Bonds in Kazakhstan are stable, National Bank's notes grow with tenge's rate

/REUTERS, Almaty, Oljas Auezov, June 20, 03/ - Prices of Kazakhstan government and corporate bonds almost have remained the same during the trades this week because investors were investing mainly into instruments of money market, including National Bank's notes, traders say. "There is tendency of rates decrease (at money market) due to strengthening of the rate (tenge to US dollar)", - said trader of a domestic pension assets management company (PAMC). In the beginning of June of 2003 tenge's rate, which exceeded the psychologically important level KZT150 for dollar, on Wednesday reached 19-month maximum, which was KZT148.44 for dollar, and afterwards fell to 148.62 on Friday. According to traders' words, despite the decrease of dollar's rate, investors do not sell currency securities, because they have already diversified their portfolios. "Everyone, who needs, have already thrown off (dollar securities)", - the trader of domestic OAMC said. At the same time, most attractive instruments, during absence of new issues of the Ministry of finance, are short-term (to one year) notes of the National Bank of Kazakhstan, yield of which goes on falling because of high demand. Thus, yield of 126-day notes at Wednesday's auction equaled to 5.40% APR in comparison with 5.43% at previous auction dated June13. Low yield of notes is compensated, in investors' opinion, by the expected further tenge's strengthening. "Till August, leastways, tenge devaluation will not occur", - an analyst of a western investment company thinks. According to his words, may be it will be promoted, besides sales of exported proceeds, by the expected issues of eurobonds of Halyk Bank, one of the three largest in the country, and also middle by size AMB and bank CenterCredit. "Very good market (for eurobonds issue)... it just the best swank", - the analyst said. At the same time, no bank has officially confirmed plans concerning eurobonds issue yet. [2003-06-20]