Finance In Brief

Investment attractiveness of stock exchange financial instruments from February 17 through 23, 2000

/IRBIS, Feb 25/

Following is the table that allows to compare investment attractiveness of the financial instruments, which were regularly traded or quoted (thanks to the market-makers) at KASE from February 17 through 23.

Financial instrument Currency Yield, % APR.
AVMEKAM USD 12.91 (12.74)
KKGBb USD 12.21 (13.00)
BTAS USD 12.35 (12.38)
MEKKAM, notes KZT *14.28 (15.53)
MEKKAM, MGU USD *9.14 (14.48)
Euronotes-3 USD 10.38 (10.60)

Notes: Yield of OJSC �Bank TuranAlem� shares (BTAS) was calculated for 6 days by bid quotations; yield of KKGBb � average for bid quotations; MGU � bonds of Mangistau region.

The yields, shown here, do not incorporate overhead expenses that are inevitable when conducting operations and fixing profits. Marked by a star are the instruments with less than a year circulation term. Weighted average effective yields are given for them.

Weekly borrowing balance of the Ministry of Finance on domestic market for SS � negative KZT801.0 mln

/IRBIS, Feb 25/

The Ministry of Finance finished the ninth week of the year 2000 (February 21 - 27) on the primary market for SS with following results. With actual repayment volume of KZT1,664.9 mln (MEKKAM-3 #250; MEOKAM-24 #6 including the conversion) the emitter raised KZT863.9 mln at two auctions.

Weekly balance of the Ministry of Finance�s net borrowing is estimated to equal negative KZT801.0 mln.

February futures contract has been closed at KASE

/IRBIS, Feb 25/

Today at KASE accounts were settled on non-delivery futures contract FUSD0002UN for $1,000. 5 positions were closed at KZT140.13 per dollar settlement price. Current quotation of the futures is KZT142.50 per dollar.

Total volume of interests opened on KASE floor after closing of the trades reached USD5,000 th. (5 positions on FUSD0003UN with March 31, 2000 settlement date).

OJSC �Bank CenterCredit� (Kazakhstan) has registered the 2nd issue of its shares

/KASE, Feb 25/

OJSC �Bank CenterCredit� (Almaty, official list of securities, category �A�) provided Kazakhstan stock exchange (KASE) with the certificate of state registration of its second issue shares, issue prospectus, and the changes and amendments made in the Charter regarding the size of announced authorized capital.

The issue was registered with the National securities commission of Kazakhstan on February 15, 2000. The 2nd issue contains 5,000,000 common inscribed shares with KZT200 face value for a total of KZT1,000,000,000. National identification number is KZ1C36280419.

The issue has been entered into the State register of securities under the number A3628-1.

Announced authorized capital of OJSC �Bank CenterCredit� after two issues equals KZT2,063,339,000.

From June 29 through August 17, 1999 the shares of the bank were traded in �Non-listing securities� sector. After passing the listing procedure they were entered into official list of the Exchange securities of category �A� on August 13, 1999.

Stock market capitalization for PIS of Kazakhstan as of February 25 equals $2,220.7 mln

/IRBIS, Feb 25/

On February 25 stock market capitalization for corporate securities of Kazakhstan (A+B+N excluding SBS) equaled 2,220.4 mln U.S. dollars.

Capitalization increased by $3.15 th. during the week, which was caused mainly by a slight growth (0.79%) in market value of OJSC �Bank TuranAlem� common inscribed shares.

Now 89 instruments of 68 companies and 4 state block of shares can be traded on the floor of KASE.

Weekly volume of Non-state Securities transactions on kase - $156.1

/IRBIS, Feb 25/

Within the 9th week of 2000 on the Kazakhstan stock exchange (KASE) the activity of the non-state securities market has remarkably decreased. During this time 3 transactions totalling $156.1 were made. In comparison with the previous period ($3.419 mln) the trade volume has decreased 3 time.

The total volume of the transactions has made 8,000 shares compared to 47,200 securities of the previous week (1,200 shares and 46,000 KOMBb bonds).

The deals were made in 3 tools. From them only common registered shares of JSC Bank TuranAlem (BTAS, official list of securities KASE, �A� cathegory) have appeared liquid. They have occupied 95.1% of the total volume.

Also transactions were made in common registered stocks of JSC Astana-finans (ASFI, official list of securities, category �A�) and common JSC GEOTEKS (GEOT, sector �Non-listing securities�, first level of admission.

From 3 transactions 2 were direct, that is they were conducted in the KASE Quoted system, excluding automatic satisfaction of applications in counter auction mode. The unique operation in the Astana-finans shares was conducted in the main KASE Trade system mode. In the previous week all transactions were made in the main KASE Trade system mode.

Issuance and repayment schedule for state securities of the Ministry of finance of Kazakhstan for this week

/IRBIS, Feb 28/

From February 28 to March 5 on primary market for state securities of Kazakhstan for the securities of the Ministry of Finance:

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

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

� 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.

At KASE USD exchange rate growth pace increases as the demand of BST gets bigger

/IRBIS, Feb 28/

Today the next morning trades in U.S. dollars, Deutsche mark and euros were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 16 banks participated in the trades.

Today the trades in U.S. dollars opened at 140.30 tenge per unit. Total of 67 deals were made. Weighted average dollar exchange rate equaled to 140.32 (+0.20) tenge per unit. Volume of the session � $9.185 mln (+$4.910 mln). Exchange rate fluctuation during the trade �0.02%. The trades were closed at 140.31/32 tenge per dollar.

Today the trades were characterized by an essential activation of the buyers of the American currency. Despite a strong opening of the market, most of the dealers, that were registered in the trade system of the Exchange and those who were making deals, could not stay away from buying dollars. However, not all the buyers were constructive. Some of them hoped for the exchange rate growth during the session to gain on exchange rate differences by the results of the trade.

Excessive demand caused the USD price to jump to 140.32 at the beginning of the trade. It should be said though, this growth took place under sound deals: at the ninth minute total volume of the deals was over 4 mln U.S. dollars already. But the market did not go higher. Beginning from the 12th minute the dollar exchange rate got stabilized under ever increasing supply, and later the dollar was traded within a narrow 140.31 - 140.32 tenge per unit interval.

Based on the results of the trade, activity of the Exchange market has grown, and the dealers are inclined to buy USD even at growing fast prices. However, stabilizing effect of one of the sellers on the market, in IRBIS analysts� opinion, is able to cool down the participants, which is confirmed in some way by USD quotations on the interbank market after closing of the trades at KASE.

One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 140.32/35 tenge per unit. Two hours later � 140.31/33. In the day session of KASE with TOD payment terms at 12:30PM the dollar was at 140.31/36.

Deutsche mark, morning session, TOD: no deals. Closing quotations � 68.20/71.85 tenge for mark.

Euro, morning session, TOD: no deals. Closing quotations were absent.

Weekly volume of transactions in foreign currencies is $29.250 million

Almaty, Feb 28 (IRBIS)

During the ninth calendar week of the year 2000 (February 21 - 27) 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): 342 (321) deals were made for a total of $29,065 th. ($27,600 th.), including:

� 243 (317) deals for a total of $17,125 th. ($25,600 th.) � on TOD terms;

� 99 (4) deals for a total of $11,940 th. ($2,000 th.) � on TOM terms.

Average volume of the trading day at KASE in U.S. dollars equaled $5,813 th. ($5,520 th.).

When analyzing these data it should be kept in mind that due to the holiday in the USA on February 21 trades in U.S. dollars were held on TOM terms in the main session of KASE.

Tenge devaluation against the U.S. dollar, calculated at weighted average rate of the Exchange on February 25 (only the morning session is taken into account), is estimated by a trend:

� in short term (week) � 7.14% (3.44%) APR,

� in mid term (last 30 days) � 6.3% (3.1%) APR,

� in long term (from the beginning of this year) � 9.0% (9.2%) APR.

Distinctive feature of the week is relative activation of the dealers at working with Deutsche marks and euros.

In Deutsche marks 3 (0) deals were made for a total of 30 th. (0) marks. All deals were made on TOD terms in the main session of KASE. This week tenge devalued against the mark at average of 7.31% APR.

In euros 6 (2) deals were made for a total of 170 th. (40 th.) units of the currency this week. As with the mark, all deals were made on TOD terms in the main session of KASE. This week tenge devalued against euro at average of 1.87% (-22.30%) APR.

In general, weekly volume of the deals in foreign currencies at KASE is estimated at $29.250 mln ($27.640 mln) or KZT4,098.7 mln (KZT3,865.6 mln). On average � $5,850.0 mln ($5,527.9 mln) a day.

From February 21 - 23 on interbank market daily volume of the deals between the banks-residents of Kazakhstan in U.S. dollars varied from $15,367.0 th. to $24,378.0 th.



�KAZAKHTELECOM� (Almaty, official list of securities, category �A�) provided Kazakhstan stock exchange (KASE) with the press-release on the results of implementing the program of modernization and development of telecommunication in Kazakhstan in 1999.

It was said in the press-release, that the program of �KAZAKHTELECOM� on big scale modernization and development of telecommunications has been adopted in 1997, but it was in 1999 when real results can be measured due to fulfilling main tasks that were set forth. In reporting year automatic digital long distance telephone stations (ALDTS) of 5ESS standard produced by �Lucent Technologies� were installed in Aktobe, Taraz and Uralsk, and as a result, the project of making long distance and international telephone stations of Kazakhstan fully digital was completed. Creation of International commutation centers (ICC) in Almaty and Astana lead the way to transformation of Kazakhstan into international principles of making connections with other national telecommunication networks. ALDTS of all regional centers, ICC of CIS countries and other foreign countries are entered into ICC.

Further it was said, in 1999 one of the major projects of Kazakhstan � creation of National Information Highway (NIH) that should provide with digital traffic all regional centers and major cities of the country and transit of international information traffic between Asia and Europe � was underway. In 1998 southern segment of NIH Almaty-Jambyl-Shymkent (1,750 km), which is the part of Transasianeuropean fiber optic communication line (TAE FOCL) connecting Beijing with Frankfurt-on-Maine, was put into operation. In April of 1999 construction works began at western segment of NIH Shymkent-Kyzyl-Orda-Aktobe-Atyrau-Russia (2,500 km), which is planned to be finished by late 2001. This segment of the highway network will become the shortest telecommunication line from Europe to China, Japan and East-Asia countries. 500 km of western segment has been already built.

North branch of the highway Astana-Petropavlovsk-Omsk with 650 km length and digital connection with Moscow and other terminals of Russia and Europe was functioning for a year already. In late 1999 digital radio relay communication system Karagandy-Almaty (1,000 km) with 1,890 channel capacity has been built, which meets all international standards of information transmission. After putting it into operation it becomes possible to set up a digital communication line from Russian Transsiberian communication line Khabarovsk-Moscow to TAE FOCL.

In 1999 �KAZAKHTELECOM� put much effort in reviving communication in villages: 162 of 566 previously shut down village stations were restored, modern satellite stations were set up in 100 remote areas. Along with that, modern digital communication are installed in district centers: in Sarykemer, Asa, Kulan and Merke of Jambyl region digital ATS with 6,608 number capacity have been installed; in Aksai of West Kazakhstan region two digital ATS with 808 number and 4,000 number capacities have been installed; in Khromtau of Aktobe region the station with 2,504 number capacity has been installed.

Besides, in 1999 modernization of local networks of major cities was underway. New digital stations for more than 50 th. subscribers was put into operation in Almaty, capacity of the lines was increased by 30 th. numbers. Modern digital switching systems were installed in regional centers with total capacity of 70 th. numbers. Digital stations based on the most leading switching and communication technologies for 33 th. numbers were set up in Astana. The degree of digitalization of the new capital�s network reached 70% and it is one of the highest in the country. In 2000 digital equipment should be installed in following cities: Astana, Shymkent, Uralsk, Aktobe, Taraz, Temirtau.

Another big project has been completed in 1999, which incorporated in itself the most advanced technologies in CIS � creation of united National data transmission network with the trade mark �Kazakhstan Online� for offering following services: access to the Internet, designing and constructing networks for corporate clients, digitally transparent channels. The National data transmission network consists of 34 joints in 18 major cities of Kazakhstan and connected with each other by digital ground channels with high traffic. The network is controlled by a single center in Almaty around the clock. The most significant advantage of the network is its integrity with the world telecommunication network.

Along with development and modernization projects of telecommunication network �KAZAKHTELECOM� was conducting a policy aimed at stabilization of its financial situation, and reduction of operating expenses and increase in the number of services. International long distance traffic reached 67 mln minutes in 1999, income from offering services reached about KZT30 bln, volume of investments � about KZT6.8 bln. Essential confirmation of the trust in the company � $50 mln loan of European Bank for Reconstruction and Development granted without the guarantee of the government of Kazakhstan.

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