Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for May 27, 2010

/IRBIS, May 27, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 27, 2010. Analysts of JSC "BCC Invest" indicate that the shares and ENRC PLC Kazakhmys PLC on Wednesday on the London Stock Exchange rose - respectively 6.35% (9.63 pounds) and 7.18% (11.49 pounds). Also, yesterday Depositary Receipts of Halyk Bank, Kazkommertsbank and KMG in London have grown - at 4.71% ($7.56), 7.93% ($5.99) and 1.60% ($19.10), respectively. Despite a moderately negative closing auction in the U.S. yesterday, the optimism in Asia today, according to analysts of JSC "BCC Invest", will give rise to continued growth in the Kazakhstan market shares. Analysts expect the opening of trading on KASE mixed dynamics of stock price in the index KASE, which also may as yesterday, will be released in the positive plane during the day. Analysts recommend that open positions in the stocks for the game on the rebound. JSC BCC Invest also note the following important events in Kazakhstan's market: - Were held the annual general meeting of shareholders of KMG EP. In Astana, May 26, 2010 JSC Exploration Production KazMunaiGas (KMG, Company) held the annual general meeting of shareholders. KMG shareholders approved the annual consolidated financial statements and annual reports of the Company for the year 2009. In addition, the following last year, was approved the allocation of net income and the amount of dividend per common and preferred stock. According to the decision of the shareholders, the amount of dividend for the year 2009 per share (both simple and preferred) will be KZT704 (including taxes withheld in accordance with the laws of the Republic of Kazakhstan). The total dividend for the year 2009 will be approximately KZT50.9 billion (about 346 million U.S. dollars). Annual dividend payment in 2009 will be shareholders of the Company as at 0:00 hours, 7 June 2010 and will begin July 12, 2010. General Meeting of Shareholders for the post of independent director was elected Mr. Philip Deyer. - EP KMG conducted face to face meeting of the Board Directors. Astana, May 26, 2010 JSC Exploration Production KazMunaiGas ("KMG", "Company") held a regular full-time meeting of the Board of Directors ("SD"). The Board of Directors has decided to adjust the annual plan for oil production on the main assets of the Company (PF "Ozenmunaygaz" and PF "EmbaMunaiGas) with 9,200 tons to 9,082 tons. This is due to lack of time needed to make up for losses in production volume due to the illegal act of protest, held in March this year in PF" Ozenmunaygaz . Furthermore, it was decided to reduce capital expenditures for the current year to KZT95 billion (633 million U.S. dollars) to KZT83 billion (555 million U.S. dollars), including lowering the cost of exploration up to 4 billion m. (27 million U.S. dollars). This is due mainly to a number of changes in the timing of capital projects and adjustment programs of exploration drilling. Board of Directors reviewed proposals for changes in the wage system and increase wages of workers in manufacturing the Company's subsidiaries and took decisions necessary to complete this work's, Board of Directors of KMG EP has also been considered a number of issues of commercial, human and institutional nature. According to analysts of JSC "BCC Invest" has announcement of the decision approving the annual OCA size of dividend payment for 2009 of KZT704 common and preferred share is neutral for the stock price and depository receipts of KMG EP, since it corresponds to the recommendations of the CD, released earlier. At the same time, the decision board to adjust the annual plan for oil production on the main assets of the company from 9200 to 9082 tons in connection to hold in March this year in protest PF "Ozenmunaygaz" also, according to analysts of JSC "BCC Invest", corresponds to market expectations. Analysts notes that budget cuts capital costs for the current year also did not significantly affect the fundamental value of the shares of the company. Analysts confirm recommendations "to hold" the shares and depositary receipts JSC Exploration Production KazMunaiGas with target price KZT21,300 per share and $24.50 per GDR. - TsesnaBank nearly half net profit tends for paying dividends on "preferred shares" for 2009. Kazakhstan's commercial TsesnaBank paid KZT250 million of dividends on preferred shares for the year 2009, reported the Kazakhstan Stock Exchange (KASE) with reference to the notice of the bank. The payment was made on May 17. It was reported that shareholders TSESNABANK Bank decided not to pay dividends on ordinary shares for 2009. The bank last year received KZT506.2 million in net profit. As of April 1, 2010, the number of announced preferred shares of the bank amounted to 2.5 million units (all of them are located), simple -27.5 million (as all are located). Main shareholder TSESNABANK - JSC Alyur Astana JSC and The Corporation Tsesna, respectively belong to 775 thousand and 13 million 97.5 thousand common shares (4.31% and 72.76%, respectively, of total shares). TsesnaBank on results of the first half of 2009 took 127th place in terms of assets among banks in the CIS in the rating of the Interfax-1000: CIS Banks, prepared Interfax-CEA, and 12th place among banks in Kazakhstan. According to analysts of JSC "BCC Invest" this news is positive for preferred shares Tsesnabank "because the dividend is large enough (KZT100 per share). Analysts do not give recommendations on preferred shares Tsesnabank "due to low liquidity of these securities in the market. The current recommendation of analysts on common stock Tsesnabank is at the level to "REDUCE" with a target price of KZT737 per share. Analysts JSC BCC Invest also expect the following developments in international markets: - on Russian markets today is expected to yield regular data on the state of international reserves in U.S. dollars at the end of last week. From the corporate news is worth mentioning the publication of audited financial report for the first quarter of 2010 according to IFRS company X5 Retail Group. Since there is growing dependence on Russian markets trading sentiment in the U.S. at the opening of today's trading analytics of JSC "BCC Invest" expects a small correction of Russian indices after yesterday's significant growth. Nevertheless, moderately positive external background from Asia at this time may result in the fact that the Russian indices will not significantly drop. - European markets today, significant publications are expected. In the UK there are data on housing price index for May. - U.S. market today is the most important data of macroeconomic statistics will be published to increase the country's GDP in the first quarter of this year. The expected growth of the U.S. economy is on the level of 3.5%, and the previous value was 3.2%. In addition, investors also will monitor the data on personal consumption in the first quarter, as well as information on weekly unemployment benefits. 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 451 623 +38.14 Hold KKGBp 271 312 +15.13 Hold Halyk Bank HSBK 285 330 +15.79 Accumulate Bank CenterCredit CCBN 569 777 +36.56 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 19,250 21,300 +10.65 Hold Kazakhmys PLC GB_KZMS 2,255 3,559 +57.83 Buy ENRC PLC GB_ENRC 2,000 2,638 +31.90 Buy Kazakhtelekom KZTK 12,000 17,800 +48.33 Hold KZTKp 6,001 10,300 +71.64 Buy MREK MREK 1,000 800 -20.00 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. [2010-05-27]