Finance In Brief

The Ministry of finance of Kazakhstan plans to offer MEKKAM-6 and MEKAVM-12 till the end of the week

/IRBIS, Feb 29/

In addition to previously announced SS offerings, the Ministry of finance of Kazakhstan has planned another two issues: MEKKAM-6 and MEKAVM-12.

MEKKAM-6 offering auction (issue #125, NIN will be published later) will be held on March 2 with transfer of funds for purchased MEKKAM on March 3. Maturity date � Sep.1, 00. Circulation term � 182 days. Planned issue volume � KZT500 mln.

MEKAVM-12 offering auction (issue #6, NIN will be published later) will be held on March 3 with the same day transfer of funds for purchased MEKAVM. Maturity date � March 2, 01. Circulation term � 364 days. Planned issue volume � equivalent of 4 mln U.S. dollars.

Considering the facts mentioned above, issuance and repayment schedule for the securities of the Ministry of finance in this week (from February 28 through March 5), previously published by IRBIS, looks as follows:

� Issuance, February 28 � KZT300 mln, MEIKAM-9 #1 (KZ33L3011A00).

� Issuance, February 28 � KZT500 mln, MEKKAM-12 #34 (KZ4CL0103A13).

� Issuance, March 2 � KZT500 mln, MEKKAM-6 #125.

� Issuance, March 3 � $4 mln, MEKAVM-12 #6.

� Maturity, February 29 � KZT786.7 mln, MEKKAM-3 #251 (KZ43L2902A02).

� Maturity, March 3 � KZT1,901.4 mln, MEKKAM-3 #252 (KZ43L0303A01).

This week total repayment volume of SS of the Ministry of finance of Kazakhstan is estimated at KZT2,688.1 mln.

The National Bank of Kazakhstan for March 1 - 3: 1USD/KZT = 140.50, 1DEM/KZT = 71.45, 1RUR/KZT = 4.85, 1EUR/KZT = 139.74

/IRBIS, March 1/

For March 1 - 3, 2000 the National Bank of Kazakhstan has established the following exchange rates for accounting, customs and tax purposes: for 1 USD 140.50 (+0.35) tenge; for 1 DEM 71.45 (-0.91) tenge; for 1 RUR 4.85 (+0.02) tenge; for 1 EURO 139.79 (-1.78) tenge.

Total of 33 currencies are in the list.

U.S. dollar market of Kazakhstan: day results

/IRBIS, March 1/

Following is the table of major indicators of Kazakhstani market for U.S. dollar (more than 98% of country currency market).

Trades in U.S. dollars at Kazakhstan stock exchange (KASE)


Session Main Additional. Evening Evening

Time of the trades (ALM) 10:15 - 11:00 11:30 - 15:30 14:00 - 18:00 14:00 - 18:00

Weighted average rate 140.70 (+0.26) Not given 140.80 �

Volume of the session (mln) 18.230 (+8.490) 0.300 0.300 0

Bid 140.69 140.72 140.76 140.75

Ask 140.70 140.77 140.84 141.05

Number of participants 22 5 4 4

Indicative U.S. dollar quotations on interbank market in information system REUTERS at closing of KASE sessions (disregarding settlement dates)

Bid 140.65 140.70 140.76

Ask 140.71 140.76 140.84

Notes: Best bid and ask prices at closing of the trades are shown as the Exchange quotations.

By indicative interbank quotations of the dollar in REUTERS information system, tenge lost 14 points in comparison with previous day closing on demand and 17 points on supply of the American currency.

First half of the day in the market was very active. Not seeing USD sellers outside Exchange, dealers have concentrated the interests on the KASE�s main session. The high and organized demand caused the next dollar increase. The growth rate was quite high, which was also stipulated by increase of official US dollar rate at once by 35 points. The dealers said (results of REUTERS interrogation) that the National Bank was compelled to make rigid measures on USD rate regulation and has sold large volume of dollars. Thus, the Bank on the one hand has provoked a great demand, on the other - has undertaken measures against the further development of the provoked tendency.

The after-dinner market was less active. The dealers attempted to rise the dollar even above. However there were no adequate demand. The dollar price on the additional session varied from 140.70 to 140.72 tenges for unit. The transactions at Thursday accounts recorded dollar rate growth in comparison with the basic session by 10 points only. Dynamics of the interbank after-dinner quotations also testified to a dealers� restraint concerning long positions in USD.

The events occurred on a background of banks� sufficient tenge liquidity, which, judge by the shortest money quotations, did not decreased.

The current growth of dollar rate for the last 7 days is evaluated by trend 22.7% p.a. The previous seven-day period has been characterized by 9.8% p.a., which is much lower.

For the last two days the average weighted effective yield of the discount State Securities has grown: not indexed on devaluation - from 13.4 to 15.7% p.a., indexed � from 9.1 to 9.5% p.a.

Notes - 42 and MEKKAM�6 auctions will be held tomorrow. Their primary market yield will hardly probable interesting for the investors. Most likely, they will prefer notes, but demand will be not so big as earlier. Thus, it is possible to assume that the part of banks� free money will work tomorrow in the currency sector and dollar will increase.

As the past day has shown, the speed of dollar strengthening is indirectly regulated by the National Bank. Therefore it is difficulty to predict this parameter.

By January results Kazakhstan took the first place in CIS on industrial growth � Goskomstat RF

/IRBIS, March 2/

PRIME-TASS informs, with the reference to Goskomstat (Statistics agency) of Russian Federation (RF), that by January results Kazakhstan took the first place among CIS countries on industrial growth rate. Volume of industrial growth increased 12.5% relative to January of last year. Georgia took the second place (12.4%) and the third belong to Russia (10.7%).

The others are (in decreasing order): Belarus � 6.6%, Moldova � 6.4%, Ukraine � 5.3%, Uzbekistan � 4.4%, Azerbaijan � 4.0% and Tadjikistan � 0.5%.

A decrease in industrial production in January was observed in two CIS countries: Kyrgyzstan � 15.9% and Armenia � 5.7%. There is no information on Turkmenistan.

Volume of transactions in February of 2000 in foreign currencies at KASE reached equivalent of USD127.6 mln

/IRBIS, March 2,/

In February 2000 in foreign currency trade sector of Kazakhstan stock exchange (KASE) trades were held in U.S. dollars (TOD, TOM, SPOT terms), Deutsche marks (TOD, TOM terms) and euros (TOD, TOM). Three session were held daily: the morning (main � TOD), day (additional � TOD) and evening (TOM, SPOT).

Total of 1,506 deals were made in a month, including:

� in U.S dollars on the main and additional sessions with TOD terms � 1,377, with TOM terms � 112, with SPOT � 5;

� in Deutsche mark with TOD terms � 4;

� in eurocurrency with TOD terms � 8.

Total volume of the operations reached an equivalent of KZT17,852.4, or 127,607.7 th. U.S. dollars.

U.S. dollar accounted for 99.8% of Exchange�s total turnover.

Volume of transactions in U.S. dollars (hereafter corresponding figures for previous month are given in parentheses) reached $127,370.0 th. ($84,120.0 th.) for KZT17,819.1 mln (KZT11,697.9 mln), including:

� on main and additional sessions with TOD terms � $109,930.0 th. for an amount of KZT15,376.9 mln with average volume of the trade session $5.234.8 th.;

� on main (due to the holiday in the USA) and evening sessions with TOM terms � $15,240.0 th. for an amount of KZT2,134.7 mln with average volume of the trade session $752.7 th.;

� on evening session with SPOT terms � $2,200.0 th. for an amount of KZT307.5 mln with average volume of the trade session $104.8 th.

In February of 1999 total volume of operations in U.S. dollars at KASE did not exceed $16,105.0 th. for an amount of KZT1,380.4 mln.

Tenge devaluation rate, calculated at weighted average rate of the main session of the Exchange towards the dollar, is estimated in February 2000 (January 31,00 = 139.3835 � February 29,00 = 140.4352) by a trend of 9.5% APR. Last month average devaluation rate of tenge towards the dollar was 9.6% APR.

Weighted average rate of U.S. dollar against tenge, calculated by the deals of the main session of February � 139.87 tenge per unit. For January of 2000 � 139.06 tenge per dollar.

For Deutsche marks volume of transactions did not exceed 55 th. (95 th.) marks for an amount of KZT3.9 mln (KZT6.9 mln).

Tenge devaluation rate towards the mark, calculated at weighted average rate of the Exchange, is estimated in February, 2000 (January 31,00 = 71.5000� February 29,00 = 70.7800) by a trend of 7.4% APR. Last month tenge revalued against mark at an average of 11.8% APR.

Weighted average rate of Deutsche mark towards tenge, calculated by all February deals � 70.77 tenge per mark. For January � 72.15.

For euros volume of transactions in February reached 210 th. euros for an amount of KZT29.4 mln. In January no deals were made in euros.

Tenge revaluation rate towards euro, calculated at weighted average rate of the Exchange, is estimated in February, 2000 (January 31,00 = 139.7000� February 29,00 = 139.1500) by a trend of 2.4% APR.

British Airways and Kazakhstan 

British Airways has had some questions from passengers about our operations in Kazakhstan, and we would like to assure our customers that we have long-term plans in Kazakhstan, and are actually expanding our service through the Oneworld alliance and a new investment programme which will provide our passengers with greater value and increased travel opportunities.

Monitor of public opinion

If you do not have money, you have nothing to risk with

Bakhytzhamal BEKTURGANOVA, President of ASaP

ALMATY, March 2

When you read the operative information by the National Statistic Agency, you are pleased: in January to October 1999 the population�s nominal income increased by 8.9% in comparison with the same period of 1998; real income � by 2.2%; real available � by 2.3%. The maximal level of the cash income was growing in Almaty namely. It is 1.7 higher than in the republic on average. In comparison with the living wage, the average income per capita was 9.2%. The percentage is not high, but it is enough to raise patriotic feelings: as there is a growth, that means that the population�s saving capacity improves, hence we will have soon the internal investment potential .. and our economy will raise, let�s hope so, and will work for people.

However, when we see results of the poll our patriotism disappears.

Can you set some money aside? (% of the polled people)


   Total Men Women
Yes 6.1 3.3 2.8
Yes, partially 20.0 10.0 10.0
No 50.8 23.6 27.2
Money is not enough even for food 19.1 9.5 9.6

How do you think, what kinds of investments are:

(% of the polled people)

   Profitable Safety Risky
In the Halyk Savings Bank 8.2 16.2 37.9
In the National Bank 10.1 16.7 31.7
In commercial banks 8.2 3.3 48.8
In non-state accumulating pension funds 4.7 1.8 49.5
Purchase of shares 6.1 4.3 37.5
Purchase of hard currency 27.3 35.7 12.5
Purchase of jewels (gold) 14.6 22.6 16.0
Purchase of real estates 18.1 30.2 16.4

The risk index, according to the public opinion

(�-1� � maximal risk, �+1� no risk)

1. Halyk Savings Bank -0.22
2. National Bank -0.08
3. Commercial Bank -0.62
4. Non-state Accumulating Pension Fund - 0.77
5. Shares -0.57
6. US dollars +0.67
7. Jewels (gold) +0.40
8. Real Estates +0.49

In February stock market capitalization for PIS of Kazakhstan decreased to 2,170.9 mln U.S. dollars


As of February 29, 2000 stock market capitalization for corporate securities of Kazakhstan (A+B+N excluding SBS) equaled 2,170.9 mln U.S. dollars or KZT304,875.3 mln at KZT/USD rate of the Exchange, effective on that date. By the beginning of February of the year 2000 corresponding figure was at 2,217.0 mln U.S. dollars or KZT309,007.2 mln.

Capitalization decreased by $46.2 mln within a month, which as mainly caused by a removal of OJSC �Embamunaigas� preferred shares from the trade list of the Exchange and decreases in market values of:

� common shares of OJSC �TNC �KAZCHROME� � 91.2%;

� common shares of OJSC �Corporation Kazakhmys� � 15.8%;

� preferred shares of OJSC �Mangistaumunaigas� � 42.9%;

� common shares of OJSC �GEOTEKS� � 41.2%;

2.5% growth in value of common shares of OJSC �Bank TuranAlem� partially compensated the market capitalization decrease caused by the reasons mentioned above.

In general, a decrease in values of securities traded at KASE was observed during the month.

In trade lists of KASE total of (in parentheses corresponding figures for the end of January, 2000 are given) 89 (90) PIS of 68 (68) emitters and 4 (4) state owned block of shares were in late February.

In February on KASE volume of transactions in private securities decreased to $1,428,600


In February, 2000 on the Kazakhstan stock exchange (KASE) in private securities 25 transactions were registered to the total sum of 1,428,600 US dollars, including $963,800 at 19 transactions in the usual trade mode (secondary market trades) and $464,800 � at 6 transactions of primary auction for the Komirbank coupon bonds additional placement (Ekibastuz, KZ2CCAEQCA00, official list of securities. category ���, trade code KOMBb), which was conducted on February 18.

In comparison with the previous month the quantity of transactions decreased by 107% (from 28), and the money turn-over reduced 15 times (from $21,410,100), that testifies to sharp decrease of activity in the Non-state Security market.

Volume of transactions has made 186,712 (140,712 shares and 46,000 KOMBb bonds). In the last month � 13,464,660 shares.

Except KOMBb, in February the greatest volume of transactions was characterized for the following tools:

� Common registered stocks of JSC Neftehimbank (NFCH, official list of securities, category �B�). Their share turn-over (excepting the primary additional placed KOMBb bonds) � 44.3% ($426,700);

� Common registered stocks of JSC Bank TuranAlem (BTAS, official list of securities, category �A�) � 31.4% or $303,100.

In January most liquid were the common registered stocks of JSC SHNOS (SYRG, official list of securities, category �A�, Shymkent).

In total in February, as well as in January, the transactions were conducted in 12 tools. From 21 trades 17 were productive. For one month the productivity has grown a little bit. In January it was characterized by 11 sessions from 18 conducted.

From 25 February�s transactions 13 (in January 38 and 18 accordingly) were conducted by the brokers in Quoted system KASE. Others 6 transactions (10 - in January) were conducted in the main mode of Trade system KASE by a counter auction method.

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