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Moscow’s MOEX No Longer a Stakeholder in Kazakhstan’s Stock Exchange

Marking a significant move for the country's financial market, Kazakhstan Stock Exchange (KASE) has announced the withdrawal of Moscow Exchange PJSC (MOEX) from its shareholders. An updated list of shareholders, available on the official site of the Exchange, shows that as of October 11, 2024, the main shareholder of KASE remains the National Bank of the Republic of Kazakhstan, with a 47% stake. . According to reports, the conclusion of its cooperation with MOEX, KASE marks the end of a collaborative phase that began on October 10, 2018, following the signing of a Strategic Partnership Agreement between the exchanges. During this period, several key projects implemented to advance Kazakhstan's exchange market included modernizing trading and clearing systems, introducing central counterparty services across all trading segments, and launching new financial instruments, such as repo transactions with clearing certificates of participation. On September 30, 2024, Vladimir Krekoten, representative of MOEX, resigned from the KASE Board of Directors, having applied for early termination of his position. The Exchange expressed gratitude to MOEX for its contribution in realizing strategic tasks to expand the exchange market opportunities and create new products. KASE remains the leading exchange in Central Asia, providing universal opportunities for trading in corporate and government securities, currency transactions, derivatives, and bonds of international organizations. The Exchange is a member of the International Federation of Exchanges (WFE) and the Federation of Euro-Asian Stock Exchanges (FEAS) and actively participates in the UN Sustainable Stock Exchanges Initiative. In June, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions against the Moscow Exchange (MOEX), the National Settlement Depository, and the National Clearing Center of the Russian Federation, after which, representatives of the exchange said they would consider continuing business relations with the Moscow Exchange (MOEX), subject to the restrictions on sanctions. On July 15, 2024, KASE Chairman of the Board Alina Aldambergen spoke out about the buyout of the Kazakh exchange's stake from the Moscow Exchange (MOEX).

Labor Stock Market Regulation Share Offering Human development

Employees in Uzbekistan to be Rewarded with Company Shares

Uzbekistan is to introduce an initiative to reward employees with shares in companies, under a regulation developed by The National Agency for Perspective Projects (NAPP). According to the NAPP, the transfer of shares to employees, as part of additional incentive programs, including bonuses, will help increase employee interest in the company's sustainable development and improve labor relations. The main goal of the initiative, modelled on ESOP (Employee Stock Ownership Plan) successfully applied in other countries, is to improve the population's welfare and develop the domestic capital market. Although joining in the Stock Ownership Plan will be voluntary, its development will be mandatory for joint stock companies with more than 50% state participation. The presidential decree on capital market development, issued in September 2023, envisioned the implementation of ESOP. Funds of up to one month's salary used to purchase shares will not be subject to personal income tax.

Investments Banking Economy Sanctions Stock Market

Kazakhstan Stock Exchange Set to Recoup Shares from Moscow Exchange

The Kazakhstan Stock Exchange (KASE) has approached the Moscow Exchange (MOEX) with an offer to buy back its shares. The move was prompted by the US sanctions imposed on MOEX, Russian publication Frank Media reported, citing sources close to the Russian trading floor. Moscow Exchange presently owns 13.1% of KASE shares. It acquired the first part of this stake (3.3%) in early 2020 and increased it to the current level at the end of the same year. The KASE shares were obtained as part of a strategic partnership for the Russian side's technology. The stake has a market value of KZT 12.1 billion, equivalent to RUB 2.2 billion ($25.9 million). In mid-June 2024, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) included the Moscow Exchange in the SDN list and issued a license to curtail operations with MOEX until August 13. The UK has joined the sanctions against MosBirch. "KASE will consider continuing business relations with MOEX taking into account the sanctions restrictions," stated the Kazakh exchange, the day after sanctions against Mosbirzhya were imposed. Timur Suleimenov, chairman of the National Bank of Kazakhstan, who has repeatedly mentioned the possible buyout of MOEX's stake in KASE, was vague however, when citing various options. "The National Bank has 47% in KASE. We have our funds, so we will buy out [Moscow Exchange's stake if such a decision is made]," he said on June 13, immediately after the sanctions against the Russian exchange were imposed. The head of the republic's regulator also said that KASE is negotiating with MOEX and considering various options, including possibly buying back shares. Some indirect data point to the preparation for the buyout. In the middle of last week, KASE announced the convocation of the extraordinary general meeting of shareholders in a month, at which the only question to be discussed is the methodology change for determining the cost of shares of Kazakhstan exchange at their redemption. According to the FM interlocutor close to the Russian Central Bank, Mosbirzha may agree to sell its stake in the Kazakhstan Stock Exchange under these conditions. In the past, entering the capital and providing technologies to KASE had a strategic goal—to leave it in the zone of Russian influence, he noted. In particular, American Nasdaq could provide technologies for the Kazakhstan stock exchange. South Korea has likewise expressed interest in KASE .

Kyrgyzstan Stock Market Economy Central Asia Banking Investments

Market Capitalization of the Kyrgyz Stock Exchange Reaches Record Level

In a short period of time, the Kyrgyz Stock Exchange (KSE) has launched various financial instruments: a government securities market, a precious metals market, other commodities instruments, and a sustainable development sector, KSE President Medet Nazaraliev explained at a meeting with representatives of the business community. The head of the exchange said that businesses registered in Kyrgyzstan have begun to show interest in the opportunities of the KSE, and with increasing financial literacy, more and more companies are interested in issuing securities to raise funds. KSE's market capitalization, according to official data, reached a record high of $1.25 million in the first quarter of 2024. "In recent years, the country's stock market has seen growth in all indicators. For sustainable development, companies need to expand the sources of attracting investments, and today the stock market [helps] to attract investments by issuing shares, bonds, creating a public [market] history and increasing the reputation and recognizability of the company," said Nazaraliev. At the meeting with participants of the Kyrgyz Chamber of Commerce and Industry, representatives of the exchange emphasized that it is important to develop not only the securities sector, but also the commodities sector. "One of the important tasks of the stock market is to ensure a high level of liquidity of investments in securities, [and] guarantees of execution of transactions. I hope that in the future the stock exchange will become a place for mass transactions in the commodities sector, as well. All over the world, commodity exchanges help to quickly raise money to increase production of high-demand goods and realize the tasks of creating transparent pricing mechanisms, including for commodities. Exchange mechanisms prove to be effective in terms of developing competition and ensuring equal access to goods," said KSE Vice President, Aida Chodulova. Officials are preparing to launch a digital project which will allow citizens to invest in securities online. There are also plans to attract international investments. International ratings agency, S&P Global Ratings is scheduled to evaluate the activities of the KSE, and the Kyrgyz government and business community hope that this will help the Republic multiply its chances of attracting foreign capital through the exchange.

Stock Market Uzbekistan

Uzbekistan: President orders to remove barriers to stock market development

TASHKENT (TCA) — Uzbekistan President Shavkat Mirziyoyev has ordered to revise the legislation and scrap unnecessary restrictions restraining the country's stock market from development, Xinhua news agency reported with reference to the president's press service. Continue reading

Stock Market Uzbekistan Investments Finance

US investment companies show interest in Uzbekistan’s securities market

TASHKENT (TCA) — On July 22, New York hosted an investment forum “Opportunities in the capital markets of Uzbekistan”, organized by the Uzbek Capital Market Development Agency and the Embassy of Uzbekistan in the United States, the Jahon information agency reported. Continue reading