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]