Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for March 29, 2010

/IRBIS, March 29, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for March 29, 2010. Analysts JSC "BCC Invest" expected today on the Kazakhstan stock market publish audited financial statements of the People's Savings Bank of Kazakhstan for 2009. After the publication of statements of JSC "BCC Invest" adjust its model for evaluating the bank's shares and, if necessary, change the target prices and recommendations on the shares and depositary receipts of the bank. JSC "BCC Invest" also noted the following important events in the Kazakhstan market: - Kazakhstan Deposit Insurance Fund at April 1 reduces the maximum interest rate on deposits of individuals. According to Interfax- Kazakhstan "in the fund from that date the nominal interest rate on newly attracted deposits of individuals in tenge at 10% in foreign currency - 7% per annum. Currently, these rates are respectively 11.5% and 8% per annum. This decision, emphasized in the fund, made in order to bring the deposit policy of the banks participating in the system to guarantee the deposits in accordance with the investment opportunities and market trends of monetary policy. These rates are established only to the newly concluded contracts and do not apply to previously signed contracts. The maximum rates of remuneration are introduced before the end of the year with the right of their quarterly review, and revision in the event of sharp fluctuations in the deposit market. As reported, Kazakhstan Deposit Insurance Fund has decided to September 21, 2009 to reduce the maximum interest rate on deposits in local currency up to 11.5%. Meanwhile, the maximum interest rate on deposits in foreign currency remained the same - 8% per annum. - March 30, 2010 in the trade system of KASE held special auctions on placement of government long-term treasury obligations of the Ministry of Finance of the Republic of Kazakhstan MEUZHKAM-144 of the first issue. The announced allocation volume of KZT5 billion. Indexation of money invested in MEUZHKAM, made by calculation of the indexed coupon received from the addition of a fixed coupon at a specific location, and the inflation index over the last coupon period. - On March 26 of this year, JSC Exploration Production KazMunaiGas issued a press release about the normalization of the situation in the production branch "OzenMunayGaz. It was reported that the manufacturing branch of Ozenmunaygaz (" HMG "), KMG is working to restore oil production levels , declined as a result of illegal protests, held at March 1-8, 2010. Staff Pension Fund "Ozenmunaygaz performs his job duties in accordance with the new production schedule, including an increase of working days in March due to holidays and weekends. The work of all departments PF "Ozenmunaygaz" is carried out in normal operating conditions. Cumulated lag of the plan due to violations of service wells and the lack of timely repair of oilfield equipment as of March 25, according to preliminary estimates amounted to 27.6 thousand tons. The degree of influence on indicators of the Company's annual production depends on how quickly will replace the loss of production during the strike. As reported previously, the protest rally of workers HMG start March 1 and passed spontaneously. The strikers refused to go to a constructive dialogue with the leadership of the Company and to nominate a single list of their demands. By March 17 managed to convince strikers to choose their representatives and to begin negotiations. Despite the fact that most of the demands made by the representatives of the strikers went beyond the employment relationship of workers and employers, all of which were discussed by the conciliation commission, and the proper requests will be forwarded to the appropriate authorities. Among these requirements - questions about staffing changes in the leadership of PF HMG and KMG, the introduction of the Labor Code of the rules establishing the payment of so-called "territorial factor", etc. In the course of negotiations, representatives of striking workers were notified that the 09 March to demand the protesters lifted the transition to new pay system and the corresponding changes in the collective agreement. Although, as has repeatedly explained that these changes were aimed at improving the material situation of workers of HMG and the anticipated increase of the guaranteed wage (salary). In addition, on behalf of the Commission, the Board of Directors RD EP will be proposed to increase from 01 июня 2010 года tariff rate for the first class of workers engaged in heavy work, work in hazardous (highly hazardous) or hazardous working conditions. According to analysts AO "BCC Invest", this news is positive for the stock price and depositary receipts of the company, but already reflected in the quotes that have grown on Friday. AB "BCC Invest" retains the recommendation "to hold" the shares and GDRs KMG with target price 20 300 tenge per share and $ 23.30 per GDR. Analysts of JSC "BCC Invest" also expect the following developments in international markets: - at the Russian market of the main economic event on Monday will be the publication of data on the state budget surplus of Russia for the fourth quarter of last year. This event is likely to have a greater impact on the currency market, where the ruble continues to strengthen moderately against the U.S. dollar. Today JSC "BCC Invest" expects neutrally positive market opening in Russia, since the majority of futures for U.S. indices at the moment are in the green zone. Mixed dynamics of the Asian markets could have a deterrent effect on buyers. - European markets on Monday will be the publication of indicators of consumer confidence and business sentiment in the euro area in March. In addition, the UK is expected to yield data for increasing the monetary base of the country in February and various statistics on real estate during the same period. - on the U.S. markets the most interesting macroeconomic statistics Monday in the U.S. will treat the data on the increase in personal consumption expenditures in February. In addition, expected next primary up to 4 weeks, 3-month and six government securities, which may affect the debt market. 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 671 695 +3.50 Hold KKGBp 269.50 347 +28.87 Hold Halyk Bank HSBK 384.99 335 -13.11 sell Bank CenterCredit CCBN 746 777 +4.16 Hold Tsesnabank TSBN 940 737 -21.60 cut KazMunaiGaz RDGZ 21,670 20,300 -6.32 Hold Kazakhmys PLC GB_KZMS 3,230 3,528 +9.23 Hold ENRC PLC GB_ENRC 2,456 2,642 +7.57 Hold Kazakhtelekom KZTK 16,851 17,800 +5.63 Hold KZTKp 8,000 10,300 +28.75 buy MREK MREK 960 800 -16.67 cut ---------------------------------------------------------------------- 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. [2010-03-29]