Kazakhstan Stock Exchange

Investors should prioritize exposure to Kazakhstan’s energy and mining sectors, which accounted for 68% of KASE’s total market capitalization in 2023. The exchange’s KASE Index rose 14.2% year-over-year, driven by uranium producers and copper exporters like Kazatomprom and KAZ Minerals. Allocate at least 40% of a portfolio to these industries to capitalize on global commodity demand shifts.

The Astana International Financial Center (AIFC) has streamlined regulations for foreign investors, eliminating capital gains tax for green energy and tech listings until 2026. Over 45 international firms, including Xiaomi and GE Renewable Energy, leveraged this framework in 2023. Focus on AIFC-listed renewable energy projects, which saw average quarterly trading volumes increase by 22% since Q1 2022.

KASE’s fixed-income market offers high-yield corporate bonds with average annual returns of 9.8%, outperforming government securities by 3.5 percentage points. Consider short-duration bonds from financial institutions such as Halyk Bank, which reported a 17% YoY profit increase in 2023. Liquidity risks remain manageable, with corporate bond spreads narrowing to 120 basis points in December.

Currency volatility remains a concern: the tenge fluctuated 12% against the USD in 2023. Hedge exposure using KASE’s USD/KZT futures contracts, which traded at a daily average of $180 million last year. Diversify into agriculture-focused equities like AGROTECH KZ, whose shares surged 31% after expanding grain exports to China and Iran.