Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for April 19, 2010

19.04.10 18:01
/IRBIS, April 19, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for April 19, 2010. JSC BCC Invest Analysts expected today on the Kazakhstan stock market correction to continue on a background of extremely negative sentiment of global investors after a claim by the National Commission on Securities and Exchange (SEC) to the company Goldman Sachs on the deal with the mortgage-backed securities. Even the relatively good reporting Bank of America Corporation and General Electric Company could not stop the sale in the U.S.A. market and the subsequent decline in Asian trading platforms and commodity markets. JSC "BCC Invest" also notes the following important events in the Kazakhstan market: - Fitch Ratings has assigned expected senior unsecured rating of "BBB- " to the planned bond issue KazMunaiGaz Finance Sub BV volume of $ 7.5 billion in bonds. The final rating will be assigned upon receipt of final documentation, which should correspond to previously received information, the report indicates Fitch. The report states that the bonds will be issued in the global medium-term program of emissions KMG Finance Sub BV, which has a rating of "BBB-" and the amount of which in April 2010 has been raised from $ 5 billion to $ 7.5 billion in bonds will be unconditionally and an irrevocable guarantee from the national oil company KMG, stated in the information Fitch. The issue of bonds will be governed by English law. KMG Finance Sub B.V. will use the proceeds of the bonds to provide loans "KazMunayGaze, which is expected to send the proceeds for general corporate purposes, including refinancing of current portion of a syndicated loan worth $ 2.5 billion, with a final maturity in September 2011. This loan was drawn for realization of Rompetrol Group NV, recalled in the information. The bonds will include provisions to limit the provision of assets as collateral and cross-defaulted. Financial covenants in the program documentation bonds include maximum net leverage (net debt / EBITDA) in 3.5 times, while net debt is calculated as a consolidated total debt less cash national companies, and the maximum level of dividend payments to 50% of consolidated net profit . - Moody's Investors Service confirmed the rating of the issuer of the national oil company KMG at "Baa2", news agency reported on Friday. In addition, Moody's assigned a provisional rating of (P) Baa2 bond program KazMunaiGaz Finance Sub BV volume of $ 7.5 billion. The outlook is "negative", according to the report. - The financial police bodies Akmola region of Kazakhstan to investigate the case of theft of gold ore from the Party of MMC JSC Kazakhaltyn in Stepnogorsk. As reported on Friday the "Interfax-Kazakhstan" agency in the prosecutor's office Stepnogorsk, a criminal case under article 177 (fraud) of the Criminal Code of Kazakhstan on the fact of loss of gold-bearing ore, was brought up after the relevant statements of the MMC in the law enforcement agencies. As described in the prosecutor's office, the investigation revealed that GMKzaklyuchilo contract with one firm, which was supposed to transport the ore from the village Bestobe in Aksu. During the transport of cargo, about 200 tons of gold ore in the amount of KZT3.5 million was kidnapped and sold in Karaganda (Karaganda region admtsentr). According to JSC "BCC Invest", this news is moderately negative for the parent company of MMC Kazakhaltyn ", Kazakhgold. JSC "BCC Invest" Analysts does not consider securities of Kazakhgold, traded on the London Stock Exchange, separate from the company the Polyus Gold. As a Russian producer of precious metals, there is not expected any impact, because the size of the theft is negligible compared with the capitalization of the company. JSC "BCC Invest" reiterates the recommendation to "sell" on the ADRs of Polyus Gold ", but the forecast will be revised when more details will be known details of the reverse absorption Kazakhgold and attracting equity capital in the Asian market for the development of Natalka. - Analysts JSC "BCC Invest" also expect the following developments in international markets: - On Russian markets not expected macroeconomic publications. Among corporate news worth noting review board of directors "Aeroflot" on the payment of dividends for the year 2009. At the opening of trading on Monday is expected to continue the negative movement of the main indices on a background of sales in the Asian stock exchanges. In addition, negative traded futures on U.S. indices are likely to lead to the fact that the fall in early trading to be significant. - On European markets is expected to publish data on the growth of the construction sector the euro area in February. In addition, investors will monitor macroeconomic developments in Asia, Oceania and the U.S.A. - On the U.S. markets will value the index of leading indicators in March, growth is expected to reach 1.0%. 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 642 695 +8.18 Hold KKGBp 260 347 +33.58 Hold Halyk Bank HSBK 370 330 -10.81 Sell Bank CenterCredit CCBN 715 777 +8.67 Hold Tsesnabank TSBN 940 737 -21.60 Cut KazMunaiGaz RDGZ 22,450 20,300 -9.58 Hold Kazakhmys PLC GB_KZMS 3,480 3,559 +2.27 Neutral ENRC PLC GB_ENRC 2,750 2,642 -3.93 Hold Kazakhtelekom KZTK 16,710 17,800 +6.52 Hold KZTKp 7,750 10,300 +32.90 Buy MREK MREK 910 800 -12.09 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. [2010-04-19]