Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for October 8, 2010

/IRBIS. October 8, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for October 8, 2010. Analysts of JSC "BCC Invest" now expect the negative dynamics of the shares included in the index KASE, on the negative external background. Taking into account the substantial increase in Kazakhmys PLC shares in the previous few weeks and the recent deal to sell large blocks of shares of majority shareholders, analysts JSC "BCC Invest" lowered its recommendation on shares of Kazakhmys PLC to "HOLD" to "NEUTRAL." JSC "BCC Invest" also notes the following important events in the Kazakh market: - Credit Suisse Group AG on behalf of his client sold a large stocks of Kazakhmys PLC at a price of 1,410 pence. According to news agency Bloomberg Credit Suisse Group AG on October 7 this year on behalf of his client Orleans Trade & Investment Corp.prodal Kazakhmys PLC shares at a price of 1,410 pence. For sale were proposed 9.35 million shares. Analysts of JSC "BCC Invest" indicate that such a large sale of shares by one investor negatively impacted shareholder value Kazakhmys PLC, which yesterday fell more than 4%. Taking into account the substantial increase in Kazakhmys PLC shares in the previous few weeks and the recent deal to sell large blocks of shares of majority shareholders, JSC "BCC Invest" lowers its recommendation on shares of Kazakhmys PLC to "HOLD" to "NEUTRAL." - The head of Kazakhstan's national company KazMunaiGaz Mr. Kairgeldy Kabyldin sees no economic benefit from holding company IPO. "Today we have plans to produce" KMG "at the IPO is not" - he said at a news conference on Thursday in Almaty. Mr. K. Kabyldin noted that now the company has a stable financial position, it has enough resources to implement investment plans. "Currently, we do not see economic benefits from IPO", - he said in this regard. The head of the national company recalled the implementation KazMunaiGaz large-scale investment programs for 2010-2011, a $ 20 billion According to him, these $ 20 billion company intends to invest 30% of its own funds, 70% - by borrowing. In this case, Mr. K. Kabyldin said that the borrowed funds will leverage, through the placement of Eurobonds and bonds in the Kazakh market. Earlier Mr. Kairat Kelimbetov, the head of state fund, "SK", which includes KMG, commented that the national company is not able to implement its ambitious investment program without an IPO. "My opinion: there is no alternative to an IPO in KazMunaiGas to the next five years to implement an ambitious investment program of $ 20 billion and to pay existing debts of the company fairly rigid schedule, which begins this year. Peak debt payments will be in 2012 year "- he stressed. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - in Germany 12:00 (AST) will be published data on the trade and current account balance for August, in France 12:30 (AST) - the index of business sentiment of the Bank of France in September and in 12:45 (AST) - Balance the budget for August, in the UK at 14:00 (AST) - Producer price indexes for September. - in the U.S. before the market opens at 18:30 (AST) will be published data on the unemployment rate and change in total employment by sector in September, after the market opened in 20:00 (AST) - data on wholesale inventories in August .. 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 415 479 +15.42 Neutral KKGBp 220 335 +52.27 Buy Halyk Bank HSBK 324.49 386 +18.96 Buy Bank CenterCredit CCBN 543 646 +18.97 Hold Tsesnabank TSBN 951 1,030 +8.31 Neutral KazMunaiGaz RDGZ 15,800 22,300 +41.14 Buy Kazakhmys PLC GB_KZMS 3,400 3,392 -0.24 Hold ENRC PLC GB_ENRC 2,229.70 2,858 +28.18 Buy Kazakhtelekom KZTK 15,950 19,200 +20.38 Buy KZTKp 7,200 9,300 +29.17 Buy MREK MREK 1,100 1,130 +2.73 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. [2010-10-08]