ALMATY, Nov 26 (IRBIS)
REUTERS has informed today with the reference to ABN AMRO Bank NV (London) and Deutsche Bank AG (London), that Kazakhstan has conducted an additional $50 million offering of Eurobonds of the third issue (ISIN XS0102764031).
According to the data of International Insider investors should pay for additional portion of the debt on December 15, 99. Additional offering has been conducted at discount price of 101.750%. There is no information on current spread to five years U.S. T-Bills.
The additional offering is the second after offering the main part of the bonds of this issue, which was held on September 27 in London. After the additional offering total issue amount of the euronotes XS0102764031 is USD275 million.
Previous USD25 million additional offering was held on November 4 with the payment day on November 22, 1999 at the discount price of 99.875% (13.643% APR) with a current spread of +777 bps to five year US T-Bills.
We remind that USD200 mln main part of the debt of this issue was launched by Kazakhstan at 98.870% (13.954% APR) with a spread +825 bps for 5 years. Semiannual coupon rate � 13.625% APR. Issue date � October 18, 99, maturity date � October 18, 04. Coupon is paid on April 18 and October 18.
Lead Managers of the project are ABN AMRO Bank NV (London) and Deutsche Bank AG (London) who attracted, according to Emerging Markets and capital NET Limited (London), as co-managers 10 large financial institutions of the world.
Eurobonds have following long-term credit ratings in foreign currency: B1 from Moody�s, B + from S&P, and BB- from Fitch IBCA.
According to ISMA, on November 25 Kazakhstani Euronotes of the third issue were quoted in the world market at 102.500/103.500%. Today on Kazakhstan Stock Exchange (KASE) deals were made at 103.7624% to 104.0000% at Currency exchange�s weighted average rate of USD/KZT (137.67 tenge per dollar).
ALMATY, Nov 26 (IRBIS)
The agency IRBIS reminds that on November 22 KASE Exchange council�s Committee on currency market made a decision to introduce two additional trades in foreign currencies from November 29, 1999.
Now the trades in foreign currencies are held at KASE on week days from 10:15AM to 11:00AM Almaty time with TOD payment terms (today � same day payment).
From November 29 additional sessions will be held from 11:30AM to 3:00PM with TOD payment terms and from 2:00PM to 6:00PM with TOM (tomorrow � next week day payment) and SPT (spot � second week day payment) payment terms.
Weighted average rates of the currencies to tenge � as one of the most important indicators of country�s financial market � will be calculated only based on the results of the morning trade session, that is as it used to be. Midday session with TOD payment terms will be offered to market participants as an additional service.
By the results of the evening session the Exchange plans to calculate weighted average rates of foreign currencies to tenge on TOM and SPT terms.
By the results of the morning and midday sessions KASE will calculate a joint net-position of a bank in Kazakhstani tenges and in foreign currencies, but the commission will be charged separately for net-positions on each trade session.
At KASE November futures currency contract closed
/IRBIS, Nov.26, 99/
Today accounts has been settled for futures non-delivery contracts FUSD9911UN at $1,000 on KASE. 300 positions were closed at 137.68 tenge per dollar. Till closing current futures quotations were equal to 144.00 tenge per dollar.
2 deals were made for a total of $200 thousand in futures at $1,000 each.
Following are prices the deals were made at (in parentheses � account settlement date and current price trend):
� FUSD0002UN (Feb.25,2000) - 152.50 (-9.50);
� FUSD0003UN (March 31,2000) - 155.00 (-13.00);
Total volume of opened deals on the floor of KASE after closing of the trades amounted to USD7,600 thousand.
Weekly balance of the Ministry of Finance of Kazakhstan under internal borrowing program � negative 800.2 mln tenge
/IRBIS, Nov.26, 99/
The Ministry of Finance ended the forty eighth week on the primary market with following results. With actual repayment volume of 3,954.0 mln tenge (590.5 mln tenge + $24.3 mln at official rate on repayment date) the emitter raised 3,153.8 mln tenge (1,601.7 mln tenge + $11,230 mln at official rate on repayment date).
Resulting weekly balance of the Ministry of Finance under internal borrowing program is negative and is estimated to equal 800.2 mln tenge.
Capitalization of the market of Non-state Securities of Kazakhstan on November 26 - $2,205.5 million
/IRBIS, Nov.26, 99/
On November 26 capitalization of the exchange market of Non-state Securities of Kazakhstan (A + B + N without the State Block of Shares) has amounted to $2,205.5 million.
For one week capitalization has decreased by $750,000.
The deals can be made on KASE today in 87 tools of 66 companies and 4 state blocks of shares.
Weekly volume of deals in USD at KASE � $41,490 mln
/IRBIS, Nov.26, 99/
US dollar: within the 46th week (November 22 - 28) on Kazakhstan Stock Exchange (KASE) 696 transactions totaling $41.490 million were made at average session volume of $8.298 million.
This week tenge revaluation rate against the dollar, calculated at weighted average rate of the Exchange, is estimated by a trend of 27.4% APR.
In the previous week 1,213 deals totaling $63.850 million at average session volume of $12.770 million were made. During that period weighted average exchange rate of the dollar decreased at an average of 51.8% APR.
Devaluation of tenge towards US dollar, calculated at weighted average rate of the Exchange as of November 26, in the long run (from the beginning of the year) is 70.7% APR. In the mid term (last 30 days) it equals to average of 23.9% APR.
Deutsche mark: 7 transactions totaling DEM60 thousand were made. The deutsche mark rate decreased by 1.79% during the week, which corresponds to 93.2% APR of weekly average of tenge revaluation rate.
Euro: no deals were made.
Total volume of transactions in foreign currency in 48th week is estimated at 5,720.8 mln tenge or equivalent of USD41.521.5 thousand.
LAST week net Gold-currency Reserve of THE
National Bank of Kazakhstan increased to $1.410 billion
/IRBIS, Nov.29, 99/
The National Bank of Kazakhstan informs in the press release #074: �During last week from November 19 till November 26 the gross and the net international reserves of the National Bank have increased by 4.3% and 5.9% correspondingly. A growth in the gross reserves by $78.7 million was stipulated by increase in the foreign currency reserves of $58.2 million (substantially due to purchase in the home market) and by increase in the gold reserves by $20.4 million. The last is caused by the 1.7% gold price increase in the last week and also by the swap transaction of the National Bank in the international market�.
Also the press release informs, that the last week�s increase in the international reserves has stipulated the money base increase by 1.9% or be 1.8 billion tenges.
The table describing the international reserves of the National Bank of Kazakhstan at November 12, 1999 is shown below:
| In current prices | In real terms* | |||
| Nov.26, 99 | Nov.19, 99 | Nov.26, 99 | Nov.19, 99 | |
| Gross international reserves, million USD | 1,924.9 | 1,846.2 | 1,905.2 | 1,835.4 |
| Including: Assets in a hard currency | 1,392.9 | 1,334.7 | 1,392.9 | 1,334.7 |
| Gold | 532.0 | 511.6 | 512.3 | 500.8 |
| Net international reserves, million USD ** | 1,410.4 | 1,332.3 | 1,390.7 | 1,321.5 |
| Money base, billion tenge | 97.4 | 95.6 | 97.4 | 95.6 |
| USD/KZT(at the end of period) | 138.2 | 139.8 | 83.8 | 83.8 |
| Price of gold (for 1 troy ounce, USD) | 298.50 | 293.65 | 287.45 | 287.45 |
* Price of gold is specified at the end of 1998 ($287.45 per 1 troy ounce)
** Net international reserves is a difference between gross reserves and the hard currency obligations.
At KASE � balanced and inactive market for the dollar
/IRBIS, Nov.29, 99/
The morning trades in US dollar, Deutsche mark and Euro were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 16 banks participated in the trades.
Today the trades in US dollars opened at 137.70 tenge per unit. Total of 29 deals were made. Weighted average dollar exchange rate equaled to 137.73 (+0.06) tenge per unit. Volume of the session � $340 thousand (-$2,555 mln). Exchange rate fluctuation during the trade did not exceed0.06%. The trades were closed at 137.70/74 tenge per dollar.
Today the situation on the exchange market for the dollar corresponded to that of a normal market with absence of mandatory sale of exporters� earnings. It took 20 minutes for the participants to reach a price compromise. But even after the fist deal market did not get active. Only in last five minutes traders made a series of operations within 137.70 - 137.78 tenge per dollar price range. It is impossible to talk about the trends in changing in the exchange rate of the dollar because the market was very �narrow�, volatile and practically illiquid.
Very low session volume is not the only distinctive feature. There were no active market participants in the list of traders who made the deals. Speculative component of the trade was equal to zero, because the banks were either buying or selling dollars.
One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at 137.71/75 tenge per unit. In the morning session of KASE with TOD payment terms at 12:00 the dollar was quoted with a wide spread � 137.52/90. By 12:45AM only one demand existed for the dollar at 137.52 in trade system of KASE.
Deutsche mark, morning session, TOD: 13 deals, weighted average rate � 71.45 (-0.35) tenge per unit, volume � DEM90 (+75) thousand. At closing of the session Deutsche mark was quoted at 71.42/45 tenge per unit.
Euro, morning session, TOD: no deals. At closing of the session euro was asked for 137.95 tenge per unit with no offer.
On day session of KASE in foreign currencies no deals made
/IRBIS, Nov.29, 99/
Today at Kazakhstan stock exchange (KASE) the first additional (day) session was held in foreign currencies with TOD (same day payment) payment terms. The trades went within a specified time frame from 11:30AM to 3:00PM Almaty time in US dollars, Deutsche marks and euros using the main trade method of KASE � double counter auction method.
During the trade dealers quite actively quoted USD and DEM, but no deals were concluded.
At closing of the trades US dollar was quoted at 137.70/80 tenge per unit. Deutsche mark was asked for 71.30 tenge per unit with no offer. No demand and offer existed for euro.
At 3:00PM Almaty time USD was quoted in trade system of KASE at 137.55/138.05 with TOM (next day payment) terms; with SPT (second working day payment) terms � 136.80/138.40 tenge per unit.
Current USD quotations on interbank market according to REUTERS � 137.76/81.
We remind that the main (morning) session in US dollars today closed at 137.70/74 with weighted average 137.73 tenge per unit.
ALMATY, Nov 29 (IRBIS)
Last week of Kazakhstani market for the dollar can be called a turning point if judged by the factors affecting the exchange rate.
First two days of the week reflected the trend of the previous period. Due to the fact, that both the exchange rate of the dollar at the Currency exchange and official exchange rate were floating above the interbank rates, exporters kept selling their currency earnings at KASE, notwithstanding the cancellation of mandatory sale and maintaining prevalence of supply of dollars over the demand for them. Under the pressure of this supply the exchange rate of the dollar kept falling at a previously reached speed � about 50% APR.
However, large volume of dollar sales on the Exchange on Tuesday (20.170 mln) and prior active sale of an American currency for a whole month (average $12.5 mln for a trade) was excessive. It seemed as if those who wanted to open short positions in USD have already done so, and the exporters sold the part of their earnings they have planed to sell by Wednesday morning. There were no new inflows.
As a result, on Wednesday the exchange market was unrecognizable. Large volumes of dollar supply from the banks of the second tier have disappeared, which have caused a sharp decline in trade turnover. An organized demand have emerged on the floor. It remained the same in terms of money, however, could not be balanced by supply. Throughout the trade exchange rate of the dollar kept rising.
Dealers interpreted this in different ways. One referred to inevitability of upward correction after an intensive fall in the exchange rate of the dollar (the market was still �overheated� by active sales). Others considered the exchange rate grows a consequence of active speculations of the banks benefiting from the difference in Currency exchange and interbank rates. But both the former and the latter were convinced that the market was �looking upwards�, firming of the dollar was local and it was early to talk about reversal of the trend.
Because the Currency exchange�s rate was lower than that of the interbank market, exporters� earning did not return to KASE in following days of the week. Even if the currency from the enterprises were coming it was sold mainly out of the Exchange. Trade volume on Thursday did not exceed five million USD (only 1.695 mln were used in calculations, since two deals have been made with violations of �Ethics norms of KASE members�), and three millions on Friday. The Currency exchange market was very �thin�, volatile, and dynamics of the exchange rate of the dollar was more susceptible to speculative actions of the dealers than ever before. For this reason Exchange�s rate of the dollar was not much stable in second half of the week.
However, by the results of the week tenge got stronger, but rate was slower this week than it was last week (20.8% APR against 51.8% APR).
Despite these events, specialists of IRBIS believe that long term trend of tenge firming is not over yet. Results of an analysis of the head bank�s and the Ministry of Finance�s behaviors in all sectors of Kazakhstani financial market show their support of this trend. And the market professional participants can feel it. It was the reason for the investors to give preference to non-indexed papers at last four successful auctions on offering government securities with 3,007.2 mln tenge invested in them, whereas in �currency� papers � only 1,552.1 mln. And it is only because currency papers were the longest (6 and 9 months). For this reason an extraordinary amount of money (5,128.5 mln tenge), received by investors after repayment of government securities this week, had no impact on dynamics of the exchange rate of the dollar and volume of demand in currency circulation sector. Currency dealers of the banks understand it clearly that the National Bank has sufficient reserves to neutralize any demand for the dollars. If the National Bank is interested in firming of tenge for a number of reasons then this trend will be secured. Hence, it is a nonsense to try to raise the dollar.
Considering the facts mentioned above it can be assumed that tenge will continue to gain against the dollar, but the rate could be less than previously achieved. Strengthening of tenge will be beefed up by exporters� earnings, volume of which, as it was observed by past experience, is the most in first ten days of each month.
However, it should be taken into consideration that after cancellation of mandatory sale at KASE exchange market of the dollar is getting �thinner�. Therefore, stability of the trend of the exchange rate will lessen and a growth can be observed by the results of some trades.
All Over the Globe is published by IPA House.
© 1998 IPA House. All Rights Reserved.