Investors and issuers

1. Investors :

The favorable investment climate of the last years promoted to establishment of the wide investor base in Kazakhstan such as commercial banks, retirement saving plans, insurance companies and mutual finds.

As of January 1, 2008 total assets of commercial banks were KZT 11.6 trillion (USD 97.12 bln), retirement savings plans — KZT 1.2 trillion (USD 10.17 bln), insurance companies — KZT 0.2 trillion (USD 1.86 bln) and mutual funds — KZT 0.19 trillion (USD 1.66 bln).

The increase in the population prosperity and implementation of the Improvement of the Investment and Financial Literacy of the Population Program by the Agency promoted to attraction of savings of the population to the stock market. Thus, in 2007 the share of retail investors in transactions of sale and purchase of shares was 31.7% and that of corporate bonds was 13.5%.

Moreover, foreign investors achieved a dominant position at the Kazakhstan Stock Exchange. In 2007 the share of non-resident foreign investors was 11.9% in the total trade of corporate securities.

The Agency strives to make the stock market more transparent and clear for the population by promoting the improvement of the investment activities of citizens of the Republic of Kazakhstan at the stock market.

In this connection, the Agency conducts seminars for students, public servants of central and local executive authorities, journalists of regional and republican mass media.

JSC RFCA educates the general public on the basis of the transfer and agency network of JSC Kazpochta by establishing information and education centers. The key goals of these centers are:

- establishment of the system of education and enhancement of the population financial knowledge in order to attract natural persons to the operations in the securities market as private investors;

- clarification of issues on regional companies’ entrance to the stock market to attract potential issuers to the special trading floor;

- explanation of the issues on the activities of the Regional Financial Center, as a whole, and Special Trading Floor, in particular. Other channels of the information distribution are used as well;

- the hot telephone line of the RFCA was opened to provide professional consultations on the issues of operations in the securities market;

- The Stock Market Guidebook was published and distributed;

- Internet portal of the financial center (www.rfca.kz) was created.

Intensive work of the RFCA and mass media provoked much interest of the population and promoted to broadcasting of a number of TV programs on financial sector issues.

Key trends of further activities of the Agency in the field of improvement of the population financial literacy will be:

- Work on appropriate amendments to the Law of the Republic of Kazakhstan “On Public Service”. Implementation of the Improvement of the Investment and Financial Literacy of the Population Program for 2007-2009 approved by Republic of Kazakhstan Government Decree No.536, dated June 27, 2007.

- National game The Stock Exchange together with the Ministry of Finances, Samruk State Holding and the companies Deloitte and Renaissance Capital.

- Printed publications about the stock market of Kazakhstan for the current period including the dynamics of changes of stock indices for the companies listed at the Kazakhstan Stock Exchange. These materials will be of information and educational nature and will be aimed at attraction of the population to operations in the stock market as well as at promotion of the Regional Financial Center.

Production and broadcasting of public service announcements in the Kazakh and Russian languages will concentrate at explanation of the information on opportunities of investments of available funds of the population in financial instruments.

Foreign investor’s guide

2. Issuers

Optimal conditions for stock market launch of various companies were created at the RFCA. In its turn, the Agency attracts new issuers by conducting marketing campaigns. In particular, special attention is paid to companies from regions of the Republic of Kazakhstan and foreign countries.

Thus, the Agency holds seminars for issuers in the regions at which the information on advantages of the stock market is given and the new Listing Rules and principles of the securities market operation are discussed in details.

The qualitative and quantitative composition of issuers increased in the result of effective actions taken by the Agency. Thus, for example, in 2005 the number of issuers was 94 and in 2007 – 126. The share of A class companies increased in the total structure of issuers (60%). Following the results of the first six months of 2008 135 issuers were listed at the KASE.

In 2007 such large domestic companies as JSC Kazakhstan Distribution Company, JSC Abdi (trade), JSC CAC (construction), JSC Al-Dos (health care), JSC Logicom (IT sector), JSC Iliysky Carton and Paper Plant (paper production) and JSC Airport Sary-Arka (transportation) entered the stock market.

It is necessary to note that new issuers on the part of public companies JSC Kazakhtelecom and JSC Small Business Development Fund appeared in 2007. At present, there are 17 enterprises with public participation which securities are sold at the stock market. Moreover, the Government of the Republic of Kazakhstan approved the list of 24 enterprises with public participation to be listed in 2008.

In addition to the actions on attraction of domestic issuers, the RFCA interacts intensively with foreign companies to introduce them to the stock exchange. Thus, in the nearest future the RFCA should become the main financial center in the region representing interests of the corporate sector of the CIS and other foreign countries.

The List of Enterprises with Public Participation which Securities are Traded at the Stock Market:

1. JSC Astana Finance

2. JSC Kazakhstani Mortgage Company

3. JSC Kazakhtelecom

4. JSC Almatyenergosbyt

5. JSC Agency Khabar

6. Eurasian Natural Resources Corporation PLC

7. JSC Mangistau Distribution Electricity Network Company

8. JSC Exploration and Production KazMunaiGaz

9. JSC Agricultural Credit Corporation

10. JSC National Company Commodity Contract Corporation

11. JSC Ulbinsky Metallurgical Plant

12. JSC Kazakhstan Development Bank

13. JSC Doszhan Temir Zholy (DTZ)

14. JSC KazAgroFinans

15. JSC Kedentransservis

16. JSC Almatinsky Distillery

17. JSC Kazakhstan Petrochemical Industries

The List of Enterprises with Public Participation to be Listed in 2008 as Approved by Republic of Kazakhstan Government Decree No.1219 dated December 11, 2007:

1. JSC Specialized Security Service Kuzet (Almaty)

2. JSC Medical Transportation Service (Almaty)

3. JSC Ablay Khan Kazakh University of International Relations and World Languages (Almaty)

4. JSC Kazakh University of Humanities and Law (Astana)

5. JSC Kazakhvzryvprom (Almaty)

6. JSC National Center Kurylysconsulting (Astana)

7. JSC KazAvtoTrans (Astana)

8. JSC Kazakh Academy of Sports and Tourism (Almaty)

9. JSC NC Social and Business Company Sary-Arka (Astana)

10. JSC Zhezkazgan University named after Baikonurov (Zhezkazgan)

11. JSC Kazakh Transportation and Communications Academy named after Tynyshpayev (Almaty)

12. JSC Kazakh Leading Academy of Architecture and Civil Engineering (Almaty)

13. JSC Zhenis (Almaty).

14. JSC Forest Nursery (Tugusken village, Karaganda Region)

15. JSC Almaty Institute of Power Engineering and Communications (Almaty Region)

16. JSC Karaganda Printing Production (Karaganda)

17. JSC Sanatorium Arman (Kokterek village, South-Kazakhstan Region)

18. JSC Civil Aviation Academy (Almaty).

19. JSC Sanatorium Arka (Astana)

20. JSC Air Company Zhezkazgan Air (Zhezkazgan)

21. JSC Kazakh Auenderi (Astana)

22. JSC Administration for Services to the Diplomatic Corps (Almaty).

23. JSC Baspalar Uyi (Almaty).

24. JSC Kazakhstan Mortgage Guarantee Fund (Almaty).