Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for February 19, 2010

/IRBIS, February 19, 2010/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for February 19, 2010. Analysts now paying attention to the following investors' significant events - Development Bank of Kazakhstan plans to increase the cost of projects for funding. Kazakhstan Development Bank (KDB) was announced the proposal to raise the requirements for the minimum amount of total project costs for the provision of credit. Managing Director of BRC Mr. Eldar Tenizbaev said that in the future will only consider projects worth more than $ 20 million, and that work inside the bank on this matter has already begun, while stressing that it is only about the projects in the field of agribusiness. Currently, the minimum cost of projects to provide loans ranging from $ 5 million. - South Korea and Kazakhstan are negotiating the supply of grain in transit through China. The South Korean government plans to create a large company to purchase grain on the world market. The company will buy cereals (wheat, corn and soybeans) from manufacturers and sell these products on the world market. And also, will invest in foreign enterprises, and participate in bidding on the Chicago Stock Exchange CBOT. It is planned that the distribution network will be established for 10 years and the company's share capital will amount to $ 172mln. The establishment of this company will allow South Korea to diversify sources of imports of grain and reduce dependence on supplies of products by major international companies. Managing Director of JSC "NC" Food Contract Corporation Daulet Uvashev said that the Grain Union of Kazakhstan for talks with South Korea for grain shipments in transit through China, adding that Japan is also ready to consider purchase of Kazakh wheat in transit through China. Food Contract Corporation plans to put the transit in the amount of 3 million tons, and China is willing to consider the transit of grain in this volume. - Demand for MEOKAM exceeded supply by 2.6%, and the yield increased by 20 basis points. Yesterday, February 18, 20010, the Ministry of Finance has placed medium-term treasury bonds MEOKAM at KZT13.333 billion by 5.2% per annum. The announced volume production of KZT13 billion. The buyers were the subjects MEOKAM pension market - 16.8% Banks - 66.6%, bank customers - 4.6%, broker- dealer companies - 0.1% and clients of broker-dealer companies acquired 11.9% of total output. Demand for government securities is almost consistent with the data and the proposal exceeded supply by only 2.6%. Analysts IFD "RESMI" believe that this shows a decline in demand for medium and long-term government securities. It is also noted that the previous placement MEOKAM, since January 5, 2010, recorded a coupon rate of 5%. Thus, analysts have noted a slight increase in yield by 20 basis points. 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 600 796 32,7% 1 999 39,71 Halyk bank 360 409 13,6% 1 006 52,82 Bank Center Credit 733 1 218 66,2% 865 40,62 ENRC 2 330 On review 2 776 54,33 Kazakhmys 3 045 On review 3 534 47,24 RD KMG 21 100 26 380 25,0% 26 659 42,36 Kazkhtelekom 17 900 33 842 89,1% 21 700 41,06 -------------------------------------------------------------------------- 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 ordinary shares of 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 bank shares to KZT409 per share; - Shares of Bank CenterCredit in the long term, analysts IFD "RESMI" about the outlook for growth in bank securities to a level 1 230 m.; - Shares of Kazakhtelecom look the most attractive for investment in the long term. Analysts IFD "RESMI" recommend buying ordinary shareholders of the issuer. - JSC Exploration Production KazMunaiGas - the company is actively consolidating oil and gas sector in Kazakhstan, which exports about 80% of its oil. Provision is 5% of the total volume of proven reserves in Kazakhstan. Analysts IFD "RESMI" sees upside of 22% in the conservative approach, ie, while maintaining the production level as in 2008, increasing capex in 1,5 times, acquiring 50% stake in Mangistaumunaigaz and at an average price of oil at $ 65/barrel. 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. [2010-02-19]