FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 46
KAZAKHSTAN STOCK EXCHANGE
LETTER FROM THE PRESIDENT
The overall Exchange turnover reached US$
19.7 billion during 11 months of 2002. This is
2.4 times more than during the same period in
the previous year.
In 2002 Kazakhstan’s financial market did not
experience significant changes. Programs,
which started in 1999, continued during the
last year.
The most important trend is the rapid growth
of stock exchange turnover, resulting from:
the successful functioning of an accumulative
pension system;
enhancement in people’s confidence in the
banking system resulting in an increasing
deposit base in the banks; and
the National Bank’s efforts to increase the
level of the money supply in the economy.
The result has been a rise in the volume of
available resources in the financial market and
an expansion of the repo market. At the end
of November 2002, the repo sector’s share in
the overall KASE turnover reached 76%.
Foreign exchange had a 13% share of the
turnover, derivatives - 3%, state securities
buy/sell operations - 7% and corporate
securities – 1.5%. The overall Exchange
turnover reached US$ 19.7 billion during 11
months of 2002. This is 2.4 times more than
during the same period in the previous year.
The absolute figure of the increase is US$
11.5 billion, of which US$ 11.2 billion is the
repo market.
Another trend from the post-crisis period is
the continuing rapid growth of capitalization
of the corporate bonds’ market. This indicator
of KASE, in 2002, has risen from US$ 575
million to US$ 1.18 billion (almost 2 times).
The official list of securities of the KASE, which
introduced instruments of high investing
quality, has broadened significantly. At the
beginning of the year only 24 bonds of 22
issuers were included in the list. At the end
of the year the list contained 44 bonds of 38
issuers.
All during the year the KASE modified its
normative base. One of the most important
events of the year was the launching of new
listing rules, which took into account six years
of experience in the corporate and municipal
securities’ market, along with the toughening
of requirements for market-makers of
securities. These new strict requirements are
expected to result in an increase in liquidity
in the corporate bonds market.
Azamat Joldasbekov
President
HISTORY AND DEVELOPMENT
The KASE (previously, the Kazakhstan Interbank
Currency and Stock Exchange) was founded on
17 November 1993 as a closed-end joint-stock
company, on the basis of an earlier established
Center of Interbank Currency Transactions
(Currency Exchange) of the State National Bank.
The main stimulus to create the KASE was the
introduction of the national currency, the
Kazakhstan tenge, on 15 November 1993.
Starting in November 1995, the KASE began
trading state T-bills. In November 1996, the
KASE received its securities trading license from
the National Securities Commission (NSC).
As a result of a tender organized by the
government in December 1996, the KASE was
chosen as a model exchange to trade securities
of the largest enterprises of Kazakhstan.
(AFINEX), thus making the KASE the only
organized market in Kazakhstan.
In 2001 KASE became a shareholder of the
Kyrgyz Stock Exchange.
In September 1997, a closed joint-stock
company, the Almaty Financial Instruments
Exchange, separated from the KASE. Two
exchanges resulted from the adoption, in March
1997, of the law “On Securities Market” with the
provision that a stock exchange could only
operate in securities. However, on 1 April 1999,
a merger took place between the KASE and the
Almaty Financial Instruments Exchange
FUTURE OUTLOOK
The KASE plans the following in 2003:
launching of an Internet trading system;
development of collective forms of investment;
attraction of insurance companies as institutional
investors;
ordering document circulation, in particular, the
introduction and implementation of an electronic
signature feature; and
expansion of the powers of the brokerage
houses.