In November of 2003 volume of GS purchase and sale deals at KASE decreased by 27.1% to $22.8 bn.

/IRBIS, December 4, 03/ - In November of 2003 at Kazakhstan Stock Exchange (KASE) 226 deals were made in government securities (GS) for a total of KZT22,848.9 m. or ($155.7 m.) what was 5.5% of total exchange's turnover of the month. In last month volume of 271 deals reached KZT31,361.6 m. ($211.8 m.). During the month, exchange's turnover in the sector decreased by 27.1% in tenge equivalent and by 26.5% in terms of dollar. Relative to November of 2002 the turnover decreased by 33.3% (or by KZT11,432.9 m.). Statistical indicators of sale-purchase sector in November and turnover's structure are given in the table (in parentheses - comparable figures of previous month). --------------------------------------------------------------------------- Yield to maturity Days for the buyer, %APR Volume, mln KZT Number ------------------------------ till maturity min max last WA at discount of deals -------------- ------ ------ ---- ----------- ------------------- --------- Discounted GS (KZT): MEKKAM, National Bank's notes 65.1% (41.8%) of purchase and sale sector's turnover --------------------------------------------------------------------------- less than 8 2.00 4.75 2.25 3.08 (5.50) 4,695.3 9 8 - 14 -13.83 160.09 3.42 5.18 (4.23) 1,835.5 10 15 - 28 3.00 4.75 3.50 4.56 (4.90) 703.5 5 29 - 36 3.35 4.09 4.09 4.07 (4.49) 75.3 3 43 - 56 4.68 4.87 4.69 4.72 (4.81) 62.6 3 57 - 63 4.75 4.81 4.81 4.78 (4.98) 873.1 2 92 - 181 -1.31 19.60 3.27 5.00 (5.35) 2,148.4 34 182 - 364 -0.39 5.50 4.21 4.74 (4.91) 4,472.5 60 -------------- ------ ------ ---- ----------- ------------------- --------- Total 14,866.3 (13,111.6) 126 (155) -------------- ------ ------ ---- ----------- ------------------- --------- Coupon GS (KZT): MEOKAM, MEAKAM, MEIKAM 30.5% (55.6%) of purchase and sale sector's turnover --------------------------------------------------------------------------- less than 730 4.16 8.55 8.37 6.13 (5.81) 1,744.4 22 731 - 1095 3.81 9.12 6.00 5.59 (5.84) 2,195.2 32 1096 - 1460 5.96 6.05 5.96 6.00 (6.16) 343.0 4 1461 - 1825 5.50 7.99 5.55 6.11 (6.21) 2,517.1 26 more than 2191 6.10 6.30 6.10 6.22 (6.11) 170.1 2 -------------- ------ ------ ---- ----------- ------------------- --------- Total 6,969.7 (17,423.5) 86 (99) -------------- ------ ------ ---- ----------- ------------------- --------- Coupon GS (USD): bonds of East-Kazakhstan oblast 0.1% (0.4%) of purchase and sale sector's turnover --------------------------------------------------------------------------- less than 730 5.00 5.00 5.00 5.00 (5.00) 20.0 1 -------------- ------ ------ ---- ----------- ------------------- --------- Total 20.0 (112.9) 1 (2) -------------- ------ ------ ---- ----------- ------------------- --------- Euronotes of Kazakhstan (USD) 4.3% (2.3%) of purchase and sale sector's turnover --------------------------------------------------------------------------- *322 - 345 2.28 2.79 2.79 2.37 (2.85) 550.5 5 **1243 - 1268 3.03 3.32 3.04 3.09 (3.28) 442.4 8 -------------- ------ ------ ---- ----------- ------------------- --------- Total 992.9 (713.6) 13 (15) -------------- ------ ------ ---- ----------- ------------------- --------- GRANDTOTAL 22,848.9 (31,361.6) 226 (271) --------------------------------------------------------------------------- Notes: for euronotes (* - third issue. ** - fourth issue) volumes were calculated at weighted average USD/KZT rate of the Exchange. In November stake of the exchange's turnover in total volume of the deals made at the Kazakhstan secondary market of GS fell to 38.4%. In October it was 55.3%. The shown data say that stock exchange's GS market had bad times in November. In comparison with October the Ministry of finance decreased volumes of borrowings at the primary market 2.5 times. And although National Bank partially compensated decrease of the volume of new GS issue by its notes, total sum of borrowings of the Ministry of finance and the National Bank decreased in November relative to October by 21.3% (by KZT12.2 bn.). Compression of the primary market did not result, as it happens sometimes, in expansion of GS secondary circulation. Under conditions of the growing inflation current rates of GS finally lost their attractiveness. Bonds sellers at the secondary market offered securities at the prices, which exceeded auction ones, and as the result this offer far from always met demand. At the same time October and November were characterized by the significant activation at corporate bonds market, where more and more securities indexed on inflation level appear. In the opinion of IRBIS specialists, main reason of GS market's compression is investors' money outflow to corporate bonds market. Record high turnovers of both primary floatations and purchase and sale deals at the secondary market were in November here. First of all, pension funds and their assets managers showed interest in corporate bonds. Their money removal from government securities circulation sphere resulted in November in the significant falling of the stake of exchange's GS turnover. Taking into account the situation appearing at the country's financial market, one hardly should expect the significant activation of stock exchange's GS market till the end of the year. [2003-12-04]