Kazakhstan Securities Market Update: Bond Trading Surges

In May 2025 Kazakhstan’s securities market remained relatively steady. While stock trading slowed significantly, corporate bonds saw a noticeable surge in investor interest. The market is gradually adapting to new economic conditions, with more focus on debt instruments and less on speculative equity trades.

By the end of May, the total market capitalization of Kazakhstan’s stock exchange stood at ₸31 trillion, down just 0.2% for the month. This slight dip was largely due to declines in major stocks like Kaspi.kz (-4.6%) and KazMunayGas (-0.8%). The KASE Index slipped 1.1% to 5561.46 points. Still, the market remained stable, thanks to strong institutional presence and high levels of domestic investment.

Stock trading volumes dropped by half compared to April, totaling ₸23.9 billion. The slowdown was especially notable in shares of Bank CenterCredit and Kcell. This decline likely reflects both profit-taking and a broader investor shift toward safer, high-yield alternatives like bonds and deposits.

On the other hand, the corporate bond market gained momentum. Trading volume jumped 56%, reaching ₸742.6 billion in May. Most of this came from the primary market, where issuers placed ₸698.6 billion in new bonds-1.7 times more than the previous month. In total, 12 companies issued 18 bond placements with coupon rates ranging from 5.5% to 25%. This shows growing demand among investors-both retail and institutional-for predictable, fixed-income products.

Private investors accounted for 30% of secondary bond trading-an encouraging sign of increasing financial awareness and a desire to hedge inflation risks.

The government securities market was also stable. The volume of public debt in circulation rose to ₸29.4 trillion (+0.9% month-on-month). Overall trading volumes slightly declined to ₸779.3 billion, but the primary market remained active: the Ministry of Finance issued ₸664.3 billion worth of bonds across 14 placements, and regional authorities added ₸23.8 billion. Yields ranged from 14.1% to 16.5%, still attractive in an inflationary environment.

KASE Global, the platform for trading foreign stocks and ETFs, remains a niche space. Trading volume reached ₸6.8 billion in May, driven by interest in Airbus and NVIDIA shares. While the segment currently offers 47 foreign stocks and 18 ETFs, it lacks the liquidity and retail base needed to grow meaningfully.

So, what does this all mean for Kazakhstan?

First, the bond market is quickly becoming the go-to financing option for businesses-especially as bank loans remain costly. Strong demand for corporate bonds signals investor trust in stable, long-term returns.

Second, the slowdown in stock trading may be temporary. If inflation stabilizes and corporate earnings improve, equity markets could regain attention in the second half of the year.

Third, the rising share of retail investors in bond trading is a clear opportunity. It opens the door for new investment products, better transparency, and the growth of digital investing platforms. But this requires trust, investor education, and user-friendly tools.

Overall, Kazakhstan’s securities market is not in decline-it’s shifting gears. There’s less speculation, more structure, and increasing focus on long-term resilience. Now is the time to support that transition-with smart regulation, accessible investment channels, and a clear path toward market depth and maturity.