Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on October 20, 2010

/IRBIS, October 20, 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 20, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - major U.S. and European markets finished the day lower. Positive in general, macroeconomic statistics, coupled with equally positive corporate reports, published on Tuesday, completely leveled of the Chinese Central Bank, rose unexpectedly for many, the refinancing rate by 0.25% from 5.31% to 5.56%. Such a move authorities Celestial explained "the stabilization of the main macroeconomic parameters from the global economic crisis, while referred to the liquidity crisis is not too much, and then destabilize the economic situation in the country (GDP growth of China in the crisis years 2008 and 2009 was respectively 9% and 8 7%, respectively). An additional factor that led to a significant strengthening of the U.S. dollar came forward a message the U.S. Treasury that the near-term expected depreciation of the dollar should not be. Finally, the Japanese government revised its economic growth forecast downward, against the backdrop of the country began in the soft phase of deflation. Strengthening of the yen had a negative impact on Japanese exporters, reducing profits of enterprises. At the same time, the volume of construction of new U.S. homes last month rose by 2 thousand units, while analysts expected a drop rate of 29 thousand units. The index of business expectations in Germany in October of this year decreased by 2.9 points - to -7.2 points, while analysts predicted that the indicator value will be -7 points. Published on Tuesday, corporate reports were extremely positive about the good results reported Bank of America, Coca-Cola, Goldman Sachs, Johnson & Johnson, Harley Davidson and Yahoo. As a result of the day, European indexes were down 0.4% -0.7%, U.S. indices closed the day with a decrease in the area of 1.5%. Today, market participants will wait for the "beige book" The Fed, in this connection, "REAL Invest.kz" expects weak, inactive trading began. - Site emerging markets finished the day differently. Venues BRIC quartet of trading results on Tuesday, mostly in capitalization fell on 0,65% grew only Chinese Shanghai Composite. External background before opening of the regional sites to a given minute is characterized as a negative, as evidenced by the course of trading in Asia, where the indices are under pressure, "bears." - The cost of a barrel of oil up to the last trading day fell $ 2.65, which served as the only cause of the Central Bank of China, raise interest rates. Publication of weekly data on stocks of petroleum and petroleum products in the country, in view of the ambiguous nature of the data on the dynamics of oil prices did not significantly affected. Further prospects of oil prices will be, according to the "REAL Invest.kz", determined by the results of today's publication of the Fed meeting, which is all the clearer it becomes faced with the necessity of introducing additional incentives. - troy ounce of gold up to the last session, fell by 2% to stay below $ 1,350. In addition, already dubbed by the data of China, led to the strengthening U.S. dollar, the reason for selling "precious metal" could well serve as the present situation in terms of technical analysis on the background of strong growth in the price of gold up to the last two months. Fed meeting should reflect on the future of ounces of gold, but analysts of "REAL Invest.kz" believes that in the medium term, continue corrective mood, and the cost of "precious metal" may reach the $ 1,300 an ounce. - major currency pairs forex market on the basis of the last session substantially corrected, resulting in the first place who grew up in the value of the dollar. The EUR/USD and GBP/USD up to the day fell by 0.9% and 1.1%, but held fall leaves border uptrend not fixed JSC Financial company "REAL Invest.kz" notes the following significant events in the Kazakh market: - Eurasian Natural Resources Corporation is expanding its iron ore resource base in Brazil. Holding company acquires 100% Mineracao Minas Bahia SA (MIBA) and 51% of the enlarged share capital Mineracao Peixe Bravo SA (MPB). Together, these acquisitions are estimated at up to $ 304 million to be paid from funds available ENRC. The deal should be completed by October 20, 2010. Holding also received a 3-year option to buy the remaining 49% MPB for $ 50 million deal involves the payment of $ 250 million to existing shareholders of up to $ 54 million to the Steel do Brasil Participacoes SA, which had previously entered into an agreement to acquire 100% of existing shares of MIBA and 50 % of shares of MPB and gave the sellers agreed to enter into independent arrangements with ENRC. Analysts of "REAL Invest.kz" believe that the news will not affect the share prices of the company since acquired the assets are still at an early stage of development. - Growth of Kazakhstan's GDP in January-September 2010 amounted to 7.5%, announced by President Mr. Nursultan Nazarbayev at the meeting with the governors of the regions on Tuesday in Astana. "The President noted that the economy shows good growth's GDP grew by 7.5%. Industrial production rose by 10%, including in the manufacturing industry - 20%, chemicals - 77%, machine building - 56 %. From the beginning, created 200,000 new jobs, "- stated in the press service of the President, released after the meeting. 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. [2010-10-20]