Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 9, 2010

/IRBIS, June 9, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 9, 2010. Analysts of JSC "BCC Invest" believe that, despite the growth of the market in the U.S. on Tuesday, reducing the European markets yesterday and pessimism in Asia today will not contribute to the growth of KASE index at the opening of today's trading. Analysts of JSC "BCC Invest" now expects high volatility and mixed trends on the local stock market, and is projected to KASE index completes day is negative. JSC BCC Invest also note the following important events in Kazakhstan's market: - June 10, 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-36 release of 80 with maturity of 3 years (1,080 days). Declared amount of placement - KZT10 billion. The subject of trade stands coupon. - KASE has published an audit report on consolidated financial statements of JSC Mangistau Electricity Distribution Company (Aktau) for the year 2009. Revenues MREK for 2009 increased 19% and amounted to KZT4,275 million, while gross margin was 25%, which is 5 percentage points more than a year earlier. As a result, gross profit for 2009 amounted to KZT1,065 billion (+46% yoy). General, administrative and selling expenses increased by 12% and operating profit - 82%. As a result, revenue growth, reduce operating and financial costs on company profit before tax increased by 1075%, and net profit for the period - to 338%. This net margin in 2009 was 7%, which is 5 percentage points more than a year earlier. As a result, basic earnings per ordinary share for 2009 were KZT122.43, which is 279% more than in 2008. In general, the financial statements of the company in 2009 in terms of revenue and operating expenses meet the expectations of JSC "BCC Invest", but the reduction of financial expenses and income tax has led to the fact that net profit for the period more than twice exceeded the expectations of AO "BCC Invest ". Publication of financial statements for the year 2009 on the site KASE, analysts of JSC "BCC Invest" noted that should not have a significant impact on stock prices MREK as financial results of the company to some extent already known to the majority shareholders and investors. In the near future JSC "BCC Invest" will make changes in its valuation model of the company and will review the recommendation and target price, releasing a new survey by JSC Mangistau Electricity Distribution Company. Analysts JSC BCC Invest also expect the following developments in international markets: - Russian market is expected to announce regular weekly data on inflation in Russia at the beginning of the week. From corporate events worth noting the holding of annual general meeting of shareholders of the combined company Rusal, which will be held in Hong Kong. At the opening of trading in Russia on Wednesday, analysts JSC "BCC Invest" offers a moderately negative market dynamics, which can occur under the pressure of negative external background from Asia. Nevertheless, moderately grown up U.S. stock market before, most likely will not contribute to significant sales in Russia today. - European markets data on the trade balance in April, which came out recently against Germany and France, now also come out in the UK. The expected deficit figure - 7 billion pounds. USA - U.S. market is expected to yield data on wholesale inventories for April, as well as mortgage applications at the end of last week. Also, today is expected to yield regular data warehouse stocks of oil and petroleum products. At the beginning of the working day also held the speech of Mr. Ben Bernanke Federal Reserve on financial and economic conditions and budget. 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 470 479 +1.91 Neutral KKGBp 240 335 +39.58 Buy Halyk Bank HSBK 310 330 +6.45 Accumulate Bank CenterCredit CCBN 550 734 +33.45 Buy Tsesnabank TSBN 941 737 -21.68 Cut KazMunaiGaz RDGZ 18,800 21,300 +13.30 Hold Kazakhmys PLC GB_KZMS 2,270 3,559 +56.78 Buy ENRC PLC GB_ENRC 2,080 2,638 +26.83 Buy Kazakhtelekom KZTK 13,000 19,200 +47.69 Buy KZTKp 6,599 10,300 +56.08 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. [2010-06-09]