Overview of KASE equity market in January 2022

/KASE, February 8, 2022/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in January 2022. Since the beginning of the year, KASE Index has decreased by 3.43 %. By results of the month, the value was 3,549.26 points. ----------------------------------------------------------------- Volume, bn tenge Chg., % Chg., % ---------------- 31 31 from January December January December 01.01.22 ---------- -------- --------- ------- ---------- ------- -------- KASE Index 3,549.26 3,675.28 -3.43 -3.43 6.8 130.6 ----------------------------------------------------------------- In fact, three distinct trends changed one another during this period. On the first trading day of the year on January 5, against the background of a tense internal situation, the shares of all public companies fell in price. Under the strongest pressure were securities traded on the London Stock Exchange, these are stocks of Kaspi.kz, Halyk Bank and Kazatomprom. At the same time, on the London market their price collapsed even more than on KASE. Over the next two weeks, investors began to buy shares that had previously fallen in price. At the same time, the market was in anticipation of a correction on Western markets, due to the escalation of relations between Russia and Ukraine, the spread of a new strain of coronavirus, and tightening of monetary policy. The mixed pressures of these factors contributed to the increase in the volatility of stock prices, but, in essence, the market developed in a horizontal trend most of the time. From January 26, index companies began publishing annual operational reports and stocks gradually moved to growth in anticipation of the dividend season. At the end of the month, index companies were divided into three groups. Those whose shares reacted the least to the January events were able to end the month in the green zone: Kcell rose in price by 7 %, Kazatransoil – by 3.2 %, Bank Center Credit – by 1.3 %. KEGOC and Kazakhtelecom, which did not fall critically, were able to reduce the price decline to 1%. The strongest correction at the end of the month was recorded in the shares of Kazatomprom, Halyk Bank and Kaspi.kz. The volume of transactions in index shares in January amounted to 6.8 billion tenge, which is 94.8 %, or 123.8 billion tenge, lower than in December, mainly due to the fact that Halyk Bank carried out share buyback in December. The largest trading volume fell on common shares of Kcell JSC – 2.9 billion tenge (43.3 % of the total trading volume with index shares). ------------------------------------------------------------------- Closing price Chg., % Trading volume, mln tenge ------------------------- -------- --------------------------- 31 31 since January December Δ, % 01.01.22 January December Δ, % ---- --------- --------- ----- -------- ------- --------- --------- KCEL 1,739.99 1,626.91 +7.0 +7.0 2,930.7 1,126.8 +61.6 KZTO 1,129.00 1,094.10 +3.2 +3.2 1,245.5 142.5 +88.6 CCBN 403.00 398.00 +1.3 +1.3 1,635.5 1,023.2 +37.4 KEGC 1,862.00 1,870.52 -0.5 -0.5 52.3 82.1 -57.0 KZTK 35399 35800 -1.1 -1.1 72.2 150.2 -108.0 KZAP 14,165.00 16,890.00 -16.1 -16.1 215.7 243.5 -12.9 HSBK 152.99 186.99 -18.2 -18.2 613.4 127,787.7 -20,732.7 ------------------------------------------------------------------- Kcell JSC reported a record number of SMS and voice connections during the period of riots. At the same time, during this period, 6 Kcell stores in Almaty were damaged, preliminary damage amounted to about 1 billion tenge. After the riots, on behalf of the President, the company credited all subscribers with 300 minutes of communication and 200 SMS. This did not prevent the company's shares from rising by 7.0% in January. KazTransOil JSC in January has undergone cardinal changes in the composition of the management board. Dimash Dossanov left the post of general director, Sabit Arynov was appointed as acting general director, two members of the Board of Directors were excluded. On January 25, the company posted good annual operating indicators. The price of shares of Bank CenterCredit JSC, in contrast to the shares of Halyk Bank and Kaspi.kz, practically did not correct against the background of the January events. On January 26, 2022, the international rating agency S&P Global Ratings confirmed the Bank's international scale ratings at "B/B" and the rating on national scale at "kzBBB-". Next on the list are three direct daughters of the Sovereign Wealth Fund "Samruk-Kazyna". On January 24, the Fund announced the approval of a new organizational structure. The total number of employees of the Fund's corporate center was reduced from 248 to 124, the number of senior positions – from 10 to 5, and the number of structural units – from 27 to 18. The Fund also decided to close all foreign representative offices. There were no changes related to the status and ownership of the Fund in KEGOC, Kazakhtelecom and Kazatomprom, however, all portfolio companies were recommended to reduce the number of employees of the corporate center by 50 % and remove all managers responsible for procurement from their positions. Additionally, the privatization plans have approved the IPO/SPO of three KEGOC companies by 2023. The size of the Holding's guaranteed dividends has also been increased, which may have an impact on subsidiaries. With regard to corporate events of directly subsidiaries whose shares are included in the Index Lists: KEGOC JSC from 24 to 31 January temporarily disconnected from the power supply the enterprises involved in the production of cryptocurrencies in the country. On January 25, due to the overload of networks, there was a temporary power outage in several regions of the republic. Kazakhtelecom JSC, within the framework of customer support during the emergency period, announced a 50 % discount for all retail segment customers and corporate customers for January and free minutes for international and local calls. Shares of National Atomic Company "Kazatomprom" JSC in the first days of the riots, in contrast to the other representatives of the index list, grew in price. The company is one of the main suppliers of uranium in the world, the threat of a disruption in supplies from Kazatomprom due to political instability in the country significantly raised the price of its shares. As the situation stabilized, the price, again against the market, began to decline. On January 11, Bolat Akchulakov, a member of the Board of Directors of Kazatomprom, representing interests of the major shareholder Samruk-Kazyna, was appointed Minister of Energy and wrote a letter of resignation as a member of the Board of Directors of the Company. On January 27, the company reported its annual operating results, according to which the Group's sales grew by 1 % for the year, the average selling price – by 9 %. Obviously, the report did not live up to investors' expectations, as there was no change in the price trend. KASE equity market: As a result of January, the capitalization of the equity market amounted to 26.7 trillion tenge (61.5 billion USD), which is 2.1 trillion tenge, or 7.2 %, lower than the same indicator of the previous month. The main share of the decline fell on three companies due to share price adjustments: Kaspi.kz – by 1.2 billion tenge, Kazatomprom – by 0.6 billion tenge, Halyk Bank – by 0.4 billion tenge. As of the end of January, shares of 164 titles of 150 issuers were listed on KASE, of which shares of three names of three issuers were admitted to circulation in the "Unlisted securities" sector. In the reporting month, no new shares were included or excluded from KASE official list. ---------------------------------------------------------------- 31 January 31 December Chg. Chg., % ----------------------- ---------- ----------- --------- ------- Capitalization, bn KZT 26,687.96 28,761.36 -2,073.40 -7.2% Capitalization, mln USD 61,517.09 66,628.12 -5,111.03 -7.7% ---------------------------------------------------------------- Change in prices of shares included in the representative list for calculating the capitalization of the equity market, as of January 31, 2022: ------------------------------------------------------------------------- Issuer Price change / Chg., % (last deal date) ----------------------- ----------------------------------------- ------- Leasing Group JSC 1.68 (26.01.22) 1.37 (24.11.20) +18.5 (LZGR) NOSTRUM OIL & GAS 52.00 (31.01.22) 45.05 (31.12.21) +13.4 PLC (GB_NTRM) Kcell JSC (KCEL) 1,739.99 (31.01.22) 1,626.91 (31.12.21) +6.5 ForteBank JSC (ASBN) 5.50 (31.01.22) 5.15 (31.12.21) +6.4 Halyk Savings Bank of 152.99 (31.01.22) 186.99 (31.12.21) -22.2 Kazakhstan JSC (HSBK) AltynGold plc (GB_ALTN) 825.00 (31.01.22) 984.50 (31.12.21) -19.3 NAC Kazatomprom JSC 14,165.00 (31.01.22) 16,890.00 (31.12.21) -19.2 (KZAP) Kaspi.kz JSC (KSPI) 45,341.59 (31.01.22) 52,250.00 (31.12.21) -15.2 KM GOLD JSC (KMGD) 1,090.00 (31.01.22) 1,200.00 (31.12.21) -10.1 ------------------------------------------------------------------------- [2022-02-08]