Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for July 22, 2010

/IRBIS. July 22, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for July 22, 2010. Analysts of JSC "BCC Invest" now expect mixed driving dynamics of stock price at the opening auction on the local stock market. On the one hand the market will support the growth of the shares and depositary receipts of Kazakhstan issuers yesterday in London, on the other hand - the pressure on the market will have a negative mood of U.S. investors, after Mr. Ben Bernanke's speech yesterday's drop in U.S. indexes. However, the projected JSC "BBC Invest", during the day dynamics of bidding will be mainly positive and KASE index finish the day in positive territory. JSC BCC Invest also note the following important events in Kazakhstan market: - Kazakhtelecom has reported preliminary results for the first half of 2010 and the launch of its corporate block. July 20, 2010 in Almaty, Kazakhstan held a press conference with members of the Board of Kazakhtelecom dedicated to the launch corporate block and debriefing of the first half of 2010. Mr. Kuanyshbek Esekeev, Chairman of the Board of Kazakhtelecom noted that the company introduces modern methods of corporate governance, and one such method- information interaction through a corporate block. "To date, the company provides many services used by many people of Kazakhstan, it was decided to go online and get started in the blockosphere. I think that using corporate block we will be able to resolve most issues that arise from our users, subscribers - said Mr. K. Esekeev. At the press conference were also voiced some of the results of the company for the first half. Consolidated revenues from sales of services for 6 months in 2010 according to preliminary data are KZT75,956 million, the consolidated net profit - KZT20,635 million. Total Kazakhtelecom volume of capital investments on operational data for 6 months of 2010 totaled KZT4,742 million. 14 June 2010 at an annual stockholders meeting Kazakhtelecom approved total dividend payments on common and preferred shares in 2009 in size - KZT4,781 million. The amount of the dividend for 2009 on one common and preferred share will amount to KZT422.09. For six months in 2010 Kazakhtelecom signed over 5.5 thousand contracts for the purchase of goods and services amounting to KZT24.1 billion, while the share of local content was 62.3% at the target by this year, 54.5%. Analysts JSC "BCC Invest" believe that, in general, the message is positive for the stock price Kazakhtelecom as evidence of the positive dynamics of fundamental operating performance of the company, but the market may ignore, pending publication of a more detailed report. Analysts of JSC "BCC Invest" confirm the recommendation of "buy" on common and preferred shares Kazakhtelecom with target price KZT19,200 per ordinary share and KZT9,300 per preferred share. JSC BCC Invest also note the following important events in wolrd market: - today in Europe is expected to publish indexes PMI for July in manufacturing and services sectors of France and Germany and the Euro zone as a whole. - U.S. market today will be published weekly data to apply for unemployment benefits, data on sales in the secondary housing market and the index of leading indicators for June. The publication of corporate reports for the 2nd quarter will continue. This will include reports published by companies such as 3M Co, Caterpillar Inc and American Express Co. 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 372 479 +28.76 Neutral KKGBp 209 335 +60.29 Buy Halyk Bank HSBK 315 386 +22.54 Buy Bank CenterCredit CCBN 520 734 +41.15 Buy Tsesnabank TSBN 970 737 -24.02 Cut KazMunaiGaz RDGZ 16,950 Review Kazakhmys PLC GB_KZMS 2,260 3,135 +38.72 Hold ENRC PLC GB_ENRC 1,980 2,638 +33.23 Buy Kazakhtelekom KZTK 14,600 19,200 +31.51 Buy KZTKp 7,250 9,300 +28.28 Buy MREK MREK 1,000 1,130 +13.00 Hold ---------------------------------------------------------------------- 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. [2010-07-22]