Kazakhstan's stock indices outperformed leading Western benchmarks in the first quarter, reports the Association of Financiers of Kazakhstan (AFK). Market participants note that investor and issuer activity remained strong in January-March despite domestic and external challenges: the National Bank's tight monetary policy and global sentiment amid the war in the Middle East, reports Todayinfo.
The Kazakhstan Stock Exchange (KASE) index rose 10% in the first three months of the year, while the AIXQI (index of Kazakh issuers traded on AIX) surged 18.8%. In contrast, major global indices declined early in the year: the S&P 500 fell 4.3%, the Shanghai Composite dropped 1.9%, and the MSCI World lost 3.5%. This points to a local inflow of liquidity into shares of Kazakh issuers.
The arrival of non-resident investors in the domestic market since last autumn has been repeatedly cited as a key reason for the tenge's strengthening. Their investments grew 19% over three months, reaching 2.3 trillion tenge. The AFK also noted that the rise in Kazakh indices was driven by 'blue chip' stocks of major companies: KazMunayGas, Kazatomprom, KazTransOil, and Solidcore Resources. Their success was influenced by external commodity conditions, dividend payout expectations, and revised cash flow forecasts.
Activity in the secondary equity market was driven by retail investors, whose share rose from 46% to 56%. The role of brokers and dealers increased less significantly—from 19% to 21%. Total assets under management of investment companies also grew, from 1.93 trillion tenge to 1.97 trillion tenge.
