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

/IRBIS, May 6, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 6, 2010. Analysts of JSC BCC Invest now expect to continue corrective movement Kazakhstan stock market after its counterparts abroad. Shares ENRC PLC and Kazakhmys PLC, yesterday on the London Stock Exchange again showed a reduction - respectively 0.92% and 4.69%. Yesterday Depositary Receipts of Halyk Bank and Kazkommertsbank also in London have fallen - on 2.05% and 6.57% respectively. Some stability again showed depositary receipts KMG, which declined only insignificantly to 1.07%. Analysts of JSC "BCC Invest" recommends to investors use the correctional movement of the market for a cautious increase in positions on stocks for the long term. JSC BCC Invest also notes the following important events in the Kazakhstan market: - Current account surplus of balance of payments in Kazakhstan, according to preliminary estimates, in January-March 2010 amounted to $3 billion, compared with a deficit of $1.2 billion for the same period in 2009, said National Bank. The trade balance was a surplus of $8.1 billion increase over the same period last year 4 times. Exports for the first quarter of 2010 totaled $3.6 billion, an increase of 66.7% compared to the same period in 2009. The deficit balance of services during the reporting period is estimated at $1.5 billion, an increase of 33% compared with January-March 2009. The existing on the preliminary assessment in the first quarter deficit on revenue of $3.7 billion, says National Bank, was provided primarily by direct income payments to foreign investors ($3.1 billion). In addition, the National Bank stresses the significant impact on the balance of revenue is the remuneration of the external debt, valued at $0.6 billion to the preliminary data, the positive balance on direct investment is estimated at $2.7 billion - Gold-Foreign exchange reserves (gold reserves) in Kazakhstan, including gross reserves of National Bank and that accumulated funds in the National Fund for April 2010 increased by 5.2% to $55.2 billion since the beginning, the growth of gold reserves by 16%, according to the National Bank. This means the National Fund of the Republic at the end of April totaled $25.8 billion in net international reserves of National Bank increased in April by 8.4% (from beginning of year - 27.2%) to $28.8 billion purchase of currency on the domestic currency market, the income account of the Government in the National Bank were offset by declines balances on correspondent accounts of banks in foreign currency in the National Bank and the operations for servicing the external debt of the Government, the report indicates the National Bank. - Money supply in Kazakhstan increased by 1.4% to KZT7 trillion. 758.5 billion due to the growth of net external assets of the banking system in March 2010, informed National Bank. According to the National Bank, since the beginning of this year, money supply grew by 5%. The volume of cash in circulation for March rose by 1.8% to KZT898.2 billion (from the beginning of the year - a decline of 1.7%). Deposits in the banking system increased during the reporting period by 1.4% to KZT6 trillion 860.3 billion (from the beginning of the year - an increase of 6%). Leading the growth rate of currency in circulation, compared with an increase in deposits resulted in reduction of the share of deposits in the structure of broad money from 88.5% in February 2010 to 88.4% in March 2010. - May 5, 2010 in the trade system of KASE specialized an auction on placement of government treasury bonds of the Ministry of Finance of the Republic of Kazakhstan MEUKAM-144 1 issue. The volume of requests met totaled 10.813 million bonds for KZT10,813 million (108.1% of the plan), coupon rate - 5.5% per annum. 59.2% of the total volume of placed bonds purchased by pension market subjects, 23.1% - BWI, 13.9% - clients of BWI, 3.8% - clients of broker-dealers. Analysts JSC BCC Invest also expect the following developments in international markets: - at the Russian market is expected to publish data on the status of official international reserves in April, as well as the weekly inflation at the beginning of the week. Among corporate news important developments are expected. At the opening of trading on Thursday, analysts of JSC "BCC Invest" expected to continue corrective market sentiment against the background of a significant reduction in the stock index in Japan, Nikkei 225, which wins back the fall of the previous days due to the lack of trades in the first three working days of the week. In addition, the fall in other Asian stock markets and yesterday's decline of the American market is also putting pressure on the Russian securities. - European markets will be released decision of the European Central Bank interest rate at which changes are not expected. Interest will also be a press conference head of the ECB, which will take place later. In the UK, will be the index of business activity in the service sector, which is expected at 57 points (the previous value of 56.5 on). - U.S. market is expected to yield data on productivity in non-farm sector in the first quarter of this year, as well as regular data on weekly unemployment. Today will be the speech of Mr. Ben Bernanke Head of the Federal Reserve. From corporate events worth noting yield the financial results of companies of different capitalization. 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 610 623 +2.13 Hold KKGBp 275 312 +13.45 Hold Halyk Bank HSBK 340 330 -2.94 Sell Bank CenterCredit CCBN 631 777 +23.14 Hold Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 21,250 20,300 -4.47 Sell Kazakhmys PLC GB_KZMS 3,000 3,559 +16.83 Neutral ENRC PLC GB_ENRC 2,440 2,642 +8.28 Hold Kazakhtelekom KZTK 15,600 17,800 +14.10 Hold KZTKp 6,600 10,300 +56.06 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. [2010-05-06]