Kazakhstan bonds go on growing with the rate of tenge to dollar

/REUTERS, Almaty, Oljas Auezov, December 5, 03/ - Prices of Kazakhstan bonds in tenge went on growing in the past week due to strengthening of tenge to dollar, traders say, pointing to high probability of further growth of the national currency's rate. "Usually, the highest inflation is in December,.. and the only way out for the National Bank is to decrease the rate", - said a trader of a domestic PAMC. National Bank's head Grigory Marchenko said on Wednesday that rate of tenge to dollar in December might exceed KZT146.0 for dollar, and it occurred on the same day - first for 2.5 years. Marchenko also did not exclude strengthening of tenge in 2004. Besides, growth of prices for bonds in tenge is promoted by instruments deficit. In the beginning of the past week Ministry of finance of Kazakhstan did not offer its bonds. "After falling of dollar's rate banks switch to short positions (on dollar), liquidity in tenge grows, and there is nothing to invest into, except (short-term) notes (of the National Bank)", - said dealer of bank CenterCredit Gabiden Balgimbekov. Pension funds - largest investors at Kazakhstan stock market - also actively increase the stake of tenge instruments in their portfolios. "Assumption that the next year rate (of dollar) will fall lower, presses upon the market much, pension funds go on reexamining their portfolios ", - said Balgimbekov from CenterCredit. "Everybody has much money, everyone buys everything good", - said the trader of domestic PAMC. "And one can always easily find dollar securities at international markets (if dollar starts strengthening relative to tenge)", - he added. In the opinion of market's participants, in the nearest future growth of tenge bonds' prices will continue as well as strengthening of tenge relative to dollar, which has been supported by the National Bank. [2003-12-05]