KAZAKHSTAN STOCK EXCHANGE (KASE) December 1, 2008
Jan 16, 2016
KAZAKHSTAN STOCK EXCHANGE (KASE)
December 1, 2008
COEVAL OF TENGE …
KASE was established on November 17, 1993 under the name of Kazakh Inter-bank Currency Exchange – two days after Tenge (the new national currency of Kazakhstan) had been introduced on November 15, 1993.
Currently, November 15 is observed as the official "Day of National Currency".
"New" tenge (since 2006)
"Old" tenge (1993–2006)
NOW COMMERCIAL
KASE is a commercial joint-stock company with 71 shareholders (as of December 1, 2008).
Regional Financial Center of Almaty JSC is the largest shareholder. Shareholders include banks, brokerage firms, asset management companies, pension funds and other professional financial institutions.
Voting method: one share – one vote.
THE SIZE MATTERS
As of November 1, 2008
own capital $10.6 m
paid up charter capital $1.4 m
authorized shares 5,000,000
outstanding shares 450,000
share balance value 2,732 tenge($22.9 )
SO DOES THE PROFIT
assetsnet
profitreturn
on assetsreturn
on equity
2007 $11.9 m $1.8 m 17.8 % 20.2 %
2006 $8.3 m $2.2 m 32.5 % 34.3 %
2005 $5.2 m $1.3 m 29.0 % 30.4 %
The total of members – 99 of which:
WE ARE BIG IN NUMBERS
Category "A" (with the right to trade in all financial instruments circulating on the special trading floor of the Regional Financial Center of Almaty) – 53;
Category "B" (with the right to trade in foreign currency) – 30;
Category "C" (with the right to trade in futures) – 6;
Category "K" (with the right to trade in government securities) – 85;
Category "P" (with the right to trade in corporate serial securities listing on KASE) – 85;
Category "H" (with the right to trade in corporate serial securities admitted to circulation (trading) in sector “Unlisted securities" of the KASE Trading system, and state-owned shareholding of organizations being privatized) – 50.
WE MAKE THE HISTORY (1)
1993 – first trades in foreign currency (US dollars)
1995 – first trades in T-bills
1996 – first trades in derivatives (KZT/USD exchange rate futures)
1997 – first trades in listed shares
1997 – first trades in state-owned shareholding
1997 – first trades in unlisted corporate securities
1998 – launch of KASE "nego" deals system (substitution of over-the-counter securities market )
1998 – first trades in euro bonds of Kazakhstan
WE MAKE THE HISTORY (2)
1999 – first trades in listed bonds
1999 – first trades in municipal bonds (such bonds were prohibited for issue in 2005)
1999 – launch of "nego" repo market
2001 – launch of "automatic" repo market (currently most massive and active sector of KASE market)
2006 – first trades in foreign corporate bonds (JP Morgan and Merrill Lynch)
2006 – IPO of KazMunaiGas Exploration Production shares using KASE settlement system
WE MAKE THE HISTORY (3)
2006 – KAZAKHMYS PLC (UK) secondary share offering by subscription through KASE
2007 – special trading floor of the Regional Financial Center of Almaty city established on the base of KASE (to attract foreign issuers and investors)
2007 – launch of new share market index – KASE Index, continuing numerical series of KASE_Shares Index
2007 – KASE commercialization
2008 – implementation of new listing rules, reconstruction of unity through integration of MTF KASE and STF RFCA
2008 – first trades in affined ingot gold futures
KASE – UNIVERSAL MARKET (1)
Repo (money) market constitutes for 61.9 % of KASE total turnover
33.7 %
8.0 %
49.4 %
3.8 %
Nego repo in corporate securities, USD11,689.9 m
Auto repo in government securities,
USD150, 426.8 m
Shares, USD3,302.4 (1.1 %)
Government securities, USD6,754.5 m (2.2 %)
Auto repo with corporate securities, USD24,423.8 m
Nego repo with government securities, USD2,030.4 m (0.7 %)
Currency,USD102,620.3 m
In 11 months of 2008:
304,485.5USD m
Corporate bonds, USD3,236.9 m (1.1 %)
Repo (money) market constitutes for 61.9 % of KASE total turnover
33.7 %
8.0 %
49.4 %
3.8 %
Nego repo in corporate securities, USD11,689.9 m
Auto repo in government securities,
USD150, 426.8 m
Shares, USD3,302.4 (1.1 %)
Government securities, USD6,754.5 m (2.2 %)
Auto repo with corporate securities, USD24,423.8 m
Nego repo with government securities, USD2,030.4 m (0.7 %)
Currency,USD102,620.3 m
In 11 months of 2008:
304,485.5USD m
Corporate bonds, USD3,236.9 m (1.1 %)
KASE serves a wide range of markets: "nego" and "automatic" repo with government and corporate
securities foreign currency (US dollar, euro, Russian ruble)government securities issued by the National Bank, Ministry of
Finance (including Kazakhstan international bonds) and local district authorities of Republic of Kazakhstan
IFO bonds and foreign government securitiespromissory notesequities corporate bonds
KASE – UNIVERSAL MARKET (2)
"regular" domestic bonds (nominated in tenge or foreign currency, discount or coupon, with fixed or floating interest)
international bonds of Kazakhstan issuersagency bonds (with tax regime same as that for government
securities) infrastructural bonds (collateralized by government guarantee)bonds of foreign issuers (prior registered outside Kazakhstan)
A GREAT VARIETY OF BONDS
TURNOVER DYNAMICS (USD bn)
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 01.12.08
Repo
Corporate securities
Public securities
Derivatives
Currencies 169.3
322.5304.5
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 01.12.08
Repo
Corporate securities
Public securities
Derivatives
Currencies 169.3
322.5304.5
TURNOVER and GDP
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 01.12.08
0
50
100
150
200
250
300
350
KASE, USD bn.
% to GDP
GDP, USD bn.
308.6 %
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 01.12.08
0
50
100
150
200
250
300
350
KASE, USD bn.
% to GDP
GDP, USD bn.
308.6 %
MARKET CAPITALIZATION
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004 2005 2006 2007 2008
Shares
0
2
4
6
8
10
12
14
16
2001 2002 2003 2004 2005 2006 2007 2008
Corporate bonds
as of December 1, 2008 –USD32.0 bn.
as of December 1, 2008 –USD12.4 bn.
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004 2005 2006 2007 2008
Shares
0
2
4
6
8
10
12
14
16
2001 2002 2003 2004 2005 2006 2007 2008
Corporate bonds
as of December 1, 2008 –USD32.0 bn.
as of December 1, 2008 –USD12.4 bn.
LISTED COMPANIES
17 2332
4968
7994
114126
143
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
TOTAL
17 1721
54
62
82
69
25
40
68
101
89
1
78564545
36
1122
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Shares
Corporate bonds as ofDecember 1
as ofDeсember 1
17 2332
4968
7994
114126
143
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
TOTAL
17 1721
54
62
82
69
25
40
68
101
89
1
78564545
36
1122
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Shares
Corporate bonds as ofDecember 1
as ofDeсember 1
SECURITIES OF OFFICIAL LIST
29 40 5788
129174
235
295
370
2000 2001 2002 2003 2004 2005 2006 2007 2008
TOTALas of
December 1
9078
107
4261
93
332728
263
1
202
145
9668
4613 24
2000 2001 2002 2003 2004 2005 2006 2007 2008
Shares
Debt securities
as of
December 1
29 40 5788
129174
235
295
370
2000 2001 2002 2003 2004 2005 2006 2007 2008
TOTALas of
December 1
9078
107
4261
93
332728
263
1
202
145
9668
4613 24
2000 2001 2002 2003 2004 2005 2006 2007 2008
Shares
Debt securities
as of
December 1
OFFICIAL LIST INDUSTRIAL STRUCTURE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2001
2002
2003
2004
2005
2006
2007
01.1
2.08
Energy/powerengineeringFinance
TelecommunicationservicesRaw materials sector
Industry
Main consumer sector
Public sector
Information technology
Health protection
Discretionary consumersector
Shares
2000
2001
2002
2003
2004
2005
2006
2007
01.1
2.08
Corporate bonds
Global Industry Classification Standard (GICS) of S&P has been used
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2001
2002
2003
2004
2005
2006
2007
01.1
2.08
Energy/powerengineeringFinance
TelecommunicationservicesRaw materials sector
Industry
Main consumer sector
Public sector
Information technology
Health protection
Discretionary consumersector
Shares
2000
2001
2002
2003
2004
2005
2006
2007
01.1
2.08
Corporate bonds
Global Industry Classification Standard (GICS) of S&P has been used
SHARE AND BOND LIQUIDITY PARAMETERS
KASE total turnover for 11 months of 2008 in shares – USD3,302.4 m.,in corporate bonds – USD3,236.9 m.
3,2
4,1
3,3
8,9
0
1
2
3
4
5
6
7
8
9
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dec.2008
Corporate bonds
Shares
Turn
over
, USD
bn.
KASE total turnover for 11 months of 2008 in shares – USD3,302.4 m.,in corporate bonds – USD3,236.9 m.
3,2
4,1
3,3
8,9
0
1
2
3
4
5
6
7
8
9
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dec.2008
Corporate bonds
Shares
Turn
over
, USD
bn.
SHARE AND BOND LIQUIDITY PARAMETERS
KASE average daily turnover for 11 months of 2008 in shares – USD14.4 m.,in corporate bonds – USD14.0 m.
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008
SharesCorporate bonds
Daily
turn
over
, USD
m.
KASE average daily turnover for 11 months of 2008 in shares – USD14.4 m.,in corporate bonds – USD14.0 m.
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008
SharesCorporate bonds
Daily
turn
over
, USD
m.
MAIN CHALLENGES OF THE MARKET
• lack of free-float equities (the heritage of case-by-case privatization)
• conservative policy of the main domestic investors ("buy bonds and hold till maturity")
KASE INDEX
2,856
(19.07.07)
2,387
(20.08.07)
1,589
(05.06.06)
2,808
(12.02.07)2,394
(19.04.06)
2,858
(21.02.08)
960
(28.11.08)
0
700
1400
2100
2800
3500
4200
01
.01
.05
01
.04
.05
01
.07
.05
01
.10
.05
01
.01
.06
01
.04
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01
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.06
01
.10
.06
01
.01
.07
01
.04
.07
01
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.07
01
.10
.07
01
.01
.08
01
.04
.08
01
.07
.08
01
.10
.08
01
.01
.09
0
50
100
150
200
250
300
KASE Index
Market share deals volume, USD m.
682.0
216
(05.01.05)
689.3
503.3 391.6507.4
2,856
(19.07.07)
2,387
(20.08.07)
1,589
(05.06.06)
2,808
(12.02.07)2,394
(19.04.06)
2,858
(21.02.08)
960
(28.11.08)
0
700
1400
2100
2800
3500
4200
01
.01
.05
01
.04
.05
01
.07
.05
01
.10
.05
01
.01
.06
01
.04
.06
01
.07
.06
01
.10
.06
01
.01
.07
01
.04
.07
01
.07
.07
01
.10
.07
01
.01
.08
01
.04
.08
01
.07
.08
01
.10
.08
01
.01
.09
0
50
100
150
200
250
300
KASE Index
Market share deals volume, USD m.
682.0
216
(05.01.05)
689.3
503.3 391.6507.4
KASE uses its own trading platform:
"Server – Client" electronic trading system
remote access
electronic signature and electronic document circulation
traffic encryption
on-line data preservation
OUR TECHNOLOGIES
KASE CONTACT DETAILS
Internet: www.kase.kz
E-mail: [email protected]
Phone: (+7 727) 237 53 00, 237 53 11, 272 98 98
Fax: (+7 727) 296 64 02, 272 09 25
Address: 291/3a, Dostyk ave, 050020, Almaty, Kazakhstan