From March 9, 2022 Kazakhstan Stock Exchange JSC (hereinafter - the Exchange, KASE) starts to calculate and publish a series of indices of the government securities market of the Republic of Kazakhstan (GS), Delovoy Kazakhstan reports.
Index values will be calculated once a day after the end of trading on the GS market and will be published on the Exchange's official website.
Non-indexed GS of the Republic of Kazakhstan, which are included into KASE official list, have a fixed coupon rate and are denominated in tenge, will be used as a representative list for these indexes. The representative list of indexes is segmented by maturity terms: less than one year (s), from one to five years (m), from five years and more (l). Accordingly, KASE intends to calculate three index series for short-term, mid-term and long-term securities. Each series include:
- KZGB_CP – price index of "net" GS prices, calculated at prices excluding accumulated and unpaid coupon interest;
- KZGB_DP – the price index of total revenue, i.e. prices including accrued coupon interest and reinvested coupon payment;
- KZGB_Y – a profitability index expressed as a percentage per annum.
New series of government securities indices show changes in the value and yield of government securities at different maturities.
Calculation of GS indices is made once a day based on GS deals made in the trade system of the Exchange. In case of absence or insufficiency of deals, market prices of GS determined in accordance with KASE internal document "Securities valuation methodology" will be taken into account.
In determining the methodology for the new GS indices, KASE took into account the common practices of the European bond commission and the European Federation of financial analysts societies in determining the bond indices.
It should be reminded that KASE is the source of formation of main benchmarks of cost of money and financial instruments on Kazakhstan market. In particular, the KASE Index is the main indicator of the stock market, the GS yield curve and the TONIA Index are generally accepted indicators of the money market and the main benchmarks of the cost of money.
GS indices are published on KASE website in "Stock Market Indicators" section.
