Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for March 14, 2011

/IRBIS. March 14, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for March 14, 2011. Analysts of JSC "BCC Invest" today at the KASE expect multi-directional opening of trading on an inconsistent external background. Further, during the day, probably the dynamics of the Kazakh market shares will depend on investor sentiment in the western trading floors. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - The volume of industrial production in Kazakhstan increased by 5.6%. In January-February 2011 compared to same period in 2010 increased production of coal, crude oil, natural gas and metal ores. Increased production of food, beverages, and construction materials, chemical, metallurgical and mechanical engineering industries. Production growth was observed in 15 regions of the country. Decline recorded in the Qyzylorda region. - OPEC increased oil production. Average daily oil production by OPEC rose by 131.2 thousand barrels per day in February and reached 27.38 million barrels per day, reported Bloomberg referring to the report of the group. Saudi Arabia, the largest producer in the group to increase production to 8.87 million barrels per day. (An increase of 279.6 thousand barrels per day.). Venezuela and Angola last month produced by 2.39 million barrels per day and 1.7 million barrels per day, respectively. Currently, OPEC countries are discussing the desirability of holding an emergency meeting in connection with the riots in Libya, which led to a decline in oil production in this country. - JSC Exploration and Production KMG announced an agreement with Exploration Venture Limited to acquire 50% stake in Ural Group Limited. UGL owns 100% stake in LLC Ural Oil and Gas (UOG), which has the right to subsoil use in the conduct of hydrocarbon exploration in Fedorovsk block, located in West Kazakhstan region near the town of Uralsk in close proximity to several large existing fields. The purchase price 50% interest in UGL is 149.1 million U.S. dollars, which includes 61.3 million U.S. dollars per share and 87.8 million dollars for rights to the Shareholder loans (as at 01.01.2010). Under the deal, shareholder loans will be paid to KMG EP after the commencement of commercial production. Total price consideration for Shareholder Loans subject to adjustment in connection with the financing of EVL's work program prior to the date of closing. The deal will be financed through equity KMG. According to analysts of JSC "BCC Invest" this message is a positive for stock prices, and depositary receipts of JSC Exploration and Production KMG, as it is confirmation of the notification strategy for the replacement of existing fields with new assets. Analysts JSC "BCC Invest" confirm the recommendation to "hold" shares and depositary receipts of JSC Exploration and Production KMG with target prices of 20,500 tenge per share and $ 23.60 per GDR. - Severstal in 2011 to supply AvtoVAZ 70 thousand tons of rolled steel, the price is up more than 30%. OJSC Severstal (RTS: CHMF) signed an agreement with OJSC AvtoVAZ (RTS: AVAZ) on prices and volumes of deliveries of metal in 2011, said steelmakers. It relates to products which can not produce other Russian metkombinats. Shipments in 2011 will be 70 thousand tons of them from April to December - 37.5 thousand tons, which in total makes up about 13- 15% of the automaker's needs. You also have the opportunity to supply additional volumes of production of Cherepovets Steel Plant (the main site of "Severstal") at market prices as part of monthly contracts. Formula pricing remains similar to last year, the report says, the agreement is concluded on terms convenient for both sides. According to analysts JSC "BCC Invest" the message is neutral for the stock price and depository receipts of OJSC Severstal. Earlier AvtoVAZ to the Federal Antimonopoly Service due to higher selling prices of steel company to hire, but a state organization saw no violation of antitrust law, ultimately the company agreed to a compromise. Analysts of JSC "BCC Invest" leave its current recommendation to "buy" on the equity securities of OJSC Severstal with a target price of $ 21.70 per depositary receipt. - Analysts of JSC "BCC Invest" and expect the following developments in international markets today: In today's Russia is expected to publish data on the consumer price index. - In Russia today the publication of important economic statistics are expected. - At 16:00 (AST) will be published data on industrial production of the Euro zone. - Today, the U.S. publication of important economic statistics is expected. 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 550 583 +6.00 Neutral KKGBp 230 196 -14.78 Neutral Halyk Bank HSBK 380 432 +13.68 Hold Bank CenterCredit CCBN 610 646 +5.90 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 20,200 20,500 +1.49 Hold Kazakhmys PLC GB_KZMS 3,200 3,970 +24.06 Buy ENRC PLC GB_ENRC 2,300 2,767 +20.30 Buy Kazakhtelekom KZTK 19,500 19,200 -1.54 Hold KZTKp 9,350 9,300 -0.53 Hold MREK MREK 1,100 1,130 +2.73 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. [2011-03-14]