Overview of KASE's equity market in October 2021

/KASE, November 10, 2021/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in October 2021. ----------------------------------------------------------------- Volume, bn tenge Chg., % Chg., % ----------------- 29 30 since October September October September 01.01.21 ------- --------- ----------- -------- --------- ------- -------- ------- --------- KASE Index 3,751.85 3,383.68 +10.88 +40.23 3.6 83.5 ----------------------------------------------------------------- In October, the local stock market showed the largest monthly gain since the beginning of the year. KASE Index added 10.9 % and closed October at 3,751.85 points. The maximum value of 3,765.00 points was recorded on October 26. At the same time, the majority of index companies are just getting ready for the publication of quarterly reports, therefore the market dynamics was driven by investors' expectations and external factors, and the market will react to the published financial indicators already in November. The volume of transactions in index shares in October amounted to 3.6 billion tenge, which is 95.7 %, or 6.9 billion tenge, less than the same indicator in September. The largest volume of trades fell on common shares of Kcell JSC – KZT1.4 bn (38.6% of the total volume of trades in index shares). ---------------------------------------------------------------------- Closing price Chg., % Trading volume, mln tenge ----------------------------- -------- -------------------------- 29 30 September Δ, % since October September Δ, % October 01.01.21 ---- --------- ------------- ----- -------- ------- --------- -------- KZAP 18,840.00 15,716.80 +19.9 +163.5 361.1 489.6 -35.6 HSBK 197.51 182.52 +8.2 +59.3 243.6 1,195.9 -77.3 CCBN 332.00 297.21 +11.7 +54.0 428.1 149.3 -85.0 KZTK 36,100.00 34,978.58 +3.2 +35.2 746.3 792.1 -1,709.7 KZTO 1,095.70 1,073.00 +2.1 +13.0 273.7 13,505.9 -336.9 KEGC 1,895.00 1,873.00 +1.2 +11.7 145.2 432.00 -2.8 KCEL 1,751.11 1,319.00 +32.8 -36.6 1,380.2 66,899.20 -4,747.1 ---------------------------------------------------------------------- The past month was very busy for the representatives of the banking sector. Halyk Bank, according to the National Bank of the Republic of Kazakhstan, became the leader in terms of loan portfolio growth, overtaking its closest competitor – Kaspi Bank – by 100 billion tenge. The deputy chairman of Halyk Bank commented that the bank was moving to a fintech strategy with all the ensuing consequences for price benchmarks. After the release of statistical data, the securities of Halyk Bank moved to growth and added 8.2% over the month. Meanwhile, the Kaspi.kz group of companies itself is actively moving to expanding into the Ukrainian lending market. This summer, Kaspi bought out the Ukrainian payment system Portmone, and in October announced a deal to buy a banking license from BTA-Ukraine bank. Fintech securities reacted to this news with growth and added 28.9% over the month. Also, the kaspi.kz Group last week published quarterly reports, according to which the Group's net profit for 9 months of 2021 increased by 69% compared to the same period last year. Bank CenterCredit common shares continued their growth, having added 11.7% over the month. Obviously, the catalyst for the growth in the share price is the reports of the financial regulator – the National Bank of the Republic of Kazakhstan, according to which the bank's loan portfolio shows a steady growth while the share of overdue loans decreases. Another high-profile event of the month was the decrease in Kazakhtelecom's stake in Kcell from 75% to 51% by selling 48 million shares of the latter at KASE. Kazakhtelecom has been stabilizing its debt burden for several years now and after the sale of its stake, Kcell received 55 billion tenge of free cash for its own purposes. As a result of the month, common shares of Kazakhtelecom increased in price by 3.2%, and securities of Kcell added 32.8%. Securities of Kazatomprom took the second place in terms of growth rates among index shares in October with a result of 19.9%. At the same time, the entire period of growth fell on 3 trading sessions in mid-October, when officials from France, Japan and China simultaneously emphasized the importance of developing nuclear energy, thereby influencing the rise in uranium prices. The rest of the time the share price was developing horizontally. On October 18, the company announced the launch of a new uranium fund, in which the National Investment Company of the National Bank will be a co-investor, but this news did not affect the share price in any way. For KEGOC, the Committee for the Regulation of Natural Monopolies approved from October 1, the maximum tariffs for the transportation of electricity for the next five years. At the same time, compared to 2020, the approved tariffs have increased. Against this background, the company's shares added 1.2% over the month. Also, the company this month placed bonds for KZT16.6 bn at 11.5% per annum. Obviously, KEGOC is working to replace foreign currency loans with tenge ones, since judging by the financial statements the company has a maturity date of 14.4 billion tenge of loans denominated in dollars and euros this year. Kaztransoil reported very modest operating results for the 3rd quarter of this year. The company's transportation volume as a whole has declined, while growth is observed in domestic directions and in exports to China. The company's shares reacted to the publication of operating results with a weak correction, growth by the end of the month amounted to 2.1%. KASE's equity market: ----------------------------------------------------------------- 29 October 30 September Chg. Chg., % ----------------------- ---------- ------------ --------- ------- Capitalization, bn KZT 32,893.68 28,930.43 +3,963.25 +13.70 Capitalization, mln USD 76,931.68 67,954.47 +8,967.22 +13.20 ----------------------------------------------------------------- At the end of October, the capitalization of the share market amounted to 32.9 trillion tenge (76.9 billion USD), which is 3.4 trillion tenge or 13.7% higher than the same indicator of the previous month. The growth of capitalization of the share market was facilitated by an increase in weighted average prices of shares of Kcell JSC (KCEL) by 24.7%, Kaspi.kz JSC (KSPI) – by 24.4%, National Atomic Company Kazatomprom JSC (KZAP) – by 16.7%. As of the end of October, KASE's trade lists included shares of 136 denominations of 121 issuers, of which shares of four denominations of four issuers were admitted to circulation in the "Unlisted securities" sector. In the reporting month, new shares were not included in KASE official list, while common shares of ATFBank JSC (SB Jusan Bank JSC) were excluded due to their cancellation. The volume of trades in shares in October relative to September decreased by 88.7% or 77.4 billion tenge to 9.9 billion tenge, while the number of transactions, on the contrary, increased by 18.0% to 52,934 transactions. The average daily volume of trades amounted to KZT469.9 mln, the average daily number of deals – 2,520.7, the average volume of one deal – KZT186.5 th. In October, shares were traded exclusively on the secondary market. Change in prices of shares included in the representative list for calculating the equity market capitalization, as of October 29, 2021: --------------------------------------------------------------------------------------------- Issuer Price change / Chg., % (date of last deal) ------------------------------------------- ----------------------------------------- ------- Kcell JSC (KCEL) 1,751.11 (29.10.21) 1,319.00 (30.09.21) 24.7 Kaspi.kz JSC (KSPI) 61,000.00 (29.10.21) 46,100.00 (30.09.21) 24.4 NAC Kazatomprom JSC (KZAP) 18,840.00 (29.10.21) 15,700.00 (30.09.21) 16.7 Kazakhtelecom JSC 26,399.00 (29.10.21) 22,400.01 (30.09.21) 15.1 (KZTKp) Rakhat JSC (RAHT) 15,900.00 (28.10.21) 14,500.00 (29.09.21) 8.8 Bank CenterCredit JSC (CCBN) 332.00 (29.10.21) 297.21 (30.09.21) 10.5 KM GOLD JSC (KMGD) 1,200.00 (28.10.21) 1,100.00 (30.09.21) 8.3 Halyk Savings Bank of Kazakhstan JSC (HSBK) 197.51 (29.10.21) 182.52 (30.09.21) 7.6 AltynGold plc 1,194.00 (29.10.21) 1,109.52 (30.09.21) 7.1 (GB_ALTN) Freedom Holding Corp. 28,240.05 (29.10.21) 26,726.81 (30.09.21) 5.4 (US_FRHC) --------------------------------------------------------------------------------------------- [2021-11-11]