Analysts have reported that Kazakhstan’s stock market has been experiencing significant growth despite global challenges. According to Cbonds, a financial market data vendor specializing in global bonds, the increased liquidity and activity in the stock market can be attributed to the easing of monetary policy and support for various reforms. Additionally, international rating agencies such as Moody’s view the country’s prospects positively.
It’s worth noting that the National Bank of Kazakhstan has reduced the base rate five times since last October, providing consistent support for the country’s market growth. Analysts from Cbonds report that this rate reduction has helped lower inflation to 8.3% as of late September. Following the improvements in financial indicators, Moody’s has upgraded Kazakhstan’s long-term rating to “Baa1,” marking the best rating in the history of independent Kazakhstan.
Analysts also believe that large stock exchange transactions have positively influenced the country’s rating. In November 2023, KEGOC held a secondary public offering (SPO) that saw demand exceed supply by 1.5 times. Additionally, Air Astana raised $215 million through its initial public offering (IPO) in January 2024. Furthermore, a $300 million syndicated loan for Halyk Bank was issued in September 2024 by twelve banks from North America, Europe, the Middle East and Asia. Analysts note that no deal of this magnitude has occurred in Kazakhstan’s banking sector since 2008. Considering these developments, experts believe this reflects strong confidence from international investors in the republic’s markets.
Cbonds is hosting the VII Capital Markets Conference on Oct. 17 in Almaty. Invited experts will discuss the future prospects and potential challenges facing Kazakhstan’s stock market, as well as the access of local borrowers to international capital markets.
