May 2022 AIX Market Overview | FinReview
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17 June 2022

May 2022 AIX Market Overview

AIX Traded Value

In May 2022, the traded value was 7,293,800 US dollars, a decrease of 2.9 times compared to the previous month. The decline was mainly due to slower activity in debt instruments.

Issuers, Brokers, Accounts

As of the end of May 2022, the official AIX list includes 127 issues of securities by 85 different issuers, including 17 ETNs (Exchange Traded Notes). AIX trading members are 18 Kazakhstani and 12 international brokers. More than 319 thousand investor accounts have been opened with the AIX CSD.

At the end of May, the total market capitalization of companies with equity instrument listing on AIX (Kazatomprom, Polymetal, Halyk Bank, Ferro-Alloy Resources Limited, Bank CenterCredit, Kaspi.kz), exceeds 21.6 billion US dollars.

In May 2022, the official AIX list added the debut listing of 3-year bonds of JSC Halyk Bank Georgia, a subsidiary of JSC Halyk Bank of Kazakhstan, with a nominal volume of 15 million US dollars and a coupon of 4% per annum.

AIXQI

In May, there was a significant decline in the AIXQI benchmark index (by -12.65%), from 863.49 points to 754.22 points. The stock prices of Kazakhstani companies continue to be under pressure against the background of increased volatility in stock markets, resulting from the “hawkish” orientation of monetary policy of the world’s largest central banks, recessionary fears, tense geopolitical situation and a decrease in the dividend yield of large Kazakhstani companies.

All index constituents closed the month on a negative note. Kcell shares declined the most significantly (-30.07%), the market negatively perceiving the decision to postpone the payment of dividends for the 2021 exercise. Kazakhtelecom (-6.65%) made this decision, basing its position on the unstable economic situation, currency risks and the need for Kcell to concentrate on capital expenditures. Due to the decision made to refuse to pay dividends, shares of companies in the banking sector of Kazakhstan declined: double-digit downward drops affected the share price of Kaspi.kz (-22.15%), on the back of Bank CenterCredit approved the payment of dividends in the amount of 26 tenges per share (or 2.4% per annum equivalent to an all-time low), as a result of which the shares of the oil pipeline operator closed May with a decrease of -8.72%. Despite the fact that Kazatomprom announced the payment of record dividends (876.74 tenges per share, or 5.2% per annum dividend yield), the shares of the national nuclear company lost -7.48%, as investors continue to assess the potential negative impact of geopolitical tensions on the company’s business.

The May decline in prices for copper, lead and zinc, respectively, led to a decrease in the value of Central Asia Metals shares by -7.25%. On June 1, the AIXQI Index Committee, in accordance with the recommendations of the investment advisor of the AIXQI funds, decided to remove Polymetal International from the AIXQI list due to the fact that POLY’s presence in the index has been on watch since March 2022 due to the continuing difficulties in buying/selling the POLY shares on the London Stock Exchange as the primary exchange and the tradability of POLY shares has not improved since then.