Market reviews and recommendations of analysts of BCC Invest JSC (Kazakhstan) for March 2, 2010

/IRBIS, March 2, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for March 2, 2010. Analysts of JSC BCC Invest now expects that at the Kazakhstan stock market correction will occur, particularly on shares of ENRC PLC and Kazakhmys PLC, which showed significant growth in the previous days. It is also possible sale of shares of JSC Exploration Production KazMunaiGas after yesterday's publication of statements for the year 2009, which is probably not met the expectations of some investors JSC BCC Invest also noted the following important events in the Kazakh market: - March 3, 2010 in the trade system of KASE held special auctions on placement of short-term discount Treasury Bills of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-12 105 issue. Estimated volume of placement is KZT11 billion. - The Government of Kazakhstan has increased the national budget deficit for 2010 to KZT803.6 billion, said the head of the Ministry of Economy and Budget Planning Mr. Bakhyt Sultanov. "In general, the refined parameters of the republican budget are as follows: revenue - $ 3 trillion and KZT378.4 billion from the growth to the current budget to KZT189.4 billion; costs - 4 trillion. KZT182 billion, an increase of KZT240.1 billion against the adjusted budget, - he said at a government meeting on Monday in Astana. "The deficit - KZT 803.6 billion, an increase of KZT50.7 billion from the adjusted figure," - said B. Sultanov. - Republican Budget of Kazakhstan for 2010 in January, executed with a deficit of KZT31 billion and 854.8 million, told Interfax- Kazakhstan "in the Ministry of Finance of the Republic. Thus, the republican budget revenues in January amounted to KZT173 billion and 670.8 million, the cost - 205 billion 525.6. In the structure of income of the republican budget own revenues amounted to KZT170 billion and 391.8 million, the proceeds from the repayment of budget credits -KZT3 billion and 275.5 million from the sale of financial assets of the state - KZT3.5 million. In the expenditure part of the budget expenditure was actually KZT196 billion and 443.6 million, the cost of acquisition of financial assets of the State - KZT9 billion and 82 million. Budget loans in that period were not provided. - Kazakhstan's state debt issued in the form of GS, together with the sum of coupon payments of March 1, 2010 would amount in current prices KZT2 trillion and 465.5 billion ($ 16 billion 735,6 million) from 01 to 28 February 2010 the total debt increased by KZT186.6 billion (8.2%) or in dollar terms - to KZT1,359.5 million (8.8%), informed the stock exchanges IRBIS agency. In January 2010, total debt increased by KZT248.9 billion (12.3%) or in dollar terms - of $ 1 693.6 million (+12.4%), indicated in the information. - Inflation in Kazakhstan in February 2010 amounted to 0.9%, reported The State Agency for Statistics. Food prices in February rose by 1.3%, non-food goods - by 0.4%, paid services - by 0,7%. Meanwhile, inflation in annual terms (February 2010 to February 2009) amounted to 7.4%, while food products went up by 4.7%, non - by 7.9%, paid services - 10.6%. Annual inflation is (January-February 2010 to January-February 2009) amounted to 7.4%. Groceries in January-February 2010 compared to the same period last year went up by 4.3%, non - 8.7%, services - by 10.3%. - In Kazakhstan, the prices manufacturers of industrial products on the basis of productive services in February 2010 (to January 2010goda) increased by 1.4%, by February 2009 - increased by 47.8%, reads the statement issued on Monday, Agency for Statistics. In this case, according to statistic data, the prices of manufactured goods in February increased by 1.4% (compared to February 2009, an increase of 50.8%), the production services - rose by 0.8% (by 7.3 % respectively). - Yesterday, the company Kazakhmys PLC announced the completion of the transaction to sell a 50% stake in Ekibastuz GRES-1 state fund Samruk-Kazyna. The deal amounted to $ 681 million As previously reported, the parties also agreed to establish a joint supervisory board, as well as the rotation of the operational management between Kazakhmys and Samruk-Kazyna. Analysts of JSC "BCC Invest" evaluate the news as neutral to positive common shares of Kazakhmys PLC, traded on the stock markets of Kazakhstan and the UK, as in line with previous statements made by the company. Analysts JSC "BCC Invest" confirm the recommendation to "hold" securities company with target prices at 3528 m. and 1544 pence per share. - Yesterday, JSC Exploration Production KazMunaiGas issued financial statements for the year 2009. The average price of Brent crude oil in 2009 was 36% lower than in 2008, down from 97.1 dollars per barrel to U.S. $ 61,7 per barrel. Net profit for the period amounted to KZT209.7 billion (1 422 million) and earnings per share amounted to KZT2,871 (U.S. $ 3.2 per GDR), including a substantial income from exchange rate differences in the amount of KZT89.5 billion (607 million U.S. dollars). Operating profit amounted to 155 billion (1 050 million U.S. dollars), down 50% compared to KZT308 bn. (2,559 million U.S. dollars) received for 2008, mainly due to lower oil prices and the introduction of new tax code in early 2009. Analysts JSC "BCC Invest" put on the revision of its recommendations and target prices for shares and depositary receipts of the company and will soon update their against published data. Analysts of JSC "BCC Invest" are also waiting for the next events in the international markets: - on Russian markets today will not be published any important economic statistics, so investors will follow the local corporate events and news from abroad. At the opening of the trading session Tuesday, analysts JSC "BCC Invest" expect a moderate negative investor sentiment, as most Asian stocks and U.S. index futures currently traded in a small minus. - European markets will be released today, the producer price index in January and the forecast inflation data for February. In addition, construction will be published UK PMI index for February. Analysts JSC "BCC Invest" expect a small correction on the European stock markets today, so the main European indices are likely to occur as a minus. - on the U.S. markets will not be published many important macroeconomic statistics. The recent increase in retail sales to sustain confidence in the labor market and consumer confidence, thus leaving this sales data on automotive products can be a good indicator of whether or not to be expected that February also brought good news. Also today, expected performance of various leaders of the Fed, which may influence the course of bidding. 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 593 695 +17.12 Hold KKGBp 245 347 +41.76 Hold Halyk Bank HSBK 341.5 335 -2.05 Hold Bank CenterCredit CCBN 705 947 +34.33 Buy KazMunaiGaz TSBN 942.85 737 -21.83 cut Kazakhmys PLC RDGZ 21,700 21,100 -2.76 Hold ENRC PLC GB_KZMS 3,020 - - - Kazakhtelekom GB_ENRC 2,400 2,709 - Buy KZTK 17,550 17,800 +1.42 Hold ---------------------------------------------------------------------- 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. [2010-03-02]