Capital MarketsData
Government bond trading on KASE halves to KZT 678.2bn in October
October volume was the lowest since January after three rising months, though ten-month trading in government securities was still up 22.2 per cent.
Written with AI tools by Boards and Capital's editorial system; the publisher is responsible for it. How this site works
Trading in government securities on the Kazakhstan Stock Exchange fell to KZT 678.2 billion in October, half the KZT 1,376.1 billion of September and the lowest monthly total since January, the exchange's figures published on 9 November show.
Both parts of the market slowed. Primary placements came to KZT 546.8 billion in October against KZT 920.1 billion a month earlier, a drop of 40.6 per cent. Secondary trading, which excludes repo deals, fell 71.2 per cent to KZT 131.4 billion from KZT 455.9 billion. Its share of the monthly total dropped to 19.4 per cent, from 33.1 per cent in September.
October broke a climb that had lasted three months. Monthly volume was KZT 1,001.4 billion in July and KZT 1,165.9 billion in August before September's peak. Over January to October as a whole, trading still reached KZT 9,030.2 billion, 22.2 per cent more than a year earlier. Primary placements rose 15.7 per cent to KZT 6,688.5 billion, while secondary trading grew faster, by 45.5 per cent to KZT 2,341.7 billion. That lifted the secondary share of ten-month trading to 25.9 per cent, from 21.8 per cent a year earlier.
Government paper remains the largest part of the exchange's securities business. The exchange's ten-month summary puts total securities trading at KZT 16.6 trillion, so government securities made up about 54 per cent, ahead of corporate debt at KZT 6,420.5 billion.
October's primary placements will have included the finance ministry, which sold KZT 432 billion of bonds at four auctions during the month, and local authorities: eight regions and Astana raised KZT 69.2 billion on 30 October, though the exchange does not break the total down by issuer. The National Bank cut its base rate to 15.75 per cent on 23 October, the fourth cut of the cycle.
The ministry was back at auction in November. On 10 November it sold KZT 50.4 billion of bonds with 9.8 years left to run at a yield of 13.70 per cent, against bids of KZT 58.2 billion.
The exchange's tables do not explain the October fall, and do not split primary volume by issuer. The November figures will show whether the slowdown held or was a one-month pause before year-end borrowing.