Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for March 25, 2010

/IRBIS, March 25, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for March 25, 2010. Analysts of JSC "BCC Invest" expected today on the Kazakhstan stock market growth over the shares of commodity companies, primarily - JSC Exploration Production KazMunaiGas and ENRC PLC on the background of corporate news. JSC "BCC Invest" also note the following important events in the Kazakh market: - March 19, JSC Exploration Production KazMunaiGas announced the completion of a strike in the manufacturing branch of OzenMunayGaz, started on March 1 in Zhana-ozen. It was reported that "as a result of long and difficult negotiations, the parties reached agreement on all issues raised by the strikers." Conciliation commission with the participation of Chairman of the National Kazmunaigas, Akim(Mayor) of the region and representatives of ministries and departments took action, taking into account the interests of workers and employers. Given that all matters have been made appropriate decisions, all the employees pension fund "Ozenmunaygaz" on March 19, 2010 year take up their job duties. According to the latest data loss in oil production totaled 12 000 tons. Analysts of JSC "BCC Invest" believe that the message is positive for the stock price and depository receipts of the issuer, but the risk of similar situations in the future remains. SC "BCC Invest" reaffirms the recommendations of "hold" on the shares and GDRs of JSC Exploration Production KazMunaiGas with target prices, respectively, 23 300 tenge per share and $ 23.00 per GDR. - Max Petroleum PLC reported the results of testing of exploratory well BOR-1 on the plot Borkyldakty Block E. The company began testing wells after the completion of drilling in early March this year. Well provides a steady flow of oil at 200 barrels per day (before the installation of "pump- rocking"). The quality of oil - 36o API, without water or with low volume of associated gas. In addition, it was determined the location of 2 wells to confirm, and the company was put out to tender for the rental of 2-nd rig to drill appraisal and production wells in the Borkyldakty Block E. The company is also the completion of drilling exploratory wells KZN-1 in the Northern part Kyzylzhar 2 East Block, which reached a depth of 1,408 meters. Were detected residual accumulations of oil unsuitable for commercial production. The well will be mothballed. After this rig Sun SJ- 30 will be moved to drill an exploration well KZN-2 in section 2 Kyzylzhar North West Block, is a 3-m from a 12-program exploration license blocks A and E. Analysts JSC "BCC Invest" evaluate the message is neutral for the stock price of the company, the positive news of a commercial discovery of oil in the area Borkyldakty neutralized the message that there is no commercial oil reserves in the area of North Kyzylzhar 2 Eastern bloc. JSC "BCC Invest" reiterates the recommendation of "hold" on the shares of Max Petroleum PLC with target price of 21.00 pence per share. - Yesterday, the company Eurasian Natural Resources Corporation PLC has published preliminary results of 2009. Company's financial performance was below our forecast and consensus expectations of analysts. Revenues decreased by 43%, while EBITDA of fell by 65% and reached 1,462 dollars, not including profits from the devaluation of the tenge. Earnings per share fell by 61% and amounted to 81 cents, while dividends were paid to the damage on 15 percent of the profits, which is fully consistent with company policy. Cost of sales fell by 7%, while total expenditure decreased by 17 percentage points Company expects increased demand in 2010 from China and other developing countries. Prices are expected to implement at a significantly higher level compared to last year, while production is expected to reach almost full capacity utilization. In addition, the company expects a small increase in costs and production costs, as well as the negative impact of revaluation of the tenge. Analysts of JSC "BCC Invest" put the recommendation and target price on shares in ENRC to review. In the near future JSC "BCC Invest" will release a new review of ENRC PLC in the light of published data. Analysts JSC "BCC Invest" also expect the following developments in international markets: - Publications on Russian markets important economic statistics, which can have a significant impact on the market are not expected. Output data as international reserves in U.S. dollars at the end of last week will be the only important macroeconomic publications for the day. At the opening of today's trading session JSC "BCC Invest" expects moderately negative market sentiment, in view of multidirectional movement of Asian and U.S. indices and prevalence of decline in the auction. - European markets with major economic events on Thursday in Europe will publish the index of consumer confidence in Germany from Gfk in April, and data on the growth of base money (M3) the euro area in February. In addition, in the UK are data on retail sales in February, which is expected to remain at the same level. Plus, investors will continue to monitor the news for the troubled country, which may influence the course of bidding. - On the U.S. markets investors are interested in data on weekly unemployment and news from Europe. In addition, performances will be held today, the heads of the Fed and U.S. Treasury, for which the players will also be closely monitored. The impact on the debt market may provide initial offering 7-year treasury bonds. 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 665 695 +4.44 Hold KKGBp 269.5 347 +28.87 Hold Halyk Bank HSBK 385 335 -13.12 sell Bank CenterCredit CCBN 742 777 +4.72 Hold Tsesnabank TSBN 940 737 -21.60 decrease KazMunaiGaz RDGZ 21,500 20,300 -5.58 Hold Kazakhmys PLC GB_KZMS 3,400 3,528 +3.76 Hold ENRC PLC GB_ENRC 2,520 2,709 +7.50 Hold Kazakhtelekom KZTK 17,250 17,800 +3.19 Hold KZTKp 8,000 10,300 +28.75 Buy MREK MREK 960 800 -16.67 decrease ---------------------------------------------------------------------- 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. [2010-03-25]