Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for February 21, 2011

/IRBIS, February 21, 2011/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for February 21, 2011. Analysts of IFH RESMI give attention to the following to the important events in the markets: - On Thursday, January 20, trading on the Kazakhstan Stock Exchange ended with the fall of the index KASE. The local stock market indicator fell by 0.77% and amounted to 1 833.94 points. In the secondary market have been concluded 98 deals with shares worth 186 million KZT (or 1,226.1 thousand U.S. dollars). The entire line of issuers included in the representative list of KASE was in the red zone. Thus, the leader among the outsiders became KMG (- 3.9%). Representatives of the banking sector showed decline on average by 1.03%. Stock Quotes CenterCredit Bank fell by 0.2%, 1.8% Halyk, Kazkommmerbanka by 1.1%. For the price of the shares KazakhTelecom changes have occurred. - On Thursday it became known that China's GDP in the fourth quarter of 2010 grew at an annualized rate of 9.8%, sparking rumors that the PRC authorities may tighten monetary policy. Rising inflation has slowed in December to 4.6% against 5.1% in November, which should have a positive impact on investor sentiment. However, due to concerns about interest rates and expected inflation in China, this news is a negative tone asked the world stock market. Thus, the U.S. stock markets opened in the red zone, as concerns about rising interest rates in China graded with positive U.S. labor market. According to the results on January 20, the Dow Jones fell by 0.02%, amounted to 11 822.8 points. S & P 500 fell 0.13% to 1,280 points. Leading European stock indexes also declined against the background of data from China. Following the auction Thursday of the British FTSE 100 index fell 1.82% to reach 5 867.91 points. The German DAX fell 0.83%, to 7 024.27 points. - Hewlett-Packard (HPQ US) changes the composition of the Board of Directors. Yesterday the company Hewlett-Packard (HP) has announced the appointment of five new board members and stated that they would not renew the powers of four members. To date, the number of board is 17 people. It is planned to reduce to 13 before the annual meeting of the Council in March this year. Most experts estimate the change as positive, given the criticism of the Board of Directors received last year. Analysts and experts in corporate governance believe that the companies were required drastic changes, as well as downsizing the Council. Analysts of IFD "RESMI" believe these changes will allow the company to the next level and increase efficiency in the fight against competitors such as Oracle. IFD "RESMI" recommends investing in stocks Hewlett-Packard and year-end raises price target US $ 56. - Google has replaced the head of the company in an attempt to catch up with Facebook. Co-founder Larry Page will take the place of former chief director of Google Inc Eric Schmidt. This is a message that says that Silicon Valley start of the rapid action to achieve the success of its fast-growing rivals like Facebook. Paige takes the reins of government from April 4 this year to strengthen the company against competitors, as in the present moment is Google Inc. loses lot of traffic in comparison with social networks like Facebook and Twitter. The company is trying to become as efficient as possible by focusing on one of the founders and more technically savvy person. News about changes in the senior managers came after Google published its financial statements for the year 2010, where net income and net revenues increased 29% and surpassed analysts' forecasts. Analysts of IFD "RESMI" believe that this news should have a positive impact on the company, as the new corporate structure promises to be more efficient and speed up decision- making process. - Today, January 20, Commodity markets in general showed a negative trend. The exception was the agricultural sector. Industrial metals trade results in average lost 3.5%. Aluminium (Nassac), copper, lead, and zinc lost 2.28%, 3.1%, 4.53% and 3.83% respectively. Oil price of Brent with the market fell by 1.56%. Sugar price increased by 0.42%, wheat at 0.78%, 1.99% for corn and cotton to 2.69%. Analysts of IFH RESMI give the following advice for investors in securities of issuers in Kazakhstan: -------------------------------------------------------------------------- Issuer Last price Predicted price* Up/down from Target RSI. Current price price** %*** ------------------ ---------- ---------------- ------------- ------- ----- Kazkommertsbak 464 On Review 397 59.78 Halyk bank 390 519 33.1% 507 62.28 Bank Center Credit 650 On Review 1,07 77.34 RD KMG 19,500 On Review 23,269 71.46 Kazkhtelekom 19,800 On Review 25,600 84.19 -------------------------------------------------------------------------- Fundamental evaluation IFH RESMI for 12 months (weekly review) ** Target according to the consensus forecast of analysts surveyed by Bloomberg *** Relative strength index - an indicator of technical analysis. determines strength of trend and likelihood of change. Overbought/oversold - when RSI indicator value is closer to 100%/0%. - Cost of common shares Kazkommertsbank assessment IFD "RESMI" will cost no less than KZT796 per share by the end of 2010; - Halyk Savings Bank of Kazakhstan is estimated IFD "RESMI" as the most promising in terms of business development financial institution in Kazakhstan. Analysts see the growth of the bank's shares up to KZT409 per share; - Shares of Bank CenterCredit in the long term analysts IFD "RESMI" about the outlook for growth in securities of the bank to the level of 1.230 m.; - Stocks of Kazakhtelecom are looking most attractive for investment in the long term. Analysts IFD "RESMI" recommend buying simple shareholders of the issuer. - The updated target price of shares of JSC Exploration Production KMG is KZT24.895 per share. 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. [2011-02-21]