FEAS Yearbook FEAS Yearbook 2022 | Page 66

KASE team more than ever realizes that the world around is changing rapidly.

Kazakhstan Stock Exchange

The Federation of Euro-Asian Stock Exchanges

Summing up the past 25 years, KASE has transformed itself from a currency exchange into a universal trading platform. Currently, the exchange combines four markets: a securities market, a foreign exchange market, a money market, and the futures market.

Within the framework of the 25th anniversary KASE launches “KASE talks” platform of monthly open lectures.

On April 9, 2018 Kazakhstan Stock Exchange announces about launching KASE Startup platform. KASE Startup is an Internet platform mainly aimed at establishing communications between startup companies and investors. Transactions as part of financing of startup companies by investors will be made both using KASE trade infrastructure and directly between the parties.

Since its foundation, KASE has been an integral part of the infrastructure of the financial market of Kazakhstan. KASE occupies an essential place in the real domestic economy. KASE forms and promotes the securities market as one of the sources of raising capital and increasing investments. As part of its new development strategy, KASE plans to modernise its software systems, launch a central counterparty in all exchange markets, expand clearing services, and introduce new financial instruments.

The primary strategic goal of the exchange is to create an affordable, high-quality and efficient mechanism for attracting financing by Kazakhstan companies on the domestic stock market, creating attractive conditions for local and international investors, and providing a full range of exchange services in compliance with international standards.

The phased modernisation of trading and clearing systems in the stock and money markets, and later in foreign exchange and derivatives markets, will allow KASE to introduce new trading tools and settlement cycles, as well as improve the reliability of KASE's IT infrastructure. It will also reduce operational risks and provide KASE with new opportunities for high-frequency trading.

Since November 17, 1993, KASE has made the way from currency exchange to universal exchange. Currently KASE is ranked as the second among the CIS exchanges in terms of the trading volume. With the development of the country and the financial system, the exchange combines four markets: a securities market, a foreign exchange market, a money market, and the derivatives market.

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About Company

Established: November 17, 1993

Address: 8th floor, Northern tower of Multifunctional Complex Almaty Towers, 280 Baizakov Str., Almaty, 050040, Republic of Kazakhstan

Contact Name: Nazgul Alibayeva

Email: [email protected]

Website: www.kase.kz

- Joined FEAS in 1997-

Alina Aldambergen

Chairwoman of the

Management Board

Year in review

Overall, 2022 was a good year for KASE. Despite negative economic factors, high inflation environment and growing base rate (base rate increased from 9.75% to 16.75% during the year), and changes in the financial sector due to exit and restricted activities of Russian banks present in Kazakhstan, Kazakhstan’s GDP grew by 3.2%, while trading volume at KASE increased to $571 billion (+40% in comparison to 2021). Trading volume increased in the state securities market, money market and FX. There was subdued issuance of debt by financial institutions and corporate sector at the beginning of the year, but it increased towards the end of the year with overall corporate debt issuance reaching $3.2 billion. Issuers started to issue short-term bonds or bonds linked to TONIA (money-market indicator for overnight borrowing under pledge of state securities).

One of the highlights of 2022 was the successful domestic IPO of NC “KazMunayGas” JSC (national oil and gas holding). KASE launched electronic bookbuilding process in the trading system and adapted the system to expected increase of retail investors as well as launch of trading through omnibus accounts. KASE actively participated in non-deal roadshows in more than 60 cities, arranged 4 events for retail investors at 4 universities in Almaty and Astana, which were attended by more than 2000 individuals; developed and produced various video and printed materials. The IPO resulted in raising $326 mln, 89% of the total amount was raised through KASE, more than 50% was contributed by 70 th. retail investors.

Retail investor accounts in Kazakhstan's capital markets grew significantly in 2022, tripling in number. As of January 1, 2023, total number of individuals who opened accounts to trade in the stock market reached approximately 1 mln accounts, including 513,5 th. individuals, representing 5.8% of the economically active population having accounts at the Central Securities Depository and 413 th. through banks (omnibus accounts). Another area of focus for KASE is

the ongoing development and enhancement of its CCP services. The Exchange successfully operated CCP in all markets and began separating its functionality into a new subsidiary JSC “KASE Clearing Center”.

During the year KASE faced a number of challenges due to the imposed sanctions, high inflation and tightening of monetary policy in most countries, which resulted in falling bond and equity markets both international and local. As a result, KASE took active measures manage market risks and increased margin requirements. But overall Kazakh financial sector well surpassed volatility and demonstrated resilience. Due to imposed sanctions on Russian financial institutions, KASE implemented measures to comply with international economic sanctions and continually monitors new sanctions and restrictions. Despite all these negative factors, the Exchange

$326 mln IPO of NC “KazMunayGas” JSC

International conference "ESG – a new paradigm for the financial market development", "FEAS On-siteTraining" hosted by KASE

Set up of a new subsidiary - “KASE Clearing Center” JSC

IPO of NC “KazMunayGas” JSC resulted at $326 mln with 89% of the value raising through KASE (which is about $290 mln)

IPO

Ms Zarina Abitayeva, Head of Issuers and Investors Relations Department, for the successful IPO

Project of the year

Event of the year

Change of the year

Accomplishment

of the year

Word of the year

Person of the year