OREANDA-NEWS. May 26, 2015. As of May 25, 2015, 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 (GS with a term of up to 3,000 days to maturity) to use parameters of deals concluded in them within 300 calendar days preceding the valuation date and for those of the second sub-group (GS with a term of 2,000 and more days to maturity) to use parameters of deals concluded in them within 270 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 60 days and not longer than 360 calendar days; its duration expressed in days must be dividable by 30; the period must include at least 25 effective days for GS, included in each sub-group. Before May 25, 2015 for purposes of executing the market valuation of the first sub-group GS KASE used the Base period of 270 calendar days, of the second sub-group – 240 calendar days. According to sub-item 2 of item 20 of the Methodology, the Base period must include at least 25 efficient days for GS included in each of the subgroups. Due to incompliance of the Base period set for the first sub-group GS with this requirement, as well as according to items 20 and 20-1 of the Methodology the Base period for the first sub-group has been extended by 30 days to 300 days. The Base period for the second subgroup for purposes of moving values of market prices close to the current market conditions has been extended also by 30 days to 270 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 Analysis on: (727) 237 53 18, e-mail: info@kase.kz