The Kazakhstan Stock Exchange (KASE) has introduced a computer-aided quotation trade system (QTS) for the OTC market. It also simplified the listing requirements to facilitate the access of small and medium-sized companies to the stock exchange. From now on, an international audit will only be required to qualify for Listing A status while local audit firms will be enough for Listing B companies. The new stock exchange rules have cancelled a pre-listing board. There will only be two trading tiers—listing companies (A and B) and non-listing companies (QTS). According to KASE experts, the new rules will activate the Kazakhstani equity market without waiting for blue chip companies.

In attempt to make the market more organised and transparent, KASE members adopted a conduct code on 15 July whereby they pledged to conduct all transactions under the KASE or OTC (QTS) systems. Brokers who have violated the code will be subject to penalties and even removed from the KASE. (Reuters)

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Three trades were concluded on the listing board of the KASE last week. All for common shares of Neftebank (a new code is NFBN) with a total traded volume of US $129,534.

On July 15, four transactions were concluded on the non-listing board using the QTS for the first time. Here, 3,300 common shares of the Bukhtarma (BHCK) cement company were sold in two transactions at a total price of US $83,950. It is a new company on the KASE; its major activities include production of cement and commercial limestone. The company has an authorised capital of US $5.8m of which about US $4.1 are paid-in. Other transactions were concluded for 2,400 common shares of Kazakhmys (KZMS) sold at US $25.9 per share and common shares of Kazzinc (KZZN)—a package of 3,060 shares was sold at US $7.12 per share.

The KS index has risen to 108.27 on July 16.