As of the trading results on the Kazakhstan Stock Exchange (KASE) from January 3 to September 23, 2024, Air Astana has secured a place among the top three most liquid stocks, ranking third. According to QAMS QazTrading, the company's average daily trading volume during this period was 75.6 million tenge. This result demonstrates the company’s resilience and the strong interest from investors despite global economic challenges.
Liquidity as a Measure of Market Trust
What is liquidity and why is it important?
Liquidity refers to the ease with which an asset can be quickly bought or sold at market prices without significant changes in its value. For Air Astana, the high trading volumes indicate that investors have confidence in the company and are actively investing in its shares. Liquidity is a crucial indicator of a company's stability and attractiveness in the market.
Air Astana compared to other market leaders
According to QAMS QazTrading, Air Astana ranks third in KASE’s liquidity ranking, trailing only two companies:
- Halyk Bank (with an average daily trading volume of 91.86 million tenge),
- KazMunayGas (89.1 million tenge).
These companies lead the market with a small margin over Air Astana, confirming the airline’s strong investor appeal and its solid position among the most liquid stocks. These leaders are well ahead of other stocks in the KASE index, including Kcell, Kazakhtelecom, and KazTransOil.
External and Internal Factors Influencing Air Astana’s Stock Performance
The impact of the global economy
The aviation industry faced numerous challenges in 2023 and 2024, from rising fuel prices to reduced demand for international flights due to economic uncertainties. However, Air Astana managed to stabilize its financial performance and maintain high liquidity in the stock market.
Key factors contributing to liquidity growth:
- Post-pandemic recovery of international air travel.
- Expansion of Air Astana’s route network covering key destinations in Europe and Asia.
- Strong demand for domestic flights in Kazakhstan, where Air Astana holds a leading position.
Internal factors ensuring stock stability
Air Astana employs internal strategies to boost operational efficiency, which positively reflects on its liquidity performance:
- Effective fleet management. The company is introducing new, more fuel-efficient aircraft, helping to reduce costs and keep ticket prices competitive.
- Expanding flights and routes. In recent years, Air Astana has been increasing the number of flights and opening new routes, attracting additional investor interest.
- Stable financial performance. Despite external challenges, the company shows consistent financial results, maintaining investor confidence.
Key Trades and Their Impact on Liquidity
Large trades play a significant role in liquidity indicators. During the period from January 3 to September 23, 2024, the largest trading volume for Air Astana shares was recorded on March 5, with transactions totaling 522 million tenge. This impressive volume significantly exceeded the company’s average daily figures.
Comparative Analysis with Other KASE Index Stocks
Air Astana’s shares outperform most other stocks in the KASE index in terms of liquidity. For comparison:
- Kcell and Kazakhtelecom shares are at the lower end of the list, with liquidity three times lower than that of the leaders.
- Kaspi – Kazakhstan’s most valuable publicly traded company, does not show high liquidity on KASE, as its primary trading is concentrated on NASDAQ. The average daily trading volume for Kaspi shares on KASE is only 42.5 million tenge, which is significantly lower than Air Astana’s results.
Forecasts and Prospects for Air Astana’s Stock Liquidity
Growth prospects
Given the current market trends and the company’s strategies, further growth in investor interest in Air Astana shares can be expected. This is driven not only by the successful recovery of air travel after the pandemic but also by the company's stable financial performance.
Potential risks
- Economic crises may reduce demand for air travel, impacting stock liquidity.
- Fuel price fluctuations can affect operational costs and, consequently, the company’s financial results.
Air Astana is among the top three most liquid stocks on KASE. Ranking third, with an average daily trading volume of 75.6 million tenge, the company continues to attract significant interest from investors. Given its development strategy and post-pandemic successes, Air Astana remains one of the most promising assets on the Kazakh stock market.
