Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on October 19, 2010

/IRBIS, October 19, 2010/ - JSC Finance Company REAL Invest.kz (Almaty, REAL Invest.kz) provided to IRBIS overview of major developments in Kazakhstan and the world markets on October 19, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - trading on major U.S. and European markets ended the growth. News background that accompanied the trading session in the western areas on Monday, he wore a rather mixed. As negative factors made the publication of macroeconomic accounts in the U.S., industrial output last month in the world's largest economy contracted by 0.2%, while analysts expected a growth rate for the same amount. Showed negative dynamics and utilization of industrial capacity to fall in September at 0.1%. Contribute to the common pool of negative news has made and that Greece's budget deficit in 2009 will be revised by the statistical agency Euro stat to about 15.5% of GDP, which will in turn lead to the revision of relations with creditors - the European Union and the IMF. Support markets on Monday was made by the banking sector, so in the U.S. reported third-largest U.S. financial institution Citigroup, whose net profit in the III quarter of 2010 increased by more than 20 times - up to $ 2.17 billion, compared with $ 101 million, earned during the same period a year earlier. In addition, as a positive factor, also made the news that Royal Bank of Canada made an offer to buy BlueBay Asset Management. Recurring activity on the M & A market in financial sectors was regarded by market participants as a sign of growing investor confidence in the stability of the current economic recovery. Today in the United States will be published data from the real estate market of corporate reporting will be the most significant reports of Bank of America, Bank of NY, Coca-Cola, Goldman Sachs, Johnson & Johnson. - Site BRIC quartet finished the trading session of last day minor multidirectional change quotations. Indian BSE and the Russian RTS added 0.22% and 0.07% respectively, while China's SSEC and the Bovespa in Brazil fell by 0.3% and 0.13%. The ambiguous nature of the external background for the regional sites, expressed as the publication of conflicting data and the dynamics of commodity assets. Premarket platforms for emerging markets to the present moment are positive, as evidenced by positive start trading on Asian sites. - The cost of a barrel of oil up to the last session has grown at once more than 2%, resulting in greater depreciation of the dollar, amid growing likelihood of early adoption of a new package of measures to stimulate the economy. Throughout the month, set a narrow price range of $ 81-83 dollars per barrel. - began the second half of last week, the correction value of ounces of gold did not last long, and up to the last session of quotations "precious metal" increased by 0.55%. As the main factors for growth were made by the weakening U.S. dollar, with a simultaneous increase in market participants' fears about the prospects for the global economy, after the publication of weak macroeconomic data in the U.S.. - the two major currency pairs market Forex EUR/USD and GBP/USD finished the last trading session virtually at the levels of discovery, offset in the afternoon, a moderate growth of quotations, which took place immediately after the start of trading. The dynamics of the foreign exchange market, according to the "REAL Invest.kz", more fully describes the current level of uncertainty of market participants, and on this background, analysts of "REAL Invest.kz" believe that the euro and the pound will be able to find a more specific trend in the second half of the week when will be published by the major macroeconomic data, and reports of most major U.S. financial institutions. Analysts of "REAL Invest.kz" noted that the most attractive stories among the shares of Kazakh companies are RD Kazmunaigas, Kazakhtelecom and Halyk Bank. Especially attractive look and EP Kazakhtelecom, as both companies are very strong balance sheet with low debt burden, the EP's net debt at all negative, i.e. cash flows of the company exceed liabilities. Besides their business generates more free cash flow, which allows them to pay a very solid dividends. Dividend income on preferred shares of KMG and Kazakhtelecom is 6-8% and 3- 4% of ordinary shares. Shares of these companies are traded much cheaper than the shares of similar companies in other emerging markets. 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]