Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for August 3, 2010
03.08.10 19:22
/IRBIS. August 3, 2010/ - BCC Invest JSC has provided IRBIS with a survey
of main events, market reviews and investment ideas for August 3, 2010.
Analysts of JSC "BCC Invest" now expect a positive opening of
trading on KASE on a background of increasing prices of shares and
depository receipts of Kazakhstan issuers yesterday in London.
However, according to JSC "BCC Invest", a global market share of locally
overheated and will brewing inevitable correction. It is not known whether it
will be deep and how much it will take time, but analysts JSC "BCC Invest"
still recommend investors take profit on open positions, so that later re-
enter at lower levels.
JSC BCC Invest also note the following important events in the
Kazakhstan market:
1. Inflation in Kazakhstan in July 2010 amounted to 0.2%. Non-food
products for the past month, prices increased by 0.3%, paid services -
by 0.2%. The price index for food products amounted to 100%. In the
past month decline in prices observed in the raw milk at 2%, eggs - by
5%. The level of prices for fruits and vegetables was lower by 1.2%,
rice - on 0.5%, sugar - by 0.3%. Price increases recorded for poultry
meat by 1.9%, tea - by 1%, buckwheat - by 0.9%, butter - by 0.5%,
bread - by 0.3%. Increase in prices of goods of personal hygiene,
cleaning products amounted to 0.3%, medicines, construction
materials - by 0.4%, tobacco products - 0.6%. Gasoline prices rose by
0.5%. In the field of housing and communal services tariffs on hot
water increased by 0.5%, natural gas, transported through the
distribution networks - by 1.3%, garbage collection - by 1.6%. Health
Services grew by 0.7%, restaurants and hotels - on 0.8%, passenger
rail transport - by 4.7%, and communications services become cheaper
for 4.4%.
2. Prices of enterprises producing industrial products in July 2010
remained unchanged. In July compared to June price declines
observed in the manufacturing industry by 0.1%, to raise them - in the
production and distribution of electric power, gas and water by 0.2% in
mining prices remained constant. In the past month increase in prices
was observed on heating fuel by 8.4%, oil - by 0.8%, natural gas - by
0.6%, their reduction - on kerosene at 12.2%, gas condensate - 3.6 %,
petrol - on 2.1%, fuel oil - 0.2%. Prices of precious metals for the
month were higher by 2.5%, lead, zinc and ferro alloys - on 0.3%, for
raw aluminum and copper - below 5.2%, ferrous metals - 0.7%. Wheat
went up by 12.3%, poultry - 1.1%, pasta - by 0.5%, fish - by 0.1%,
grain became cheaper by 1.6%, dairy products - by 0.4 %, vegetable
oil - by 0.2%.
3. The international rating agency Standard & Poor's affirmed long-
term credit rating of Kazakhstan oil company Zhaikmunai LP at
B-', outlook - Stable. As indicated in the message S & P, while rating
was removed from CreditWatch, in which he was placed with positive
implications April 22, 2010, before the release of the planned bonds.
"Stable" outlook, according to the report, takes into account the
possibility that the gas processing plant of the company will be fully
operational by November 2010. According to the agency, this should
lead to a significant increase in the EBITDA. In addition, the outlook
reflects expectations that the company "KazStroyService" in the near
future a purchase 27% shares of Zhaikmunai. According to analysts of
JSC "BCC Invest", the message is neutral for the quotations of
depositary receipts ZhaikMunai, since it corresponds to the
expectations of the market. JSC "BCC Invest" reiterates the
recommendation ZhaikMunai LP with a target price of $ 8.70 per GDR.
JSC BCC Invest also note the following important events in world
market:
1. in the Russian market is no important macroeconomic publications,
or corporate events in Russia are not expected. At the opening of
today's trading is expected to continue upward trend, pledged at
yesterday's auction, on the background of rapid growth in global stock
markets, and particularly in the U.S., the day before.
2. Today in Britain there are data on an index of business activity in the
construction sector in July. In the corporate sector is expected to
publish financial statements leading automaker BMW AG.
3. U.S. market is data on personal income and spending in June, the
number of outstanding transactions for the sale of housing, as well as
data on the volume of production orders for the same period. Reporting
Season in the U.S. gradually ends. Most large companies already
account for that. Today will be reports of Pfizer Inc. and Procter &
Gamble Co., as well as a number of medium and small capitalizations.
Analysts of BCC Invest JSC are giving the following advice for
investors in securities of issuers in internal market:
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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 312.70 386 +23.44 Buy
Bank CenterCredit CCBN 560 734 +31.07 Buy
Tsesnabank TSBN 970 737 -24.02 Cut
KazMunaiGaz RDGZ 18,610 Review
Kazakhmys PLC GB_KZMS 2,910.01 3,135 +7.73 Hold
ENRC PLC GB_ENRC 2,219 2,638 +18.88 Buy
Kazakhtelekom KZTK 14,500 19,200 +32.41 Buy
KZTKp 7,425 9,300 +25.25 Buy
MREK MREK 1,000 1,130 +13.00 Hold
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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.
[2010-08-03]