Overview of key developments from analysts of Asyl Invest JSC (Kazakhstan) on October 19, 2010

/IRBIS, October 19, 2010/ - ASYL INVEST JSC (Almaty) provided IRBIS overview of major events and of their investment ideas and forecasts on October 19, 2010. Analysts of ASYL INVEST note that trading on the Kazakhstan market on Monday held at a weak activity of market participants and resulted in lateral movement of the index KASE. In terms of KASE index strong movements were observed on the shares of BCC (2.5%), which are in demand, and shares Kazakhtelecom (-2.5%). In general, the trading volume of KASE index fell by 2.1 times compared to the previous day and reached KZT68.6 million. On the London Stock Exchange trading Kazakhstan shares and depositary receipts were at their multidirectional dynamics. Negatively were trading in shares of mining companies. Kazakhmys shares fell on the end of trading on 1.81%, ENRC - on 1.33%. GDR banks completed trades multidirectional movement of prices: CMC (+0.85%), NSBK (-0.9%). Today, the external background for the Kazakh market develops moderately positive. On expectations of ASYL INVEST, KASE index will rise today. In addition, the analysts of ASYL INVEST note the following events in world markets: - Report Citigroup (C) for 3 quarter of 2010 caused an increase in stocks of banking sector and has allowed U.S. stock indexes finished trading growth. Net profit for the March quarter 2010 was $ 2.17 million (7 cents per share), more than 20 times higher than the same period last year. These results were achieved due to reduction in reserves. The review for October 13 analysts of JSC ASYL INVEST assumed that the Citigroup report, by analogy with JPM will reduce contributions to reserves, which is what happened. On the background of the results better than expected and the outcome of the conference call Citigroup shares rose 5.57%, shares of the financial sector to 2.14%. Also positive was the report of Apple (AAPL). 4 quarter of the current fiscal year, the company earned $ 4.31 billion net profit ($ 4.64 per share) compared to net income of $ 2.53 billion received last year. The company's revenue rose to a record level of $ 20.3 billion through the sale of the iPhone and IPad. Economic statistics, published in the U.S. yesterday, showed the negative aspects and to exert pressure on the course of trading. Industrial production in the U.S. in September declined by 0.2% after August it grew by 0.2%. Economists had expected growth rate at 0.2%. Decline in industrial production caused a decrease in capacity utilization from 74.8% to 74.7%, marking the first decline since June 2009. Decline in industrial production in September was caused by the decline in manufacturing by 0.2% and a drop in production in public services by 1.9%, while production in mining, in contrast, grew by 0.7%. Industrial production, which is one of the drivers of the economy, declined, giving one more argument in favor of the fact that the Fed should offer more incentives to increase the chances of QE2. Negative were also data on international capital flows. Capital inflows into the U.S. in August fell to $ 63.7 billion to $ 38.9 billion. - in the U.S. today the focus will be corporate records, including records of companies Bank of America, Goldman Sachs, Bank of NY, Western Digital, Yahoo, Coca-Cola, Johnson & Johnson. Economic statistics, the output of which is expected in the U.S. today is not important. Today is likely to increase shares Bank of America, as the report of the bank may be better than analysts' forecasts by reducing allocations to reserves. Also, the positive dynamics of shares may be the technology sector, after Apple has released its financial results better than expected. - trading in Europe took place with reference to the United States. Major European stock indexes trade results showed an increase. Shares of banks in demand due to positive report Citigroup. Trading on the European markets is likely to begin positively. Economic statistics, published today in Europe is likely to have limited impact on trading. - major Asian stock indexes are now showing multidirectional dynamics, most of the index increases due to the dynamics of bank shares, after Citigroup posted positive results for the 3 quarter. This material is for informational purposes and is not an offer or recommendation to perform any transaction in securities. Agency IRBIS is not responsible for the opinions expressed in this material. [2010-10-19]