Our Comments and Expectations
External Background. The S&P 500 posted a slight increase after a significant drop on Friday. Of the three indices, Nasdaq gained the most (+0.6%), though there was no clear dominance of the tech sector over others. Semiconductor manufacturers such as AMD, Texas Instruments, and Qualcomm performed well, rising by 2.5–3%. Tesla shares jumped 5.6%, following a 3% gain on Friday. The Trump transition team announced its intention to prioritize regulations for autonomous vehicles under the U.S. Department of Transportation. Current rules do little to encourage the development of driverless taxis, which Tesla is working on, but the department may simplify regulations. Nvidia’s earnings report, which will be released tomorrow after the U.S. market closes, will be a key focus. European markets closed neutral. Today, the Eurozone consumer price index for October is set to be released. In Asia, indices in Japan and Hong Kong showed attempts to rebound from declines this morning. South Korea’s Kospi index performed the best. The MSCI Asia Equity Index rose by over 1%. S&P 500 futures are up 0.11%. Commodity prices surged amid reduced dollar pressure: oil is trading at $73.4 this morning, gold at $2,625, while copper showed more modest growth.
Bonds. U.S. 10-year Treasury yields fell to 4.415% yesterday amid a decline in the dollar index (DXY).
KASE Index. The KASE index rose by 0.3% yesterday, avoiding a correction after reaching historical highs.
Index Stocks. Yesterday, the KASE index was primarily supported by shares of Kcell and Kazatomprom. The mobile operator’s stock reached new all-time highs after a brief pause in its upward trend. On the London Stock Exchange (LSE), Kazatomprom shares climbed to $40.7. Previously, we discussed geopolitical factors driving uranium price growth. Investors should note that Kazatomprom’s GDRs on the LSE are approaching the resistance level of around $41. Given yesterday's 5.2–5.5% rise in uranium ETFs URA and URNM, Kazatomprom could break through this level today. Other GDRs showed no significant movements. At the opening of trading, Halyk Bank shares showed growth, likely in response to the nine-month financial report published late yesterday.
Currency. Yesterday, the ruble reached 100 per dollar, while the dollar was traded at 500 KZT at exchange points. On the stock exchange, the U.S. dollar was priced at approximately 498 KZT. Today, the national currency shows slight strengthening due to the dollar’s weakness in global markets. Deputy Governor of the National Bank of Kazakhstan Aliya Moldabekova announced the government’s plan to reinstate the mandatory rule for quasi-state companies to sell 50% of their foreign currency earnings. This measure, initially introduced after the tenge’s decline in 2022 and later canceled, aims to support the national currency by increasing the dollar supply in the market. While not a direct intervention by the National Bank, this step helps stabilize the tenge exchange rate.