Market reviews and recommendations of analysts of BCC Invest JSC (Kazakhstan) for February 24, 2010

/IRBIS, February 24, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for February 24, 2010. Analysts JSC BCC Invest now expects that the Kazakhstan stock market will be dominated by the sale under pressure from the negative macroeconomic statistics from the U.S. and fall in the commodity markets. Analysts expect the correction on shares of commodity companies Kazakhmys PLC, ENRC PLC, and the JSC KazMunaiGas EP amid falling stock quotations on steel giants BHP Billiton and Rio Tinto in morning trading in Australia and yesterday's fall of quotations of futures for oil and industrial metals. JSC "BCC Invest" also notes the following important events in the Kazakh market: - JSC Kazakhtelecom issued press releases about the financial and operating performance for 2009. According to estimates, the consolidated company's revenues from sales of telecommunication services in 2009 totaled 146 billion KZT955 million. Revenue growth at 3% compared to 2008 due to improved quality of services as a result of modernization and development of telecommunication networks, the growth of subscriber base, increase the number of broadband users to the Internet "Megaline. In general, estimates the company's financial performance in line with expectations JSC "BCC Invest": sales 146 billion KZT955 million on 1.5% below our forecast (149 billion 203 million tenge), net profit of 27 billion KZT314 million - at 9.9% above our forecast (KZT24 billion and 857 million). But analysts JSC "BCC Invest" underlined the fact that the published data on financial indicators for 2009 are only estimates and are insufficient for detailed analysis and changes in the stock assessment model. Analysts JSC "BCC Invest" will make adjustments to the valuation model and, if necessary, revise forecasts and recommendations on shares of the company after the publication of audited financial statements and annual report for 2009. Analysts JSC "BCC Invest" confirm the recommendation to "hold" on common shares KZTK KZ c target price of KZT17,800 per share and "buy" on preferred shares KZTKp KZ with a target price of KZT10,300 per share. - JSC "Alliance Bank", located in the process of debt restructuring, extended the list of available options for creditors to March 1. Previously, creditors had to choose the option of restructuring the debt until February 24. As reported in respect of bankruptcy creditors that have not submitted the form of available options or electronic instructions to the deadline, the Bank reserves the right to offer them only the bank's shares in exchange of their claims. - Temirbank reported the publication of an information memorandum with details of the restructuring of the Bank. The company has signed a basic condition with a description of the conditions of the amended restructuring proposal on Dec. 18, 2009 with a committee of leading bondholders, who had represented during the negotiations the London-based legal adviser. The basic conditions is an agreement on principles, those with no binding legal force, and are not obligatory by law either for members or for members of the committee, while committee members do not give investors advice on how to vote their bonds. Analysts of JSC "BCC Invest" are also waiting for the next events in the international markets: - the Russian market at the opening of today's trading analytics JSC "BCC Invest" expect mixed trends in the main indices, as yesterday's drop in U.S. market and today's decline in trading in Asia, accompanied by positive dynamics of futures for the major U.S. stock indices. - European markets are now expected to yield the revised data on GDP growth in Germany in the fourth quarter of last year and an increase in private consumption over the same period. In addition, the data will be published on the growth of retail sales in Italy and orders for manufactured goods in the euro area in December. In the UK publication of important economic data is expected. - on the U.S. markets today, the focus of investors will be drawn to the publication of data on the number of new houses sold in January for which the average is projected to rise by four per cent compared with the previous period. Commodity market may be subject to change based on data on stocks of petroleum and petroleum products at the end of last week, in the case of a sharp discrepancy with the forecast. Also, today is expected to address by Fed Chairman Ben Bernanke before Congress with semi-annual report on monetary policy. 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 610 695 13.85 Hold KKGBp 245 347 41.76 Hold Halyk Bank HSBK 359 335 -6.82 Hold Bank CenterCredit CCBN 750 947 26.27 Buy KazMunaiGaz RDGZ 21,200 21,100 -0.47 Hold Kazakhmys PLC GB_KZMS 3,070 3,528 14.92 Hold ENRC PLC GB_ENRC 2,400 2,709 12.88 Buy Kazakhtelekom KZTK 18,000 17,800 -1.11 Hold KZTKp 8,100 10,300 27.16 Buy ---------------------------------------------------------------------- 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. [2010-02-24]