Review of key events and forecasts from ASYL INVEST JCS (Kazakhstan) analysts for December 14, 2011

/IRBIS, December 14, 2011/ - ASYL INVEST JCS (Almaty) provided IRBIS with the review of main events and its investment ideas and forecasts for December 14, 2011. Analysts of ASYL INVEST JCS note the following tendencies on Kazakhstani and world markets: - The Asian markets today are under pressure, after Chancellor Angela Merkel said that she was not ready to go to increase the stabilization fund of the Eurozone, and the Fed gave no signal that the regulator may consider new measures of quantitative easing. Japan's Nikkei today is reduced by 0.5%, while China's Hang-Seng and Shanghai Composite lost only 0.2%. Futures on U.S. indices today are growing on weaker pace from 0.3%. - Commodity markets today show weak trend. Quotes of WTI oil and Brent are now reduced by 0.2% after speculation about possible disruptions of oil supplies from Iran lost ground, and data on oil and petroleum products in the U.S. today with a high degree of probability may show an increase. Copper in electronic trading in New York is losing 0.6% of value, and gold is growing at 0.3%. - The euro/dollar is now trading at 1.304, down below yesterday's close to today's auction of bonds in Germany and Italy. Italy plans to offer five-year bonds in the amount of 3 billion euros, while Germany - 3-billion volume of two-year notes. Today euro area data on industrial production for October will also be published. - The news background is neutral for the stocks of mining companies in Kazakhstan. - Analysts of "Asyl INVEST" recommend to "buy" shares of Kazakhmys and KMG EP. Our target price on shares of Kazakhmys - 16.9 British pounds, shares of KMG EP - 20,254 KZT. - Analysts of "Asyl INVEST" recommend to "buy" on Halyk Bank common stock, which received good support at around 200 tenge. At current price levels, 209 tenge per share, they look extremely attractive. In fact, stocks are estimated at a book value that is not reasonable for the Bank, which has high prospects for growth in net profit. Yesterday the bank has confirmed our view of the prospects for profit growth, posting strong results for the 3rd quarter of 2011. The main activities of the bank showed a significant increase in operating profit. Expenses for provisions for loan portfolio decreased, but the bank, in our view, continues to maintain an adequate level of reserves. The resulting interest income on bank loan portfolio is consistent to calculated percents. Bank plans for the year to make a profit of $ 40 billion, which corresponds to our expectations. The Bank also announced the repurchase of preferred shares for $ 20 billion. Redemption of shares have a positive impact on the value of common shares, as equity, the level of which now seems redundant to decline, and its profitability (ROAE) will increase. As a result, in future the bank will be assessed in terms of higher price / book value. In addition, a diffuse net income per share by reducing shares outstanding will increase. Target price of "Asyl Invest" on the shares of the bank - 474 tenge. - Analysts of "Asyl INVEST" recommend investors to "buy" preferred shares of Kazakhtelecom. As noted earlier, the shares have a high potential for growth, after the company announced the sale of its 49% stake in mobile operator LLP "GSM Kazakhstan". Selling shares at a much higher price (of mobile communications sector, even in the current situation is estimated at more than 9 annual profits) than it is recorded on the balance sheet, positive impact on its net profit in 2012 and is likely to give big dividends to shareholders up to 2012. Target price of "Asyl Invest" on preferred shares of the company - 21,823 KZT. This material has only informative 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 given in this material. [2011-12-14]