Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for April 22, 2010

/IRBIS, April 22, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for April 22, 2010. JSC BCC Invest Analysts expected today on the Kazakhstan stock market to reduce banks' quotations on the background of negative close of trading on the London Stock Exchange and the prices of depositary receipts KKB (-0.59%) and the People's Bank (-2.04%). It may also decrease and the shares Kazakhmys PLC under the influence of action arbitrageurs. JSC "BCC Invest" also notes the following important events in the Kazakhstan market: - April 21, 2010 in the trade system of KASE is specialized an auction on placement of government medium-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEOKAM-24 79 release. Volume placement of 18 million face value of bonds KZT1000 for KZT18 billion (100% of plan), coupon rate - 2.5% APR. - Exploration Production KazMunaiGas JSC announced operating results for the first quarter of 2010. KMG including shares in companies Kazgermunai ", CCEL and PetroKazahstanInk." (COE) for the first three months of 2010 according to preliminary data produced 3183 thousand tons (262 thousand barrels per day), which is 440 thousand tons, or 16% more than the same period in 2009 due to increase in production is mainly based on its share in the production of CRP, which amounted to 487 thousand tons. Production affiliates "Ozenmunaygaz" and "EmbaMunaiGas in the first quarter of 2010 produced 2,085 tones (171 thousand barrels per day), up 41 thousand tons, or 1.9% less than during the same period in 2009. Reduction production is mainly due to violation of the service wells and the lack of timely repair of oilfield equipment in time rally in PF "Ozenmunaygaz" from March 4 to 18, when some workers refused to go on shift. According to preliminary data, the first three months of 2010 the company has sold 2 077 thousand tones of oil (without the implementation of companies' Kazgermunai ", CCEL and CRP), including for export - 1 717 thousand tones. KMG share in mining companies SSEL (50%), Kazgermunai (50%) and PetroKazakhstan Inc. "(33%) for 3 months in 2010 amounted to 1 098 tons. The total planned production rate of PF and Ozenmunaygaz Embamunaygazna 2010, the company announced previously, was 9 200 tons, that 2.2% more than in 2009. However, analysts say AO "BCC Invest", decline of production in the first quarter of this year at 1.9% probably will not allow the company to achieve the targets. Regarding the implementation of the domestic market to total sales volume in the first quarter of this year amounted to 17.3%, a year earlier the rate was 16.3%. The increase in the proportion of the internal implementation affects the company's financial performance, as the selling price in the domestic market is much lower than world prices. According to AO BCC Invest ", published production and operating performance in the short term may adversely affect the share prices of depositary receipts and KMG. However, before the publication of financial results for the first quarter, analysts JSC" BCC Invest "refrain from adjusting the model estimates of the company and retain target prices shares and depositary receipts KMG level, respectively, KZT20 300 per share and $ 23.30 per GDR. Given the possible potential of reducing the terms of the target price, JSC "BCC Invest" lowers the recommendation on the shares and depositary receipts of the company from "hold" to "sell". Analysts JSC "BCC Invest" also expect the following developments in international markets: - at the Russian market is expected to yield data on the state of international reserves at the end of last week, which may have an impact on the local currency market. Also today, are expected to place domestic and foreign government bonds, which will determine the mood in the debt market. At the opening of today's trading JSC "BCC Invest" expects moderate negative market sentiment against the negative traded in Asia, as well as a small correction in the U.S. market at the end of the trading day yesterday. - European markets expected a large number of economic publications, among which it is worth noting the index of industrial output data PMI Germany, France and the euro area in April. In addition, in the UK is expected to yield data on external borrowing in the country in March and retails for the same period. - in the U.S.A. market, in addition to traditional data on initial applications for unemployment benefits for the week will be published statistics on producer prices and the level of sales in the secondary property market in March. In addition, interest will be the index of house prices in February, as well as the publication of quarterly reports of companies such PepsiCo, Microsoft, Philip Morris International, Amazon.com Inc. etc. 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 625 695 +11.12 Hold KKGBp 260 347 +33.58 Hold Halyk Bank HSBK 353 330 -6.52 Sell Bank CenterCredit CCBN 710 777 +9.44 Hold Tsesnabank TSBN 940 737 -21.60 Cut KazMunaiGaz RDGZ 22,000 20,300 -7.73 Hold Kazakhmys PLC GB_KZMS 3,400 3,559 +4.68 Neutral ENRC PLC GB_ENRC 2,750 2,642 -3.93 Hold Kazakhtelekom KZTK 16,500 17,800 +7.88 Hold KZTKp 7,701 10,300 +33.75 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. [2010-04-22]