/IRBIS, June 2, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 2, 2011.

The analysts are expecting a negative opening on KASE on negative exterior background. During the day, the KASE index stock quotations dynamics will be also negative, and the KASE index would probably end the day on negative territory.

Analysts of JSC "BCC Invest" expect the following developments on Kazakhstani market today:

• Inflation in Kazakhstan in May 2011 was 0.5%. Prices for food and nonfood products in the past month increased by 0.6%, paid services - by 0.3%. In the past month price increase was observed for bread and cereals by 0.9%, and cereals - by 5.3%, flour - by 1.3%, pasta - 1%, bakeries and pastry - by 0.4%, bread - 0.3%. The prices for meat and poultry increased by 1.7%, potatoes - 1%, confectionery products - 0.6%, cheese and curd - 0.5%, oils and fats, sugar - by 0.4%. Fruits and vegetables fresh fell by 0.3%, raw milk - 2%, eggs - 2.6%. The level of prices for pharmaceutical products, detergents grew by 0.1%, clothing and footwear - 0.2%, cement - by 1.5%, liquefied gas - by 1.8%. Gasoline prices rose by 5.1%, diesel fuel - by 5.5%. Services of restaurants and hotels grew by 0.3%, health care - 0.4%, hairdressing - 0.8%, pre-school education - by 1.9%, passenger railway transport over long distances - by 3.8%. In the area of housing and communal services tariffs for the maintenance of housing rose by 0.3%, refuse collection - 0.4%, natural gas, transported through the distribution networks - by 0.7%.
• Prices of manufacturers of industrial products in May 2011 increased by 5.7%. In May of this year compared with April prices of manufacturers of industrial products increased by 5.7%. Manufactured products increased by 6.1%, production services - by 0.9%. Rise in prices was observed in the mining industry by 7.8%, manufacturing industry - by 1.9%.
• Net profit of KazakhTelecom under IFRS in the I quarter grew by 6%. Leading operator of Kazakhstan Kazakhtelecom in January-March 2011 got 16.3 billion tenge (current 145.43 /$1) in net profit, up 6% compared to the same period last year, was indicated in the Consolidated Financial Reporting under IFRS. Revenues from services increased by 12.5% to 40.1 billion tenge, the gross profit - 14% to over 17 billion tenge, pre-tax profit - in 2.4 times up to 19.2 billion tenge. The company's assets grew by 3% to 381.9 billion tenge, liabilities decreased by 4% to 126.9 billion tenge, equity rose by 7% to 254.9 billion tenge, the share capital remained unchanged at 12.1 billion tenge.
• NMDC wants to buy from Severstal 5 million tons of coking coal projects in India. Indian state-owned NMDC, with which Severstal (RTS: CHMF) last year signed a memorandum on the establishment on an equal footing joint venture to build a steel plant in India (Karnataka), requested that the Russian company to supply 5 million tonnes of coking coal to Indian projects , particularly in Karnataka, reported Bloomberg citing to CFO NMDC Swaminathan Tiagarahana. According to it, the joint venture between the companies for construction of Steel Plant will be established within 4 months. Earlier it was planned that within the framework of cooperation between companies will use the possibility of NMDC for iron ore mining in India. Also one of the terms of the agreement was part of the Indian side in the "Severstal" for coking coal in the Ulug-Khem coal basin in Tuva. Production capacity can range from 2 to 5 million tons of steel per year. "Severstal" has planned to invest about $ 1.6-1.8 billion in the development section of the central Ulug-Khem coal basin in Tuva. Additionally, the construction of the railway to the mine can be directed up to $ 1 billion, Severstal signed a memorandum with DIC and Evraz of a consortium for the construction of the railway infrastructure by 2014. Start of production at the field is expected in the years 2017-2018, the capacity - up to 10 million of coal a year. Feasibility Study will be prepared around the end of 2013. In May, also became aware of the interest of "Severstal" to Raspadskaya (RTS: RASP). According to sources, "Severstal" will soon decide on the syndicated loan to $5 billion

The analysts of "BCC Invest" are expecting the following events on international markets today:

• Today Russia is expected to publish data on international reserves.
• Today in Britain at 14:30 (AST) will be published PMI in the construction sector, as well as in the coming days it is expected to publish data on house price index Halifax.
• Today, the United States at 18:00 (AST) will publish index of consumer expectations from the RBC, at 18:00 (AST) will be published performance data in non-agricultural sector, the labor costs, as well as primary and repeated requests for benefits unemployment. At 19:45 (AST) will be published data on the index of consumer comfort from Bloomberg, and at 20:00 (AST) - industrial orders.

Analysts of BCC Invest JSC are giving the following advice for investors in securities of issuers in internal market:

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                         Closure Target Potential,
Issuer           Code      price  price          % Recommenda-
                                                   tion
---------------- ------- ------- ------ ---------- -----------
Kazkommertsbank  KKGB        460    583     +26.74 Neutral
                 KKGBp       198    196      -1.01 Neutral
Halyk Bank       HSBK        330    415     +25.76 Hold
BankCenterCredit CCBN        523    608     +16.25 Buy
Tsesnabank       TSBN        865  1,030     +19.08 Neutral
EP KMG           RDGZ     18,700 20,500      +9.63 Buy
Kazakhmys PLC    GB_KZMS   3,130  3,870     +23.64 Buy
ENRC PLC         GB_ENRC   2,100  2,550     +21.43 Buy
Kazakhtelecom    KZTK     19,450                   Review
                 KZTKp     9,500  9,300      -2.11 Hold
MREK             MREK      1,100  1,130      +2.73 Hold
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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.

[2011-06-02]