KASE equity market overview for May 2021

/KASE, June 11, 2021/ – Kazakhstan Stock Exchange (KASE) presents to you an overview of the equity market in March 2021. ----------------------------------------------------------- Chg., % from Amount, bn May 31 April 30 Chg., % 01.01.21 May April ----------- -------- -------- ------- ---------- ---- ----- KASE Index 3,381.66 3,242.81 +4.28 +26.4 2.68 4.99 ----------------------------------------------------------- According to the results of May, KASE index rose by 4.3%, or 138.85 points, to 3,381.66 points. The value of the index is still in the zone of the historical maximum for more than 20 years of history. The volume of transactions in index shares in May amounted to 2.7 billion tenge, which is 47.1 %, or 2.4 billion tenge less than in April. The largest trading volume fell on common shares of Halyk Savings Bank of Kazakhstan JSC – KZT748.3 mln (27.8% of the total trading volume in index shares). KASE Index Representative List --------------------------------------------------------------- Wght. avg. price ------------------- Chg.,% Chg., % Amount, mln ₸ May 31 April 30 from 01.01.21 in May ------- --------- --------- ------ ------------- -------------- HSBK 170.5 153.00 +11.44 +37.54 745.79 KZAP 13,394.00 12,093.49 +10.75 +87.33 114.42 CCBN 249.99 232.20 +7.66 +15.93 184.37 KZTO 1,215.03 1,129.99 +7.53 +25.26 531.10 KEGC 1,760.83 1,739.09 +1.25 +3.76 284.47 KCEL 2,522.16 2,545.87 -0.93 -8.62 664.14 KZTK 28,145.96 29,999.67 -6.18 +5.42 146.17 GB_KZMS — 4,492.00 — — 8.32 --------------------------------------------------------------- Since May 6, ordinary shares of KAZ Minerals PLC have been excluded from the representative list of KASE Index due to their delisting. The most significant rise in prices among index shares was recorded on common shares of Halyk Savings Bank of Kazakhstan JSC, which increased by 11.4% to KZT170.5 per share. The shares of the country's largest commercial bank began an active phase of growth in the second half of May after the publication of the company's financial statements for the first quarter of 2021. Halyk Bank reported that in January-March 2021 it received a consolidated net profit in accordance with IFRS in the amount of 96.8 billion tenge, which is by 19.4 % more than in January-March 2020. Against this background, the price of the bank's shares for the first time since the beginning of the pandemic was fixed above 160 tenge. The bank notes that net income increased mainly due to growth in net income from insurance activities, net fee and commission income and a decrease in expenses on credit losses. In addition, the growth driver could have been the confirmation of the long-term and short-term credit ratings of the bank at BB/B by the rating agency S&P Global Ratings, the outlook is "stable". The bank's national scale rating was also affirmed at "kzA+". The international rating agency noted that Halyk Bank has shown steady progress in reducing the number of problem loans over the past few years. The second place in terms of price growth rates is occupied by common shares of Kazatomprom JSC. Securities of the nuclear company added 10.7 % over the month to KZT13,394 per share, thereby continuing the upward trend, interrupted by the April correction, after the shares of the nuclear company once again renewed their historical maximum on KASE in 2021. Support could be provided by an increase in dividend payments for 2020. In addition, other industry indicators also showed growth, which also served as support for the stock of the nuclear company. For example, NYMEX uranium futures rose 7.8 % in May, while URA ETF added 11.6%. At the annual general meeting of shareholders, which took place on May 20, 2021, it was decided to allocate more than 150 billion tenge (578.67 tenge per ordinary share) for the payment of dividends for 2020. Net profit of Kazatomprom JSC at the end of 2020 amounted to KZT221.4 billion. Thus, 68 % of net profit will be spent on dividend payments. A confident upward trend since November last year continues to be observed with common shares of KazTransOil JSC. Among the events supporting the share price, one can single out the approval at the end of last year of the tariff for pumping oil to Kazakhstan's domestic market in the amount of KZT4,355.57 per ton per 1,000 km, which is by 6 % higher than the previous temporary tariff. The tariff came into effect on January 01, 2021. In May, the company's securities increased by 7.6 % to KZT1,215.99 per share. In addition, stocks rallied ahead of the 2020 dividend payout. Shareholders of KazTransOil JSC at the annual general meeting made a decision to allocate a total of KZT50.8 billion for payment of dividends. The amount of payments per one common share will amount to 132 tenge. The date of commencement of dividend payments is June 18, 2021. Net profit of the company according to IFRS in 2020 year grew by 24.3% compared with the same indicator for 2019. Meanwhile, the company reported that it has carried out work to connect sections of the Uzen-Atyrau-Samara main oil pipeline after reconstruction. The Atyrau- Samara oil pipeline is the second largest export of Kazakh oil to the world market. In 2020, 14.4 million tons of Kazakh oil were transported via the Atyrau- Samara oil pipeline. Kcell shares closed in the "red zone". The shares of the mobile operator lost 0.7 % in price – down to KZT 2,522.16 per share, despite an almost twofold increase in dividend payments for 2020 compared to payments for 2019. Kcell shareholders decided to use 17.6 billion tenge to pay dividends for 2020, which is 100 % of the company's consolidated net profit. KZT87.89 tenge falls on one common share or global depositary receipt (GDR). In addition, the company announced that it intended to delist from the London Stock Exchange (LSE) and Astana International Exchange (AIX) on June 14, 2021. On May 13, the company sent notices to the British financial regulator FCA to cancel the standard inclusion of GDRs in the official FCA list, as well as to the LSE to cancel the admission of GDRs for trading on the LSE main market. Kcell also applied to AIX to remove the GDRs from the official list and cancel their admission to trading on AIX, and also sent a notice of the application for removal from the list. Earlier it was reported that maintaining the listing of GDRs on the LSE and AIX, together with the listing of the company's ordinary shares on KASE, leads to low levels of liquidity and fragmented trading trends in the movement of the corresponding instruments on each of the three exchanges. KASE equity market: ----------------------------------------------------------- May 31 April 30 Chg. Chg., % ----------------------- -------- -------- --------- ------- Capitalization, bn KZT 21,465.7 21,465.7 -1,629.92 -7.59% Capitalization, mln USD 50,182.8 50,182.8 -3.83 -7.63% ----------------------------------------------------------- Based on results of May, the capitalization of the equity market amounted to 19.8 trillion tenge (46.4 billion USD), which is by 1.6 trillion tenge, or 7.6%, less than the same indicator of the previous month. The decrease was due to the delisting of ordinary shares of KAZ Minerals PLC, the company's capitalization at the end of April was 2.2 trillion tenge. The decline was partially offset by the growth in capitalization of companies whose shares are included in the basket of KASE Index. As of the end of May, shares of 138 denominations of 122 issuers were in the KASE's trading lists, of which shares of four titles of four issuers were admitted to circulation in the "Unlisted securities" sector. In the reporting month, common shares of two titles were included in KASE official list: AltynGold PLC and Centras Securities JSC. Ordinary shares of KAZ Minerals PLC were excluded from the Exchange's official list at the initiative of their issuer. The table below shows price changes for shares exceeding 5%, which are included in the representative list of capitalization of the share market. ----------------------------------------------------------------------------------------------- Issuer Price change / last deal date Chg., %* ------------------------------------------- ------------------------------------------ -------- Insurance Company "Kommesk-Omir" JSC 101,515.00 (24.05.21) 15,500.00 (04.04.18) +554.94 Rakhat JSC (RAHT) 16,000.00 (27.05.21) 12,000.00 (12.04.21) +33.33 KM GOLD JSC (KMGD) 950.00 (31.05.21) 830.00 (30.04.21) +14.46 Kazakhtelecom JSC (KZTKp) 17,499.00 (31.05.21) 15,461.00 (30.04.21) +13.18 Halyk Savings Bank of Kazakhstan JSC (HSBK) 170.50 (31.05.21) 153.00 (30.04.21) +11.44 NAC Kazatomprom JSC 13,394.00 (31.05.21) 12,097.99 (30.04.21) +10.71 (KZAP) Mangistaumunaigaz JSC (MMGZp) 5,850.00 (28.05.21) 5,350.00 (30.04.21) +9.35 Bank CenterCredit JSC 249.99 (31.05.21) 232.20 (30.04.21) +7.66 (CCBN) KazTransOil JSC (KZTO) 1,215.00 (31.05.21) 1,129.99 (30.04.21) +7.52 BAST JSC (BAST) 8,335.00 (31.05.21) 28,000.00 (06.04.21) -70.23 Kazakhtelecom JSC (KZTK) 28,145.65 (31.05.21) 30,000.00 (30.04.21) -6.18 ----------------------------------------------------------------------------------------------- [2021-06-11]