In April of 2004 volume of GS purchase and sale deals at KASE decreased by 23.7% to KZT40.1 bn.

/IRBIS, Ranida Gabdeyeva, Andrey Tsalyuk, May 2, 04/ - In May of 2004 at Kazakhstan Stock Exchange (KASE) 262 deals in government securities (GS) were made for a total of KZT40,059.5 m. or ($292.0 m.) what was 7.2% of total exchange's turnover of the month. In comparison with April of 2004 the sector's turnover decreased by 23.7% in tenge equivalent and by 23.1% in dollar terms. Relative to May of 2003 the turnover increased 2.3 times in tenge and 2.6 times in dollar terms. Statistical indicators of sale-purchase sector in May 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 60.4% (63.8%) of purchase and sale sector's turnover ------------------------------------------------------------------------------ less than 8 2.00 4.36 2.00 3.17 (6.97) 507.7 6 8 - 14 3.25 3.73 3.73 3.38 (3.42) 81.7 3 15 - 28 3.50 4.50 4.50 3.86 (3.98) 472.0 9 29 - 36 3.80 4.70 3.80 4.17 (4.01) 224.2 4 37 - 42 4.06 4.95 4.06 4.32 ( -) 228.5 7 43 - 56 4.69 5.03 4.70 4.83 (4.51) 713.2 13 57 - 63 3.85 4.70 3.85 4.54 (4.60) 237.7 3 64 - 91 3.40 13.75 4.65 5.28 (4.68) 1,112.9 16 92 - 181 1.11 5.06 3.99 4.60 (5.14) 1,368.2 23 182 - 364 4.60 5.19 5.04 5.02 (5.02) 19,258.0 94 -------------- ---- ----- ---- ----------- ------------------- --------- Total 24,204.1 (33,502.8) 178 (225) -------------- ---- ----- ---- ----------- ------------------- --------- Coupon GS (KZT): MEOKAM 27.1% (33.1%) of purchase and sale sector's turnover ------------------------------------------------------------------------------ less than 730 4.32 6.01 6.00 5.43 (5.86) 3,426.6 19 731 - 1095 5.61 6.61 5.71 6.00 (5.67) 885.0 11 1096 - 1460 5.90 6.53 5.90 6.00 (5.69) 545.7 8 1461 - 1825 5.01 7.00 6.07 5.96 (6.00) 4,534.4 21 1826 - 2190 5.10 6.30 5.74 5.82 (6.03) 1,251.3 10 more than 2191 6.06 6.06 6.06 6.06 (6.17) 208.3 1 -------------- ---- ----- ---- ----------- ------------------- --------- Total 10,851.4 (17,353.0) 70 (97) -------------- ---- ----- ---- ----------- ------------------- --------- Coupon GS (USD): bonds of Eastern Kazakhstan oblast, Atyrau oblast 0.03% (-) of turnover in purchase- sale sector ------------------------------------------------------------------------------ less than 730 7.99 7.99 7.99 7.99 ( -) 10.0 2 731 - 1095 8.59 8.59 8.59 8.59 ( -) 1.4 1 Total 11.4 ( -) 3 (-) -------------- ---- ----- ---- ----------- ------------------- --------- Euronotes of Kazakhstan (USD) - 12.5% (3.1%) 1072 - 1085 3.32 5.61 3.32 3.92 (3.92) 4,992.7 11 -------------- ---- ----- ---- ----------- ------------------- --------- Total 4,992.7 (1,616.8) 11 (6) -------------- ---- ----- ---- ----------- ------------------- --------- GRANDTOTAL 40,059.5 (52,472.5) 262 (358) ------------------------------------------------------------------------------ Notes: for euronotes (* - third issue. ** - fourth issue) volumes were calculated at weighted average USD/KZT rate of the Exchange. In May stake of the exchange's turnover in total volume of purchase and sale deals made at Kazakhstan secondary GS market fell to 96.1%. In April it was 98.7%. Turnover of GS secondary market continues falling. Trades in May defined the market as illiquid one. Participants experience harder troubles when they try to close their positions. In addition to traditional reasons for GS market stagnation (the major one is negative yield in real terms), another factor turned out to have negative impact on that sector also: no primary offerings. While inflation fell the National bank cut issuances of notes almost twice relative to April. Decline of issuing activity of Finance Ministry was even more severe as volume of bonds both offered and floated fell three times. The Ministry preferred issuing shortest discount bonds that has the lowest yield. This factor led to capital outflow from GS sector to other sectors, including CS. It is unlikely that GS market will revive soon. The only factor that may hit the market is offering of long-term indexed bonds that Finance Ministry promised to issue reasonable time ago. It is also possible that the government currently seeks new ways to encourage active trades through issuing agency bonds by Kazakhstan Mortgage Company and Development Bank of Kazakhstan. [2004-06-02]