External background. The S&P 500 rose by 0.77% and confidently recorded a new historical high, the 30th this year. The main lifting effect was exerted by shares of large-cap companies and the technical sector. The NASDAQ is now only 100 points away from the 20,000 mark. Scott Chronert of Citigroup said that the rise in shares of American technology giants is likely to continue to push the S&P 500 to new highs and raised the index's target value to 5,600 points from 5,100. Earlier, Goldman Sachs and Evercore raised their forecasts. At the same time, the caution of other participants, in particular hedge funds, has only increased. Philadelphia Fed President Patrick Harker said he believes one rate cut this year is appropriate, stressing that high rates are likely to remain. Of the individual companies, Tesla can be noted, which grew by 5.3% after rumors that it had received permission to test its advanced driver assistance system on some streets of Shanghai. Broadcom grew by 5.4%, Micron by 4.6% on the back of improved estimates from investment banks. In Europe, French stocks rose and the CAC 40 gained 0.9%. The growth of other European indices was more modest, with the Stoxx 600 up 0.1% and the DAX up 0.37%. In Asian markets, growth has been recorded since the morning following the US indices, but relatively modest in size. Hong Kong's Hang Seng is losing 0.1%. In the commodity markets, oil increased by 2% to $84.2. This morning, quotations have a slight decrease, as Brent begins to test its 50-day average.
Bonds. The US 10-year yield rose for the first time after four consecutive sessions of decline. The indicator reached 4.28% against the background of an increased number and volume of high-quality corporate bond placements worth more than $21 billion.
The KASE index. The summer “holidays” of the local market are continuing. Yesterday, KASE declined by 0.2%, which leaves them in a sideways trend. The trading volume amounted to 316 million tenge, which is more than on Friday, but still slightly below the average values. Meanwhile, in the foreign exchange market, the tenge continues to decline against the dollar.
Index shares. Not a single paper showed a price deviation of more than 1% yesterday. Halyk Bank came as close as possible to this figure, which lost 0.9% on the local market and 1.6% on the LSE, where quotes reached the lower limit of the current side channel. The daily candle shows that the GDR fell to $16.8, which is the lowest since May 15, but then it was bought off. The movement of the remaining papers did not change their current technical picture. Yesterday it became known that Air Astana decided to buy back more of its shares and GDRs from KASE and AIX, which was explained by the extremely low liquidity of quotations. Theoretically, the effect of such news should be positive, since more securities will be redeemed, which will shorten the program in time and the company will be able to announce another one. We will monitor the breakouts of important resistance levels, which are currently holding back the quotes.
Currency. The dollar has been growing for the third session in a row and is approaching our local target at around 455 (+-0.5) tenge. In case of a breakdown, the next target will not be around 460 tenge.
Key market news
(+) AIRA: Air Astana has decided to buy back more of its shares and GDRs