Kazakhtelecom provided comments on temporary suspension of trading in its common shares on KASE

23.05.25 17:17
/KASE, May 23, 2025/ – Kazakhtelecom JSC (KASE ticker – KZTK) reported the following: quote 23.05.2025 Kazakhtelecom has issued an official comment regarding the temporary suspension of trading in its common shares on Kazakhstan Stock Exchange. As explained by the First Deputy Chairman of the Management Board A. Nurkatov, this dynamic is a natural consequence of market mechanisms that are triggered after the completion of the process of fixing the register of shareholders claiming dividends for 2024. "Such adjustments, known as a dividend gap, are a typical technical reaction of the market, inherent in both national and international stock markets. We are seeing a natural exit of short-term investors seeking to secure profits after a rapid rise in quotes on expectations of dividend payments", A. Nurkatov noted. Unlike major foreign markets, where the bulk of shareholders are institutional investors with a long-term strategy, Kazakhstan's market is largely focused on retail participants. This increases the amplitude of price fluctuations and increases the sensitivity of quotes to events such as dividend cut-offs. "If in mid-2023 the value of one common share of the company was less than 30 thousand tenge, then as the initiatives to demonopolize the telecommunications sector were implemented and the stake in the mobile was disposed of, there was a steady increase in the value of shares, reaching a record 58.4 thousand tenge in May 2025 – immediately before the record date," A. Nurkatov added. Based on the results of 2024, a decision was made to pay dividends in the amount of 26,664 tenge 88 tiyn per common and preferred share – the highest figure in the entire history of the company. The total amount of approved payments amounted to 293.4 billion tenge, including proceeds from the transaction to sell the 100% stake in Mobile Telecom-Service LLP, completed in January of this year. Despite the temporary price correction, Kazakhtelecom JSC emphasizes that the company's key financial and economic metrics, including stable cash flow generation and high profitability, remain unchanged. These parameters ensure a high level of investment attractiveness. unquote The full version of the press release is available at https://kase.kz/files/emitters/KZTK/kztk_relizs_230525_3.pdf [2025-05-23]