Hystorical view of Kyrgyz stock
The KSE was founded in 1994 by ten domestic private
companies and banks and operated during first year as a Centre for trade
of privatization coupons.
Official opening ceremony and the first stocks trading
took place on 25 May 1995, while a privatization process was in height.
In 1997 KSE initiated and headed a Central Depository
foundation as a main its partner and guarantee of pure security
At initial stage of its existence (up to the year
2000), the KSE had functioned as a non-profit organization.
The KSE was transformed into a closed joint-stock
company in May 2000;
A reliable partner, Istanbul Stock Exchange, has been
jointed to KSE, as a major shareholder during that year. The partnership
with ISE allowed us to enter the international market.
Kazakhstan Stock Exchange in 2001 had become a
shareholder allowing the KSE to increase significantly its technical
At present time the KSE is a closed-type non-profit
joint-stock company with 17 shareholders. Among them 14 shareholders are
domestic companies and 3 are foreigners.
Most significant contribution for the KSE sustainable
gross was made by the US Agency for International Development (USAID).
With the help of powerful USAID financial support the KSE has been
really settled and it is continuing its development now.
Annual overview of the Kyrgyz Stock Market
Past year was especially effective for
the Kyrgyz Stock Market. Thus this significant year 2 most important
events took place, for the first time of development of securities’s
market on the Kyrgyz Stock Exchange beginning of circulation of the
9-months Government Treasure Bills (GTB) on Kyrgyz Stock Exchange in
frame of the GTB Pilot Project. This project was accounted for 6 months.
On results of this period, the working group will take decision about
the further fate of the GTB. In case of positive results of the GTB
Pilot project, there is possibility to put all GTB to trade ground of
the Stock Exchange. Second important event in our country we can
consider the development of investment institutes, namely unit
investment trust. The system of collective investment is in total decay,
and trust to investment founds is at very low level. This situation is
happened thanks to negative image of old privatization founds. However,
professionals of Stock Market gave new life to this enterprise, and now
the system of the collective investment will be the new possibility for
Kyrgyz citizens to join to claimed type of investment over the world
through the procurement on collective investment schemes.
During 2007, the Financial Supervision
and Regulation of the Kyrgyz Stock Market Service registered more than
70 issues of ordinary registered securities for the amount exceeded 2
billion soms. In 2006, this State Service registered 61 issues of
securities for total amount of 1.5 billion soms.
Foreign investments for the past year
were more than 2 billion soms, including 1.5 billion soms received from
the CIS countries and 500 million soms from abroad.
For the past year there were
transactions with corporate securities on the Kyrgyz Stock Exchange
of 189 issuers for 5 187.3 million soms. The year before, the value of
transactions was twice less, namely 3 916.3 million soms. The value of
transactions for 2007 on the primary market reached 1 501.5 millions
soms, that is 30% out of total value for year.
The leader of
transactions for past year were the securities of the “Kant Cement
Factory” OJSC (value of transactions - 1 246,7 million soms). For the
reporting period, 46 deals were concluded with securities of this
issuer. Maximum price for one share was 171.63 soms, minimum price per
share was 60.53 soms. Average price of value of sale for 2007 was 159.13
soms. Last transaction was at the price of 160.82 soms per share. Out of
main corporate events within the cement factory we can mark following:
the “Kant Slate Produce” LTD Co with the Statute capital in amount of
324 million soms became as independent unity and was separated from of
the Cement Factory.
Market of Government Treasure Bills
In accordance with KSE commencing 16th
November till 28th December, there were organized 7 auctions
on placement of 9-months GTB, in frame of GTB Pilot project on the Stock
Market, duration is 6 months. Totally, for this period 33 thousands pc
of GTB for 1.3 million soms were allocated, average profitability was
8.11% annually. For this period 4 brokerage companies, 3 commercial
banks as well as 2 insurance companies took active part.
The value of transactions for 2007 was
accounted to 167 million soms on the “Stock Trade System” CJSC. In
compare with 2006 year, this indicator increased more than 1.5 times.
The value of transactions on the primary market was accounted to 2.5
million soms that is 2% out of total value.
During 2007, according to the Program
of Privatization of State Property in KR for 2006-2007 the Government
packets of securities were sold on the “STS” CJSC for 58.5 million soms.
The securities of the
“Batkenoilgaz” OJSC ranked first place in rating of largest value of
transactions on the “STS” OJSC (value of transaction 38.5 million soms).
We remind that according to the privatization program of government
property 100% of state packet was sold during the investment contest. 3
companies took part in contest. Preference was given to china company -
“International oilresearching company Czhuchen”. Company plans to invest
into the Batkenoilgaz additionally 2 billion 297 million soms to fulfill
the obligations to increase the producing capacity. (development of real
achieved events to increase the value of oil and gas extraction), to
improvement the financial-economical conditions, offset of bill payable
of company, and exit to new marketing outlets. The enterprise was
established in November 2001, taking into account of prospects of
development and increasing of extraction of natural gas in Batken
province based on accepted under the jurisdiction of Kyrgyz Republic by
Uzbekistan Republic the assets (wells). Extraction and sale of oil and
gas, including: geological research oil and gas fields, complex
development oil and gas fields, sale of liquefied gas, transport of gas,
and gas supply are main activities of the Batkenoilgas. The enterprise
has license to develop 4 gas and oil fields, located in Batken province.
According to the financial-economical activity “Batkenoilgas’ OJSC for
2006, net income was 46 100 soms.