External background. The S&P 500 rose 1.3% on Friday. The technology sector was back in the lead as the NASDAQ gained 2%. The central event of the evening was the publication of soft data on the labor market. The number of jobs in the non-agricultural sector increased by 175,000 in April against expectations of 238,000, which was the smallest increase in six months. In March, the number was 303 thousand. Unemployment rose to 3.9% and wage growth slowed. It turns out that Bloomberg Markets, mentioned yesterday and skeptical, turned out to be even more positive in its forecasts, since it expected 200,000 jobs. Such a change in the labor market picture has increased the number of traders expecting an easing of the PREP already in September, despite the fact that Powell expressed doubts about lowering rates this year. Chicago Fed President Austan Goolsby said additional employment reports like Friday's would give him confidence that the economy is not overheating. In addition, the PMI of the services sector unexpectedly declined and fell to a four-year low. In Europe, the leading indexes showed an increase of 0.5-0.6%. The British FTSE 100 has again updated its historical highs. In Asia, growth was seen in Hong Kong yesterday. Oil continued to decline after breaking down the 50-day moving average.
Bonds. U.S. government bond yields continued to decline after the labor market report. For 10-year-olds, quotes may soon reach the lower limit of the ascending channel and the 50-day average. 2-year-olds had a short breakdown of a similar average yesterday.
The KASE index. The index fell by 0.4% yesterday, interrupting its series of four consecutive growth sessions amid a decline in Kazakhtelecom shares. Today, the quotes have been rising by 0.3% since the opening of trading.
Index shares. Following the results of the session, Kazakhtelecom fell by 4.2%. As we know from the dynamics of securities after the dividend gap, it is rare for a decline in the market to be limited to one session. Today, the results of the AGM became known, where dividends in the amount of 2096.6 tenge per share were approved with registration of the register tonight (at 00:00 05/05/2024). Payments will start on May 1 and last for 90 days. The meeting also approved the sale of Mobile Telecom-Service LLP by selling 100% in favor of Power International Holding. In addition to Kazakhetelecom, Kcell also declined. Yesterday there was news that the deputy chairman of the Agency for the Protection and Development of Competition, Bolat Sambetov, told about the proposed sale of Kcell to private investors. No other specifics were received. At the LSE, Kazatomprom was among the leaders of the decline. ADS Kaspi rose 1.7% from the 50-day moving average.
Currency. Trading on KASE in the morning shows that the tenge is strengthening against the dollar to the level of 441.9. It is worth mentioning that the dollar index DXY is declining for the third session in a row along with a decrease in the yield of US government bonds. The ruble is also strengthening against the US currency.
Key market news
(=) KZTK: Information on the decisions of the Annual General Meeting of Shareholders held on April 30, 2024