OREANDA-NEWS.  The Expert Committee of Kazakhstan Stock Exchange (KASE) on September 17, 2015 according to the schedule revised parameters of non-indexed government securities (GS) subgroups used by KASE for their market valuation.

We remind you that according to the Methodology of Securities Valuation, non-indexed GS are valued at yield-to-maturity whose values are defined within the limits of sub-groups pointed out by the Expert Committee 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 on the number of days left to maturity may be most precisely described by one polynomial trend equation. The polynomial trend equation for each sub-group is determined by using the method of approximation of parameters of executed deals (dates before repayment and yield) in GS of that subgroup.

Based on the expertise of analytical data provided by KASE, the Expert Committee decided on September 17, 2015, for purposes of valuation of non-indexed GS in the fourth quarter of 2015 to divide those GS into two sub-groups with the following values of their limits:

I subgroup – from 0 to 3,500 days left to their maturity,

II subgroup – from 1,500 and more days left to their maturity.

For building the yield curves for the mentioned subgroups a polynomial trend equation of the second degree will be used.

For the first quarter of 2016 the number of subgroups, their limits and kinds of polynomial trend equations applied should be determined not later than five business days before the quarter beginning.