Overview of KASE's equity market in November 2021

/KASE, December 14, 2021/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in November 2021. The local stock market ended the fall season close to its historic highs. During this period, the market was embedding expectations for corporate financial data for 9 months. As a result of November, KASE Index lost 1.81% and closed the month at the level of 3,684.07 points. ------------------------------------------------------------------- Volume, bn tenge 30 29 Chg., % Chg., % ---------------- November October from 01.01.21 November October ---------- -------- -------- ------- ------------- -------- ------- KASE Index 3,684.07 3,751.85 -1.81 +37.69 2.9 3.6 ------------------------------------------------------------------- The volume of deals in index shares in November amounted to 2.9 bn tenge, which is by 18.7 %, or 671.2 mln tenge, less than in October. The largest volume of trades fell on common shares of Kazakhtelecom JSC – KZT572.9 mln (19.6% of the total volume of trades in index shares). ---------------------------------------------------------------- Closing price Chg., % Trading volume, mln tenge ------------------------ -------- ------------------------- 29 29 Δ, % from November October Δ, % October October 01.01.21 ---- --------- --------- ---- -------- --------- -------- ------ CCBN 353.01 332.00 6.3 54.0 266.8 428.1 -60.5 KZTO 1,129.98 1,095.70 3.1 13.0 377.0 273.7 27.4 KEGC 1,889.92 1,895.00 -0.3 11.7 220.9 145.2 34.3 KZTK 35,900.00 36,100.00 -0.6 35.2 571.2 746.3 -30.7 KZAP 18,610.00 18,840.00 -1.2 163.5 538.6 361.1 33.0 HSBK 183.67 197.51 -7.0 59.3 522.7 243.6 53.4 KCEL 1,600.00 1,751.11 -8.6 -36.6 416.2 1,380.2 -231.6 ---------------------------------------------------------------- For quite a long period of time, representatives of the banking sector in KASE Index moved synchronously, but in November a strong dissonance turned up in the prices of their shares. Shares of Bank CenterCredit JSC became the only ones that increased in price according to the results of November, while the securities of Halyk Savings Bank of Kazakhstan JSC became one of the leaders in the fall. On November 2, Bank CenterCredit JSC reported on the growth of net income by 43% compared to the same period last year. Immediately after the publication of the report, the share price fell sharply by 6.2% from 332.64 to 312.00 tenge per share. The decrease was won back over the next three sessions, and then the market moved to an almost daily renewal of price highs. As a result of the month, the price increased by 6.3% and reached 353.01 tenge per share. On November 19, Halyk Savings Bank of Kazakhstan JSC reported on the growth of net income for 9 months by 21% compared to the same period last year, while the bank's net income decreased during the quarterly comparison. Immediately after the publication of the report, the share price fell by 4.8% from 199.50 to 190.00 tenge per share. Until the end of the month, the decline continued, shares closed the month with a decrease of 7.0% to 183.67 tenge per share. The smallest decline based on results of the month was recorded in shares of KEGOC, although volatility was quite strong during the month. At the end of October, the shareholders of the company decided to pay out KZT22 billion out of KZT27.5 billion of net income following the results of the first half of the year in the form of dividends, which is KZT84.72 per share. Fixing of the register was scheduled for November 8, but the shares on November 2 reached their historical maximum of KZT1,925.00 per share and after that went down to KZT1,865.03 on November 11. Shares reacted rather moderately to further corporate events: dividends were paid on November 18, on November 16 the company reported a decrease in net income for 9 months by 2.7 %, in the second half of the month it made a number of changes in the composition of the management board and the board of directors. In general, the shares end the month with a slight decline of 0.3 %. Representatives of the telecommunications sector of Kazakhtelecom JSC and Kcell JSC both reported an increase in net income by 37 %, while at the end of the month, shares of Kazakhtelecom JSC decreased by 0.6 %, while Kcell JSC fell by 8.6 %. Meanwhile, Kcell JSC signed an agreement with Jusan Bank on opening a credit line for 60.5 billion tenge, repaid loans in Halyk Bank, Alfa-Bank and Eurasian Development Bank for a total of 40.5 billion tenge. The remaining 20 billion tenge, obviously, will go to the further development of the cellular operator. At the same time, Kazakhtelecom JSC after the sale of its stake in Kcell JSC in November left the structure of two more companies – KT Cloud Lab and KT-Telecom. Consolidated profit of KazTransOil JSC following the results of nine months turned out to be 5.1% lower than the result for the corresponding period of 2020. But the market, obviously, expected more pessimistic results, because immediately after the publication of reports on November 15, the share price began to rise. Until November 19, the company's shares claimed to be one of the growth leaders, but after a few days the price began to decline sharply and at the end of the month a press release was published from which the reason for the decline became clear. The Committee for the Regulation of Natural Monopolies has reduced the compensating tariff for pumping oil to the domestic market of the Republic of Kazakhstan by almost 14% from 4,328.04 to 3,728.82 tenge per ton per 1,000 km. At the end of the month, the company's share price dropped by 0.6%. On November 5-10, National Atomic Company Kazatomprom JSC signed two contracts for the supply of Kazakh natural uranium concentrate to China within the framework of the China International Import Expo 2021. On November 10, together with a Chinese partner, it opened a plant for the production of fuel for nuclear power plants in Ust-Kamenogorsk. In response to these events, the company's share price reached a historical level of 20,900 tenge per share on November 15 and then went down. The financial statements published on November 19 showed that the company's net profit increased for 9 months of 2021 compared to last year, but decreased when comparing quarterly indicators The slowdown in quarterly growth rates led to the fact that the company's share price fell by 1.2% at the end of the month. KASE's equity market: At the end of November, capitalization of the equity market amounted to 30.1 trillion tenge (69.4 billion USD), which is by 2.8 trillion tenge or 8.4 % less than the same indicator of the previous month. The decrease in the capitalization of the equity market was mainly due to the fact that common shares of Freedom Holding Corp for 1.7 trillion tenge were excluded from the capitalization calculation due to the change in the settlement currency for transactions with these securities in US dollars. ---------------------------------------------------------------- 30 November 29 October Chg. Chg., % ----------------------- ----------- ---------- --------- ------- Capitalization, bn KZT 30,121.82 32,893.68 -2,771.86 -8.4% Capitalization, mln USD 69,446.71 76,931.68 -7,484.97 -9.7% ---------------------------------------------------------------- As of the end of November, KASE's trading lists included shares of 158 titles of 144 issuers, of which shares of three titles of three issuers were admitted to circulation in the "Unlisted securities" sector and foreign shares of 37 denominations – in the KASE Global sector. Change in the prices of shares included in the representative list for calculating the capitalization of the equity market, as of November 30, 2021: --------------------------------------------------------------------------------------------- Issuer Price change / Chg., % (date of the last deal) ------------------------------------------- ----------------------------------------- ------- RG Brands JSC 20,000.00 (24.11.21) 1,367.60 (03.06.20) +93.2 (RGBR) BAST JSC (BAST) 13,778.00 (26.11.21) 11,000.00 (25.10.21) +20.2 Rakhat JSC (RAHT) 18,000.00 (30.11.21) 15,900.00 (28.10.21) +11.7 Mangistaumunaigaz JSC 6,000.00 (30.11.21) 5,350.00 (29.10.21) +10.8 (MMGZp) Bank CenterCredit JSC 353.01 (30.11.21) 332.00 (29.10.21) +6.0 (CCBN) Halyk Savings Bank of Kazakhstan JSC (HSBK) 183.67 (30.11.21) 197.51 (29.10.21) -7.5 Kaspi.kz (KSPI) 56,419.00 (30.11.21) 61,000.00 (29.10.21) -8.1 Kcell JSC (KCEL) 1,600.00 (30.11.21) 1,751.11 (29.10.21) -9.4 AltynGold plc 1,060.00 (30.11.21) 1,194.00 (29.10.21) -12.6 (GB_ALTN) EKOTON+ JSC (EKTN) 28,400.00 (04.11.21) 40,944.00 (02.06.21) -44.2 KM GOLD JSC (KMGD) 440.00 (30.11.21) 1,200.00 (28.10.21) -172.7 --------------------------------------------------------------------------------------------- Trades in foreign shares of 25 titles, which have passed listing on KASE for the first time, have been opened in the KASE Global sector from November 15. From November 22, shares of 12 foreign issuers, previously quoted in the "standard" category of KASE official list's main market, have been transferred to this sector. During the month, the volume of trades in this sector amounted to 720.3 million tenge (1,002 deals). The volume of trades in shares in November compared to October increased by 57.0 %, or 5.6 billion tenge, to 15.5 billion tenge, while the number of deals increased by 11.9 % to 59,207 deals. The average daily volume of trades amounted to 704.3 million tenge, the average daily number of deals – 2,691, the average volume of one deal – 261.7 thousand tenge. In November, shares were traded exclusively on the secondary market. Among the main categories of investors, individuals accounted for 57.4% of the total volume of deals in shares. The share of broker-dealers amounted to 18.4 %. Other institutional investors accounted for 6.8%, other legal entities – for 17.3 %. The participation of non-residents is estimated at 4.6 %. [2021-12-14]