Transcript Document
KAZAKHSTAN STOCK EXCHANGE INC. Tallinn 2007, May 13–14 YOUNG AND SINGLE KASE was established at November 17, 1993 under the name of Kazakh Interbank Currency Exchange, two days after the launching of tenge – new legal tender of Kazakhstan. KASE – non-commercial joint-stock company with the 59 shareholders – National Bank of Kazakhstan (the largest shareholder), banks, brokerage firms, asset management companies, pension funds and other professional financial institutions. All of them have only one vote each. UNIVERSAL EXCHANGE KASE serves the markets of: foreign currencies money market equities corporate bonds government securities derivative instruments promissory notes … OUR MEMBERS KASE has 86 members: banks brokerage firms asset management companies 29 49 8 TRADING FLOORS (LISTING CATEGORIES) TRADING FLOOR FOR LISTING COMPANIES Category "A" Category "B" Non listing securities sector SPECIAL TRADING FLOOR OF RFCA Official list of special trading floor Non listing securities of the Financial Centre IMPRESSIVE DYNAMICS OF TRADE VOLUME 180 220.5% 250 160 200 140 120 150 100 KASE, bn USD % to GDP 80 3M 100 60 40 50 20 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 0 1993 0 GDP, bn USD UNIVERSAL EXCHANGE (3 months 2007) Currencies, 16 747,7 mln USD Autorepo with public securities, 35 924,5 mln USD 25,1% 66 807,2 mln USD Corporate securities, 1 851,9 mln USD 3,0% Public securities, 1 987,1 mln USD 4,2% Direct repo with corporate securities, 2 773,7 mln USD 2,8% 53,8% 10,5% Autorepo with corporate securities, 6 987,9 mln USD Direct repo with public securities, 494,1 mln USD (0,7%) In total, repo (money) market takes 69.2% of general KASE turnover DOMINATION OF REPO AND FOREX MARKETS KASE repo market is specially designed for domestic purposes – to satisfy the needs of local pension funds and banks in shortterm money borrowings and lendings. KASE foreign currencies market – the basic trading site for the National Bank of Kazakhstan to regulate the exchange rate of tenge. KZT/USD: the KASE exchange rate today = official exchange rate tomorrow. CORPORATE SECURITIES MARKET 7,0 6,0 5,0 Turnover, bn USD 8,0 4,0 Equities 3,0 Corporate bonds 3M 2,0 1,0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total KASE turnover for 3 months 2007 with the equities – 793,5 mln USD, with the corporate bonds – 1 098,7 mln USD MARKET CAPITALIZATION (bn USD) 70 Equities 14 65.5 bn USD 60 12 50 10 40 8 30 6 20 4 10 2 0 0 2001 2002 2003 2004 2005 2006 2007 Corporate bonds 2001 2002 2003 2004 13.7 bn USD 2005 2006 2007 UNEXAMPLED GROWTH (in 2005–2007) 3000 2 808 KASE_Shares (12.02.07) 2500 2 394 (19.04.06) 2000 1500 1000 216 500 (05.01.05) 01.04.2007 01.01.2007 01.10.2006 01.07.2006 01.04.2006 01.01.2006 01.10.2005 01.07.2005 01.04.2005 01.01.2005 0 Index KASE_Shares demonstrated the rapid growth: 11.1 times (for the period Jan.05, 2005 – Apr.19, 2006) due to the appearance of new investors’ class – mutual funds and individuals, and 8.6% (for the period Jan.03, 2007 – May.03, 2007). GROWING ACTIVITY OF INDIVIDUALS (equity market) 3m Total volume of exchange transactions, bn USD 3m Market share of individuals’ participation, % 4,03 24,4 16,9 15,1 1,04 12,8 0,98 0,34 0,42 0,7 0,15 0,07 2000 2001 2002 2003 2004 2005 2006 2007 2,5 2003 2004 2005 2006 2007 GROWING ACTIVITY OF INDIVIDUALS (corporate bonds market) Market share of individuals’ participation, % Total volume of exchange transactions, bn USD 3m 3m 3,0 20,9 1,7 15,9 16,1 2005 2006 1,1 0,9 7,5 0,6 0,2 0,3 0,05 2000 2001 2002 2003 2004 2005 2006 2007 1,4 2003 2004 2007 LISTED COMPANIES Listed companies Securities TOTAL 3m 3m Equities 69 Corporate bonds 68 62 54 114 68 79 94 17 1999 23 2000 32 2001 17 17 49 80 40 118 21 25 78 45 45 2003 2004 56 36 22 2002 2003 2004 2005 2006 2007 2 11 1999 2000 2001 2002 2005 2006 2007 LISTED COMPANIES (by structure) Equities 100% 3M Corporate bonds 3M Finance Oil & gas 90% 80% Mining & metallurgy 70% Telecommunication 60% Food industry 50% 40% Commerce 30% Transport 20% Power engineering 10% Building industry 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 1999 2000 2001 2002 2003 2004 2005 2006 2007 Other LISTED SECURITIES (by categories) Equities Corporate bonds 3М 31 Category "A" Category "B" 32 3М Category"A" Category"B" 32 27 20 7 9 13 9 8 8 1999 2000 2001 13 12 2002 20 2003 34 27 2004 30 2005 38 30 38 2006 2007 1 2 1999 2000 2001 6 2002 11 2003 60 17 20 2006 2007 49 39 10 20 2 61 6 7 2004 2005 SPECIAL TRADING FLOOR OF RFCA Number of Issuers – 14 Number of securities issues – 56 Shares – 15 Bonds – 41 All of them are listed at KASE Total trade volume of stocks and bonds transactions – 40.3 mln USD Shares – 39.9 mln USD (sale of state block of Kazakhtelecom's shares among pension funds), Bonds – 404.8 thousand USD FOREIGN SECURITIES Different ways for foreign companies which want to make borrowing in Kazakhstan on the exchange market: shares placement, IPO (securities need to be listed on KASE or on special trading floor of RFCA) bonds issue, which is registered in accordance with legislation of a foreign state (securities need to be listed on KASE or on special trading floor of RFCA) bond issue, which is registered in accordance with legislation of the Republic of Kazakhstan Kazakhstan Depository Receipts, etc RULES AND REQUIREMENTS All listing requirements are established by the following documents: special normative act the Resolution of the FSA Board №63 "About Requirements for Issuers and Their Securities admitted in circulation on the Stock Exchange and for Specific Categories of the Stock Exchange Listing" Internal document of KASE "Listing rules of KASE" Internal document of KASE "Listings Requirements of Foreign Securities and Kazakhstan Depository Receipts" Internal document of KASE "Rules of organization and functioning of the special trading floor of RFCA" LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES: Requirements CATEGORY "A" CATEGORY "B" Not less than 3 years Existence term IAS/IFRS or GAAP Financial statements in compliance with Equity 100 mln USD 10 mln USD Net profit for 3 last years for 1 last year Audit Delloitte, Ernst&Young, KPMG, Waterhouse Coopers Ratings (shares, bonds) S&P, Fitch Moody’s no lower than Presence of marketmaker Settlements BBBBaa3 B B2 Required Only through Central Depository of Securities LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES (2): It is necessary to have rating of the issuer and (or) its securities excluding shares, which are listed on the main floor (under the highest listing category) of one of the following stock exchanges: NASDAQ, NYSE, Deutche Boerse, Euronext, London SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE. LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA 1st condition Listing on one of the stock exchanges which are included into the list approved by Authority body of RFCA, Toronto SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE, Hong Kong SE, Singapore SE, Shanghai SE, Moscow Interbank Currency Exchange, The First Stock trading system’ association and KASE. LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (2) 2nd condition The minimum rating of the issuer and (or) its securities must be not less than ‘BB-’ (according to the classification of the rating agencies ‘Standard & Poor's’ or ‘Fitch’) or ‘Ba3’ (according to the classification of the rating agency ‘Moody's Investors Service’). LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (3) Requirements Existence term Financial statements in compliance with Equity Audit Presence of marketmaker Size of assets 3rd condition Not less than 1 year IAS/IFRS or GAAP not less than share capital & 200.000 USD auditing organisations which meet with qualification requirements for organisations of auditors for the admission of financial instruments to the special trading floor of the Financial Centreas approved by the Agency required 1 mln USD ADVANCED TECHNOLOGIES KASE uses it’s own trading platform: on-screen based electronic "Server – Client" system remote access electronic signature and electronic documents circulation traffic encryption on-line data saving Central Depository is the KASE subsidiary: DVP T+0 settlement basis STEP UP TO FUTURE DEVELOPMENT KEY FEATURES Growth of daily equity trade figures Rising market share of individuals First results on IPO IN THE FUTURE Waiting for the IPO of the largest Kazakhstan banks and producers (according to the Securities Law, at least 20% of the local shares being placed must be suggested at the domestic market for purchase) Welcoming the new listing companies Waiting for the IFOs to place their bonds in Kazakhstan Improving settlements procedure, establishing Guarantee Fund CONTACT US Internet: www.kase.kz e-mail: [email protected] phone: (+7 327) 272 98 98, 272 06 00 fax: (+7 327) 272 09 25 address: 67, Aiteke bi street, Almaty, 050000, Kazakhstan