KAZAKHSTAN STOCK EXCHANGE INC.

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KAZAKHSTAN STOCK EXCHANGE INC.
Tallinn2007, May 1314
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YOUNG AND SINGLE
KASE was established at November 17, 1993 under
the name of Kazakh Interbank Currency Exchange,
two days after the launching of tenge new legal
tender of Kazakhstan. KASE non-commercial
joint-stock company with the 59 shareholders
National Bank of Kazakhstan (the largest
shareholder), banks, brokerage firms, asset
management companies, pension funds and other
professional financial institutions. All of them
have only one vote each.
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UNIVERSAL EXCHANGE

• KASE serves the markets of
• foreign currencies
• money market
• equities
• corporate bonds
• government securities
• derivative instruments
• promissory notes

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OUR MEMBERS

• KASE has 86 members
• banks 29
• brokerage firms 49
• asset management companies 8

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TRADING FLOORS (LISTING CATEGORIES)

• TRADING FLOOR FOR LISTING COMPANIESCategory "A"
  Category "B" Non listing securities sector
• SPECIAL TRADING FLOOR OF RFCAOfficial list
  of special trading floor Non listing securities
  of the Financial Centre

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IMPRESSIVE DYNAMICS OF TRADE VOLUME
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UNIVERSAL EXCHANGE (3 months 2007)
In total, repo (money) market takes 69.2 of
general KASE turnover
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DOMINATION OF REPO AND FOREX MARKETS
KASE repo market is specially designed for
domestic purposes to satisfy the needs of local
pension funds and banks in short-term money
borrowings and lendings. KASE foreign currencies
market the basic trading site for the National
Bank of Kazakhstan to regulate the exchange rate
of tenge. KZT/USD the KASE exchange rate today
official exchange rate tomorrow.
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CORPORATE SECURITIES MARKET
Total KASE turnover for 3 months 2007 with the
equities 793,5 mln USD,with the corporate
bonds 1 098,7 mln USD
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MARKET CAPITALIZATION (bn USD)
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UNEXAMPLED GROWTH (in 20052007)
Index KASE_Shares demonstrated the rapid growth
11.1 times (for the period Jan.05, 2005 Apr.19,
2006) due to the appearance of new investors
class mutual funds and individuals, and 8.6
(for the period Jan.03, 2007 May.03, 2007).
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GROWING ACTIVITY OF INDIVIDUALS (equity market)
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GROWING ACTIVITY OF INDIVIDUALS (corporate bonds
market)
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LISTED COMPANIES
Listed companies
Securities
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LISTED COMPANIES (by structure)
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LISTED SECURITIES (by categories)
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SPECIAL TRADING FLOOR OF RFCA
Number of Issuers 14 Number of securities
issues 56 Shares 15
Bonds 41 All of them are listed at KASE Total
trade volume of stocks and bonds transactions
40.3 mln USD Shares 39.9 mln USD
(sale of state block of
Kazakhtelecom's shares among pension
funds), Bonds 404.8 thousand USD
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FOREIGN SECURITIES

• Different ways for foreign companies which want
  to make borrowing in Kazakhstan on the exchange
  market
• shares placement, IPO (securities need to be
  listed on KASE or on special trading floor
  of RFCA)
• bonds issue, which is registered in accordance
  with legislation of a foreign state
  (securities need to be listed on KASE or on
  special trading floor of RFCA)
• bond issue, which is registered in accordance
  with legislation of the Republic of
  Kazakhstan
• Kazakhstan Depository Receipts, etc

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RULES AND REQUIREMENTS

• All listing requirements are established by the
  following documents
• special normative act the Resolution of the FSA
  Board ?63 "About Requirements for Issuers
  and Their Securities admitted in circulation
  on the Stock Exchange and for Specific Categories
  of the Stock Exchange Listing"
• Internal document of KASE "Listing rules of KASE"
• Internal document of KASE "Listings Requirements
  of Foreign Securities and Kazakhstan
  Depository Receipts"
• Internal document of KASE "Rules of organization
  and functioning of the special trading floor
  of RFCA"

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LISTING REQUIREMENTS TO FOREIGN ISSUERS AND
THEIR SECURITIES
Requirements CATEGORY "A" CATEGORY "B"
Existence term Not less than 3 years Not less than 3 years
Financial statements in compliance with IAS/IFRS or GAAP IAS/IFRS or GAAP
Equity 100 mln USD 10 mln USD
Net profit for 3 last years for 1 last year
Audit Delloitte, ErnstYoung, KPMG, Waterhouse Coopers Delloitte, ErnstYoung, KPMG, Waterhouse Coopers
Ratings (shares, bonds) no lower than SP, Fitch BBB- Moodys Baa3 B B2
Presence of market-maker Required Required
Settlements Only through Central Depository of Securities Only through Central Depository of Securities
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LISTING REQUIREMENTS TO FOREIGN ISSUERS AND
THEIR SECURITIES (2)
It is necessary to have rating of the issuer and
(or) its securities excluding shares, which are
listed on the main floor (under the highest
listing category) of one of the following stock
exchanges NASDAQ, NYSE, Deutche Boerse,
Euronext, London SE, Tokyo SE, BME Spanish
Exchange, Borsa Italiana, SWX Swiss Exchange,
Taiwan SE.
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LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR
OF RFCA
1st condition Listing on one of the stock
exchanges which are included into the list
approved by Authority body of RFCA, Toronto SE,
Tokyo SE, BME Spanish Exchange, Borsa Italiana,
SWX Swiss Exchange, Taiwan SE, Hong Kong SE,
Singapore SE, Shanghai SE, Moscow Interbank
Currency Exchange, The First Stock trading
system association and KASE.
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LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR
OF RFCA (2)
2nd condition The minimum rating of the issuer
and (or) its securities must be not less than
BB- (according to the classification of the
rating agencies Standard Poor's or Fitch)
or Ba3 (according to the classification of the
rating agency Moody's Investors Service).
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LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF
RFCA (3)
Requirements 3rd condition
Existence term Not less than 1 year
Financial statements in compliance with IAS/IFRS or GAAP
Equity not less than share capital 200.000 USD
Audit auditing organisations which meet with qualification requirements for organisations of auditors for the admission of financial instruments to the special trading floor of the Financial Centreas approved by the Agency
Presence of market-maker required
Size of assets 1 mln USD
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ADVANCED TECHNOLOGIES

• KASE uses its own trading platform
• on-screen based electronic "Server Client"
  system
• remote access
• electronic signature and electronic documents
  circulation
• traffic encryption
• on-line data saving
• Central Depository is the KASE subsidiary
• DVP
• T0 settlement basis

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STEP UP TO FUTURE DEVELOPMENT

• KEY FEATURES
• Growth of daily equity trade figures
• Rising market share of individuals
• First results on IPO

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IN THE FUTURE

• Waiting for the IPO of the largest Kazakhstan
  banks and producers (according to the Securities
  Law, at least 20 of the local shares being
  placed must be suggested at the domestic market
  for purchase)
• Welcoming the new listing companies
• Waiting for the IFOs to place their bonds in
  Kazakhstan
• Improving settlements procedure, establishing
  Guarantee Fund

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CONTACT US
Internet www.kase.kz
e-mail kase_at_kase.kz phone
(7 327) 272 98 98, 272 06 00 fax
(7 327) 272 09 25 address 67, Aiteke bi
street, Almaty, 050000, Kazakhstan