The review of key events from "Asyl-Invest" JCS analysts for May 25, 2011

/IRBIS, May 25, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 25, 2011 Trading on the Kazakhstan stock market on Tuesday ended with lateral dynamic of index KASE. In terms of index growth was observed on shares of Kazakhtelecom (0.5), decrease - in the shares of Kazakhmys (-0.5%). Trading activity was very low. The trading volume of KASE index on Tuesday amounted to 0.4 million tenge. Trading of shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Tuesday ended with growth. Shares and depositary receipts of raw materials companies led the way for trading on the background of recovery in prices on commodity markets. Kazakhmys shares were up 2.3%, shares of ENRC - by 0.6%. GDR EP KMG grew by 1.3%. In the banking sector there was a partial recovery in prices. NSBK GDR rose by 1.1%, GDR KKB - by 0.8%. Today, the external background for the Kazakhstan stock market develops moderately negative. From European trading today, analysts of ASYL INVEST are expecting lowering of prices. According to trade KASE index probably will show a weak negative change. In addition, analysts of ASYL INVEST note the following events on world markets: - Major U.S. stock indexes at the opening of trading on Tuesday attempted to recover losses of the previous day under the influence of positive dynamics on the foreign markets and the weakening U.S. dollar, but the published economic statistics has caused concern of market participants regarding the slowdown in industrial production, which in combination with concerns about debt problems euro area has led to a decrease in major U.S. stock indexes after about 1.5 hours after the opening of trading. Following the session, Tuesday indices suffered losses as the third day in a row and fell, so to a minimum of 1 month. Market weakness was caused by data on an index of manufacturing activity for May from Richmond Fed, which reported a decline in business activity in the manufacturing sector of the central Atlantic region, after rising for seven months. Value of the index declined from 10 points to minus 6 points. Economists forecast a decline to 9 points. Sales in the primary market in the U.S. in April rose 7.3% to 323 thousand Economists had forecast no growth in sales. Given the drop in existing home sales, sales growth in the primary market was somewhat unexpected. The median price of new homes in April rose to $ 214.5 thousand to $ 217.9 thousand Thus, the difference in prices of existing homes and new homes was $ 54.7 thousand in declining stock indexes at the auctions on Tuesday has occurred despite the recovery in commodity markets. July futures for WTI crude oil increased by 1.93% to $ 99.59 per barrel. Positive impact on rising oil was exerted by a recommendation by Goldman Sachs and the weakening U.S. dollar. U.S. dollar index on Tuesday fell 0.21% to 75.944. Best momentum of stock trading was demonstrated by oil and gas sector (1.32%). From corporate events can be noted placement of shares of a Russian Internet company Yandex (YNDX). The company raised $1.3 to the IPO on Monday, selling 52.2 million shares at $25 per share. The company's shares on Tuesday rose 55.36% to $ 38.84 per share, the highest price at auction was $ 42.01 per share. In general, trading volume on the NYSE on Tuesday amounted to 868.4 million shares, while turnover - $ 25.6 billion - Today the U.S. expects important economic statistics. Today, there are data on orders for durable goods in April. In general, the dynamics at the auctions will likely depend on changes on foreign stock markets, commodity markets and the domestic economic statistics. - Major stock indexes in Western Europe finished the session on Tuesday with growth against the backdrop of increasing recovery in prices on commodity markets. The British FTSE 100 index showed a moderate growth due to higher commodity prices. However, support for the commodity markets was short-lived, as market participants showed concern about the debt problems of the eurozone because of the messages from the rating agency Moody's for possible downgrade of ratings of 14 British banks. German DAX index also showed moderate growth. The leaders of growth were stocks and shares of automakers and chemical companies. - Today, the external background before opening of trading in Europe is composed as moderately negative. We do not exclude the fall of the indices of trading results. Of the economic statistics today, there are data on UK GDP for the I quarter, data on consumer confidence index from the GfK in Germany in June. - Major Asian stock indexes are now showing a decrease due to concerns of participants about the global economic recovery. Shares of commodity trader Glencore fell in Hong Kong on trading debut. - Oil prices are now falling, the U.S. dollar is growing. July futures for WTI crude oil today lost 0.8%, the July crude oil futures for Brent - 0.7%. Gold prices today are falling, the U.S. dollar is growing by 0.3% against a basket of currencies. The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. IRBIS Agency doesn't take responsibility for the opinions which are in given material. [2011-05-25]