Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on july 20, 2010
20.07.10 16:53
/IRBIS, July 20, 2010/ - JSC Finance Company REAL Invest.kz (Almaty,
REAL Invest.kz) provided to IRBIS overview of major developments in
Kazakhstan and the world markets on July 20, 2010.
JSC Finance Company REAL Invest.kz notes the following significant
developments on the world stock, commodity and currency market:
- Bidding on the western areas on Monday ended in different
directions - fixed the growth of America, Europe up to the day lower.
One of the major negative factors which are responsible for fixing
profit in Europe, has investors worried that the results of stress tests
of banks in the region will have a similar effect with the U.S. last year
statute of limitations, and the reasons for that could serve as a lack of
transparency, or received During a tasting disappointing results. The
decline in Europe amounted to 0.2% -0.5%. USA markets is also
quite uncertain started on the background dynamics of the European
indices to the same pessimistic sentiments were supported by the
publication of the Index values of the National Association of
Homebuilders, that at the month fell by 2 points. Nevertheless, the
day was completed by growth of quotations of about 0.6%, which
contributed to record IBM, under which the profit of the company over
the same period last year, up 29 cents, up 3 cents surpassed the
initial projections of analysts.
- platforms emerging markets all day that passes regain
accumulated over the weekend negative, as well as weak closure
of the West grounds last Friday. Most all of the BRIC countries
"suffered" the Brazilian Bovespa, fell by 1.77%, Russia's RTS fell by
half a percentage point.
- oil prices in yesterday's trading twice reaching $ 77 per barrel -
the upper limit of a local band which emerged during the last five
trading sessions. Both yesterday's attempts to overcome the named
level were unsuccessful, which to some extent contributed to the
weak dynamics of the stock exchanges, but the correction was limited
to only 30 cents, and closing of trades took place not far from the
mark at $ 77, that probably will help the new traders' attempts to
overcome it.
- The cost of an ounce of gold all the previous day was trading
near a support level around at around $ 1185 - 1190 an ounce,
closing the day passed below this level, it is possible to talk about the
formation of a new at least short-term downtrend. Trading volume
was low, which excludes the possibility of creating such a situation,
long-term investors. So far, according to analysts of "REAL Invest.kz",
reason to suppose the nature of the investment decline is not enough.
- currency pair EUR/USD has stalled before a mark of 1.30, and
yesterday provided a good start, only the growth of the European
currency a little more than half of the item. Analysts of "REAL
Invest.kz" considered the most likely scenario is a small correction
from current levels, with subsequent return to the growth of
quotations. The British pound second consecutive session continues
to be adjusted to approximately the same size and scale level, and by
the end of the day came so close to the mark to 1.52, in the recent
past is the most powerful resistance level, which is now the logic is
supported. In the case of the rebound from the named mark analysts
"REAL Invest.kz" suggests the resumption of growth.
Analysts JSC "Finance Company" REAL Invest.kz" also notes the
following major developments in the Kazakh market:
- Fiscal Court of Almaty on Monday approved the outcome of debt
restructuring Temirbank. Thus, debt restructuring Temirbank
completed.
- Fitch Ratings upgraded the long-term issuer default rating (IDR)
of Kazakhstan's Alliance Bank's foreign currency at the level of
"RD" (restricted defaulted) to "B-" and assigned a "Stable" rating
outlook, rating agency reported Monday. This action follows the
completion of restructuring liabilities of the bank and is the result of
the review the bank's ratings initiated by Fitch March 31, 2010.
- In Kazakhstan, will create the second Islamic bank. On 19 July in
Astana, the plan of the project was signed Company Fattah Finance,
Development Bank of Kazakhstan and the Malaysian Financial Group
Amanaray.
Analysts of "REAL Invest.kz" noted that the most attractive stories
among the shares of Kazakh companies are RD Kazmunaigas,
Kazakhtelecom and Halyk Bank. Especially attractive look and EP
Kazakhtelecom, as both companies are very strong balance sheet with
low debt burden, the EP's net debt at all negative, ie cash flows of the
company exceed liabilities. Besides their business generates more free
cash flow, which allows them to pay a very solid dividends. Dividend
income on preferred shares of KMG and Kazakhtelecom is 6-8% and 3-
4% of ordinary shares. Shares of these companies are traded much
cheaper than the shares of similar companies in other emerging markets.
This material is for informational purposes and is not an offer or recommendation
to perform any transaction in securities. Agency IRBIS is not responsible for the
opinions expressed in this material.
[2010-07-20]