FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
KYRGYZ STOCK EXCHANGE
In 2009 trading volume of the Kyrgyz
Stock Exchange has decreased 29.4% in
comparison with 2008.
Kumushbek Shamkanov
President
In 2009 trading volume of the Kyrgyz Stock
Exchange (KSE) has decreased by 29.4% in
comparison with 2008 and the volume totaled
2,95 billion KG Som (about US$ 66 million). The
total quantity of the transactions has decreased
by 72.8% represented by 926 transactions.
In listing sector trading volume has increased
on 41.3% in comparison with 2008 and totaled
842.8 million KG Som (about US$ 19,1 million).
In non listing sector trading volume has
decreased by 41,2% in comparison with 2008
and totaled 2,1 billion KG Som (about US$ 46.9
million). Trading volume of primary market totaled
1,52 billion KG Som (about US$ 34,7 million),
in comparison with volume of 2008 it has
increased by 69,0%.
HISTORY AND DEVELOPMENT FUTURE OUTLOOK The KSE was founded in 1994. The official
opening and the first trade in stocks took place
in May 1995, while the privatization process was
in full swing in our country. Priorities for the KSE in 2010 are: CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
At the initial stage of its existence and up until
2000, the KSE had functioned as a non-profit
organization with a total membership of 16. In
May 2000 the KSE was transformed into a joint-
stock company; simultaneously we acquired
one of the largest shareholders and a reliable
partner the Istanbul Stock Exchange, which has
actively assisted us in improving our activities. In
2001 the Kazakhstan Stock Exchange became
a shareholder allowing the KSE to significantly
increase its technical software potential. At
present the KSE is a closed-type non-profit joint-
stock company with 17 shareholders.
A significant contribution has been made by
the US Agency on International Development
(USAID) for the sake of our continued
development. Thanks to the USAID, the KSE
has obtained powerful financial support that has
allowed our Exchange become independent.
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• Transfer of government treasury bills’
circulation of the trade area of KSE
• Circulation of securities of «blue chips»
• Development of corporate equity market and
capital formation by domestic companies
• Development of listing and market making
• Development of municipal equity market
• Integration with the cross markets and
international exchanges.
Trading volume of secondary market totaled
1.43 billion KG Som (about US$ 31,3 million),
in comparison with volume of 2008 it has
decreased by 56,6%.
Economic performance
Economic downturns in Kazakhstan and the
Russian Federation (the major economic
partners) and the country’s power shortfalls
took economic performance in 2009 down
to 2.3% from 8.4% in 2008. Their difficulties
hit the economy through reductions in three
channels: remittances from migrant workers
(which constituted around 20% of GDP in
2008); inflows of foreign direct investment; and
demand for exports.
GDP growth was driven mainly by a robust
performance of agriculture (due to favorable
weather conditions), which grew by 7.3%.
Construction increased by 6.3%, after a 10.8%
contraction the prior year, a rebound primarily
due to activity in the hydropower generation
and mining subsectors, rehabilitation and
construction of roads, and residential building.
However, industry overall declined by 3.4%
because of reduced output in the textile and
sewing industry, transport equipment, electric
energy, and gas and water distribution. Gold
production also declined.