EXCHANGE MARKET OF KAZAKHSTAN

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EXCHANGE MARKET OF KAZAKHSTAN
Idel Sabitov First Vice-president / Kazakhstan
Stock Exchange (KASE)
The 3rd Asia-Pacific New Markets Forum Busan
Korea, June 15-17, 2006
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KAZAKHSTAN STOCK EXHANGE

• Closed joint stock company
• Non-commercial self-regulating organization
• Organized in November 1993
• Only one stock exchange in Kazakhstan
• 66 members (30 banks)

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KASE is an universal financial market. There are
five main trading floors on KASE
1. Foreign currencies 2. Equities 3. ?orporates
bonds 4. Treasury bills 5. Money market (repo
operations) 6. Derivatives market is non-active
now
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Historical data
1993 November 17 Kazakhstan Interbank Currency
Exchange was organized as an joint company based
on Center of interbank currency operations in
National Bank of Republic of Kazakhstan. 1995
July 12 name of exchange was changed to
Kazakhstan Interbank Stock and Currency
Exchange". 1995 September 29 KASE obtained
license ? 1 from National Securities Commission
for organization trade operation on treasury
bills. 1995 October 27 began trade operation by
electronic trade system.
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1996 April 12 changed name to Kazakhstan Stock
Exchange - KASE. 1996 November 13 obtained
full license of National Securities Commission
for exchange operation on securities market. 1997
September 01 divided on two exchanges AFINEX
(Almaty FINancial EXchange) and KASE. AFINEX was
operated by currency and derivatives instruments.
KASE had operated in stock and Tbills markets
because there was law requirement to separate
different markets. 1997 September 19 first
trade on shares.
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1997 November 05 first trade on program of
government privatization. 1998 August 28
foundation of own information agency
IRBIS. 1999 began pension reform in
Kazakhstan. It was started with accumulating
pension funds. 1999 April 01 back merged AFINEX
and KASE in one - KASE. 2001 March began
calculate stock indexes (KASE_Shares, KASE_BY,
KASE_BP). 2001 August 01 opened special sector
automated repo operation in money market.
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2003 turnover of all exchange markets increased
to 33,8 billion dollars 113,1 of GDP Kazakhstan
in 2003, but almost of this volume is a money
market (63) and foreign currency (18,9). 2005
turnover of all exchange markets increased to
80,4 billion dollars 143,9 of GDP Kazakhstan in
2005, corporate securities market still small
share in all turnover 3,4 (2,8 bl.). Index
KASE_Shares grown to 646,42 points from 213,37
(202,95 ). Capitalization increased to 10,5
billion dollars from 3,94 billion dollars. 2006
market now is very interesting for investors in
spite of not good liquidity still because Index
KASE_Shares had maximum value April 19 -
2.393,5778 points, and Capitalization increased
to 31,2 billion dollars.
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Turnover from 1993, USD 000 000 000
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Volumes of markets in 2005, USD 000 000 000
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Index KASE_Shares form 2005 Jan 01 to 2006 June 09
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Capitalization of listing securities on KASE at
2006 June 12
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Ratings of Kazakhstan Borrowers
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Current situations

• Reasons of listing for companies
• In main all issuers looking for big institutional
  investors like banks and pension funds
• Two main reasons
• issue bonds to sell it pension funds
• 2) to have tax privilege of profit for buy and
  sell securities

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Plans and expectations
In next two years market is waiting several IPO
from big companies with government control like
Eurasian industrial association (EIA), Temir
Zholy (railroad and transport company),
KazMunaiGas, Air Astana, TuranAlemBank,
Kazkommertsbank and etc. 20 of this IPO
companies have to offer in domestic market. May
be some parts of IPO will be resell in the
future. For example Kazakhmys company has plans
to resell 1 of shares in KASE now.
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Improves
We think also that grown of mutual funds in
Kazakhstan and increase activity of retail in
stock market will be do this market more
interesting and liquidity. We think about to set
T3 settlements procedures and clearing
procedures. Now we have settlements procedures
based on DVP principle T0 time each deals
separately. Its will be more convenient for
foreign investors.
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Need to Know More?
www.kase.kz