Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on October 18, 2010

/IRBIS, October 18, 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 18, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - the final trading session for the week ended with major European and U.S. indices in different directions. Pressure on the markets on Friday provided statistics on the number of seized mortgage housing in the U.S., as well as publication of data on trade balance in the euro zone deficit which last month totaled 4.7 billion euros, while analysts predicted value of the index only at the level of - 0.7 billion euros. An additional negative factor was the release of data on inflation in the U.S., which by the results of September virtually not increased, forcing market participants to start talking again about the possibility of deflation in the country. As the supporting factors were data on retail sales in the United States, whose growth in the reporting month amounted to 0.6%, while analysts expected a rate increase only 0.4%. As a result of the day Dow Jones fell by 0.29%, S & P 500 grew by 0.2%. Over the past week, the Dow Jones index rose by 0.52%, S&P 500 added just less than 1%. Was a positive week for Europe: CAC 40 rose by 1.7%, DAX added 3.19%, and FTSE 100 rose in the capitalization of 0.8%. On the coming week, investors' attention will likely be focused on the increasing pace of corporate reporting season in the U.S., the most significant report back on Monday, Citigroup, Apple, IBM, on Tuesday, Bank of America, Goldman Sachs, Coca Cola, Harley Davidson, and media giant Yahoo On Wednesday, we note the publication of reports M & T Bank and Wells Fargo, on Thursday, among others, will report Caterpillar and Xerox, on Friday, attention should be paid to statements Verizon. From the macroeconomic events celebrated the publication of data from the U.S. real estate market, as well as the index of prom. production. In Europe, says the data output of the indicator of economic sentiment German institute ZEW, and the publication of the index of business optimism in Germany's IFO, which will fall on Friday. - Site emerging markets following last week closed mostly in positive territory. As the main supporters of the regional area factors, there is a positive external background, is created on the background of optimistic expectations of market participants regarding the corporate reporting season and also due to relatively high prices for oil and other commodity assets. Indian BSE on the basis of the five trading sessions, rose by 0.62%, Brazil's Bovespa index rose by 1.44%, Russian PTC added 0.9%, finally, the Chinese SSEC on the week after prolonged holiday weekend has grown once on 8.47% . This week China is expected to yield critical data on inflation in the country, industrial production and retail sales. In addition to these events, traders platforms emerging markets will also be guided by the publication of corporate reports in the U.S.. - quotations of "black gold" in the last week results corrected by 1.9%, closing at just above the level of $ 81 per barrel. Most significantly, oil prices declined in the second half of the week, after weekly data on stocks of petroleum and petroleum products in the U.S. that were much worse than expected. In general, it is noteworthy that reduction in oil prices coincided with profit-taking by market participants in the stock markets, as well as upward correction value of the dollar. - The cost of ounces of gold last week continued his impressive marathon, setting a new historical maximum price at $ 1,389 per ounce. By the end of the week quotes "precious metal" somewhat refined, finished the trading session Friday at the $ 1,372 an ounce. In total, since the beginning of the growth of this growth, the cost of ounce of gold has increased by more than 18%, and there is every reason to take in the short term level of $ 1,400. - currency pair EUR/USD during the last week, was making a strategic mark in 1.40, but failed attempt to storm the mark of 1.41, sent a correction of the euro, which resulted in the week was completed below the level of 1.40. Analysts of "REAL Invest.kz" note that in this situation of uncertainty, to predict further dynamics is not possible, since neither the created situation in terms of technical analysis or macroeconomic environment did not give an unambiguous answer to the question concerning the formation of the direction of subsequent speakers. Fears of market participants due to the publication of a number is not too optimistic macroeconomic data on the one hand can significantly reduce the value of American currency, respectively, increasing the value of the euro, on the other hand, the new season of corporate reporting, provided that most companies will report positive way, in According to "REAL Invest.kz", given the attractiveness of U.S. dollar. Over the last month, the EUR/USD almost recoilless grew by more than 10%, which will certainly put pressure on the current level of quotations. - similar to the regional dynamics of the European currency last week showed the pair GBP/USD, first tries to important psychological resistance level, centered at around 1.60, and even reached the maximum value from February at around 1.61. However, the end of the week quotes pound also had a moderate correction, as the EUR/USD closing below the psychological level taken at 1.60. On the daily chart of the currency pair GBP/USD has developed a model Candlesticks "Dodge" is fairly obvious assuming an ambulance correction value of the pound, in connection with this, analysts of "REAL Invest.kz" are awaiting the beginning of the week for a given currency pair with the sales. 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. [2010-10-18]