Finance In Brief

From April 4, 2000 30 shares of 29 non-listing companies were removed from the trade lists of KASE

/IRBIS, Apr.4/

By the decision of the Board of Kazakhstan stock exchange (KASE) #27/0 of April 3, 2000, securities of 29 companies with the market capitalization of less than 1 mln U.S. dollars are removed from April 4, 2000. The decision was made because of an absence of quotations and the deals in these instruments during the last three months at least. All removed securities could be traded at KASE in "Non-listing securities" sector with the first or the second admittance levels.

Following is the list of securities that were removed from the trade lists.

common inscribed shares of JSC "Atyraugasmontaj" (trade code - AMGT);

common inscribed shares of JSC "Akku" (trade code - AKKU);

common inscribed shares of JSC "Alaugas" (trade code - ALGT);

common inscribed shares of JSC "Alaugas" (trade code - ALGZ);

common inscribed shares of OJSC "Atyrauoblgas" (trade code - AOGZ);

common inscribed shares of OJSC "Asem" (trade code - ASEM);

common inscribed shares of OJSC "Atyrau-Nan" (trade code - ATNN);

common inscribed shares of OJSC "Atyraukolik" (trade code - ATUK);

common inscribed shares of JSC "Avtobusnyi park #3" (trade code - AVP3);

common inscribed shares of JSC "Bereke" (trade code - BERI);

common inscribed shares of OJSC "Dorojno-mostovaya stroitelnaya industrya" (trade code - DMSI);

common inscribed shares of JSC "Dorojno-stroitelnoe upravlenie-62" (trade code - DS62);

common inscribed shares of OJSC "Inderbor" (trade code - INDB);

common inscribed shares of OJSC "Indergas" (trade code - INDG);

common inscribed and preferred inscribed shares of JSC "Margarinovyi zavod" (trade codes � KMRZ and KMRZp);

common inscribed shares of JSC "Kulsarygas" (trade code - KSGZ);

common inscribed shares of JSC "Karatau-Sut" (trade code - KSUT);

common inscribed shares of JSC "Kazakhlakritsa" (trade code - KZLK);

common inscribed shares of JSC "Oral Joldary" (trade code - ORJD);

common inscribed shares of OJSC "Sairam" (trade code - SIRM);

common inscribed shares of JSC "SMU-10" (trade code - SU10);

common inscribed shares of JSC "Taskalagazifikatsya" (trade code - TKGZ);

common inscribed shares of OJSC "Temrat" (trade code - TMRT);

common inscribed shares of JSC "Tenizjolkurylysy" (trade code - TNJK);

common inscribed shares of JSC "Transagentstvo" (trade code - TRAG);

common inscribed shares of OJSC "Uralskdorstroi" (trade code - URDS);

common inscribed shares of "Uralskoe proizvodstvennoe objedinenie stroimaterialov" (trade code - URST);

common inscribed shares of JSC "Vostokdorstroi" (trade code - VKDS);

common inscribed shares of OJSC "VASH VYBOR" (trade code - VVIB).

Thus, as of April 4 these securities were in trade lists of KASE: 59 PIS of 39 emitters and 4 state blocks of shares.

After the restructurization of the lists capitalization of the stock market for corporate securities of Kazakhstan (A+B+N without SBS) is estimated at 2,201.993 mln U.S. dollars, 4.8 mln U.S. dollar decrease.

Kazakhtelecom Wards off Attacks by the Antimonopoly Agency


ALMATY, April 4


On Tuesday Kazakhtelecom uttered its position regarding questions raised by the Antimonopoly Agency before the government a week ago, when it was offered to de-monopolise the national operator. The Kazakhtelecom first Vice-President, Vladimir Kushnir, announced �a mechanical division of the company into sections would not result in de-monopolisation of the market, as the Agency wanted, but only in a dismemberment of the company, as it was possible to de-monopolise the market only with the help of competing structures along with the monopoly.�

He was supported by representatives of Kazcommerts-Securities and AIG Silk Road, shareholders of Kazakhtelecom. Iskander Yerimbetov said de-monopolisation of Kazakhtelecom might result in anti-synergetic effect, as each of the new companies would have to form new departments, the total expenses volume would raise; hence, the quality might fall.

A spokesman of the Antimonopoly Agency emphasised �they had disclosed facts of infringing the antimonopoly legislation by Kazakhtelecom, as the company collected payments for telephonic calls that had not taken place, restrained access for other entities to the market, as well the company participated in activities of other commercial structures.�

Nurlan Aldabergenov mentioned company's repeated refusals from submitting materials and accessing to checks, as well as the failed experiment for introduction of payment by the minute for local calls in Karaganda.

In reply to this Vladimir Kushnir said �the calculation of duration of intertown and international calls, which had started from the moment of �beep� tones after the number had been dial, was misunderstood.� According to him, the signal that fixes the beginning of call reaches the devices only when the subscriber, whose number you dial takes a receiver.

�In August 1999 this fact was confirmed by the Almaty Antimonopoly Committee's

inspection of Almatytelecom. This inspection certified absence of any infringements,� Mr. Kushnir emphasised.

Further he said that analysis of complains on ungrounded bills for one-minute intertown calls had showed that had been caused by �telephonic piracy�, faultiness of the equipment, calls to faxes, switchboards, number determinant telephones and telephone answering apparatuses. However, according to the Kazakhtelecom first Vice-President, the number of these cases is 0.004%. Nevertheless, each case is inadmissible.

�It is impossible to say that we purposefully collected money for false calls,� he added.

Currently 458 operators have licenses for rendering telecommunication services. Kazakhtelecom is blamed for that it being the owner of public telecommunication networks collects payment for connecting other operators at its own tariffs.

�We explain, that these tariffs were not approved by the Agency, instead of them Temporary methodical regulations which have not yet been registered, hence they cannot be considered as a regulating document. That is why we think tariffs earlier determined by the company to be appropriate, Vladimir Kushnir said.

At present Kazakhtelecom participates in authorised capitals of 11 juridical persons.

�The joint meeting of founders did not decide to leave the composition of founders. This issue will be considered taking into account interests of all shareholders,� he stated.

The first Vice-President said, in the last year 212 different inspections had been conducted in the company, and that definitely infringed the legislation, which stipulated that inspections of juridical persons' activities were permitted not more than once a year.

�Refused access was caused by illegal inspections by supervising organisations and abuses of power. For example, instructions did not provide subjects of checks, period, and they were often signed not by the first head, and there was no official stamp,� he said.

As far as the unsuccessful experiment in Karaganda was concerned, Mr. Kushnir announced the experiment �had been started a moth ago, and statements on its insolvency were at least premature.�

THE GLOBE asked an independent expert on economics to comment on possible de-monopolisation of Kazakhtelecom. This issue has been discussed for 3 to 4 years, the expert said. If the company is de-monopolised, the issue of repayment of foreign loans to the company will become pending. As there is nobody to repay the money, possibly, de-monopolisation of Kazakhtelecom will be again denied.

Note: the Kazakhtelecom's Authorised Capital includes 10% of ordinary shares and 10% of cumulative preference shares circulating in the stock market: 30% of ordinary shares belong to Kazcommertsbank, and 50% of shares belong to the state, whose juridical interests are being lobbied by the Ministry of Transport and Communications.

In the last year the company's gross profit was about US$ 250 million, i.e. by US$ 50 million less than in 1997. However, Kazakhtelecom thinks it to be a success only against the background of 60% devaluation of tenge since April 5, 1999.

Kazakhstan to receive forecasted income of USD9 bln from KIO �vice-president of "Kazakhoil"



By the information of PRIME-TASS, vice-president of national oil and gas company "Kazakhoil" Galiusat Keshubaev informed at the presentation of Karachaganak integrated organization (KIO), that Kazakhstan would receive about USD9 bln within 40 years the contract on product division works.

Of forecasted income, Kazakhstan will receive about $5 bln as budgetary payments and another $4 mln or so � as a share in product division. Volume of capital expenses is estimated at $11 bln. When the agreement on product division went into effect the country has received $330 mln bonus. Another $150 mln will be received after the decision on increasing the production of gas condensate by 8 mln tons a year is made.

Keshubaev also says that during contractual time 292 mln tons of oil and gas condensate, as well as 856 bln cubic meters of gas are planned to be produced, of which 471 bln cubic meters will be sold considering the backward pumping into the layer.

Term of circulation of the planned Kazakhstan euronotes can make from 7 till 10 years



As REUTERS informs, the deputy finance Minister Anvar Sajdenov has declared at a press-conference, that term of circulation of the new Kazakhstani eurobonds can be increased till 7-10 years. The earlier eurobonds have been issued for 3-5 years. It mirrors desire of the Government. However the final term of circulation will be determined after the series of presentations.

Anvar Sajdenov has confirmed that volume of issue can make from $200 to $500 million. Placement, presumptively, will be held in the beginning of May. A final decision concerning volume will be determined based on requirements of the republican budget and the world markets situation.

The lead managers Deutsche Bank and J.P. Morgan have informed that the presentation will begin in London since April 10 and then will run in Frankfurt, Geneva, Boston and New York.

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