/KASE, July 24, 2017/ – As of July 24, 2017, the Committee on Indexes and
Securities Valuation (hereinafter – the Committee) of Kazakhstan Stock
Exchange (KASE) took a decision for purposes of the market valuation of non-
indexed government bonds of the Republic of Kazakhstan (hereinafter – GS) of
the first subgroup (with a term of up to 2,520 days to maturity) to use
parameters of deals concluded in them within 40 calendar days preceding the
valuation date and for those of the second sub-group (with a term of 100 and
more days to maturity) to use parameters of deals concluded in them within 160
calendar days preceding the valuation date.
We remind you that in accordance with the Methodology for valuation of
securities (hereinafter – the Methodology), non-indexed GS are valuated at yield
to maturity, whose values are determined within set sub-groups depending upon
the term to maturity of each security. At the same time, one sub-group includes
securities whose yield to maturity dependence on the number of days to maturity
can be most precisely described by a polynomial trend equation. The polynomial
trend equation for each sub-group is determined by way of approximation of
parameters and deals executed, concluded on KASE in GS of a particular sub-
group during a certain timespan, preceding the valuation date (hereinafter and
in the heading – Base period), whose duration is set by the Committee.
The Base period duration is set by the Committee on the following terms: the
Base period must be at least 40 days and no longer than 360 calendar days; its
duration expressed in days must be dividable by 20; the period must include at
least 25 effective days for GS, included in each sub-group.
Before July 24, 2017 for purposes of executing the market valuation of the first
sub-group KASE used the Base period of 60 calendar days, of the second sub-
group – 180 calendar days.
According to item 20-1 of the Methodology for valuation of securities, the Base
period for the first sub-group GS for purposes of adjusting values of market
prices close to the current market conditions has been shortened by 20 days to
40 calendar days. The Base period for the second sub-group GS has been
decreased by 20 days to 160 calendar days.
The Methodology is available on KASE website at
http://www.kase.kz/files/normative_base/met_ocen_zb_eng.pdf
All persons interested in issues related to the Methodology and procedure of
calculation of market prices can turn to the Department for Information and
Statistics on: (727) 237 53 18, e-mail: info@kase.kz
[2017-07-24]