Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for April 6, 2010

/IRBIS, April 6, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for April 6, 2010. Analysts JSC "BCC Invest" expected today on the Kazakhstan stock market a moderately positive trend against the background of the positive closing in the U.S. and support from the Asian indexes. Return of European investors can trigger the activity of trading and increased volatility. Today JSC "BCC Invest" has issued a regular monthly economic review of Kazakhstan. JSC "BCC Invest" also note the following important events in the Kazakhstan market: - The international rating agency Moody's changed the outlook of the sovereign rating of Kazakhstan "Baa2" to "stable" from "negative". As reported in the agency press release, "this movement followed the growing evidence that the slowdown was less than expected, and that lending rates will come relatively intact from a severe banking crisis that occurred in a country." "The government of Kazakhstan has undergone the worst of crises, protecting their credit, but forcing the banking system to carry out a credit restructuring," - said vice-president of Moody's and lead sovereign analyst for Kazakhstan Aninda Mitra, whose words are reported. Analysts said the agency, the Kazakh government maintained fiscal conservatism, along with the active anti-crisis program. "This has allowed the authorities to withstand financial shocks without relying on outside help and not damaging the long-term sovereign credit fundamentals," - said A. Mitra. Moody's analysts also believe that the positive medium-term prospects for oil and gas industry and the growth of structural ties with the growing countries of Asia are most likely to support economic recovery and provide additional liquidity in addition to the ongoing reform of the banking sector. - April 5 of this year the National Bank of the Republic upheld the basic interest rate at 7%. However, according to AO "BCC Invest", in the near future the National Bank will have to go to increase the base interest rate to ensure that it remained positive in real terms. - Net international reserves and assets of the National Fund of the Republic of Kazakhstan for the first three months of this year showed an increase to the beginning of the year at 17.37% and 4.05%, respectively (for the year - on 41,15% and 15,23%). Analysts of JSC "BCC Invest" also expect the following developments in international markets: - on Russian markets not expected macroeconomic publications, so investors will be watching developments from abroad and corporate news. Company Novolipetsk Steel will publish an annual report on U.S. accounting standards. Company's financial results are expected in several times lower than the previous period. At the opening of morning trading session, analysts JSC "BCC Invest" offers a moderately negative market sentiment against the background of negative trading of Japanese and U.S. indices at the moment. Despite the expected correction in early trading, it is possible that on the day the Russian market will show a similar dynamics of previous sessions on the background of the pledged upward trend of the past few weeks. - on European markets is expected publication of important economic statistics. In the UK, is expected to announce the construction PMI index for March, inflation in the country over the same period, as well as data on the volume of mortgage loans for the fourth quarter of last year. - on the U.S. markets is expected to publish data warehouse stocks of petroleum and petroleum products at the end of last week, as well as the index of consumer confidence in early April. In addition, the expected meeting of the Federal Committee on Open Market (FOMC), which will be a decision on the refinancing rate with further comments. Also expected performance of the various chapters of the Central U.S., which will discuss the future prospects of monetary and credit policy of the country. 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 695 Hold KKGBp 347 Hold Halyk Bank HSBK 394 335 -15.10 Sell Bank CenterCredit CCBN 755 777 +2.91 Hold Tsesnabank TSBN 737 Cut KazMunaiGaz RDGZ 20,300 Hold Kazakhmys PLC GB_KZMS 3,400 3,559 +4.68 Neutral ENRC PLC GB_ENRC 2,600 2,642 +1.62 Hold Kazakhtelekom KZTK 17,000 17,800 +4.71 Hold KZTKp 7,810 10,300 +31.88 Buy MREK MREK 800 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. [2010-04-06]