Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 25, 2010

/IRBIS, June 25, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 25, 2010. Analysts of JSC "BCC Invest" are awaiting the fall of quotations rally at the opening of trading on KASE and further mixed dynamics in the market. The reason for pessimism become yesterday's fall in London, shares and depositary receipts of Kazakh issuers and closing of positions before weekend. JSC BCC Invest also note the following important events in Kazakhstan's market: - June 29, 2010 in the trade system of KASE held special auctions on placement of government long-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEUZHKAM-228 issue with maturity of 19 years (6,840 days). Estimated volume of accommodation - KZT13 billion. The subject of bargaining will be the value of fixed coupon as a percentage per annum of the nominal value of the bond, expressed to second decimal place. Indexation of money invested in MEUZHKAM, made by calculation of the indexed coupon received from the addition of a fixed coupon at a specific location, and the inflation index over the last coupon period. MEUZHKAM are government bonds, accommodation which is among the pension funds of the Republic of Kazakhstan. During the half term treatment MEUZHKAM may apply only within that category of investors. More bonds are freely traded on the market. - June 24 Fitch Ratings affirmed the long-term Issuer Default ratings (IDRs) of JSC National Company KazMunayGas in national and foreign currencies at the level of "BBB-" and "BBB" respectively. Fitch has also affirmed the senior unsecured debt rating of JSC National Company KazMunayGas at BBB- and short-term foreign currency IDR at F3. The outlook on the ratings - "Stable". In accordance with the methodology used by Fitch Ratings regard parent and subsidiary ratings of JSC National Company KazMunayGas are on a par with the ratings of Kazakhstan ("BBB-" / "Stable") due to strong legal, strategic and operational links with the parent organization of the group ( ultimately the state). This view supports the importance of oil and gas sector of Kazakhstan's economy and the company's status as a body representing the interests of the state of the industry, largely benefiting from a favorable environment and to support the state in negotiations with respect to ownership of projects and funding structures. Nevertheless, Fitch notes that the current financial and operational profile of JSC National Company KazMunayGas weaker profile of competitors has a rating at "BBB-". According to analysts AO "BCC Invest", this news is neutral for the stock price and depository receipts of the subsidiary of JSC National Company KazMunayGas - JSC Exploration Production KazMunaiGas as meet the expectations of the market in light of the forthcoming initial public offering of parent company. JSC "BCC Invest" reiterates the recommendation of "hold" on the shares and depositary receipts JSC Exploration Production KazMunaiGas with target price KZT21,300 per share and $24.50 per GDR. Analysts JSC BCC Invest also expect the following developments in international markets: - in the Russian market last trading day of the week will be very poor boy in terms of macroeconomic publications. The only important data that will be available during the day will be the state of the monetary base in narrow definition of the ruble. In addition, the corporate sector will be a meeting of shareholders of Gazprom. At the opening of trading analytics of JSC "BCC Invest" expects the negative market sentiment under pressure from adverse external background from Asia. Furthermore, the negative stock market shut himself in the U.S. on the eve also likely will not contribute to purchases. - European markets will be published price index for Germany's imports in May. Last modified indicator - increase by 2%. Experts expect an increase in this indicator on 0.1%. - U.S. market will be published GDP for the first quarter, as well as consumer sentiment index released University of Michigan in June. Analysts of BCC Invest JSC are giving the following advice for investors in securities of issuers in internal market: ---------------------------------------------------------------------- Issuer Last price Target Predicted price, code price % Recom- mendation ----------------- ------- ---------- ------ ---------------- --------- Kazkommertsbank KKGB 420 479 +14.05 Neutral KKGBp 240 335 +39.58 Buy Halyk Bank HSBK 303 366 +27.39 Buy Bank CenterCredit CCBN 559 734 +31.31 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 17,300 21,300 +23.12 Hold Kazakhmys PLC GB_KZMS 2,599.99 3,559 +36.89 Buy ENRC PLC GB_ENRC 2,225 2,638 +18.56 Buy Kazakhtelekom KZTK 14,500 19,200 +32.41 Buy KZTKp 6,600 10,300 +56.06 Buy MREK MREK 1,000 1,130 +13.00 Hold ---------------------------------------------------------------------- The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. Agency Irbis doesn't take responsibility for the opinions which are in given material. [2010-06-25]