A decline of KazPrime indicator testifies the recovery of Kazakhstan economy

Arman Seisenbayev, Director of Investment Analysis and Deals Structuring Department of Invetsment Financial House RESMI JSC says KazPrime indicator’s drop on Thursday shows the tendency of banks to crediting which will enable economy rebound.

‘ During the crisis the banks strived for liquidity and invested in long term securities including those of National Bank. Now the reverse is taking place. The banks shifted their funds to secondary market and are financing the economy. Interbank market and crediting is reviving. This is the initial stage of recovery’, he specified in an interview to Interfax.

KASE Vice-President Andrei Tsaluk holds different point of view.

‘I disagree with the statement that banks started crediting the economy’, he declared.

‘The stock exchange has lately seen the considerable flow of foreign currency. Judging from the banks trading those currencies, we suppose they are exporters’ gain. We as well assume certain connection between the growth of dollar offer in KASE and the decision of China to trade the securities of some US companies which, in our opinion, will result in surplus dollar liquidity in our market,’ he added.

‘Those banks trading dollars in our trading floor get tenge in return. Sales volume of dollar has increased twice or thrice while short term tenge liquidity of those banks has grown respectively’ Tsaluk underlined.

Thereby he supposes some banks including KazPrime agreement participants placed their funds in interbank market to make them work.

‘Current rates have been lowered for they do not make the funds operate. As a result the indicator slumped ’, he explained.

He also mentioned TONIA indicator on February 24 slumped to a record low in its history and made up 0,04 % per annum.

According to Feb.25 fixing KazPrime is down 83 basic points and made up 1,8% per annum.

KazPrime indicator shows average rate of offering of money on the Kazakhstan inter-bank deposit market. The indicator is calculated by KASE daily before 12:00 ALT on the basis of quotes submitted from 10:00 a.m. through 11:30 a.m.

Current members of the KazPrime agreement are Halyk Savings Bank of Kazakhstan JSC, ATFBank JSC, Subsidiary Bank RBS Kazakhstan JSC, Kazkommertsbank JSC, SB HSBC Bank Kazakhstan JSC, Bank CenterCredit JSC.

Interfax