Prices of bonds issued by the Ministry of finance are stable due to poor demand

/REUTERS, Almaty, Olzhas Auyezov, January 9, 04/ - Prices of bonds issued by the Ministry of finance of Kazakhstan remained unchanged regardless continuing tenge appreciation relative to dollar, as investors preferred money market instruments, traders say. According to them, one of the reasons for poor demand for the Ministry's securities is an unsuccessful attempt of a named body to call MEAKAM, 10-year bonds, at face value, whereas investors purchased them at 113 - 110 percent of par. After investors publicly express their discontent and appealed to government, the Ministry of finance repaid them at market price. "A situation around MEAKAM put market on the alert", Gabiden Balgimbekov, a dealer of CenterCredit Bank said. - Investors are more loyal to (short-term) notes of the National bank compared to securities of the Ministry. In TuranAlem dealer's opinion, the situation will remain the same in the next week. "We don't think yield of these securities will either fall or rise", he said. Moreover, traders note that market still have not resumed its activities in full after holidays and unexpected replacement of top officials. "We are still dumbfound about news on the National Bank", - a trader of a local pension assets managing company (PAMC) said. [2004-01-09]