Kazakhstanis show growing interest in securities market
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Kazakhstanis are showing growing interest in the securities market: in this year Q1, the population of Kazakhstan opened more than 17 000 new accounts, Kazpravda.kz refers to Finprom.kz reporting.
The securities market plays an important role in development of the country's economy, especially during the global crisis. The unstable world situation and reduction in the external borrowing sources necessitate development and use of internal sources, first of all, stock market instruments.
Since the pandemic outbreak, investment activity in the securities market has noticeably grown, with positive dynamics continuing this year. 2021 Q1 saw an increase in the main indicators on the Kazakhstan Stock Exchange. The volume of trading on the securities market increased by 42%, including on the stock market - by 83%, on the government securities market - by 11%. In addition, more than 17 000 new accounts were opened by individuals, which confirms the population’s growing interest in this area.
At the same time, the role of investment portfolio managers is growing too. By April 1, 2021, there were 18 such management companies in Kazakhstan. Over the year, their assets increased by 36.2% and amounted to 258.8 billion tenge.
The largest investment company in the country is Freedom Finance that forms 33.3% of the total market. Its assets by the end of March made 86.2 billion tenge - 52.5% more on-year. The company annually takes the first places in the rankings of Kazakhstan Stock Exchange activity. At the end of 2020, the international rating agency S&P Global Ratings upgraded the forecast for Freedom Finance to Positive and affirmed the ratings at B− / B.
The second line is occupied by the investment company Halyk Finance, whose assets decreased by 8.1% over the year and amounted to 42.2 billion tenge. BCC Invest closes the top three: the amount of the company's assets increased by 3.3% over the year and reached 36.1 billion tenge. TOP-5 is closed by First Heartland Capital and Halyk Global Markets.
In general, the TOP-5 companies that manage the investment portfolio form 84.2% of the market.
Development of securities market in Kazakhstan is confirmed by the dynamic growth of professional participants: since the beginning of the year, the assets of the country's investment companies have grown by 5.1%.
Taking into account the growth in the number of retail investors in the securities market, the segment of professional wealth management of individuals is gaining relevance. The main impetus was creation and operation of the AIFC Exchange - AIX.
The opportunities that opened up for private investors in Kazakhstan contribute to the well-being of the population and provide Kazakhstanis with fundamentally new investment instruments. Besides, they are conductive to the reduction of capital outflow from the country.