kazakhstan stock exchange (kase)
DESCRIPTION
KAZAKHSTAN STOCK EXCHANGE (KASE). July 1, 2009. COEVAL OF TENGE …. KASE was established on November 17, 1993 under the name of Kazakh Inter-bank Currency Exchange – two days after Tenge (the new national currency of Kazakhstan) had been introduced on November 15, 1993. - PowerPoint PPT PresentationTRANSCRIPT
KAZAKHSTAN STOCK EXCHANGE (KASE)
July 1, 2009
COEVAL OF TENGE …
KASE was established on November 17, 1993 under the name of Kazakh Inter-bank Currency Exchange – two days after Tenge (the new national currency of Kazakhstan) had been introduced on November 15, 1993.
Currently, November 15 is observed as the official "Day of National Currency".
"New" tenge (since 2006)
"Old" tenge (1993–2006)
NOW COMMERCIAL
KASE is a commercial joint-stock company with 68 shareholders (as of July 1, 2009).
Regional Financial Center of Almaty JSC is the largest shareholder. Shareholders include banks, brokerage firms, asset management companies, pension funds and other professional financial institutions.
Voting method: one share – one vote.
THE SIZE MATTERS
As of June 1, 2009
own capital $10.4 m
paid up charter capital $1.1 m
authorized shares 5,000,000
outstanding shares 450,000
share balance value 2,732 tenge($22.9 )
SO DOES THE PROFIT
assetsnet
profitreturn
on assetsreturn
on equity
2008 $11.8 m $1.0 m 8.0 % 10.0%
2007 $11.9 m $1.8 m 17.8 % 20.2 %
2006 $8.3 m $2.2 m 32.5 % 34.3 %
2005 $5.2 m $1.3 m 29.0 % 30.4 %
The total of members – 90 of which:
WE ARE BIG IN NUMBERS
Category "A" (with the right to trade in all financial instruments circulating on the special trading floor of the Regional Financial Center of Almaty) – 46;
Category "B" (with the right to trade in foreign currency) – 31;
Category "C" (with the right to trade in futures) – 7;
Category "K" (with the right to trade in government securities) – 84;
Category "P" (with the right to trade in corporate serial securities listing on KASE) – 84;
Category "H" (with the right to trade in corporate serial securities admitted to circulation (trading) in sector “Unlisted securities" of the KASE Trading system, and state-owned shareholding of organizations being privatized) – 49.
WE MAKE THE HISTORY (1)
1993 – first trades in foreign currency (US dollars)
1995 – first trades in T-bills
1996 – first trades in derivatives (KZT/USD exchange rate futures)
1997 – first trades in listed shares
1997 – first trades in state-owned shareholding
1997 – first trades in unlisted corporate securities
1998 – launch of KASE "nego" deals system (substitution of over-the-counter securities market )
1998 – first trades in euro bonds of Kazakhstan
1999 – first trades in listed bonds
WE MAKE THE HISTORY (2)
1999 – first trades in municipal bonds (such bonds were prohibited for issue in 2005)
1999 – launch of "nego" repo market
2001 – launch of "automatic" repo market (currently most massive and active sector of KASE market)
2006 – first trades in foreign corporate bonds (JP Morgan and Merrill Lynch)
2006 – IPO of KazMunaiGas Exploration Production shares using KASE settlement system
2006 – KAZAKHMYS PLC (UK) secondary share offering by subscription through KASE
WE MAKE THE HISTORY (3)
2007 – special trading floor of the Regional Financial Center of Almaty city established on the base of KASE (to attract foreign issuers and investors)
2007 – launch of new share market index – KASE Index, continuing numerical series of KASE_Shares Index
2007 – KASE commercialization
2008 – implementation of new listing rules, reconstruction of unity through integration of MTF KASE and STF RFCA
2008 – first trades in affined ingot gold futures
2008 – launch of currency swap transactions market
KASE – UNIVERSAL MARKET (1)
Repo (money) market constitutes for 52.5 % of KASE trade volume
39.9 %
4.6 %
42.3 % In 6 months of 2009
79,495.6USD m
Auto repo in government securities,
USD33,639.3 m
Nego repo in corporate securities, USD4 061.3 m (5.1 %)
Nego repo with government securities, USD347.1 m (0.4 %)
Auto repo with corporate securities, USD3,682.8 m
Currency, USD31,715.5 m
Government securities, USD3 488.7 m (4.4 %)
Corporate bonds, USD1 576.5 m (2.0 %)
Shares, USD983.7 m (1.2 %)
KASE serves a wide range of markets: "nego" and "automatic" repo with government and corporate
securities foreign currency (US dollar, euro, Russian ruble)government securities issued by the National Bank, Ministry of
Finance (including Kazakhstan international bonds) and local district authorities of Republic of Kazakhstan
IFO bonds and foreign government securitiespromissory notesequities corporate bonds
KASE – UNIVERSAL MARKET (2)
"regular" domestic bonds (nominated in tenge or foreign currency, discount or coupon, with fixed or floating interest)
international bonds of Kazakhstan issuersagency bonds (with tax regime same as that for government
securities) infrastructural bonds (collateralized by government guarantee)bonds of foreign issuers (prior registered outside Kazakhstan)
A GREAT VARIETY OF BONDS
0
50
100
150
200
250
300
350
400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 01.07.09
TRADE VOLUME AND EXCHANGE TURNOVER DYNAMICS
79,5
371,
1
322,
5
263,
2
217,
0
126,
7
RepoCorporate securitiesPublic securitiesDerivativesCurrencies
Turn
over
, USD
, bn
TRADE VOLUME AND GDP
0
50
100
150
200
250
300
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 01.07.09
0
50
100
150
200
250
KASE, USD bn
% to GDP
GDP, USD bn
207.6 %
200 %
MARKET CAPITALIZATION
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004 2005 2006 2007 2008 2009
Shares
0
2
4
6
8
10
12
14
16
2001 2002 2003 2004 2005 2006 2007 2008 2009
Corporate bonds
as of July 1, 2009 –USD39.9 bn
as of July 1, 2009 –USD11.6 bn
LISTED COMPANIES
17 2332
4968
7994
114126
145 139
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
TOTAL
85
62
54
211717
85
69
25
40
68
94101
89
1
78564545
36
1122
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Shares
Corporate bondsas of
July 1
as ofJuly 1
29 40 5788
129174
235295
430
376
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
TOTAL as of
July 1
9078
113112
4261
93
332728
313
264
1
202
145
9668
4613 24
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Shares
Debt securities
as of
July 1
SECURITIES OF OFFICIAL LIST
OFFICIAL LIST INDUSTRIAL STRUCTURE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2001
2002
2003
2004
2005
2006
2007
2008
01.0
7.09
Energy
Financials
TelecommunicationServicesRaw materials sector
Industrials
Consumer Staples
Public sector
Information Technology
Health Care
Consumer Discretionary
Shares
2000
2001
2002
2003
2004
2005
2006
2007
2008
01.0
7.09
Corporate bonds
Global Industry Classification Standard (GICS) of S&P has been used
SHARE AND BOND LIQUIDITY PARAMETERS
KASE total turnover for 6 months of 2009 in shares – USD983.7 m,in corporate bonds – USD1 576.5 m
1.6
3.64.1
1.0
3.8
8.9
0
1
2
3
4
5
6
7
8
9
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 01.07.09
Corporate bonds
Shares
Turn
over
, USD
bn
SHARE AND BOND LIQUIDITY PARAMETERS
KASE average daily turnover for 6 months of 2009 in shares – USD8.1 m,in corporate bonds – USD13.0 m
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009
SharesCorporate bonds
Daily
turn
over
, USD
m
MAIN CHALLENGES OF THE MARKET
• lack of free-float equities (the heritage of case-by-case privatization)
• conservative policy of the main domestic investors ("buy bonds and hold till maturity")
KASE INDEX
1 070
(30.06.09)
2,856
(19.07.07)
2,387
(20.08.07)
1,589
(05.06.06)
2,808
(12.02.07)2,394
(19.04.06)
2,858
(21.02.08)
0
700
1400
2100
2800
3500
4200
01
.01
.05
01
.04
.05
01
.07
.05
01
.10
.05
01
.01
.06
01
.04
.06
01
.07
.06
01
.10
.06
01
.01
.07
01
.04
.07
01
.07
.07
01
.10
.07
01
.01
.08
01
.04
.08
01
.07
.08
01
.10
.08
01
.01
.09
01
.04
.09
01
.07
.09
0
50
100
150
200
250
300
KASE Index
Market share deals volume, USD m
682.0
216
(05.01.05)
689.3
503.3 391.6507.4
KASE uses its own trading platform:
"Server – Client" electronic trading system
remote access
electronic signature and electronic document circulation
traffic encryption
on-line data preservation
OUR TECHNOLOGIES
KASE CONTACT DETAILS
Internet: www.kase.kz
E-mail: [email protected]
Phone: (+7 727) 237 53 00, 237 53 11, 272 98 98
Fax: (+7 727) 296 64 02, 272 09 25
Address: 291/3a, Dostyk ave, 050020, Almaty, Kazakhstan