Finance In Brief

Prospectus of OJSC �Almaty Kus� (Kazakhstan) is on the Internet

/IRBIS, Apr 21/

Due to initial additional placement of coupon bonds of OJSC �Almaty Kus� (Chapaevo of Almaty region, KZ2C3AF64A13, KASE official list of securities, category �A�, trade code ALKSb) that will be held on April 25, and due to the fact that the shares of this company were entered into official list of the securities of the Exchange, original prospectus of the company was published on the web-site of KASE on the Internet (

To publish this document as fast as possible on the server, KASE presents it in its original version without special formatting. For this reason illustrations and schemes, as well as their references were removed from original document. Later, the version of the document on the Internet will completely duplicate the original document.

The prospectus was prepared by OJSC �Almaty Kus� and given to the Exchange within listing requirements.

At trade floors of IPE pric first circulation of legal reference manual Lawyer 2.1 � �All about the financial markets �, intended for the capital market experts.

Disk contains information concerning all branches of right, laws, decrees, normative statements, comments and changes in current legislation accepted till April, 2000.

Convenient search, interactive, completeness and actuality of the information � all of these make the reference irreplaceable.

Please, contact:

Tel. (3272) -636 651, 632 646, fax 638 980, E-mail: [email protected]

Weekly Ministry of Finance of Kazakhstan balance on the SS domestic market - minus 77.6 million tenges

/IRBIS, Apr 21/

The Ministry of Finance has finished 17th calendar week (April 16 - 23) in the State Securities primary market with the following results. At actual volume of redemption of 511.8 million tenges (3.6 mln USD at the official rate on the current day) the emitter attracted at 4 auctions 434.2 million tenges.

The week balance of the emitter is minus 77.6 million tenges.

STATISTICS: Weekly volume of transactions in PIS at KASE � $364.3 th

/IRBIS, Apr 21/

During the seventeenth week (April 17 - 21) of year 2000 a slight increase in the activity of traders in private issue securities (PIS) trade sector of Kazakhstan stock exchange (KASE) was observed. Of five trading days four were successful, and by the results of those days 5 deals were made for a total of $364.3 th. It exceeds the volume of Exchange trades of previous week 5.1 times, with 10 deals made in that period.

In terms of securities the volume reached 54,936 shares (50,104 papers - last week, including: 47,094 shares and 3.010 bonds).

The deals were made in 4 instruments. The most liquid were common inscribed shares of OJSC �TNC �Kazchrome�, with 48.0% of total volume of deals in PIS. The following were:

� common inscribed shares of OJSC �Kazzinc� (29.6% of total volume);

� common inscribed shares of OJSC �Temirbank� (18.3%);

� common inscribed shares of OJSC �Corporation Kazakhmys� (4.1%).

Three deals of the week were direct (9 in last week), that is, they were made by the brokers in Quotation system of KASE, which automatically excludes satisfaction of the bids in counter auction mode. Two deals were made using counter auction mode.

Capitalization of the Exchange market of PIS of Kazakhstan on April 21 - $1,631.2 mln

/IRBIS, Apr 21/

On April 21 capitalization of the Exchange market of corporate securities of Kazakhstan (A + B + N without SBS) has amounted to $1,631.2 mln.

Within a week capitalization increased by $144.22 th. The growth in capitalization was caused by entering into trade lists of KASE from April 20 common shares of OJSC �Kazzinc� (�Non-listed securities� sector, second admittance level), and by the growth in value of common shares that were traded during the week: OJSC �Corporation Kazakhmys� (51.5%), �TNC �Kazchrome� (24.6%) and OJSC �Temirbank� (0.1%).

Now 58 instruments of 38 companies and 4 state blocks of shares can be traded on the trade floor of KASE.

The National Bank of Kazakhstan for April 22 - 25 1USD/KZT = 142.25, 1DEM/KZT = 69.78, 1RUR/KZT = 4.91, 1EUR/KZT = 136.48

/IRBIS, Apr 24/

For April 22 - 25, 2000 the National Bank of Kazakhstan has established the following exchange rates for accounting, customs and tax purposes: for 1 USD 142.25 (0) tenge; for 1 DEM 69.78 (-1.92) tenge; for 1 RUR 4.91 (0) tenge; for 1 EURO 136.48 (-3.75) tenge.

Total of 33 currencies are in the list.

Euronotes of Kazakhstan, ISMA

/IRBIS, Apr 24/

Quotations for Kazakhstan euronotes from ISMA based on the results of the trade day ended on April 21, 2000:

ENT-02 (XS0080679961) Bid - 95.800, Ask - 96.800, Mid - 96.300, Yld - 10.379;

ENT-04 (XS0102764031) Bid - 109.100, Ask - 110.100, Mid - 109.600, Yld - 10.857;

Prices are shown as percentages.


At KASE a noticeable increase in supply stimulates the exchange rate to fall further

/IRBIS, Apr24/

Today the next morning trades in U.S. dollars with TOD payment terms were held at Kazakhstan stock exchange (KASE). Trades in Deutsche marks and euros were held due to a holiday in Germany. 17 banks participated in the trades.

Today the trades in U.S. dollars opened at KZT142.23 per unit. Total of 83 deals were made. Weighted average dollar exchange rate equaled to KZT142.10 (-0.07) per unit. Volume of the session � $4.715 mln (+$3.220 mln). Exchange rate fluctuation during the trade �0.11%. The trades were closed at KZT142.09/10 per dollar.

The conjuncture of the session was almost identical to that of previous trades. Most of the supply was concentrated on two sellers. These sales were balanced by the demand of numerous buyers. However, supply was over the demand on the floor. During the whole trades the exchange rate of the American currency was inclined to fall, though some brief corrections were observed. Relative balance of the market was achieved only at the last five minutes of the trade mainly at KZT142.10 per dollar.

By the results of the trades a slight decrease in the exchange rate of the dollar against the tenge was observed. Significant increase in the volume currency supply on the floor today implies that the banks are still selling the earnings of their clients.

One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at KZT142.00/07 per unit. Two hours later quotations � 142.03/09. In the day session of KASE with TOD payment terms at 12:30PM the dollar was quoted at KZT142.03/08 per unit.

In Deutsche mark and euro trades were not held due to Easter holidays in Europe.

weekly volume of transactions in foreign currencies at KASE � equivalent of $21.699 mln

/IRBIS, Apr 24/

During the seventeenth calendar week of the year 2000 (April 17 - 23) trades were held in U.S. dollars, Deutsche marks and euro with TOD, TOM and SPOT terms in foreign currencies trade sector of Kazakhstan Stock Exchange (KASE).

Three trades were held daily: the morning (main, USD_TOD, DEM_TOD, EUR_TOD), day (additional USD_TOD, DEM_TOD, EUR_TOD) and evening (USD, DEM, EUR on TOM and SPOT terms).

In U.S. dollars (hereafter corresponding figures for previous month are given in parentheses): 264 (626) deals were made for a total of $21,650 th. ($44,020 th.), all deals were made on TOD terms.

Average volume of the trading day at KASE in U.S. dollars equaled $4,330 th. ($8,806 th.).

Tenge devaluation against the U.S. dollar, calculated at weighted average rate of the Exchange on April 21 (only the morning session is taken into account), is estimated by a trend:

� in short-term (week) � negative 5.0% (negative 3.9%) APR,

� in mid-term (last 30 days) � 6.2% (8.0%) APR,

� in long-term (from the beginning of this year) � 9.3% (10.3%) APR.

In Deutsche marks 5 (2) deals were made for an amount of 100 th. (110) currency units. Deals were made on TOD terms in the main session of KASE. Against mark tenge devalued at an average of 13.0% APR.

In euros no deals were made.

Nsc of Kazakhstan has Calculated Income Ratios of Apf  for March-99 - March-00

ALMATY, Apr 21 (irbis)

The National securities commission of Kazakhstan (NSC) has calculated ratios of real and nominal incomes of accumulative pension funds (APF) of the country for March 1999 � March 2000.

The data is presented in the following table. When compiling the table the agency IRBIS included the information of NSC on volumes of net assets of APF (total pension assets less liabilities on charged commissions, accounts payable on pensions) as of March 26, 1999 (no data for April 1) and April 1, 2000. Assets have been converted into U.S. dollars at official rate of the National Bank, effective on given dates. In parentheses are the differences between comparable figure of previous month.

  Ratio of real   Ratio of nominal   Net assets, mln USD
Title of PAMC or APF  income �3  income �2  As of March 26.99  As of Apr. 1.00
CJSC "Gosudarstvennyi nakopitelnyi pensionnyi fond"
CJSC "Gosudarstvennyi nakopitelnyi pensionnyi fond"  24.25 (-0.94)  49.60 (-0.88)  246.539  256.750
CJSC "Kompanya po upravleniu pensionnymi aktivami "ABN AMRO Asset Management"
JSCOT APF "Narodnyi pensionnyi fond"  41.42 (-0.76)  70.05 (-0.85)  2.969  7.752
JSC JPAPF "NeftGas-DEM"  41.04 (-0.77)  69.81 (-0.65)  3.061  9.789
CJSC "APF "KaspiiMunaiGas"  38.80 (-1.02)  67.12 (-0.95)  3.260  8.003
CJSC "Kompanya po upravleniu pensionnymi aktivami "Jetysu"
CJSC "Otkrytyi nakopitelnyi pensionnyi fond "Ular"  43.21 (-1.82)  72.42 (-1.90)  10.509  36.406
CJSC "Nakopitelnyi pensionnyi fond "Kazakhmys"   44.78 (-1.37)  74.32 (-1.35)  11.772  20.580
CJSC "Kompanya Halyk Bank Kazakhstan po upravleniu pensionnymi aktivami"
CJSC "APF Halyk Bank Kazakhstan"  43.39 (-0.76)  72.64 (-0.63)  39.625  90.877
CJSC "Kompanya po upravleniu pensionnymi aktivami "Ak niet"
CJSC "APF "UMIT"  37.49 (-0.58)  65.54 (-0.42)  9.663  32.975
CJSC "Kompanya po upravleniu pensionnymi aktivami "BTA Asset Management"
CJSC �NOAPF �Kurmet�  32.62 (+0.13)  59.68 (+0.43)  0.467  6.340

By the data of NSC weighted average ratio of real income for pension assets of the accumulative pension funds mentioned above for March 1999 � March 2000 equaled 28.63 (-0.78).

Only those funds, whose assets were under constant management of indicated PAMC throughout the reporting period, are shown in the table.

Comparison of data on other APF, whose assets were under the management for incomplete period, will be inaccurate.

Ratio of nominal income (K2), by the method of NSC, reflects the profitability of APF assets calculated by accruing totals.

Ratio of real income (K3) � NSC estimate of the profitability of the assets, including consumer price index (CPI) in Kazakhstan, which equaled 120.4 by the data of NSC.

Devaluation of national currency that reached 60.89% (IRBIS estimates) by weighted average rate of tenge towards dollar of the Exchange does not take into consideration K3. Actually, assets of the depositors are protected against devaluation by investing them into securities indexed by the change in exchange rate of tenge against the dollar (AVMEKAM, MEKAVM, SS of local executive bodies), into currency bonds (euronotes of Kazakhstan, securities of foreign emitters) and currency deposits of the banks.

Important note: the agency IRBIS is not responsible for the accuracy of the data presented by NSC, as well as for the accuracy of calculation methods used for the ratios mentioned above.

OJSC Neftekhimbank�s license has been cancelled


The National Bank of Kazakhstan has distributed a press-release (#14, dated April 20, 2000), where it is said that the license to conduct banking operations issued to OJSC �Neftekhimbank� (Shymkent) was cancelled.

The press-release reads that functioning of OJSC �Neftekhimbank� further under current situation is dangerous to the interests of the depositors and lenders of the bank. �In order to stop further spending of the bank resources, that can be used to satisfy the requirements of the depositors (first of all those of private persons) when the bank is liquidated, the National Bank of Kazakhstan has to cancel the license of OJSC �Neftekhimbank� to conduct banking operations�, is said in the press-release.

The National Bank notes that in the second half of 1999 an essential deterioration in financial situation of the bank was observed, which was caused by the fact that the borrowers of the bank did not pay back the loans of the bank. It had a negative impact on income and solvency, that is the bank's capability to meet its obligations to its depositors. Financial situation of the bank has also worsened because of the conflict between the managing bodies of OJSC �Neftekhimbank�, including a litigation over the management of the bank, that took place among the managers of the banks from November 1999 through February 2000.

It is said in the press-release that the management of the bank violated the norms set by the National Bank and the requirements of legal acts of the National Bank several times, as well as current legislature that should be obeyed to protect the interests of the depositors. The National Bank has imposed all possible restrictions and sanctions to stabilize the activity of OJSC �Neftekhimbank� and to improve its financial indices, after it found the violations during 1999-2000. These violations, mentioned above, were confirmed after a complex investigation of OJSC �Neftekhimbank� was conducted by the National Bank from January 18 through February 13, 2000.

But all the measures taken by the National Bank did not give necessary results.

By the decision of the Board of the National Bank of Kazakhstan #19, dated April 2, 2000, in order to improve the bank's activity financially, and to stabilize its work, to minimize the risks associated with functioning of the bank and to protect the interests of its depositors the license was suspended with respect to the reception of deposits from private persons; lending operations (granting loans in monetary terms); warranties (issuing orders, warranties and other commission on behalf of third parties, that is to be fulfilled in monetary terms). Along with that, the National Bank of Kazakhstan recommended the management of OJSC �Neftekhimbank� to conduct the number of measures to improve financial health of the bank, including the work on returning bad debts, cutting administrative expenses and increasing capitalization of the bank while the license is suspended. But financial situation of OJSC �Neftekhimbank� kept worsening and current banking legislature being violated. Based on the opinion, stated in the press-release, there was a threat of complete loss of the solvency of the bank as a result of a decrease in its assets, including cash and property that is needed to make settlements on bank liabilities.

Presently, OJSC �Neftekhimbank� is not capable of meeting its obligations, which is confirmed by numerous complaints of legal entities and private persons regarding the repayment of funds deposited in the bank, improperly met contractual obligations on transferring money. Top management of the bank has dismissed itself and for now the bank has no management.

The emphasis in the press-release is put on the fact that by preliminary data, the bank has sufficient liquid assets to meet its obligations on the deposits of private persons, that reach KZT170 mln.

Interesting fact is that the management of the bank did not even notify Kazakhstan stock exchange (KASE) of the suspension of the license under a number of positions in February, notwithstanding the presence of the shares of the bank in KASE official list of the securities under category �B�. Soon KASE intends to discuss the matter on applying delisting procedure to the shares of OJSC �Neftekhimbank�.

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