In August of 2004 volume of GS purchase and sale deals at KASE increased 1.4 times to KZT57.4 bn.

/IRBIS, Ranida Gabdeyeva, Andrey Tsalyuk, September 6, 04/ - In August of 2004 at Kazakhstan Stock Exchange (KASE) 324 deals were made in government securities (GS) purchase and sale sector for a total of KZT57,445.9 m. or ($421.4 m.) that was 9.2% of total exchange's turnover of the month (in July - 6.8%). In comparison with July of 2004 the sector's turnover increased 1.37 times in terms of tenge and 1.36 times in dollar terms. Relative to August of 2003 the turnover increased 2.03 times in tenge and 2.19 times in dollar terms. Statistical indicators of sale-purchase sector in August 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, m KZT Number till maturity min max last WA at market cost of deals ------------- ---- ---- ---- ------------- ------------------- --------- Discounted GS (KZT): MEKKAM, National Bank's notes - 88.8% (93.9%) of the market ------------------------------------------------------------------------ less than 8 0.50 2.30 1.83 0.77 (3.23) 2,752.5 18 8 - 14 1.00 4.66 1.80 1.26 (1.88) 403.1 6 15 - 28 1.30 4.00 2.50 2.46 (3.03) 998.3 19 29 - 36 1.50 4.25 1.50 2.28 (3.22) 647.1 6 37 - 42 2.96 3.12 3.00 3.02 ( -) 1,296.2 7 43 - 56 2.00 3.15 2.80 3.00 (3.99) 1,389.8 6 57 - 63 3.10 3.55 3.55 3.32 (3.61) 269.2 3 64 - 91 2.52 4.53 2.52 3.51 (4.55) 2,037.4 14 92 - 181 2.00 5.21 3.96 3.57 (4.08) 17,256.1 78 182 - 364 2.02 5.53 5.00 3.92 (4.46) 23,982.4 103 ------------- ---- ---- ---- ------------- ------------------- --------- Total 51,032.1 (39,435.3) 260 (236) ------------- ---- ---- ---- ------------- ------------------- --------- Coupon GS (KZT): MEOKAM - 11.1% (5.7%) of the market ------------------------------------------------------------------------ less than 730 4.78 5.75 4.88 5.01 (5.35) 485.6 7 731 - 1095 5.06 5.80 5.80 5.36 (5.30) 623.8 7 1096 - 1460 4.23 6.01 4.23 5.58 (5.92) 408.6 12 1461 - 1825 5.50 6.40 6.40 5.75 (6.00) 1,263.0 9 1826 - 2190 5.77 6.10 5.77 5.82 (6.09) 3,588.4 28 ------------- ---- ---- ---- ------------- ------------------- --------- Total 6,369.3 (2,411.0) 63 (36) ------------- ---- ---- ---- ------------- ------------------- --------- Euronotes of Kazakhstan (USD) - 0.1% ( -) of the market *68 2.50 2.50 2.50 2.50 ( -) 44.5 1 ------------- ---- ---- ---- ------------- ------------------- --------- Total 44.5 ( -) 1 ( -) ------------- ---- ---- ---- ------------- ------------------- --------- GRANDTOTAL 57,445.9 (42,007.2) 324 (273) ------------------------------------------------------------------------ Notes: for euronotes (* - third issue) volumes were calculated at weighted average USD/KZT rate of the Exchange. In August stake of the exchange's turnover in total volume of purchase and sale deals made at Kazakhstan secondary GS market rose to 98.5%. In July it was 94.0%. As is seen in the table, the structure of GS turnover at KASE did not change much in August. Market's appearance is still formed by deals in National Bank's notes, the stake of which was 98.6% of the volume of transactions with discount bonds (1.4% fall to the stake of MEKKAM) or 87.6% of the whole sector's turnover. Results of the conducted analysis let underline three types of transactions with GS in August. The first one is deals, market nature of which causes doubts. These deals, as a rule, are made at the stock exchange by one member of KASE, which acts as a buyer and a seller on his own behalf and on behalf of the limited number of his clients. It's notable that gross-turnover of this participant's transactions significantly exceeds net-turnover. The stake of the described transactions in August was not less than 44% of GS turnover at KASE, that is much more than in previous month. Analysts of IRBIS explain the considerable growth of activity of exchange's secondary GS market in the analyzed month in comparison with July by this circumstance - effect opf the local factor. Deals of the second type are transactions of resale of bonds purchased by the Primary dealers of the Ministry of finance and Primary agents of the National Bank at auctions, to other participants (mainly pension funds and companies controlling their assets) during working days following settlement date. The stake of these deals in August was 9.3% of exchange's GS turnover (KZT5.3 bn) that is much less than corresponding figure of the previous month in percentage and in absolute monetary expression. Falling of the stake of deals of this type was caused by falling of issuing activity of the Ministry of finance and the National Bank in August (by KZT20.8 bn by the sum of borrowing), and also by the circumstance that on unknown reasons such deals were almost absent after August 20. The remaining turnover (about 46%) was a usual trading in GS, which activated mainly due to growth of liquidity of longest MEOKAM. Data shown in the table also evidence that tendency of falling of GS yield to maturity for purchaser, which started taking shape in July, went on developing in August. As well as in previous month, it was caused by falling of securities' yields at primary floatations. [2004-09-06]