Kazakhstan Stock Exchange Reveals Significant Achievements in 2024
In 2024, the Kazakhstan Stock Exchange (KASE) experienced a significant growth of 18%, marking a promising year for the country's capital market. This expansion was primarily influenced by Kazakhstan's robust economic positioning and various developments in the capital market.
One of the key factors contributing to KASE's growth was the successful Eurobond issuance by Kazakhstan's Ministry of Finance. In June 2024, the Ministry successfully raised $2.5 billion in international Eurobonds, offering very competitive terms of 5% on seven-year notes and 5.5% on 12-year bonds. The issue was oversubscribed twofold, indicating global confidence in Kazakhstan’s economy and boosting investor sentiment towards Kazakh equities listed on KASE.
The Eurobond sale attracted broad global investors from Europe, North America, Asia, and the Middle East, even amid challenging market conditions. This enhanced investor confidence significantly influenced trading activity and valuations on KASE, helping push overall growth.
Kazakhstan's leading companies in sectors like energy and technology, such as Kazatomprom (uranium mining) and Kaspi.kz (a technology and financial services firm), also played a crucial role in KASE's growth. These companies maintained strong valuations and trading volumes, with Kaspi.kz trading with a low price-to-earnings ratio and significant upside potential recognized by analysts.
Trading volumes on KASE showed an increase in engagement, particularly around large bond deals and corporate listings associated with resource extraction and financial technology sectors. However, exact trading volume figures were not specified in the available data.
On the economic front, Kazakhstan undertook refinancing of outstanding debts due in 2025 through bond proceeds, indicating stable sovereign credit management. Resource companies like Shubarkol Premium Coal Mine planned production expansions, suggesting ongoing industrial activity contributing to market liquidity and economic activity.
In summary, the growth of 18% in KASE in 2024 was chiefly supported by robust sovereign debt issuance with attractive pricing, enhanced investor confidence from international financing success, strong performance and optimistic valuations in core sectors like mining and technology, and ongoing economic activities and corporate expansions despite some logistical challenges.
These factors collectively improved the market environment, increasing trading volumes and positively impacting economic indicators linked to Kazakhstan’s stock market performance in 2024.
It is worth noting that, according to the National Bank's latest macroeconomic survey, the total trading volume at KASE in 2024 was 389.1 trillion tenge (US$753.6 billion), a 5% decrease from the previous year. The National Bank's survey also projects the base rate at 14.7% for the end of 2025.
Moreover, the total trading volume of corporate bonds nearly doubled from 2.2 trillion tenge ($4.3 billion) in 2023 to 4.3 trillion tenge ($8.3 billion) in 2024, with the corporate sector being a key driver of this growth. Government bonds issued by the Ministry of Finance accounted for 57% of the total primary placements in 2024, a decrease from 72% in the previous year, while corporate bonds jumped from 22% in 2023 to 35% in 2024 of the total primary placements.
The volume of primary placements grew by 38%, from 7.1 trillion tenge ($13.8 billion) in 2023 to 9.8 trillion tenge ($19 billion) in 2024. GDP growth is projected to be 4.7% for the end of 2025, according to the National Bank's survey.
There is cautious optimism among market participants regarding the macroeconomic situation, according to Amanzholova. These positive trends suggest a promising outlook for Kazakhstan's capital market in the coming years.
The successful Eurobond issuance by Kazakhstan's Ministry of Finance, which attracted global investors and offered competitive terms, significantly boosted investor sentiment towards Kazakh equities listed on KASE. Furthermore, the strong performance and optimistic valuations of leading companies in sectors like energy and technology, such as Kazatomprom and Kaspi.kz, also contributed to KASE's growth in 2024.
