Overview of KASE's equity market in May 2022

/KASE, June 3, 2022/ – Kazakhstan Stock Exchange (KASE) presents an overview of the equity market in May 2022. KASE index in May decreased by 12.26 % and amounted to 2,661.53 points by the end of the month. All shares of KASE index according to results of May closed in the red. This was facilitated by geopolitical tensions, an increase (expectation of an increase) in rates in developed markets, the cancellation/postponement of dividend payments, and the referendum on June 5 on changes and additions to the Constitution of the Republic of Kazakhstan. Also, a negative effect was exerted by the weak financial data of some companies for the 1st quarter and the strengthening of the national currency for companies involved in foreign economic activity. In total, since the beginning of the year (the value of KASE index on December 31, 2021 is 3,675.28), the local equity market has decreased by 27.58 % and recorded the fifth consecutive month of decline. ------------------------------------------------------------------ Volume, billion tenge May 31 April 29 Change, % Change, % ------------- from 01.01.22 May April ---------- -------- -------- --------- ------------- ------ ------ KASE index 2,661.53 3,033.48 -12.26 -27.58 2.50 2.77 ------------------------------------------------------------------ The volume of transactions with index shares in May 2022 amounted to 2.5 billion tenge, which is 20.4 %, or 0.6 billion tenge, lower than in April 2022. The largest trading volume fell on common shares of Bank CenterCredit JSC – 1.3 billion tenge (52% of the total volume of trading in index shares). From May 5, common shares of Kaspi.kz JSC were included in the representative list of shares for calculating KASE Index (KASE main market, "standard" category). On May 27, the annual general meeting of shareholders decided, taking into account the previously paid quarterly dividends in 2021, not to pay dividends on the company's ordinary shares for 2021. Common shares of Kaspi.kz JSC decreased in May by 14.5 % on expectations of this decision, the group's depositary receipts fell by 18.9 %. ---------------------------------------------------------------------- Closing price Change, % Trading volume, million tenge ------------------------- --------- ----------------------------- May 31 April 29 Δ, % from May April Δ, % 01.01.22 ---- --------- --------- ----- --------- ---------- -------- --------- KEGC 1,641.25 1,668.60 -1.6 -12.3 43.2 126.6 -65.9 CCBN 381.00 394.49 -3.4 -4.3 1,307.9 228.1 +473.4 KZTK 29,293.50 30851 -5.0 -18.2 82.1 116.9 -29.8 HSBK 107.00 116.99 -8.5 -42.8 362.9 982.4 -63.1 KZTO 723.99 799.77 -9.5 -33.8 158.6 199.1 -20.3 KZAP 11,800.00 14,126.00 -16.5 -30.1 187.7 558.9 -66.4 KCEL 993.95 1,410.07 -29.5 -38.9 163.5 551.4 -70.3 KSPI 26,563.00 − − − 153.6 − − ---------------------------------------------------------------------- According to the results of May, the largest minus was shown by common shares of Kcell JSC, which lost 29.5 % of their value. On May 19, the annual general meeting of shareholders decided to postpone the distribution of income on dividends based on the results of 2021, instructed the Board of Directors to submit proposals for the distribution of retained earnings of previous periods based on the results of the company's activities in the first half of 2022. It should also be noted that the Board of Directors of Kcell JSC elected A. Uzbekov to the position of the Chairman of the Management Board of Kcell JSC from May 11, 2022. Together with Kcell JSC two-digit rates of decline in May were shown by the above-mentioned shares of Kaspi.kz JSC, as well as NAC Kazatomprom JSC, whose shares fell by 16.5 %, GDR – by 3.6 %. Meanwhile, the price of uranium futures fell by 10.2 % over the month: from 52.8 to 47.5 dollars per pound, reaching the lowest level in the last three months. On May 24 NAC "Kazatomprom" JSC stated that the company's subsidiaries are excluded from the list of companies subject to privatization, included in the draft Decree of the Government of the Republic of Kazakhstan "On changes and additions to the Decree No. 908 of the Government of the Republic of Kazakhstan dated December 29, 2020 "On some issues of privatization for 2021-2025". On May 27 NAC "Kazatomprom" JSC according to the results of the annual general meeting of shareholders, announced that the total amount of dividend payments for 2021 will be about 227.4 billion tenge, or 876.74 tenge per share. Common shares of Halyk Savings Bank of Kazakhstan JSC decreased by 8.5 %, while GDRs for the Bank's shares lost 4.5% in the month. On May 17, the company provided consolidated financial information, according to which net income to ordinary shareholders increased by 28.3 % to 124.2 billion tenge in the 1st qtr. 2022 compared to 96.8 billion tenge in the 1st qtr. 2021, mainly due to significant growth in the lending business and net income from foreign exchange operations. The price of shares of Bank CenterCredit JSC decreased over the month by 3.4 % against the background of an increase of 5.7 times in the trading volume. On May 6, Bank CenterCredit JSC announced the completion of a deal to acquire 100% of ordinary shares of SB Alfa-Bank (Kazakhstan) JSC. On May 13 SB Alfa-Bank (Kazakhstan) JSC was re-registered as Eco Center Bank JSC (Subsidiary bank of Bank CenterCredit JSC). On May 20, the annual general meeting of shareholders of Bank CenterCredit JSC decided on a voluntary reorganization of the bank in the form of accession of Eco Center Bank (SB of Bank CenterCredit JSC) to Bank CenterCredit JSC. Also, the annual general meeting of shareholders decided not to pay dividends on ordinary shares of Bank CenterCredit JSC for 2021 financial year, to allocate net income for 2021 in the amount of 20.6 billion tenge to the formation of the reserve capital of the bank. Common shares of Kazakhtelecom JSC decreased by 5.0 % in May. At the annual general meeting of shareholders on May 30, the shareholders did not decide on the distribution of the company's net income for 2021. On May 31, the company announced that the consolidated net profit for the 1st quarter amounted to 29.2 billion tenge, showing an increase of 17 % compared to the same period last year. The smallest decrease over the month was recorded for shares of KEGOC, which corrected by 1.6 %. On May 26 shareholders of KEGOC JSC approved the following procedure for distributing the company's net income for 2021 in the amount of 52.6 billion tenge: to allocate 13.2 billion tenge on the payment of dividends (taking into account previously paid dividends based on the results of 1st half of 2021 in the amount of 22 billion tenge), to retain the remaining 17.4 billion tenge at disposal of the company for development. On May 19 shareholders of KazTransOil JSC approved the following procedure for distributing the company's net income for 2021 in the amount of 50.6 billion tenge: to pay dividends of 10 billion tenge, to retain the remaining amount of 40.6 billion tenge at disposal of the company. On May 23, the company reported that the consolidated net profit of KazTransOil JSC for the 1st quarter amounted to 10.2 billion tenge, which is 38.8 % less than the result of the 1st quarter of 2021. KASE's equity market: In May 2022, the capitalization of the equity market amounted to 21.2 trillion tenge (49.6 billion USD), which is 1.8 trillion tenge, or 7.8 %, lower than the same indicator of the previous month. The main share of the decline fell on index companies due to the adjustment of the price of their shares. As of the end of May, shares of 162 titles of 148 issuers were listed on KASE, of which shares of three titles of three issuers were admitted to circulation in the "Unlisted securities" sector. Common shares of Cameco Corporation (Canada) were included in the "KASE Global" sector of KASE official list in the reporting month. ------------------------------------------------------------------- May 31 April 29 Change Change, % --------------------------- --------- --------- --------- --------- Capitalization, billion KZT 21.177.81 22.995.19 -1.817.38 -7.9,%, Capitalization, million USD 49.551.48 51.272.47 -1.720.98 -3.4,% ------------------------------------------------------------------- Change in prices of shares included in the representative list for calculating the capitalization of the equity market, as of May 31, 2022: ---------------------------------------------------------------------------- Issuer Price change / Change, % (date of last transaction) ------------------------ ----------------------------------------- --------- KM GOLD JSC (KMGD) 299.95 (31.05.22) 200.00 (29.04.22) +33.3 NOSTRUM OIL & GAS PLC 59.00 (31.05.22) 42.10 (29.04.22) +28.6 (GB_NTRM) AltynGold plc (GB_ALTN) 844.33 (31.05.22) 775.82 (29.04.22) +8.1 BAST JSC (BAST) 8,005.00 (27.05.22) 14,500.00 (30.03.22) -81.1 Kcell JSC (KCEL) 993.95 (31.05.22) 1410.07 (29.04.22) -41.9 ForteBank JSC (ASBN) 3.88 (31.05.22) 4.69 (29.04.22) -20.9 National Atomic Company 11,800.00 (31.05.22) 14,126.00 (29.04.22) -19.7 Kazatomprom JSC (KZAP) Kaspi.kz JSC (KSPI) 26,563.00 (31.05.22) 31,057.01 (29.04.22) -16.9 Rakhat JSC (RAHT) 15,910.00 (17.05.22) 18,000.00 (22.04.22) -13.1 KazTransOil JSC (KZTO) 723.99 (31.05.22) 799.77 (29.04.22) -10.5 Halyk Savings Bank of 107.00 (31.05.22) 116.99 (29.04.22) -9.3 Kazakhstan JSC (HSBK) Kazakhtelecom JSC (KZTK) 29,297.00 (31.05.22) 30,850.00 (29.04.22) -5.3 ---------------------------------------------------------------------------- [2022-06-03]