The Kazakhstan Stock Exchange changes ownership structure after the departure of MOEX.
Moscow Exchange (MOEX) officially ended its participation in the share capital of Kazakhstan Exchange (KASE) by selling its 13.1% stake, as announced on October 11, 2024. This decision was a consequence of the geopolitical situation and was likely directly related to sanctions pressure from the United States, as the US Treasury introduced a new set of sanctions on June 12 that included MOEX. Given the risks associated with these sanctions, it seems logical for MOEX to exit, aiming to minimize financial and reputational losses. The National Bank of Kazakhstan now remains the main shareholder in KASE, owning 47%. This underlines the Kazakh government's desire to maintain control over a crucial part of its financial system.. Such a shareholder structure ensures a certain stability and predictability of the exchange's operations in the context of foreign policy uncertainty. However, complete independence from external influence remains an issue that requires further analysis. The influence of the National Bank is certainly significant, but it is difficult to completely exclude possible external economic and political influences.
The end of the strategic partnership with MOEX, which began in 2018, will involve changes in the development strategy of KASE. Although cooperation with MOEX has led to tangible results, including modernization of trading systems and introduction of new financial instruments, the Kazakhstan Stock Exchange now has to look for new ways of development and diversification of funding sources. It is interesting that among the new shareholders are Russian companies such as Tetis Capital LLC and Balance Asset Management LLC. The former manages the closed-ended mutual investment fund Nigella, and the latter manages the fund Levkoy. Both hold 8.5% and 4.6%, respectively, of shares.
The acquisition of KASE shares by Russian companies may indicate a desire to maintain certain ties with the Russian financial market, albeit indirectly. However, this acquisition is not a major investment and does not significantly change the balance of power among KASE shareholders. The dominant role still belongs to the National Bank of Kazakhstan. Further developments will show how successful this strategy will be and how it will affect the long-term prospects for KASE in the context of geopolitical instability and a changing balance of power in the international financial market. Moreover, it is necessary to consider that the presence of closed-end mutual funds in the shareholder structure introduces some uncertainty. The composition of the portfolio of closed-ended mutual funds may change, which could affect the overall stability of the composition of shareholders at KASE. Therefore, the situation requires continuous monitoring and analysis.. Such changes in the market show how interconnected international financial systems are and how geopolitics can significantly change the investment landscape.
The end of the strategic partnership with MOEX, which began in 2018, will involve changes in the development strategy of KASE. Although cooperation with MOEX has led to tangible results, including modernization of trading systems and introduction of new financial instruments, the Kazakhstan Stock Exchange now has to look for new ways of development and diversification of funding sources. It is interesting that among the new shareholders are Russian companies such as Tetis Capital LLC and Balance Asset Management LLC. The former manages the closed-ended mutual investment fund Nigella, and the latter manages the fund Levkoy. Both hold 8.5% and 4.6%, respectively, of shares.
The acquisition of KASE shares by Russian companies may indicate a desire to maintain certain ties with the Russian financial market, albeit indirectly. However, this acquisition is not a major investment and does not significantly change the balance of power among KASE shareholders. The dominant role still belongs to the National Bank of Kazakhstan. Further developments will show how successful this strategy will be and how it will affect the long-term prospects for KASE in the context of geopolitical instability and a changing balance of power in the international financial market. Moreover, it is necessary to consider that the presence of closed-end mutual funds in the shareholder structure introduces some uncertainty. The composition of the portfolio of closed-ended mutual funds may change, which could affect the overall stability of the composition of shareholders at KASE. Therefore, the situation requires continuous monitoring and analysis.. Such changes in the market show how interconnected international financial systems are and how geopolitics can significantly change the investment landscape.