U.S. dollar market of Kazakhstan: day results

/IRBIS, October 4, 02/ - 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 corresponding 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) 154.50(-0.03) 154.44(-0.06) 154.47(-0.02) - Volume of session (m) 25.745(-10.960) 10.375(+6.735) 1.000(-0.300) 0 Bid 154.49(-0.04) 154.44(-0.05) 154.45( -) - Offer 154.50(-0.04) 154.46(-0.04) 154.48(-0.07) - Number of participants 15(+2) 11(-5) 4(-1) - ---------------------- --------------- -------------- ------------- ------------- Indicative U.S. dollar quotations in over-the-counter market in information system REUTERS at closing of KASE sessions (disregarding settlement dates) --------------------------------------------------------------------------------- Bid 154.46(-0.03) 154.44(-0.01) 154.42(-0.06) Offer 154.51( 0) 154.48(-0.02) 154.47(-0.03) --------------------------------------------------------------------------------- Notes: weighted average rate is given for main and evening sessions, for additional - closing rate; best ask and offer prices at closing of the trades are shown as the Exchange's quotations. Conjuncture of US dollar market of Kazakhstan was almost identical relative to previous day. Peculiarities are a bit lower USD offer volume, very active day stock exchange's session (its volume was record high for the whole KASE history), increasing of position of the country's head bank for USD purchasing with the purpose of preventing extremely quick tenge strengthening. As well as yesterday, main banks-suppliers of dollar to KASE at the same time with sale purchased USD and in larger volumes than "clean" purchasers. It is notable that among the latter ones there were banks, which usually sell USD, and among net-sellers there was one of banks, which specialize mainly in currency purchasing. As a whole there is such an impression that banks sell exporters' currency proceeds, and purchase dollars, not just fulfilling clients' requests, but on their own initiative. Reasons of the behavior remain the same. On one hand, money, which come to Kazakhstan holders of redeemed sovereign euronotes of the Republic, guarantee quick price growth of any euronotes at domestic market in the nearest future good profit for those, who have purchased the euronotes. On the other hand, everyone waits for upgrading of credit ratings of leading Kazakhstan banks, that will promote to price increase for their international debt obligations and, thus, one should also purchase them now. But there is need in dollars for purchasing them. Though, tenge is also actively invested now - into corporate bonds. Volume of deals in KASE purchase and sale sector on corporate securities today exceeded USD12m i.e. it was higher than for the whole June of the current year. Position of the National Bank also deserves attention. It allows tenge to gradually strengthen. The firm support of the market from below would lead to very quick increase of monetary base. And judging of the head bank's behavior at notes market, it is not interested in such events development, especially in the Autumn, when expectations of inflation grow. For example, today the National Bank at primary floatation of its bonds of two issues at a time sterilized the market at KZT6,085.3m that is a very big borrowing even at notes market. High demand, which was preformed during their floatation today was satisfied almost in full volume. At this the issuer did not even need to pull down the price. Short tenge instruments were sold like hot cakes unlike long ones. It is obvious that under the pressure of high USD offer volume the National Bank will have to decrease the official USD rate since Monday. Dynamics of dollar's price during the day has been shown in the table. Market's parameters given in it, and also general situation, which is formed at it, allow IRBIS analysts to assume that in the beginning of the forthcoming week dollar rate will still tend to decreasing. [2002-10-04]