Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for August 4, 2010

/IRBIS. August 4, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for August 4, 2010. Analysts of JSC "BCC Invest" now expect a neutral opening of trading on KASE, and later during the day, according to forecasts, the dynamics of movement and quotations will be mixed in different directions, although more negative, which should lead to a negative closing of KASE index on the day. JSC BCC Invest also note the following important events in the Kazakhstan market: - August 5, 2010 in the trade system of KASE held special auctions on placement of short-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-6 with maturity of 6 months (184 days). Estimated volume of accommodation - 13 billion tenge. The bonds are discounted, and negotiable bond price will be the percentage of par value, expressed with accuracy up to the fourth decimal place. - Assets TSESNABANK for January-June 2010 increased by 13% and amounted to KZT198 billion, indicated in the published IFRS consolidated unaudited Financial Reporting. The obligations of the bank during the period rose 14% to KZT179.8 billion, own capital - 1% to KZT18.3 billion, the share capital - remained stable at KZT18 billion. In January-June 2010 the bank posted a net profit of KZT134.5 million, in 5.8 times less than the level of the corresponding period of 2009. Analysts of JSC "BCC Invest" indicate that its financial statements under IFRS for the first six months significantly different from their predictions. The high volume of assets and liabilities was accompanied by very low-income and return on average equity, which, as expected, was significantly lower than the preliminary forecasts of the bank's management. However, analysts JSC "BCC Invest" does not use data derived from the unaudited interim Financial Reporting in its valuation models of common shares of the bank, because the data provided no comments and disclosures do not reveal the full information on its financial condition. JSC "BCC Invest" reiterates the recommendation to "reduce" on ordinary shares Tsesnabank "with a target price of KZT737 per share. JSC BCC Invest also note the following important events in world market: - on the Russian market will come regularly on weekly inflation data as of Monday. Important corporate events in Russia today are not expected. At the opening of trading on Wednesday, analysts JSC "BCC Invest" offers a moderate decline of the market on the background of neutral negative dynamics in Asia at the moment and a small drop of U.S. indices yesterday. - Today in Europe are expected to publish indexes of business activity in the service sector in Germany and the euro area in July, as well as data on retail sales in June. In addition, in the UK will come the same data for the same period. In the corporate sector is expected to announce financial results of the French bank Societe Generale. - U.S. market are data on changes in the number of employed in June, and the index of business activity in the services sector in July. In addition, the expected yield of regular data on changes in stocks of petroleum and petroleum products per week. To the public today, companies should note yield financial results of AOL Inc., Devon Energy Corp., News Corp. etc. 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 392 479 +22.19 Neutral KKGBp 209 335 +60.29 Buy Halyk Bank HSBK 313 386 +23.32 Buy Bank CenterCredit CCBN 530 734 +38.49 Buy Tsesnabank TSBN 970 737 -24.02 Cut KazMunaiGaz RDGZ 18,610 Review Kazakhmys PLC GB_KZMS 3,000 3,135 +4.50 Hold ENRC PLC GB_ENRC 2,219 2,638 +18.88 Buy Kazakhtelekom KZTK 14,840 19,200 +29.38 Buy KZTKp 7,425 9,300 +25.25 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. [2010-08-04]