External background. The US market was in the red zone yesterday amid some signs of increased business activity in the United States. The S&P 500 lost 0.74%, but the Dow Jones industrial average fell the most by 1.53% after Boeing announced that the company would continue to burn cash this quarter and throughout the year. The growth in service provider activity this month was the fastest in a year, and industrial production grew at a faster pace. Such indicators have become signs of the stability of the economy, which is negatively perceived by market participants who expect a weakening of the PREP from the Fed. Nvidia became a big green spot on the S&P 500 index map, which grew by 9.3% after the report. Nevertheless, its positive impact was not enough for the market to show growth. In Europe, the indices closed neutrally, but the British FTSE 100 declined by 0.4% and shows hints of a reversal after a month-long rally. In Asian markets, Hong Kong's Hang Seng is down 1.5%, falling for the fourth consecutive session. Japan's Nikkei 225 is down 1.2%, and the Korean Kospi is about the same. Commodities continued to decline yesterday, especially gold, but this morning they are giving hints of a pause.
Bonds. The US 10-year yield rose yesterday to 4.47% after industrial data, thereby being slightly above its 50-day average.
The KASE index. KASE declined by 0.9%, having failed to update historical data. One of the main reasons for the decline was the dividend sale in Kazatomprom shares, which decreased by 4.2%.
Index shares. Kazatomprom at KASE and LSE experienced a dividend gap. The AGM was held yesterday and the results have not yet been published. The registry is scheduled to be fixed on May 27, and due to the weekend, investors have already started fixing securities. It is worth noting that the 4.2% drop was very “bearable" for the index. Quotes may decline further, but most likely, the pace of correction will only slow down. Next, we are waiting for a fix on Kazmunaigas dividends, and here we also do not expect an excessive impact on the KASE index. Quotes are likely to remain without new highs, but only until the end of this month. CenterCredit Bank took the second place in terms of decline, but it is worth considering the volatility of the shares of this company, especially after three days of growth. Kaspi rose 3% and tested resistance again at $123.
Currency. The dollar is growing today to the level of 443.4 tenge. On the chart, without strong changes, we continue to observe the 50-day moving average, which is now at around 444.8 tenge. We expect that the impact of the tax period on quotations will completely cease today.
Key market news
(=) KZTO: The General Meeting of Shareholders of KazTransOil JSC approved the amount of the dividend per common share of the company for 2023