ------ -------- ------ ----- Supranational 0 0 0 0 0 0 0 bonds 0% 0% 0% ------------- ------- ------- ------ ------ -------- ------ ----- TOTAL 1,641.5 697.7 +943.9 +135.3 2,027.9 -386.3 -19.1 100% 100% 100% ----------------------------------------------------------------- Following is the table with the dynamics of the turnover of the Exchange in last 13 months, which is grouped by months and market sectors. Turnover structures of the sectors were calculated in terms of dollars. -------------------------------------------------------------------------- Forex Futures GS CS Supranat-ls ----------- ----------- ------------ ---------- ------------ Month volume % volume % volume % volume % volume % TOTAL -------------------------------------------------------------------------- Est. bn KZT -------------------------------------------------------------------------- I 18.3 18.1 0 0 82.1 80.9 1.0 1.0 0 0 101.4 II 19.4 26.4 0 0 51.6 70.4 1.9 2.5 0.440 0.601 73.3 III 21.1 24.1 0 0 63.3 72.1 3.3 3.7 0.086 0.098 87.7 IV 18.9 20.6 0 0 69.9 76.2 3.0 3.2 0.026 0.029 91.8 V 23.5 25.4 0 0 66.2 71.4 3.0 3.3 0 0 92.8 VI 20.9 27.2 0 0 51.9 67.5 4.1 5.3 0 0 76.9 VII 24.2 26.0 0 0 61.8 66.4 7.1 7.6 0 0 93.2 VIII 17.9 18.5 0 0 73.3 75.7 5.6 5.8 0.011 0.012 96.8 IX 23.1 20.4 0 0 82.8 73.4 6.7 6.0 0.260 0.230 112.9 X 33.7 21.0 0 0 118.3 73.8 8.2 5.1 0.040 0.025 160.3 XI 30.3 13.8 0 0 174.3 79.1 15.7 7.1 0 0 220.3 XII 37.5 12.3 79.7 26.0 173.7 56.7 15.2 5.0 0 0 306.1 ----- ------ ---- ------ ---- ------- ---- ------ --- ------ ----- ------- I-02 23.0 9.2 15.0 6.0 204.6 82.2 6.4 2.6 0 0 249.1 -------------------------------------------------------------------------- Est. bn USD -------------------------------------------------------------------------- I 126.2 18.1 0 0 564.7 80.9 6.8 1.0 0 0 697.7 II 133.3 26.4 0 0 355.0 70.4 12.8 2.5 3.028 0.601 504.1 III 145.2 24.1 0 0 434.8 72.1 22.4 3.7 0.592 0.098 603.0 IV 129.7 20.6 0 0 480.1 76.2 20.4 3.2 0.180 0.029 630.4 V 160.9 25.4 0 0 453.0 71.4 20.8 3.3 0 0 634.7 VI 142.4 27.2 0 0 354.1 67.5 28.0 5.3 0 0 524.5 VII 165.1 26.0 0 0 421.2 66.4 48.4 7.6 0 0 634.7 VIII 121.7 18.5 0 0 498.3 75.7 37.9 5.8 0.077 0.012 658.0 IX 156.2 20.4 0 0 560.6 73.4 45.7 6.0 1.758 0.230 764.3 X 227.7 21.0 0 0 799.2 73.8 55.7 5.1 0.267 0.025 1,082.9 XI 204.1 13.8 0 0 1,173.1 79.1 105.5 7.1 0 0 1,482.6 XII 249.5 12.3 521 25.7 1,156.1 57.0 101.4 5.0 0 0 2,027.9 ----- ------ ---- ------ ---- ------- ---- ------ --- ------ ----- ------- I-02 151.8 9.2 98 6.0 1,349.5 82.2 42.5 2.6 0 0 1,641.5 -------------------------------------------------------------------------- Supranat-ls - bonds of international financial organizations. The decline in the turnover of the Exchange in January compared to December is a typical seasonal occurrence, since trades become traditionally active before the New Year's holidays due to a several reasons: expansion of the monetary mass, increase in privatization volumes, activation of the market participants meeting their annual reporting figures, increased demand for foreign currency etc. Besides, other factors have affected the turnover of the Exchange in January. There was a sharp decline in issuing of securities by the companies. During the month neither the issuers, nor their underwriters launched new issues of corporate bonds, which was caused by well-known change in Civil code of Kazakhstan, regarding the option of the issuers to denominate their debt in dollars. At the same time, the clause that permitted to tie the prices and coupons to the devaluation rate of tenge by expressing the face value in U.S. dollars or any other foreign currency was removed. As a result, it was unclear and it required some clarifications from regulatory bodies and probably quick changes in the normative acts. Now, it can be assumed the issuers are getting used to new conditions, and in February new issues will be launched, which are in great demand of the investors for their use of increasing assets. The shrinkage of the corporate securities (CS) market in January of this year was also affected by the ban on making reverse repo deals using the pension assets using any methods other than the open trades. Prior to the ban the entities of the pension market were using the reverse repo with CS in their investments by putting out direct quotations at the Exchange. Now, the admittance criteria of CS into the automatic repo sector of KASE are being developed by regulatory bodies. This factor has not made a final impact on total volume of CS transactions at the Exchange, since previously opened repo were being closed at KASE in January. Further on the influence of this factor will be significant. It is enough to say that after January 11 only one deal was made in CS repo sector of KASE regarding the opening of repo. The introduction of the bank is a positive event in general, which is to increase the transparency of the pension assets investments and make the deals made at the Exchange using these assets more market like deals. Therefore, negative influence made by this factor on the liquidity of the CS market of the Exchange is a temporary occurrence. After setting the admittance criteria of CS in automatic repo sector of KASE, the turnover of this sector will increase. These figures can explain the decline in the proportion of the CS market of the Exchange in January to 2.6% from 7.1% in November and 5.0% in December. At the same time, the proportion of the securities deals made at KASE remained quite high - 84.8% (higher figure for the history of the Exchange, 86.2% was achieved once in November 2001 as a result of the deals made in state block of shares sales). It is due to the expansion of the government securities (GS) market, where the assets of pension funds were "pushed in" by the ban of January 11. Moreover, the growth in the proportion of securities deals was due to the shrinkage of the foreign currency market of the Exchange, which is typical at the beginning of the year, as well as by the shrinkage of the volumes of futures contracts.