Baku, Azerbaijan, Jan. 19
By Nigar Guliyeva – Trend:
The Kazakhstan Stock Exchange (KASE) expects the growth of the economy and, accordingly, of the exchange indicators this year.
"Kazakhstan's economy is recovering, and even without taking into account state programs there are serious grounds that allow to say that the market will be more active," KASE's deputy chairman of board Andrey Tsalyuk said on Jan.19.
He said that business activity is expected to increase, including through attraction of foreign investors to the market.
"When foreign investors come, they will bring dollars, it will have a positive impact on the tenge rate. Because they will sell the currency, and the bought tenge will be invested in government securities, their yield will decrease and the National Bank will therefore be able to reduce the base rate, which will lead to a cheaper cost funding in the Kazakh market, "said Tsalyuk.
He believes that all the factors should lead to an increase in corporate bonds, thus volumes will become more significant. In general, KASE expects growth in volumes in the money market.
Speaking about strengthening of the national currency against USD, he said that at the morning session on Jan, 19 at KASE, the dollar is traded within the range of 323.10-324.61 tenge, showing a decline. In exchange offices, the dollar is traded within 324.5 - 325.3 tenge.
"The effect of increasing oil reached us. The second factor - the money market has traditionally reacted to lowering of the base rate. But the most important factor, which influenced the strengthening of the national currency, is the tenge surplus in the market. Since the beginning of the year, we have seen that there is no shortage of liquidity, many participants of the currency market sell the dollar. The tenge rate is strengthening, it affects the cost of money - it is declining, "said Tsalyuk.
The National Bank of Kazakhstan reduced the base rate to 9.75 percent with a +/- 1 percent symmetrical fluctuation corridor on Jan.15.