In February of 2004 volume of GS purchase and sale deals at KASE decreased by 37.8% to $37.4 bn.

/IRBIS, Assel Omarova, Andrey Tsalyuk, March 2, 03/ - In February of 2004 at Kazakhstan Stock Exchange (KASE) 308 deals in government securities (GS) were made for a total of KZT37,397.2 m. or ($268.6 m.) what was 7.9% of total exchange's turnover of the month. In comparison with January of 2004 the sector's turnover decreased by 37.8% in tenge equivalent and by 37.0% in terms of dollar. Relative to February of 2003 the turnover increased by 21.4% in terms of tenge and by 33.7% in terms of dollar. Statistical indicators of sale-purchase sector in February and turnover's structure are given in the table (in parentheses - comparable figures of previous month). ---------------------------------------------------------------------------------- Yield to maturity for the buyer, %APR Days ------------------------------------- Volume, mln KZT Number till maturity min max last WA at discount of deals -------------- ------- -------- ------ ------------- ------------------- --------- Discounted GS (KZT): MEKKAM, National Bank's notes 62.0% (54.4%) of purchase and sale sector's turnover ---------------------------------------------------------------------------------- less than 8 2.50 4.00 3.20 3.56 (3.82) 1,083.9 11 8 - 14 1.80 4.80 3.70 4.32 (3.10) 1,049.1 5 15 - 28 3.40 5.19 4.36 4.31 (4.77) 4,314.1 38 29 - 36 3.60 4.92 4.85 4.79 (4.95) 813.7 14 37 - 42 3.73 4.86 4.86 4.02 (5.02) 474.6 5 43 - 56 4.00 5.03 4.67 4.73 (4.15) 1,107.0 16 57 - 63 4.45 4.80 4.45 4.63 (5.00) 78.0 3 64 - 91 4.56 4.67 4.56 4.65 (4.75) 931.3 4 92 - 181 4.00 15.84 4.90 4.96 (4.63) 6,785.8 64 182 - 364 4.15 5.10 4.98 5.03 (5.02) 6,542.6 42 -------------- ------- -------- ------ ------------- ------------------- --------- Total 23,180.2 (32,703.0) 202 (166) -------------- ------- -------- ------ ------------- ------------------- --------- Coupon GS (KZT): MEOKAM, MEIKAM 29.6% (31.8%) of purchase and sale sector's turnover ---------------------------------------------------------------------------------- less than 730 4.51 16.28 5.80 6.73 (6.66) 3,667.0 37 731 - 1095 5.51 16.26 5.51 8.47 (7.38) 595.8 10 1096 - 1460 5.08 6.00 5.95 5.61 (5.96) 1,536.2 6 1461 - 1825 5.28 6.16 6.07 5.58 (6.00) 3,190.4 17 1826 - 2190 5.24 6.10 6.09 5.40 (6.01) 1,364.7 10 more than 2191 6.07 6.40 6.10 6.18 (6.10) 716.0 7 -------------- ------- -------- ------ ------------- ------------------- --------- Total 11,070.1 (19,139.5) 87 (116) -------------- ------- -------- ------ ------------- ------------------- --------- Coupon GS (USD): bonds of East-Kazakhstan and Atyrau oblasts 5.6% (4.0%) of purchase and sale sector's turnover ---------------------------------------------------------------------------------- less than 730 5.89 8.49 8.49 7.33 (6.19) 632.6 3 731 - 1095 8.23 8.59 8.23 8.24 (8.16) 918.6 3 more than 1096 9.28 9.53 9.53 9.41 (9.58) 546.2 2 -------------- ------- -------- ------ ------------- ------------------- --------- Total 2,097.5 (2,427.0) 8 (8) -------------- ------- -------- ------ ------------- ------------------- --------- Euronotes of Kazakhstan (USD) 2.8% (9.8%) of purchase and sale sector's turnover ---------------------------------------------------------------------------------- *240 - 253 2.43 3.03 2.43 2.47 (3.80) 529.3 6 **1158 - 1170 3.79 3.85 3.79 3.81 (3.55) 520.1 5 -------------- ------- -------- ------ ------------- ------------------- --------- Total 1,049.4 (5,864.8) 11 (31) -------------- ------- -------- ------ ------------- ------------------- --------- GRANDTOTAL 37,397.2 (60,134.4) 308 (321) ---------------------------------------------------------------------------------- Notes: for euronotes (* - third issue. ** - fourth issue) volumes were calculated at weighted average USD/KZT rate of the Exchange. In February stake of the exchange's turnover in total volume of purchase and sale deals made at Kazakhstan secondary GS market fell to 89.5%. In January it was 91.4%. Almost all factors influencing upon GS market worked for decreasing of these securities' turnover in February in comparison with January. Volume of National Bank's money borrowing by notes issues decreased in February by KZT13.7 bn. And although Ministry of finance partially compensated losses of the primary market (in February it sold MEKAM more almost by 2 bn. than in January), tat compensation was not enough for supporting the secondary market's turnover on the same level. As analysts of IRBIS noted in January review of stock exchange's GS market, positive influence upon volume of deals in the beginning of the year was made by changing of normative base, which regulated pension funds' activity. Limits of pension assets investing and prudential norms of pension market's subjects, which were set in effect since the middle of January, have expanded investing abilities of pension funds and their assets controllers. However this expansion did not apply to Kazakhstan domestic GS. Activation of trading in these securities in January was caused by funds' portfolios restructuring, in presence of which bonds were sold mainly for re-investing of earned money into new "available" instruments. In February effect of this factor came to naught, and as the result stock exchange's GS market began to come back to its usual turnover. "Side effect" of the above-mentioned factor was decrease of the stake of pension assets participation at GS market that was the reason of falling of the stake of stock exchange's turnover. The next factor, which has negatively influenced upon GS liquidity at KASE in February is stabilization of the rate of tenge against US dollar, due to which it became senseless to work with euronotes of Kazakhstan at the stock exchange as well as with dollar. Effect of this factor resulted in fivefold falling of the volume of deals in bonds of Kazakhstan sovereign debt at KASE (see the table). Data given in the table shows that changing of yield of traded bonds was not characterized in February by any marked tendency. [2004-03-02]