Shareholders of the Exchange took note of KASE operations in 2019
29.05.20 18:00
/KASE, May 29, 2020/ – As previously reported, the Annual General Meeting of
shareholders of the Kazakhstan Stock Exchange (KASE or the Exchange) conducted
by an absentee voting of the Exchange's shareholders, which addressed key issues
related to the operations of KASE, was held on May 29, 2020. Shareholders of the
Exchange, among other things, took note of the operations of KASE in 2019 and
approved the annual audited consolidated and separate financial statements of the
Exchange for 2019.
According to the results of operations of KASE in 2019, the total volume of
trading on KASE reached KZT118.1 trillion and decreased by 7.6% or KZT9.7 trillion
compared to 2018. Securities market demonstrated positive dynamics with an
increase of 8.5% (volume - KZT5,286.8 bn), equity market capitalization increased
by 11% over the year and amounted to KZT17.2 trillion. The volume of corporate
debt traded on KASE increased by 12%, reaching KZT12.1 trillion.
According to the audited consolidated financial statements for 2019, the financial
and operating activities of the Exchange Group in 2019 are characterized by the
following indicators:
- revenues amounted to KZT4.3 bn, which is by KZT1,2 bn or 38.7% higher than the
last year result. Income from services and commission fees amounted to KZT2.5
bn having increased by KZT114.1 mln or 4.8%. Interest income rose by KZT1.03
bn or 154.1%.
- the expenditure amounted to KZT1.87 bn and dropped by KZT68.6 mln or by 3.5%
compared to the last year.
- net profit in the amount of KZT2.2 bn was received, which is 127.2% higher than
the last year result;
- assets rose by KZT19.5 bn (37.7%) compared to 2018 and made up KZT71.041 bn.
Significant growth is due to the expansion of KASE activities as a central
counterparty. KASE performs the functions of a central counterparty in the
foreign exchange market from October 1, 2018, on the stock market (on certain
financial instruments) as of December 3, 2019. Financial assets of the central
counterparty amounted to KZT0.96 bn, the claims of the central counterparty for
reverse repo transactions on the stock market amounted to KZT25.3 bn. Money and
their equivalents amounted to KZT20.3 bn, financial assets recorded at amortized
cost amounted to KZT18.8 bn and were mainly formed by guarantee contributions
and margin collateral of clearing members;
- the amount of the Exchange's liabilities increased by KZT17.0 bn and made up
KZT59.6 bn, of which 55% (KZT32.9 bn) are funds of clearing members (guarantee
contributions and margin collateral), 42% (KZT25.3 bn) are the liabilities of
the central counterparty on repo transactions on the stock market and 1.6%
(KZT0.9 bn) are the liabilities of the central counterparty on the foreign
exchange market.
The Exchange has implemented a number of significant projects in 2019 as part of
KASE development strategy for 2019-2021:
- The ASTS+ trading and clearing system developed based on the trading and
clearing system of the Moscow Exchange (MOEX) has been introduced at the KASE
stock market since December 3, 2019. On the same day, KASE began performing
functions of the central counterparty (CCP) for financial instruments that
started being traded in the new trading system. Both events are the stages of
implementation of the Strategic Partnership Agreement between KASE and MOEX.
- in order to develop the services of the central counterparty in the foreign
exchange market, KASE has attracted liquidity providers that will allow the
Exchange to resolve the situation of violations of the settlement regime in
the said market and guarantee timely fulfillment of obligations for market
participants (on Chinese yuan with Industrial and Commercial Bank of China in
Almaty, on the Russian ruble and euro with the Eurasian Development Bank and on
the euro with Kaspi Bank);
- On January 29, 2019, KASE and MOEX entered into a deal to sell 32,360 shares of
KASE as part of the implementation of the Strategic Cooperation Agreement. As
a result of the transaction, MOEX's share in the Exchange's capital amounted to
3.32% of outstanding shares.
- a new methodology for building a risk-free yield curve based on the Nelson-
Siegel model, which will increase the representativeness of the market valuation
of unindexed government securities in the Republic of Kazakhstan, was put in
effect;
- trading in currency swap transactions with execution terms of one year with
regard to the USD/KZT currency pair was opened on KASE during the year;
- as of July 1, 2019, KASE has extended trading day for foreign currencies until
17.00 Nur-Sultan time and has combined trading sessions in this market segment;
- KASE continued to hold consultation and field meetings in Kazakh regions in
2019 as part of the activities aimed at attracting new issuers to the domestic
stock market.
[2020-05-29]