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