Kazakhstan Stock Market Demonstrated Positive Dynamics

The Kazakhstan stock market showed positive movement in the first quarter of 2025, despite global economic challenges and Donald Trump's unpredictable policy decisions, Orda.kz reports.

At a press conference on the Kazakhstan Stock Exchange (KASE) 's (KASE) Q1 2025 results, Deputy Chairperson of the KASE Board Dana Amanzholova provided an overview of current market trends. 

According to her, the total trading volume on KASE reached 83.5 trillion tenge, representing a 10.1% (9.4 trillion tenge) decline compared to the same period in 2024. Market capitalization dropped by 3.4%, totaling 31.8 trillion tenge.

Nevertheless, the KASE index ended the quarter with a gain of 1.4% year-to-date.

Leading performers included shares of JSC Bank CenterCredit (+24.2%), Halyk Bank of Kazakhstan (+18%), and Kazakhtelecom (+6.7%). In contrast, Kazatomprom saw a significant drop of 13.4%, largely influenced by declining uranium prices.

Air Astana also experienced a decrease, with shares falling by 7.9%.

The Trump administration's actions, particularly the initiation of a trade war with China, impacted the stock market. 

Kazakhstan's primary export commodities, such as oil and uranium, faced declining prices. Dana Amanzholova noted that oil prices remained below the baseline scenario due to fears of reduced energy demand from escalating trade tensions.

We are seeing a decline in oil prices, as well as a slowdown in global trade. Trade conflicts are reducing industrial production, especially in China and other Asian countries, key consumers of raw materials. This is directly affecting the demand for oil. After the announcement of new customs duties, the price of Brent oil fell, and is now trading at around $64 per barrel,  explained Dana Amanzholova.

She added that global economic conditions mainly affect issuers with shares listed on international markets, including Kazatomprom, Air Astana, etc. In times of economic uncertainty, international investors tend to avoid risk, opting for safer assets.

The KASE index is composed primarily of companies focused on the domestic market, which helps shield them from the direct impacts of U.S. tariff policies. This contributes to the relative resilience of Kazakhstan's stock market, mitigating fears of a sharp decline due to geopolitical developments.

However, current global market volatility continues to exert pressure on the tenge, interest rates, and raw material prices.

Still, Dana Amanzholova emphasized that such downturns are temporary.

The decline in the stock market has a certain time cycle, the exits from which are characterized by new periods of growth,noted the deputy chairperson of the KASE board. 

Original Author: Nikita Drobny