Determinants of increasing the rating of the Republic of Kazakhstan stock market in the current conditions of uncertainty

Abstract

International rating agencies and index providers believe external and internal uncertainties pressure Kazakhstan’s stock market. Analysts of agencies on the exchange map of the world refer to the Financial Market of Kazakhstan as the frontier, where the risks are high and poorly calculated. Based on 2022 data, Financial Market of Kazakhstan is characterized as a bit of liquid and very volatile, but still having good prerequisites for an increase in the rating (before Emerging), which may have beneficial consequences in the form of an influx of portfolio investment and entry into the global economy. The work aims to identify the main criteria and determinants for improving its position in international indices based on a comprehensive study of modern methodologies for classifying stock markets, as well as a critical analysis of the state of the domestic securities market. Set scientific questions are covered (What qualitative and quantitative criteria and factors of the stock market affect its rating according to the methodologies of international agencies? What determinants affect the increase in the rating of the domestic stock market?) by confirming the hypothesis “Identification and analysis of the main criteria and factors will positively affect the upgrade of the Kazakhstan stock market rating”. For the scientific study of theoretical and methodological practices affecting the identification of the main determinants of the FRC used interrelated, organically complementary and necessarily responsive to the tasks set empirical methods. The work has a great scientific and practical importance, which is confirmed by the adopted in September 2022 the Concept of development of the financial market of Kazakhstan until 2030.