Kazakhstan bonds are stable whereas there is deficit of instruments

/REUTERS, Almaty, Oljas Auezov, December 6, 02/ - Prices of Kazakhstan government and corporate bonds remained almost the same in this week, say traders, who are still unsatisfied with the deficit of liquid instruments at the market. "Prices are almost on the same level they were last week, - said a trader of a domestic pension assets management company (PAMC). - the market does not move much". "Main banks' activity moved to money market, - believes a trader of Bank TuranAlem. - There is no special activity at the market". Ministry of finance of Kazakhstan does not offer securities for two weeks, and the only one new instrument are eurobonds of TuranAlem Finance B.V., which were issued on the security of bank TuranAlem, which had been included into Kazakhstan stock exchange's listing. However traders considered the offered price of eurobonds as too high one. "Eurobonds of bank TuranAlem have been overheated - they are more expensive than similar securities of Kazkommertsbank", - said a trader of a domestic PAMC. Kazkommertsbank is the largest bank in Kazakhstan according to the volume of assets, bank TuranAlem takes the second place. Almost at one time, in May of 2002, two major competitors floated abroad eurobonds: Kazkommertsbank - for $150 m, bank TuranAlem - for $100 m. This week Kazkommertsbank additionally floated eurobonds for more $50 m, however domestic investors, the largest of which are pension funds, did not get access to the new securities. They think that doing it the bank wants to achieve profitable floatation of its internal subordinate bonds for KZT7.5 bn. "Kazkommertsbank did not let us buy its eurobonds in order that we purchase its subordinate bonds", - thinks a trader of a domestic PAMC. In the nearest future traders do not expect decrease of yield of sovereign and corporate bonds, because more reliable instruments with low rates are available at the market, such as bonds of international financial institutions and and foreign issuers with ratings А and АА. The yield of tenge bonds of the Ministry of finance, according to their words, will depend not on the market, but on the policy of the Ministry itself. [2002-12-06]