Overview of KASE equity market in August 2021

/KASE, September 16, 2021/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in August 2021. ------------------------------------------------------------ Chg., % August 31 July 30 ------ ---- Chg., % from 01.01.21 August July ---------- -------- --------- ---- ------------- ------ ---- KASE Index 3,172.45 3,086.66 +2.8 +18.6 6.2 8.3 ------------------------------------------------------------ In August, the season of post-dividend information lull traditionally ends on the local stock market. Investors revise investment ideas based on the performance of companies, reports on which become available by that time. As a result, KASE index representatives closed the period mixed. Twice during August the index tried to go down to the psychological level of 3,000 points and twice bounced from it above 3,100 points, eventually closing at 3,172.45 points at the end of August. The growth in August was 2.8% or 85.79 points. The volume of transactions in index shares in August reached 6.2 billion tenge, which is 33.9% or 2.1 billion tenge less MoM. The largest trading volume was demonstrated by common shares of Kcell JSC (KCEL) - KZT3.1 bn (50% of the total volume traded in index shares). --------------------------------------------------------------------- Closing price Chg., % Volume, KZT mln ------------- August 31 July 30 Δ, % from 01.01.21 July August Δ, % ---- --------- --------- ----- ------------- ------- ------- -------- CCBN 288.00 249.00 +15.7 +33.6 592.3 945.7 353.4 KZTK 33,940.00 30,000.01 +13.1 +27.1 142.1 120.0 -22.1 HSBK 180.10 162.50 +10.8 +45.3 578.7 1,672.5 1093.8 KZAP 12,089.53 11,700.00 +3.3 +69.1 145.0 124.4 -20.6 KEGC 1,808.08 1,773.00 +2.0 +6.6 89.8 58.0 -31.8 KZTO 1,021.90 1,085.08 -5.8 +5.4 248.7 179.6 -69.1 KCEL 1,340.00 1,595.00 -16.0 -51.5 6,459.5 3,063.0 -3,396.5 --------------------------------------------------------------------- Throughout the month, the index was supported by common shares from the banking sector - Bank CenterCredit JSC and Halyk Savings Bank of Kazakhstan JSC, which increased in price by 15.7% and 10.8%, respectively. Bank CenterCredit’s shares have been traded at one of the highest levels in the entire history of its publicity - 288 tenge per share, despite a decrease in its net profit for the first half of 2021 by 26.1%. The growth in the share price of Halyk Bank was driven by market expectations, which were confirmed in the published positive financial statements. Net profit for six months reached 225 billion tenge, which is 44.2% higher than the same period last year. Also, in early August, the Bank announced the voluntary liquidation of its subsidiary bank in the Republic of Tajikistan - Closed Joint Stock Company "Halyk Bank Tajikistan" in order to concentrate on more economically attractive areas. Another growth leader by the results of the past month were common shares of Kazakhtelecom JSC, which rose in price by 13.1% to KZT33,940 per share. According to the published semi-annual reporting, revenue of Kazakhtelecom JSC increased by 15%. It is noteworthy that now the market is bringing the share price of Kazakhtelecom to the level of 2018, when the deal was concluded to acquire the mobile operator Kcell. In its press release, the Company announced the strategic importance of the mobile operator Kcell for the Group's business, and its sales in the first half of the year grew by 14.6%. Shares of Kcell JSC against the background of this news, started to grow, but could not keep up in an upward trend and began to decline again against the background of the prevailing supply of securities. As a result of the month, their price decreased by 16.0% to KZT1,340 per piece. On the last day of the month, Kcell, Jusan Bank and the international payment system Mastercard announced the launch of a joint digital product. Strong financial statements were published by National Atomic Company Kazatomprom JSC. Consolidated revenue of this group increased by 54% compared to the same period last year. The price of the company's main commodity - uranium futures on the New York Mercantile Exchange (NYMEX) - went up as well and reached 33. $ 5 per pound for the first time since June 2020 amid growing global interest in nuclear energy. Despite good reporting and outlook for growth in demand, shares of Kazatomprom rose only 3.3% over the month. It is quite possible that the security is still being corrected after the rapid growth in the first half of the year. Meanwhile, in the last days of the month it became known that Galymzhan Pirmatov, Chairman of the Management Board of Kazatomprom, is leaving his post from September 2 on his own initiative. At the same time, the season of affirmation of international ratings took place on the local stock market in August. Following the upgrade of Kazakhstan's sovereign rating from Baa3 positive to Baa2 stable, the international rating agency Moody's last month upgraded ratings of KEGOC, Kazatomprom, Kazmunaigaz, Otbasy Bank, NMH Baiterek, Development Bank of Kazakhstan and Halyk Bank to a similar level, while the rating of Bank CenterCredit JSC was repositioned on the national scale to Ba3.kz. KASE equity market: According to the results of August, the capitalization of the equity market amounted to 28.4 trillion tenge (66.7 billion USD), which is 48.95 billion tenge or 0.2% higher MoM. The growth of capitalization of the equity market was facilitated by an increase in weighted average prices of securities of LOTTE Rakhat JSC (RAHT) by 17.7%, Bank CenterCredit JSC (CCBN) by 15.7%, ordinary shares of Kazakhtelecom JSC (KZTK) by 13.1%, preferred shares of Kazakhtelecom JSC (KZTK) by 11.7%, Halyk Savings Bank of Kazakhstan JSC (HSBK) by 10.8%. The leveling pressure was exerted by a decrease in the weighted average prices for securities of KM GOLD JSC (KMGD) by 25%, Kcell JSC (KCEL) by 16.0%, and Mangistaumunaigas JSC (MMGZp) by 7.6%. --------------------------------------------------------- August 31 July 30 Chg. Chg., % ----------------------- --------- -------- ------ ------- Capitalization, bn KZT 28,396.95 28,348.0 +48.95 +0.2% Capitalization, mln USD 66,700.22 66,778.2 -77.95 -0.1% --------------------------------------------------------- Change in prices of shares from the representative list used to calculate equity market capitalization, as of August 31, 2021: -------------------------------------------------------------------------------- Issuer Change in price / last deal date Chg., % --------------------------------------- ---------------------------------------- Rakhat (RAHT) 18,000.00 (16.08.21) 15,300.00 (19.07.21) +17.7 Bank CenterCredit (CCBN) 288.00 (31.08.21) 249.00 (30.07.21) +15.7 Kazakhtelecom (KZTK) 33,940.00 (31.08.21) 30,000.01 (30.07.21) +13.1 Kazakhtelecom (KZTKp) 21,000.00 (31.08.21) 18,800.01 (29.07.21) +11.7 Halyk Savings Bank of Kazakhstan (HSBK) 180.10 (31.08.21) 162.50 (30.07.21) +10.8 First Heartland Jysan 885.00 (31.08.21) 820.00 (29.07.21) +7.9 Bank (TSBNp) KM GOLD (KMGD) 900.00 (27.08.21) 1,200.00 (23.07.21) -25.0 Kcell (KCEL) 1,340.00 (31.08.21) 1,595.00 (30.07.21) -16.0 Mangistaumunaigas 4,391.00 (27.08.21) 4,750.00 (30.07.21) -7.6 (MMGZp) KazTransOil 1021.9 (31.08.21) 1089.99 (30.07.21) -6.2 (KZTO) -------------------------------------------------------------------------------- As of the end of August, 138 shares of 122 issuers were in the KASE's trade lists, of which four shares of four issuers were admitted to circulation in the "Non-listed securities" sector. In the reporting month, no new shares were listed in the official list of KASE or delisted therefrom. The volume of trades in shares in August relative to July decreased by 9.4% or KZT1.2 bn to KZT12.0 bn. The average daily volume of trades amounted to 573.8 million tenge, the average daily number of deals was 1,775, the average volume of one deal was 323.2 thousand tenge. Equity trading in August was held exclusively on the secondary market. Among the main categories of investors, individuals accounted for 45.4% of the total volume of equity transactions. The share of broker-dealers was 11.4%. Other institutional investors accounted for 1.0%, other legal entities - 42.0%. The participation of non-residents is estimated at 4.8%. [2021-09-16]