Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 1, 2010

/IRBIS, June 1, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 1, 2010. Analysts of JSC "BCC Invest" expect today on Kazakhstan's market shares in the absence of significant external background mixed dynamics at the opening of tenders. Publication reporting of Halyk Bank and Kazkommertsbank for the first quarter of this can significantly affect the dynamics of the banking sector. With the start of the working day in Europe is projected significant movement quotes virtually the entire spectrum of the local stock market, trading volume is likely to increase as well. JSC BCC Invest also note the following important events in Kazakhstan's market: - Kazkommertsbank has announced results for the first quarter of 2010, based on the consolidated financial statements prepared in accordance with IFRS. Net profit for the first quarter of 2010 amounted to KZT5.6 billion. The bank's assets increased by 2.3%. Tools for clients' accounts increased by 9.2%. Retail deposits increased by 5.5%. Net interest margin was 3.9% (adjusted). Net non-interest income is the sum of 4.9 billion. Indicator "operating expenses to operating income before calculating provisions at the level of 18.4%. Capital Adequacy Ratio Tier 1 rose to 16.2%. The coefficient of the adequacy of bank's equity capital rose to 20.7%. The rate of back-up on loans to customers amounted to 19.8%. Inactive borrowings amounted to 26.4% of the loans (gross). Overall results for the first quarter of 2010 consistent with the expectations of JSC "BCC Invest". As expected, the new policy interest has led to the fact that interest income decreased significantly compared with the previous quarter and corresponding period last year. The same applies to interest expenses and reserve contributions. Analysts of JSC "BCC Invest" indicate that the Bank's operations has been less effective than in the past period, which resulted in a corresponding reduction in profits and increased costs. It is also worth noting the high cost of income tax, which occurred due to non-taxable income amount of almost KZT3 billion. According to JSC "BCC Invest", the financial results for the first quarter of neutral Quotes of the bank, because, as expected, they were significantly weaker than last year and the market already took into account the projected decline in revenues. Nevertheless, the high savings in the tax said the ability to generate sufficient income for return on capital. The current recommendation of JSC "BCC Invest" securities the bank is located at the "hold", but analysts of JSC "BCC Invest" plans to revise their model against published data and to release soon a report with the updating of target prices and recommendations. Analysts JSC BCC Invest also expect the following developments in international markets: - in the Russian market is expected to yield data on the state reserve and National Welfare Fund for May. In the corporate sector yield important news is expected. At the opening of trading on Tuesday, analysts of JSC "BCC Invest" offers neutral negative dynamics of the market, since the Asian foreign background at the moment is not conducive to shopping. Nevertheless, the basic mood of the Russian market will be determined after the start of trading in Europe and the USA. - European markets in Germany is expected to publish an index of business activity in the manufacturing sector in May, and the unemployment rate for the same period. In addition, the morning will be address by the President heads the Central Bank of Germany Axel Weber. As for the euro area, there is expected to yield data on unemployment in April. In addition, this morning the Reserve Bank of Australia announced the preservation of the refinancing rate at 4.50%, which may affect the dynamics of the European indices at the opening of tenders. Recall that Australia was the first country in the G-20, which began to tighten the screws of monetary policy, which led to 25% reduction of mortgage lending in the country. Now the leadership of the Central Bank of Australia said the suspension of rising interest rates. - U.S. market is expected to yield an index of business activity in the manufacturing sector for May. Analysts expect to reduce this figure to 60.4p to 59.5p In addition, at the same time there are data on expenditure on construction in April. 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 465 623 +33.98 Hold KKGBp 271 312 +15.13 Hold Halyk Bank HSBK 300 330 +10.00 Accumulate Bank CenterCredit CCBN 566 734 +29.68 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 18,500 21,300 +15.14 Hold Kazakhmys PLC GB_KZMS 2,600 3,559 +36.88 Buy ENRC PLC GB_ENRC 2,188 2,638 +20.57 Buy Kazakhtelekom KZTK 12,430 17,800 +43.20 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. [2010-06-01]