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

/IRBIS, May 19, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 19, 2010. Analysts of JSC "BCC Invest" indicate that yesterday shares of ENRC PLC and Kazakhmys PLC on the London Stock Exchange rose - respectively 1.53% and 1.58%. Yesterday, Depositary Receipts of Halyk Bank, Kazkommertsbank and KMG in London have increased - by 4.36%, 1.35% and 3.02%. However, yesterday there was a negative closing trade in the U.S., and pessimism in Asia today, according to analysts will not give to the Kazakh market shares to grow. Analysts of JSC "BCC Invest" offers mixed dynamics at the opening of trading on the KASE. The current correction in the market creates opportunities for open positions for the long term. Analysts JSC BCC Invest also expect the following developments in international markets: - Inflation in Kazakhstan for the second quarter of 2010 would amount to 1.3-1.5% by predictions of National Bank. In the second quarter of 2009, the actual inflation rate was 1.9%. Formation of inflation in the near future will be influenced by seasonal factors, explains the National Bank in a posted review on its website. Thus, the expected decrease in prices for some goods and services: eggs, meat and dairy products. In this case, National Bank noted that the beginning of agricultural work is likely to be affected by more expensive fuel and lubricants. As a result of June 2010 the annual inflation is expected at the level of 6.8-7%. Forecast inflation for the third quarter of 2010 is 0.9- 1.1% (for the third quarter of 2009 - 0.9%), which corresponds to the annual inflation rate in 6.7-6.9% at the end of September of this year. During the first quarter of 2010, inflation was at the level 2.9% (for the first quarter of 2009 - 2%). National Bank of Kazakhstan in 2010, predicts inflation at 6-8%. In 2009, yearly inflation rate was 6.2%, average - 7.3%. - May 18, 2010 in the trade system of KASE were specialized auction on placement of short-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-12 107 issue with maturity of 365 days. Volume placement was 180 million bonds (KZT17,671,682,280.41) (100% of plan), weighted average yield to maturity - 1.8579% per annum. In total active bids on pension market entities is 28.7%, share of Kazakhstan's second-tier banks (BWI) - 56.2%, clients of STB - 11.7%, brokerage and dealers - 0.4%, their customers - 3.0%. According to data of the Central Securities Depository JSC (Almaty), all transactions for the accommodation MEKKAM-12 issue 107 by the end of calculations based on trades executed. 43.4% of total volume of placed bonds purchased by pension market subjects, 45.0% - BWI, 7.6% - clients of BWI, 4.0% - clients of broker-dealers. - May 20, 2010 in the trade system of KASE held special auctions on placement of government medium-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEOKAM-60 34 issues. Maturity - 5 years (1,800 days). Estimated volume of accommodation - KZT14 billion. Analysts JSC BCC Invest also expect the following developments in international markets: - on Russian markets today expected output data for the week of inflation and similar data from the beginning of the year. From corporate events important news is expected. At the opening of trading on Wednesday, JSC "BCC Invest" expected to reduce the market for the major indices closed down on the background of a negative on the eve of the U.S. stock exchanges. In addition, yesterday evening correction quotations oil, as well as today's negative dynamics of trades in Asia may also put pressure on the Russian market. - on European markets, today, important macroeconomic publications is expected. In the UK, will be published minutes of meetings of the Bank of England. Also, today is expected to announce financial results of one of the largest airlines Air France - KLM. - today on U.S. market the most interest will provide data on inflation for April, as well as changes in stocks of petroleum and petroleum products per week. Also today, will publish the protocols of FRS. 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 490 623 +27.14 Hold KKGBp 271 312 +15.13 Hold Halyk Bank HSBK 304 330 +8.55 Hold Bank CenterCredit CCBN 556 777 +39.75 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 19,250 21,300 +10.65 Hold Kazakhmys PLC GB_KZMS 2,590 3,559 +37.41 Buy ENRC PLC GB_ENRC 2,320 2,642 +13.88 Hold Kazakhtelekom KZTK 13,310 17,800 +33.73 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. [2010-05-19]