KASE's growth strategy for 2016-2018 by Alina Aldambergen, CEO
As part of our new strategy, approved in August 2016, KASE will play a more significant role in financing the transformation of Kazakhstan’s economy, writes Alina Aldambergen, CEO, Kazakhstan Stock Exchange (KASE).
This year we have seen growing interest from corporates considering raising funding in the capital markets as bank lending has become more expensive. Companies are looking for alternative sources of funding, and shifting away from traditional ones.
Kazakhstan Stock Exchange (KASE) is the leading exchange in the Central Asian region; it is in the top two in the Commonwealth of Independent States (CIS) region in terms of trading volume, and the only acting stock exchange in Kazakhstan. As part of our new strategy, approved in August 2016, KASE will play a more significant role in financing the transformation of Kazakhstan’s economy.
KASE already has great growth potential. Trading volume on KASE increased by 10% (October 2016, year-on-year), and Repo trading volumes have tripled. Stock market capitalisation grew by 7.1% as of 1 October 2016, accounting for 33% of Kazakhstan's GDP. The KASE index increased by 51.5% year-on-year.
KASE will focus on three key strategic areas:
- Developing the stock market by attracting new issuers, expanding the investor base, and developing the FX market and clearing;
- Enhancing KASE’s customer focus and services, with an emphasis on relations with the market participants and members of the exchange, upgrading the official website, improving the image of the exchange, raising awareness of its activities, and refining the quality of its services;
- Improving KASE’s efficiency and competitiveness through promoting and boosting exchange information sales, upgrading IT-systems, and developing risk management systems.
In spite of there being major Kazakh companies already listed on KASE, attracting more issuers is one of our most important and fundamental tasks. Crucially, as part of our new strategy, KASE recognises the importance of the SME sector, and will work to make listing opportunities easier for these companies. This would allow SMEs to list and raise capital more cheaply, and with less stringent requirements. Providing access to the market would ensure they have the necessary funds to contribute to the Kazakhstani economy.
KASE is also planning to introduce more new instruments and a more flexible fee policy, as well as developing a new structure of the official list. This would increase the number of newly listed instruments by 30% by the end of 2018.
KASE is also planning to introduce more new instruments and a more flexible fee policy, as well as developing a new structure of the official list. This would increase the number of newly listed instruments by 30% by the end of 2018.
KASE intends to expand its investor base by promoting the growth of the existing institutional investors' contributions to stock market instruments; bringing remote participants to the stock market, primarily from the EAEC countries; encouraging retail investors' active involvement in stock trading, as well as formulating and promoting measures to protect investors' interests.
In order to stay competitive, and promote the further liquidity growth of the exchange's FX market, KASE intends to develop this market in accordance with the international best practice.
We also have plans to update our website, and introduce new information products since KASE is the main source of the public market information ensuring its disclosure.
KASE is currently participating in various working groups on the application of block-chain technologies in the fintech sector.
We have also unveiled a number of visual changes to KASE. Our new brand identify is based on this new strategy in combination with our solid historical experience, representing how KASE is changing to meet the technology and market structure challenges of the future.