As I read this report from Jyske Bank Kazakhstan has a sovereign wealth fund from taxes collected from exporting oil that is worth $18 billion.It appears that the fund is more about maintaining stability for the country than for investing but it will probably morph into an investment vehicle if resource prices remain high.
Kazakhstan has a lot of gold, silver, natural gas and uranium reserves. The country has a trade surplus, a current account deficit and GDP growth has been en fuego.
Jyske believe that the extent to which the country relies on FDI makes the banks especially vulnerable to a liquidity event.
I believe there are a few Kazakh companies listed in London. I have no position but have been interested/following the country for a while. This is a good example of a country that will become more relevant to the global economy, it makes sense to think that its stock market would benefit but just because it makes sense doesn't have to make it so.
I would expect any participation here to be a very wild ride.
5 comments:
Hello Roger, thanks for you generous information! I am an ex-U.S. airline pilot that frequently flies to this area. Currently I am writing this from Uzbeckistan. I have spent a lot of time in Almaty,Kazakhastan also. In my opinion many places are quite well off as I see fairly expensive cars and fur coats. Everyone is mostly nice and the places don't seem unstable to me. I walk around a lot. However my favorite places are southeast asia. I love it there as people are very kind. I think American culture is pretty much the bottom of my list! Best wishes, take care, JIM
check out the bonds issued by some of the kazak banks, there are issues in USD/EUR/GBP as well as local currency, you can lock in some pretty big yields (10% or so) on some of this stuff. KKB/ALLIBK/BTAS + a few others.
Is that a picture of Borat on that bill?
it might be his sister
The political risks to an open market are extreme in Kazakhstan with the surrounding countries, especially the Russian Federation, in dictatorial mode.
That said, thanks for not posting another painful reminder to Ohioans about the recent debacle. Hats off to the Red Sox, who proved they belong in the World Series.
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