KAZAKHSTAN STOCK MARKET August 26 – September 1, 2010

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KAZAKHSTAN STOCK MARKET August 26 – September 1, 2010 KAZAKHSTAN STOCK MARKET August 26 – September 1, 2010 SUPPLEMENTAL INFORMATION US dollar = 147.24 at official rate for the end of the period. US dollar = 147.28 at weighted average rate of the Exchange for the end of the period Speed of KZT devaluation to USD for the period at exchange’s rate made 3.7% p.a. Money market indicators as of September 1 and change for the period Indicator Rate Trend TONIA 0.25 -1.79 Аutorepo GCB 2 d. 0.25 -1.78 Аutorepo GCB 7 d. 0.52 -3.4 Аutorepo GCB 28 d. 0.00 -1.0 KazPrime-3M 2.00 0 Stock securities’ market indicators as of September 1 and change for the period Index Value Trend KASE 1,404.69 -0.5 KASE_BP 367.66 +0.28 KASE_BC 300.92 -0.0 KASE_BY 14.25 -0.1 MAIN NEWS OF THE MARKET August 26 Moody's Investors Service has confirmed a deposit rating and senior unsecured debt rating in foreign and local currency Ba2, and the bank financial strength rating (BFSR) D- Halyk Savings Bank of Kazakhstan. As indicated, at the same time forecast on all ratings of the bank was changed to "stable" from "negative". Moody's notes that Halyk Bank has limited growth potential in the near future. Nevertheless, a significant improvement in asset quality, coupled with good liquidity and capitalization, will have positive implications for the rating over the medium term. On the other hand, further material deterioration of asset quality and revenue generation can prevent its capitalization and lower the rating of financial stability of the bank. Lowering the rating of financial stability of the bank is likely to lead to a decrease in its deposit and debt ratings. Reducing the probability of systemic support resulting from the lowering of the sovereign ratings of Kazakhstan, or the likelihood that the government is less willing to support the bank, may result in the downgrade of the bank deposit and debt ratings. August 26 has learned that on Aug. 23, 2010 in Tokyo, Ambassador of the Republic of Kazakhstan Akylbek Kamaldinov signed the Agreement between the Government of the ROK and Japan International Cooperation Agency (JICA) for a loan for the project of reconstruction CAREC transport corridors. As stated, the loan is guaranteed by the JICA official development assistance (ODA) for the reconstruction site of the corridor, passing through the territory of Zhambyl region in the plot Taraz - Kordai, 20 km. The agreement on the loan was reached during the visit of Secretary of State - Foreign Minister Mr. Kanat Saudabayev in Japan on March 25-27, 2010 and confirmed during the visit of Japanese Foreign Minister Mr. Katsuo Okada in Kazakhstan August 9- 10, 2010. August 25 President of the Republic of Kazakhstan Nursultan Nazarbaev met with the President of the Republic of Tatarstan Rustam Minnikhanov. During the meeting they discussed issues of trade and economic, scientific-technical and cultural cooperation. It was noted that partnerships are a promising areas engineering, oil and petrochemical industry, agriculture, cultural, humanitarian and scientific-technical cooperation and other important area is cooperation in the field of innovation. Parties to consider the possibility of joint innovative projects in the field of road construction and petrochemicals. In addition, the leadership of Tatarstan has expressed its intention to buy Kazakhstan wheat. August 26 interior ministers of the Customs Union reported to the President of Kazakhstan Nursultan Nazarbayev on the development of cooperation between law enforcement bodies of Kazakhstan, Belarus and Russia in the fight against organized crime, drug trafficking and illegal migration, information exchange on the common customs area. Mr. Rashid Nurgaliyev said that Russia is also being modernized the Ministry of Interior. And there is also the first task - get rid of unusual features that can safely give to other entities, and to focus on the fight against crime. He supported all the main directions of modernization of judicial system in Kazakhstan. Minister of the Republic of Belarus noted that the main goal of the reforms in Kazakhstan - to improve police work. This will bring the work of internal affairs to the people of the country. August 26 Mr. Rashid Nurgaliyev Minister of Internal Affairs of Russia after a meeting held in Astana, the heads of law enforcement agencies of States Parties to the TC said that the Ministry of Internal Affairs of Kazakhstan, Belarus and Russia intend to set up an information base with regard to unfair economic actors within the Customs Union. He noted that following the meeting signed a protocol in which the need to create an information base. The Russian minister noted that the rise of transnational organized crime requires the coordination of joint efforts. August 26 decision of the KASE Exchange Board approved amendments # 2 (amendment) to an internal document KASE "Listing Rules". Updated version of the Listing Rules will be published on the Web site at KASE http://www.kase.kz/files/normative_base/listing_rules.pdf after approval of the amendments. Also, the approved changes and additions # 4 (amendment) to an internal document KASE Rules of distribution of market data. These amendments relate to setting time limits placed on the website of KASE documents and information received from the initiators of admission of securities, as well as opinions on the listing, delisting and change the category (categories), the official list of KASE. In addition, made editorial adjustments associated with changes in the functions listing committee. Updated version of the Rules of distribution of market data will be published on the Web site at KASE http://www.kase.kz/files/normative_base/info_rules.pdf after approval of the amendments. August 26 in the first half of the day, Prime Minister of Kazakhstan Karim Masimov met the State Commission on modernizing the economy under the Government of Kazakhstan. Members of the State Commission discussed the export of Kazakh grain, food security, as well as the implementation of measures of state support for regions affected by drought. Also stated that Mr. Massimov held a meeting on migration policy. We consider measures against illegal migration, as well as measures to adapt oralmans. August 27 Mr. Asylzhan Mamytbekov Chairman of the Board of JSC National Manager Holding KazAgro in Astana said that Kazakhstan, with regard to Russia's ban of export of its grain, can expand into new markets. It was reported that from August 15 until the end of this year Russia will introduce a ban on grain exports due to low yield on a background of drought. He also said he does not exclude the growth of supply of Kazakh grain to its traditional markets in Central Asia. August 27 became known that the approved changes and additions # 15 (Amendments) to the inner document KASE Rules of repo transactions. The amendments agreed upon with the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Markets and Financial Organizations (AFS) August 20, 2010 and came into effect on August 25, 2010. Updated version of the Rules published on the Web site at KASE http://www.kase.kz/files/normative_base/repo.pdf. August 31 on the meeting of Government of Kazakhstan, Mrs. Zhanar Aitzhanova Minister of Economic Development and Trade reported that: • in 2011 the rate of growth of real GDP in Kazakhstan is projected to reach 3.1%. In this case, according to its information, in 2011-2015 years, inflation forecast of the National Bank will be located in the corridor of 6-8%. Mrs. Zh. Aitzhanova noted that according to the Ministry of Labour and Social Security is projected to decline in unemployment from 6.4% in 2011 to 5.5% in 2015. • The implementation of industrial projects and increasing foreign demand for exports in Kazakhstan will contribute to industrial growth in 2011 at 3.6%. According to her, it is projected that in the manufacturing sector growth rate will rise in 2011 to 3.4% in 2012 and 2013 to 5.1% and achieved 7.2% by 2015. It is also expected that the average annual growth of gross agricultural output in the years 2011-2015 will amount to 4.3% and reach 4.8% by 2015. Trade volumes increase in 2011 to 4% in 2012 – 4.1%, in 2013 – 4.4% and will average in the 2011-2015 year – 5.4%. • a substantial flow of additional income to the state budget is projected due to the increase of export duty (ETP) of oil to $ 40 per ton. He pointed out that by increasing the ETP oil revenues in the budget for 2011 amount to KZT421.4 billion. August 31 Minister of Finance of the Republic of Kazakhstan Bolat Becker said that in 2011 the national budget deficit of Kazakhstan amounted to 2.8%. As indicated by the Minister, in 2012 the national budget deficit amounted to 2.5% of GDP, or KZT581.9 billion in 2013, -1.5% of GDP, or KZT382.3 billion. In 2011 the state budget income in 2011 was estimated at KZT4,049.5 billion in April with an increase in comparison with the plan in 2010 to 20% or by KZT671.1 billion. In 2012, according to Mr. B. Zhamishev revenues will be KZT4,373.8 billion in 2013 - KZT4,779.4 billion. National budgetary expenditures in 2011 are projected at KZT4,651.9 billion with growth to the plan this year to 11.2%. In 2012, projected that the budget expenditures will amount to KZT4,955.6 billion. August 31 The Government of the Republic of Kazakhstan, at its meeting approved the draft law "On guaranteed transfer from the National Fund of the Republic of Kazakhstan for 2011 - 2013.
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