KAZAKHSTAN STOCK EXCHANGE
Azamat Joldasbekov
President
This is the second time
that the turnover of
KASE has
demonstrated
significant figures: the
total volume of trades
was roughly equal to
the country’s GDP in
2002 and approximately
15% higher than the
GDP in 2003.
This is the second time that the turnover of
Kazakhstan Stock Exchange (KASE) has
demonstrated significant figures. The total
volume of KASE trades was roughly equal to
the country's GDP in 2002, and was
approximately 15% higher than the GDP in
2003, reaching US$ 33.8 billion, demonstrating
significant market turnover. Such achievements
are the logical outcome of Kazakhstan's
macroeconomic development as well as the
growth of the cumulative pension system and
the depository base of the local banks. In the
last two years KASE turnover grew more rapidly
than the national economy in general. We are
certain that there is a portion of KASE’s
success that has contributed to the
achievements of Kazakhstan's financial
markets.
Starting in November 1995, KASE began
trading state T-bills. In November 1996, it
received its securities trading license from the
National Securities Commission (NSC).
As a result of a proposal tendered by the
government in December 1996, KASE was
chosen as a model exchange to trade securities
of the largest enterprises of Kazakhstan.
Technical activity of KASE concentrated on
further improvement of its electronic trading
system and the establishment of internet
trading for retail investors. In the spring of 2003
the e-trade project (www.etrade.kz) began in
test mode and at the end of the year a fully
functional system was launched. We hope that
this project will be useful in increasing the
liquidity of the Kazakhstan stock market.
The repo sector is still the largest among all
sectors of the market with an increase from
US$ 3.2 billion to US$ 21.5 billion. However,
proportionally repos were reduced in 2003 from
74.2% to 63.7% of the total market turnover.
The most rapid growth was seen in the sectors
of currency futures and foreign exchange with a
194.9% increase to US$ 2.5 billion and a
115.2% increase to US$ 6.4 billion, respectively.
This followed the unusually strong revaluation
of the Kazakhstan tenge against the US dollar.
The corporate securities sector was relatively
weak, but also showed an increase from
HISTORY AND DEVELOPMENT
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 KASE was
the introduction of the national currency, the
Kazakhstan tenge, on 15 November 1993.
US$ 421.6 million to US$ 1.0 billion. In the
corporate bond market capitalization reached
US$ 2.4 billion. The amount of traded bonds
increased from 46 to 69 over the previous level
of 36 to 45 issuers.
FUTURE OUTLOOK
In September 1997, a closed joint-stock
company, the Almaty Financial Instruments
Exchange, separated from 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 KASE and the
Almaty Financial Instruments Exchange
(AFINEX), thus making KASE the only organized
market in Kazakhstan.
In 2001 KASE became a shareholder of the
Kyrgyz Stock Exchange.
The plans of KASE for 2004 include:
• listing foreign securities and possibly their
derivatives (e.g. Kazakhstan Depository
Receipts) and futures for Russian securities;
• launching new indices that will measure the
state bonds market performance and
fluctuations;
• continuing the development and
improvement of listing rules, including
changes and innovations on the Exchange;
• changing the organization’s legal form from
"closed joint-stock company" to "joint-stock
company" as a result of changes in the law
concerning joint-stock companies; and
• completing and launching a redesigned
version of the KASE website with improved
navigation and added features.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
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