OREANDA-NEWS. August 29, 2011. As was previously informed, Kazakhstan Stock Exchange (KASE) put into effect its revised internal document "Methodology of Securities Valuation" (The Methodology), which contains a substantially altered procedure of market valuation of non-indexed government securities (GS), reported the press-centre of KASE.

We remind you that according to the Methodology, non-indexed GS are valued at yield-to-maturity whose values are defined within the limits of groups pointed out by the Expert Committee of the Exchange's Board of Directors depending upon the time left to maturity of each security. That stipulates that one subgroup shall include securities whose dependence of the yield-to-maturity from the number of days left to maturity may be most precisely described by one polynomial trend equation. The polynomial trend equation is determined by using the method of approximation of parameters of executed deals (dates before repayment and yield) in GS of that subgroup for 60 calendar days preceding the evaluation date.

Based on a decision of the Expert Committee, for urposes of evaluation of non-indexed GS in the third quarter of 2011, those GS have been divided into two subgroups with the following values of their limits:

I subgroup - from 0 to 2,000 days left to their maturity,

II subgroup - from 1,400 and more days left to their maturity.

For building yield curves for the first subgroup the polynomial trend equation of the third degree will be used, for the second subgroup - the polynomial trend equation of the second degree.

For next quarter the number of subgroups, their limits and kinds of applied polynomial trend equations should be determined not later than five business days before the quarter's beginning.

The Methodology is available on KASE website, at http://www.kase.kz/files/normative_base/met_ocen_zb_eng.pdf