Kazakhstan traders frostily apprehended first derivatives of KASE

/REUTERS, Almaty, Oljas Auezov, September 25, 02/ - Traders believe that six-month futures for the yield of eurobonds of Kazakhstan, which Kazakhstan stock exchange (KASE) intends to offer since October 1, will be in requisition during the nearest future. The stock exchange announced about giving effect to the first in Kazakhstan derivatives for securities on Tuesday. IN the opinion of traders, investors' lack of information and price stability of the eurobonds hamper the wide distribution of new instruments. "Investors now have lack of information, experience for work derivative instruments", - believes Gulbakhram Dubanova, manager of securities trade sector of Eurasian bank. "On the first stage (interest of ultimate users) will not be as high as we would like it to be", - agreed with her treasurer of Bank TuranAlem Nurlan Mukhamedjanov. Besides, the largest investors at Kazakhstan stock market - pension funds - do not have the right to purchase the derivatives. Some banks also follow similar conservative strategy. However in the future the situation may change, considers traders. "Demand (for eurobonds of Kazakhstan) will be stable, but it is possible that the change of yield on eurobonds has been coordinated with the market", - said Mukhamedjanov. "It would be rather interesting for a bank because trade in futures allows to hedge risks", - Duganova believes. According to the words of vice-president of KASE Bolat Babenov, the stock exchange did not even expect that the new instrument would become popular at once. "This is an attempt to shake up the market", - he said. After redemption on October 2 of eurobonds of Kazakhstan of the second issue in the amount of $350m two more issues of sovereign eurobonds with maturity date in 2004 and 2007 in the amount of $300 and $350m correspondingly will remain at the market. [2002-09-25]