Overview of KASE's equity market in February 2022

/KASE, March 4, 2022/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in February 2022. -------------------------------------------------------------- Volume, bn tenge 28 31 Chg., % Chg., % ---------------- February January from February January 01.01.22 ---------- -------- -------- ------- -------- -------- ------- KASE Index 3,361.98 3,549.26 -5.28 -8.52 6.2 6.8 -------------------------------------------------------------- The development of the local equity market in February continued to be determined by external political factors. In the dynamics of KASE Index, three distinct periods changed during the month. From February 1 to February 10, the index continued to develop the positive trend gained at the end of January. In the period from 11 to 21 February, as information becomes available about the possible start of the Russian-Ukrainian military conflict, the market moved into a horizontal trend, and from February 22 – into the red zone. Under the greatest influence of this factor were those companies whose shares are traded on the London Stock Exchange. On February 24 during the trading session in London, the decrease in the price of shares of Kaspi.kz JSC exceeded 50%, Halyk Savings Bank of Kazakhstan JSC – 15 %, NAC Kazatomprom JSC – 9 %. Considering that the change in share prices was not supported by negative internal fundamental factors, such significant drawdowns were quickly redeemed. Nevertheless, since the beginning of the month, all shares of the representative list of KASE Index, except for Kazatomprom, have been marked by price reduction. As for internal fundamental factors, local companies are just starting to publish annual reports and announce dividends. The value of the index itself has decreased by 5.28 % since the beginning of February up to 3,361.98 points. The index was last seen at this level in October 2021. The volume of deals in index shares in February amounted to 6.2 billion tenge, which is 8.8%, or 0.6 billion tenge, less than in January. The largest trading volume fell on common shares of Halyk Savings Bank of Kazakhstan JSC – 3.7 billion tenge (59.4 % of the total volume of trading in index shares). ------------------------------------------------------------------- Closing price Chg., % Trading volume, mln tenge --------------------------- -------- ------------------------- 31 Δ, % from January February Δ, % 28 February January 01.01.22 ---- ----------- --------- ----- -------- ------- -------- -------- KZAP 14,869.00 14,165.00 +5.0 -12.0 346.4 215.7 +60.6 KEGC 1,853.22 1,862.00 -0.5 -0.9 54.6 52.3 +4.4 KCEL 1,701.00 1,739.99 -2.2 +4.6 421.3 2,930.7 -85.6 CCBN 375.01 403 -6.9 -5.8 79.5 1,635.5 -95.1 KZTO 1,050.00 1,129.00 -7.0 -4.0 446.5 1,245.5 -64.2 HSBK 133.99 152.99 -12.4 -28.3 3,663.9 613.4 +497.3 KZTK 31,000 35,399 -12.4 -13.4 1,157.9 72.2 +1,503.7 ------------------------------------------------------------------- The only representative of the index basket whose shares closed in the green zone at the end of the month is NAC Kazatomprom JSC. Securities added 5.0% over the month. As part of the IEA's plan to reduce the EU's dependence on Russian natural gas, an accelerated transition to nuclear power is one of the first items, which is why the price of uranium rose by 13.1% in February from $43.88 to $49.64 per pound. The conference on the announcement of financial results for 2021 is scheduled by the company's management for March 16. The smallest decrease for the month was recorded in the price of shares of KEGOC – 0.5 %. In the information field, the company did not report on significant corporate events in February. Shares of Kcell JSC decreased by 2.2 %. During Kcell's Issuer Day held on February 21, the mobile operator announced its financial results for 2021. The company's consolidated net income increased from last year by 84.9 % to 32.5 billion tenge, of which 21.5 billion tenge are recommended by Kcell's Board of Directors to be used to pay dividends. In terms of one share, dividends may amount to 107.5 tenge. Dividend yield is estimated accordingly at 6.3 % per annum. The largest decrease following the results of the month was recorded in shares of Kazakhtelecom JSC and Halyk Savings Bank of Kazakhstan JSC. Securities of both companies decreased in price by 12.4 %. At the same time, Kazakhtelecom JSC did not report on corporate events, Halyk Savings Bank of Kazakhstan JSC scheduled a conference on the announcement of financial annual results for March 15. KASE's equity market: ----------------------------------------------------------------- 28 February 31 January Chg. Chg., % ----------------------- ----------- ---------- ---------- ------- Capitalization, bn KZT 23,147.99 26,687.96 -3,539.97 -13.3% Capitalization, mln USD 49,557.89 61,517.09 -11,959.20 -19.4% ----------------------------------------------------------------- As of the end of February 2022, the capitalization of the equity market amounted to 23.1 trillion tenge (49.6 billion USD), which is by 3.5 trillion tenge, or 13.3 % lower than the same indicator of the previous month. The main share of the decline fell on Kaspi.kz. Due to the adjustment of the price of the company's shares, the capitalization of Kaspi.kz decreased by 16.8 billion tenge. On February 28, during a press conference to announce the results of 2021, the head of Kaspi.kz Mikhail Lomtadze noted that the current market capitalization does not properly reflect the profitability of the company, due to which Kaspi.kz is considering the possibility of launching a GDR buyback program on the London Stock Exchange (LSE). According to a company representative, Kaspi.kz has capital – about 86 billion tenge, which can be returned to shareholders in the form of dividends or GDR buyback. In the medium term, the company will take steps to ensure that Kaspi.kz is listed on the most appropriate exchange for the next stage of its growth trajectory. As of the end of February, shares of 126 titles of 107 issuers were listed on KASE, of which shares of three titles 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. The volume of trading in shares in February relative to January remained at the level of 8.5 billion tenge, while the number of deals increased by 28.1 % to 48,001 deals. The average daily trading volume amounted to KZT426.0 mln, the average daily number of deals – 2,400, the average volume of one deal – KZT177.5 th. Shares were traded exclusively in January in the secondary market. Change in prices of shares included in the representative list for calculating the capitalization of the equity market, as of February 28, 2022: ------------------------------------------------------------------------- Issuer Price change / Chg., % (last deal date) ----------------------- ----------------------------------------- ------- AltynGold plc (GB_ALTN) 978.00 (28.02.22) 825.00 (31.01.22) +15.6 Kaspi.kz (KSPI) 28,531.00 (28.02.22) 45,341.59 (31.01.22) -58.9 KM GOLD JSC (KMGD) 850.05 (28.02.22) 1,090.00 (31.01.22) -28.2 Kazakhtelecom JSC 31,000.00 (28.02.22) 35,399.00 (31.01.22) -19.3 (KZTK) Kazakhtelecom JSC 21,365.58 (28.02.22) 24,900.00 (28.01.22) -19.2 (KZTKp) KazTransOil JSC 1,050.00 (28.02.22) 1,129.00 (31.01.22) -15.2 (KZTO) Halyk Savings Bank of 133.99 (28.02.22) 152.99 (31.01.22) -14.2 Kazakhstan JSC (HSBK) Mangistaumunaigaz JSC 6,000.00 (28.02.22) 5,560.00 (31.01.22) -10.1 (MMGZp) Bank CenterCredit JSC 375.00 (28.02.22) 403.00 (31.01.22) -7.5 (CCBN) ------------------------------------------------------------------------- [2022-03-04]