Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for July 22, 2010

/IRBIS, July 22, 2010/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for July 22, 2010. Analysts of IFH RESMI are paying attention to investors on the following important events in the markets now: - The oil giants, Exxon Mobil Corp, Chevron Corp, ConocoPhillips and Shell Oil announced plans to establish a rapid response system to prevent possible future incidents of oil production on offshore platforms. The four companies are planning to spend about $ 1 billion to develop a system that will be able to respond within 24 hours, working at a depth of 3000 meters and are able to utilize up to 100,000 barrels per day. - Yesterday, Coca-Cola Co. published its financial results for the second quarter of 2010. The company earned during the second quarter increased 18% due to increase in sales, exceeding analysts' forecasts. Net profit of Coca-Cola for the three months to July 2 totaled $ 2.4 billion, or $ 1.02 per share, versus $ 2.0 billion, or $ 0.88 per share, a year earlier. Operating revenues increased by 5% to $ 8.7 billion in total sales of beverage Diet Coke, Sprite and Fanta grew by 5% due to growth in almost all major markets of the company. Sales in the countries of Eurasia and Africa showed the biggest growth, about 10%, while in Europe, volumes declined by 1%. The increase in sales of Coca-Cola also launched contributed to the World Cup soccer marketing campaign and the growing popularity of sports drinks such as Powerade. In North America, in the second quarter of 2010 Coca-Cola Co. managed to overtake its main rival PepsiCo in sales of drinks. In connection with the weakening purchasing power, the rivalry between the two brands worsened again. - According to the press service of the Ministry of Finance (MOF), the Republic of Kazakhstan, at a meeting of the Economic Policy of the Government of 03 July this year, it was decided to inappropriate release of sovereign bonds of the Republic of Kazakhstan in 2010. This year, Kazakhstan needs to attract KZT1,064.4 billion in order to finance the budget deficit, as well as the repayment term GS treatment which expires this year. The main instrument for borrowing is domestic government securities, which amount to about 60% of necessary funds. In addition, Kazakhstan has attracted two loans totaling $ 2 billion from the International Bank for Reconstruction and Development (IBRD) ($ 1 billion) and World Bank ($ 1 billion). However, it remains questionable how the rest will be financed by KZT126.4 billion. Originally scheduled for release Eurobonds in $ 500-700 million in connection with the fact that the MP RK abandoned the idea of placing Eurobonds, analysts of IFD "RESMI" believe that the Government expects to reduce the deficit. According to IFD "RESMI", Eurobonds could serve as a benchmark for debt securities of corporate sector and provide the impetus to reduce their profitability. Consequently, funding for Kazakh corporate sector would be cheaper. - Net income margin Kazakhtelecom for the first half of 2010 was at the level of 2007. At a press conference with members of the Board of Kazakhtelecom devoted to launching a corporate block and wrap-up for the first half of 2010 were announced some results of the Company for the first half. Consolidated revenues from sales of services for 6 months in 2010 according to preliminary data of KZT75,956 million, the consolidated net profit - KZT20,635 million. Revenues for the first half consistent with our predictions. The costs of the company were lower than we predicted. Based on the figures in the report, analysts IFD "RESMI" believe that it can be concluded that the company reduces costs. Net income margin Kazakhtelecom for the first 6 months of this year was at the level of about 27%, which corresponds to the level of 2007. Given a stable financial condition of the issuer, as well as growth potential, analysts of IFD "RESMI" retain a recommendation on the shares of Kazakhtelecom "buy". Analysts of IFH RESMI give the following advice for investors in securities of issuers in Kazakhstan: -------------------------------------------------------------------------- Issuer Last price Predicted price* Up/down from Target RSI. Current price price** %*** ------------------ ---------- ---------------- ------------- ------- ----- Kazkommertsbak 372 796 114.0% 490 33.70 Halyk bank 315 409 29.8% 394 54.00 Bank Center Credit 520 1,218 134.2% 1,023 37.38 ENRC 1,980 On review 2,770 42.16 Kazakhmys 2,260 On review 3,158 38.75 RD KMG 16,950 24,895 46.9% 24,583 40.35 Kazkhtelekom 14,600 33,842 131.8% 20,436 56.85 -------------------------------------------------------------------------- Fundamental evaluation IFH RESMI for 12 months (weekly review) ** Target according to the consensus forecast of analysts surveyed by Bloomberg *** Relative strength index - an indicator of technical analysis. determines strength of trend and likelihood of change. Overbought / oversold - when RSI indicator value is closer to 100% / 0%. - Cost of common shares Kazkommertsbank assessment IFD "RESMI" will cost no less than KZT796 per share by the end of 2010; - Halyk Savings Bank of Kazakhstan is estimated IFD "RESMI" as the most promising in terms of business development financial institution in Kazakhstan. Analysts see the growth of the bank's shares up to KZT409 per share; - Shares of Bank CenterCredit in the long term analysts IFD "RESMI" about the outlook for growth in securities of the bank to the level of 1.230 m.; - Stocks of Kazakhtelecom are looking most attractive for investment in the long term. Analysts IFD "RESMI" recommend buying simple shareholders of the issuer. - The updated target price of shares of JSC Exploration Production KMG is KZT24.895 per share. 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]