Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for October 20, 2010

/IRBIS. October 20, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for October 20, 2010. Analysts of JSC "BCC Invest" now expect a negative opening of trading on the local stock market on a negative external background. Further, during the day, is projected JSC "BCC Invest", the dynamics of bidding for shares in the index KASE, priority will be downward, but multidirectional, and KASE index closed in negative territory. JSC "BCC Invest" also note the following important events in the Kazakh market: - Ministry of Finance of Kazakhstan placed on the KASE on October 19 16.2 million MEUKAM-108 of the fifth edition (KZKDKY090055) at 5.60% per annum October 19, 2010 in the trade system of KASE specialized trades on placement of government treasury bonds of the Ministry of Finance of the Republic of Kazakhstan MEUKAM -108 Release 5 with the maturity of 9 years (3,240 days) and Coupon Payments 1 per year. Placement volume amounted to 16.24 million bonds (116% of plan) worth 16.24 billion, the coupon rate - 5.6% per annum. The volume of active orders, the proportion of pension market had 29.5%, the share of Kazakhstan's second-tier banks (STB) - 32.6%, clients of STB - 13.6%, broker-dealers - 4,5% of their customers - 19.8%. According to data of Central Securities Depository, all transactions on placement MEUKAM-108 of the fifth edition by the end of calculations based on trades executed. 11.5% of the total outstanding bonds were redeemed by the subjects of the pension market, 33.3% - STB, 19.8% STB clients, 9.6% - broker- dealer companies, 25.8% - by customers of broker-dealers. - ENRC takes regular iron ore assets in Brazil for $ 304 million Eurasian Natural Resources Corporation (ENRC) 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), the report indicates ENRC. 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. The deal involves the payment of $ 250 million to existing shareholders of up to $ 54 million to the Steel do Brasil Participacoes SA, which earlier signed agreement acquire 100% of existing shares MIBA and 50% stake in MPB and gave it to agreed to sign independent agreements with the ENRC. Analysts of JSC "BCC Invest" confirm the recommendation to "buy" on shares of Eurasian Natural Resources Corporation PLC with a target price of 1,232 pence per share. - The company Max Petroleum PLC reported during the drilling of an exploration well UTS-1 on the site Uytas at Block A. Exploration well UTS-1 on the site Uytas in Block A has reached an intermediate depth of 300 meters. At the depth interval 60 - 76 meters electro logging diagrams show the presence of oil carrier stratum of the Cretaceous period. The potential height of the oil reservoir is 86 meters (60 to 146 meters). The company performs well casing of the range and continue drilling to a depth of approximately 900 meters. The company will carry out testing of the surface horizon of the Cretaceous, after evaluation after evaluation of the deeper Jurassic and Triassic reservoirs. According to the JSC "BCC Invest", the message is positive for stock prices MaxPetroleum PLC. However, the market has already taken into account that in quotes - quotes the company's shares yesterday soared from 11 pence to 20 pence per share. Analysts of JSC "BCC Invest" confirm the recommendation to "hold" on the shares of Max Petroleum PLC with target price of 21 pence per share. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - In Russia will be published inflation data last week and the first year. - in Europe 14:30 (AST) will publish the proceedings of the Bank of England, and will also be published data on net public sector borrowing in September. - U.S. at 20:30 (AST) will be published data on changes in oil inefteproduktov for week ending October 15. At 00:00 (AST) will be published by the Federal Reserve Beige Book. Reporting season in full swing. Today before the opening of trading will publish their reports US Bancorp, Morgan Stanley, Wells Fargo & Co., BlackRock Inc., EBay Inc., United Technologies, The Boeing Co. and others. 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 426 479 +12.44 Neutral KKGBp 220 335 +52.27 Buy Halyk Bank HSBK 330 386 +16.97 Buy Bank CenterCredit CCBN 626.99 646 +3.03 Hold Tsesnabank TSBN 940 1,030 +9.57 Neutral KazMunaiGaz RDGZ 16,150 22,300 +38.08 Buy Kazakhmys PLC GB_KZMS 3,120 3,392 +8.72 Neutral ENRC PLC GB_ENRC 2,200 2,858 +29.91 Buy Kazakhtelekom KZTK 15,800 19,200 +21.52 Buy KZTKp 7,600 9,300 +22.37 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. [2010-10-20]