ANALYSIS: positions of KASE's members at stock exchange's floors in 2003

/IRBIS, Andrey Tsalyuk, Sergey Yakovlev, February 16, 04/ - Information agency of financial markets "IRBIS" (Almaty) has finished analysis of positions of Kazakhstan stock exchange's (KASE) members at stock exchange's all floors in 2003. Judging on the results of this analysis, leader of stock exchange's financial market of Kazakhstan in 2003 is Bank TuranAlem JSC (Almaty) - member of KASE of "B", "C", "K" and "P" categories, stock exchange's market-maker of US dollar and Russian rouble. The stake of this trade participant at KASE was 20.6% of exchange's turnover registered by the below-mentioned methods. The bank showed its worth most actively in GS purchase and sale sector (23.3% of the market, first position). At stock exchange's foreign currency market and in repo sector Bank TuranAlem JSC was also leading by the volume of conducted deals (14.4% and 13.8% of the market correspondingly). At futures contracts market almost all transactions in the year 2003 were made through this clearing member of KASE. It should be noted that in 2002 Bank TuranAlem OJSC was also the leader at KASE by the resulting gross-position, its stake was 20.1% of exchange's turnover. While making analysis IRBIS agency took into account all exchange's deals of the year 2003, excluding transaction on primary floatation of government (municipal) and corporate securities. It's concerned with the fact that issuers themselves, who are stock exchange's members, often act as sellers during primary floatations. A total of 55 organizations, which are stock exchange's members of various categories, took part in making of deals at KASE in 2003 (in 2002 - 52). Deals were made in the sector of trading in foreign currencies, futures contracts, at the market of purchase and sale of government (GS) and corporate securities (CS), at repo markets - by open trade method (the so called automatic repo) and by direct deals method. Besides, while calculating ratings IRBIS took into account trade in promissory notes and bonds of international financial organizations. Place of company in below-mentioned ratings was set in accordance with the stake of deals made by the company in total gross-turnover of trades (total of purchased and sold financial instruments). All volumes of transactions were taken in tenge equivalent at the rates effective at the moment of conducting transactions and, which were used in calculations according to results of trades in corresponding financial instruments. IRBIS took into account National Bank's position in total volume of the market, however it was ignored in the rating because this institution, working at KASE, purposes quite different objects that all other participants of the market. Below is the list of ten most active members of KASE in 2003 (excluding National Bank), which controlled 63.6% of stock exchange's whole market excluding primary floatations, in descending order of their stake in total volume of deals. Headquarters of all companies are in Almaty. ---------------------------------------------------------------- Resulting Position in positions 2003 on main sectors: in: Stake of ---------------------- --------- Brief market foreign repo 2003 2002 name of in 2003, curren- CS KASE's member % cies CS GS and GS ---- ---- ---------------------- -------- ------- --- --- ------ 1 1 Bank TuranAlem JSC 20.6 1 7 1 1 2 2 ATFBank JSC 8.1 13 16 2 2 3 21 Nurbank OJSC 5.6 9 - 7 3 4 5 Eurasian bank JSC 5.3 7 17 8 4 5 6 HSBK JSC 5.1 2 22 14 8 6 9 Kazkommertsbank JSC 4.9 4 18 12 6 7 12 BANK CASPIAN JSC 4.0 11 25 24 5 8 11 ABN AMRO CJSC 3.8 3 29 11 9 9 7 Bank CenterCredit OJCS 3.10 10 12 16 7 10 15 Alliance Bank OJSC 3.08 5 24 17 11 ---------------------------------------------------------------- HSBK - Halyk savings bank of Kazakhstan JSC; ABN AMRO CJSC - Daughter bank "ABN AMRO Bank Kazakhstan" CJSC. On the reason 63.7% of turnover of exchange's whole market in 2003 were represented by repo deals, participant's position in this sector determined position in the resulting rating. Precisely on this reason "the active ten" is represented by banks, which the biggest degree use repo sector in their work. As the whole second tier banks controlled in 2003 72.6% (in 2002 - 62.2%) of the whole exchange's turnover. 29 (29) banks took part in deals. Rating of ten most active of them is given in the following table (headquarters of these banks are in Almaty, abbreviations of previous table are used). ------------------------------------------------------------------- Second tier banks activity rating in 2003 ---------------------------------------------------- Stake Positions Positions: of market, %: in 2002: -------------- -------------- Brief -------------- among in total among in total name of among in total STB list STB list bank STB list ----- -------- ----- -------- ---------------------- ----- -------- 1 1 23.9 20.6 Bank TuranAlem JSC 1 1 2 2 9.3 8.1 ATFBank JSC 2 2 3 3 6.5 5.6 Nurbank OJSC 14 21 4 4 6.1 5.3 Eurasian bank JSC 3 5 5 5 5.9 5.1 HSBK JSC 4 6 6 6 5.7 4.9 Kazkommertsbank JSC 6 9 7 7 4.6 4.0 BANK CASPIAN JSC 9 12 8 8 4.4 3.8 ABN AMRO CJSC 8 11 9 9 3.59 3.10 Bank CenterCredit OJCS 5 7 10 10 3.58 3.08 Alliance Bank OJSC 12 15 ------------------------------------------------------------------- Broker-dealer companies, which specialize mainly in the work with CS, in 2003 controlled 8.2% of exchange's turnover (in 2002 - 3.3%). 19 (17) companies took part in making of deals. Rating of ten most active of them is given in the following table (headquarters of the companies are in Almaty, KG Securities LLP - in Karaganda). --------------------------------------------------------------------------- Broker-dealer companies activity rating in 2003 ---------------------------------------------------------- Stake Positions Positions: of market, %: in 2002: ---------------- ---------------- Brief ---------------- among in total among in total name of among in total brokers list brokers list company brokers list ------- -------- ------- -------- ------------------------ ------- -------- 1 12 29.0 2.4 RG Securities LLP 1 17 2 16 14.7 1.2 KIBAM 5 28 3 17 13.9 1.14 Fondoviy service JSC 11 40 4 18 13.7 1.13 TuranAlem Securities JSC 2 18 5 23 9.6 0.8 KG Securities LLP 7 30 6 28 4.8 0.40 ALIM 6 29 7 29 4.5 0.37 GAM 8 32 8 31 3.1 0.3 KFC 3 19 9 33 2.7 0.2 VIS - - 10 36 0.9 0.1 MONEY EXPERTS JSC - - --------------------------------------------------------------------------- KIBAM - KIB ASSET MANAGEMENT Ltd JSC; ALIM - Alliance Investment Management JSC; GAM - General Asset management LLP; KFC - Kazakhstan financial company OJSC; VIS - VISOR Investment Solutions LLP. Subjects of pension market (hereinafter - SPM, among KASE's members in 2003 there were four of them, in 2002 - 5) controlled in the reporting period a total of 4.1% of total volume of deals (in 2002 - 15.9%). In this case it concerns only deals made with participation of stock exchange's members, which are SPM, but not about deals with participation of pension assets in general. Other SPM of Kazakhstan worked at KASE through other members of KASE. Activity rating of SPM - members of the stock exchange according to results of 2003 is given below. Headquarters of these companies are in Almaty. ---------------------------------------------------------------------- Activity rating of SPM in 2003 ------------------------------------------------------- Stake Positions Positions: of market, %: in 2002: -------------- -------------- Brief -------------- among in total among in total name of among in total SPM list SPM list SPM SPM list ----- -------- ----- -------- ------------------------- ----- -------- 1 13 39.4 1.6 PAMO Zhetysu JSC 1 3 2 15 31.9 1.3 SAPF 3 8 3 22 21.0 0.9 ABN AMRO Asset Management 4 20 4 30 7.7 0.3 APF of HBK 2 4 ---------------------------------------------------------------------- SAPF - State accumulative pension fund CJSC; ABN AMRO Asset Management - PAMC ABN AMRO Asset Management CJSC; APF of HBK - APF of Halyk Bank of Kazakhstan JSC. Stake of other participants, which were not included into any of listed categories (excluding National Bank of Kazakhstan), in 2003 was 1.344% of exchange's turnover (in 2002 - 0.6%). They are Kazpost JSC - non-banking financial organization (1.341%) and KASE (0.003%), which conducts futures contracts closing deals. IRBIS agency draws subscribers' attention on the fact that positions of company in the published ratings characterize mainly the strategy of the company's behavior at the market, but not its meaning or degree of its collaborators' professionalism. For example, traditional leadership of Bank TuranAlem JSC at KASE during several years says only that the bank prefers to conduct most of its transactions at the organized market, whereas its main competitors pay less attention on exchange's floors. [2004-02-16]