Number of Brokerage Accounts Quadrupled in 2022

A record growth of investors was observed in 2022 for Kazakhstan’s stock market history. This can be attributed to the simplification of procedures that allow citizens to open accounts easily. 99 % of securities holders are Kazakhstanis. According to statistics, most of them are from 35 to 54 years old, but the younger generation is not behind: number of 18 to 24 years old investors grew four times at once last year.

Over the year, the number of subaccounts in the nominee holding system of the Central Securities Depository increased by 4.3 times. In total, as of January 01, 2023, 963,000 accounts were opened in the system, of which 550,000 (57.1 %) are subaccounts, 413,000 (42.9 %) are omnibus accounts[1].

The increase of accounts in 2022 is explained by:

– simplifying the process of opening a brokerage account by remote identification of a person and new digital brokerage mobile applications;

– holding an IPO of NC KazMunayGas JSC;

– opening and using omnibus accounts.

“Active growth of brokerage accounts was observed throughout the year. It is important to note that 99 % of the Central Securities Depository’s clients are Kazakhstani investors, that shows a good trend in the development of the local stock market. As of January 1, 2023 the share of nonresident clients is less than 1 %, ” said Adil Mukhamejanov, Chairman of the Management Board of the Central Securities Depository.

Omnibus accounts have become more popular in 2022. If as of January 2022, 10,000 accounts were registered within the omnibus accounts, a year later, their number increased by 41.3 times in 2023.

Since middle of 2021 it has become possible to maintain aggregated records of clients’ assets, to record the assets of clients’ pool on one account with the Central Securities Depository. As a rule, maintaining omnibus accounts is cheaper for brokers and banks than opening a separate subaccount for each client, so during the year the number of omnibus accounts has closed half a million, almost equaling the number of subaccounts.

The introduction of omnibus accounts complies international practices, makes settlements and securities recordkeeping cheaper, easier and faster. This not only simplifies the work of the Central Securities Depository’s participants, but also stimulates the exchange trading of retail investors by increasing their number, which explains popularity of omnibus accounts.

Profile of a Kazakh investor

The profile of an investor is compiled on the basis of data on investors who have subaccounts in the recordkeeping system of the Central Securities Depository.

The average Kazakh investor is between 35 and 54 years old. This is the largest age group among the holders of securities. During the year, the group grew by 2.2 times (from 87,000 to almost 195,000 people) and accounts for 35.6 % of the total number of retail investors. The age category 25–34 increased by 2.8 times over the year (from 59,000 to 166,000 people).

The record for the number of opened subaccounts was broken by a young category of investors from 18 to 24 years old. Their number increased by 4.3 times over the year (from 23,000 to almost 101,000).

A group from 55 years and older hits the fifth place in the ranking, their number has increased by 1.7 times over the year (from 47,000 to 83,000). The smallest group is people under the age of 18. During the year, their number increased by 1.3 times (from 273 to 382 people).

Gender breakdown

Retail investors account for 55.2 % of men and 44.8 % of women. During the year, the number of women among the owners of brokerage accounts increased by 2.8 times (from 87,000 to 244,000 people) , while the number of men increased by 2.3 times (from 130,000 to 301,000 people).

Regional breakdown

As for the regions, as of January 01, 2022, the largest number of subaccounts of holders of individuals accounted for Almaty (25.3 %), Astana (10.4 %) and Karaganda region (8 %).

A year later, in 2023, large cities remained leaders: the number of subaccounts doubled in Almaty (from 54,000 to 113,000), in Astana by 2.7 times (from 22,000 to almost 60,000).

Karaganda region lost the lead to the Turkestan region by the number of subaccounts in March 2022, the number of subaccounts increased by 3.6 times over the year (from 14,000 to 51,000).

The smallest number of subaccounts falls on the North Kazakhstan region. Over the year, the number of subaccounts increased in the region by 2.5 times (from 3,302 to 8,543).

[1] a data on the number of brokerage accounts of investors, whose assets are recorded through the omnibus account, is a calculated value. The calculation is based on the number of unique codes assigned by the Central Securities Depository to investors without opening a subaccount with the Central Securities Depository.