BAKU, Azerbaijan, February 2. Kazakhstan’s stock exchange capitalization decreased by 19.4 percent and reached 35.6 trillion Kazakh tenge ($78.15 billion) in 2022, Trend reports, citing the press service of the Agency of Kazakhstan for Regulation and Development of the Financial Market.
Capitalization dipped by 4.7 percent in December 2022.
The influence of global trends associated with the aggravation of the geopolitical situation, rising inflation, and increasing interest rates due to the tightening of monetary policy contributed to the stock market capitalization
Additionally, stock market capitalization decreased in 2022 by 26.4 percent to 21.2 trillion tenge ($46.54 billion).
The volume of trading in shares also dropped by 27.3 percent to the 307.3 billion Kazakh tenge (674.64) level compared to results registered in 2021. The trading volume in December 2022 amounted to 198.3 billion Kazakh tenge ($435.34 million), which is a 17-fold increase compared to November 2022.
The corporate bond market followed the same trend and also declined by 6.3 percent in 2022, reaching 14.4 trillion Kazakh tenge ($31.61 billion) in the process. The decline occurred as a result of an increase in the cost of funding against the backdrop of tightening monetary conditions, as well as the redemption of existing bonds in this market.
The Agency for Regulation and Development of the Financial Market determines the approaches and methods of regulating the financial market within the framework of the main directions of the national policy in the development of the financial system of Kazakhstan. Additionally, the Agency provides assistance to the development of the financial market, and financial products, and combats abuse in the financial market.