Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for May 7, 2010

/IRBIS, May 7, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 7, 2010. Today Analysts of JSC BCC Invest expected at the opening of trading on the Kazakhstan stock market continued negative dynamics of Kazakhstan's stock market after their counterparts abroad. Shares ENRC PLC and Kazakhmys PLC, yesterday on the London Stock Exchange again showed a reduction - respectively 3.90% and 2.02%. Yesterday Depositary Receipts of Halyk Bank and Kazkommertsbank also in London have fallen - on 5.52% and 4.83% respectively. Yesterday Depositary receipts of RD KMG failed to keep the status of "safe haven" and they have failed on 6.46%. But analysts of JSC "BCC Invest" believe that by the end of the day may be increased purchases under the influence of the effect Friday and long weekend. In connection with the correctional lower market shares and depositary receipts of Kazakh companies have lost significantly in value, allowing the growth potential to the theoretical fair price. This allows the JSC "BCC Invest" to change the recommendations on these securities: - on ordinary shares and depositary receipts of Halyk Savings Bank of Kazakhstan "(HSBK LI and HSBK KZ) from" sell "to" hold "with unchanged target price $9.02 per GDR and KZT330 per share. - on ordinary shares of JSC "Bank CenterCredit" (CCBN KZ) from "hold" to "buy" with unchanged target price of KZT777 per share. - on the shares of Kazakhmys PLC (KAZ LN and GB_KZMS) with "keep" to "buy" with unchanged target price 1,582 pence and KZT3,559 per share. - on ordinary shares and depositary receipts JSC Exploration Production KazMunaiGas "(KMG LI and RDGZ KZ) from" sell "to" hold "with unchanged target price $23.30 per GDR, and KZT20,300 per share. Analysts JSC "BCC Invest" recommend investors to use the correctional movement of the market for a cautious increase in positions on stocks for the long term. JSC "BCC Invest" also note the following important events in the Kazakhstan market: - Ekibastuz GRES-1 in the first quarter was KZT7.590 bln net profits against the loss a year earlier. LLP Ekibastuz GRES-1 "in January-March 2010, achieved a net profit of KZT7.590 billion against a net loss of 6.609 bln in the corresponding period of 2009. In this case, as stated in the published Financial Reporting company, its gross profit in January-March this year amounted to KZT8.609 billion, which is 5 times the flow rate of the first quarter of last year, revenue from product sales and services - KZT13.425 billion ( more in 2,7 times). Assets at the end of March 2010 amounted to 94.255 billion, compared with the beginning of the year by 16%. Shareholders' equity for the first quarter grew by 12% to KZT72.528 billion, the authorized capital has not changed - KZT31.110 billion. Kazakhmys until recently fully owned Ekibastuz GRES-1 through Ekibastuz Holdings BV Meanwhile, in March 2010 Kazakhmys completed the sale of a 50% stake in Ekibastuz GRES-1 state fund "SamrukKazyna. According to JSC "BCC Invest", a story is moderately positive for the stock price Kazakhmys PLC, because the high profits of the energy division of the company's plan to guide efforts to diversify sources of income. Nevertheless, the recent sale of Ekibastuz GRES-1 state fund "SamrukKazyna" will lead to the fact that the share of Kazakhmys PLC in the net profit will be lower. - JSC Kazakhtelecom notified KASE that May 31, 2010 at 15:00 pm will begin the annual general meeting of shareholders of the company with the following agenda: - approving the audited consolidated financial statements for the year 2009; - order of distribution of net income for the year 2009, dividends on ordinary shares and approval of the amount of dividends per ordinary share of the company; - the consideration of applications for the company's shareholders in 2009; - changes in the composition of the Board of Directors. Analysts JSC "BCC Invest" are also waiting for the next events in the international markets: - at the Russian market is expected to yield data as the monetary base in narrow definition of the ruble at the beginning of the week. At the opening of today's trading analytics JSC "BCC Invest" forward to continuing the negative trend this week against a background of negative re-traded Japanese market. Nevertheless, is not excluded that the current decline will not be landslide, and the players will gradually buy strongly depreciating Russian stocks, which makes it possible to enter the market. Given the decrease in quotations of the nickel market manufacturing metals and, consequently, quotes GDR OJSC MMC Norilsk Nickel, the growth potential of the current market price with respect to the computed AS "BCC Invest" fair value amounted to more than 20 percent, leaving analysts AO BCC Invest "increase the recommendation for the securities with" hold "to" buy ". - European markets of greatest interest will be yield data on the volume of industrial production in Germany in March, which is expected to be 1.5%. - U.S. market will be published data on unemployment in April, which is expected to decline at 0.1 percentage points (From 9.7% to 9.6%). In addition, the expected output data consumer credit for March. 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 530 623 +17.55 Hold KKGBp 270 312 +15.56 Hold Halyk Bank HSBK 333 330 -0.90 Hold Bank CenterCredit CCBN 601 777 +29.28 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 20,500 20,300 -0.98 Hold Kazakhmys PLC GB_KZMS 2,815 3,559 +26.43 Buy ENRC PLC GB_ENRC 2,450 2,642 +7.84 Hold Kazakhtelekom KZTK 15,299 17,800 +16.35 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. [2010-05-07]