Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 1, 2010

/IRBIS, November 1, 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 November 1, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - Friday trading on major U.S. and European markets ended in different directions, a week mostly in the red. Market participants who received long-awaited change in the statistics of U.S. GDP in the third quarter, apparently, have not been able yet to make preliminary estimates of the volume of the proposed emission dollar. The preliminary value of GDP growth in the third quarter coincided with forecasts of analysts and was 2%. In this light, seems virtually inevitable implementation of U.S. authorities "quantitative easing, 2", but the intrigue remains associated with the perceived workload of the program. The calculation of analysts diverge quite significantly: voiced forecast of 250 billion - up $ 2 trillion. Fed meeting to be held on the first week of November is likely to put an end to the protracted market participants' expectations, but it is the volume of the next dose of liquidity, according to the "REAL Invest.kz", will be the determining factor for the markets before the end of this year. According to the results of last week, the S & P 500 has barely changed in value, adding a little more than 0.01%. Nevertheless, the ascent to the coveted mark of 1,200 points was not interrupted, and at a certain scenario, the outcome of the Fed meeting, you can expect the trigger level in the course of next week. - Site emerging markets finished the week by opposite changes of quotations. Fears and uncertainties of the Western market participants, was transformed with a vengeance in the volatile nerve course of trading, which was observed at the sites of emerging economies. Fed plans to reissue the dollar, taking into account the integration of world economy will inevitably affect economies of developing countries. Against this background, the meeting of the American central bank is looking to be expected on both sides of the ocean and the equator. - the price per barrel of WTI crude oil are in a consolidation phase over the past two weeks, with the level of volatility has acquired an unusually modest, which is likely explained by the same uncertainty in anticipation of the Fed meeting. A similar consolidation in the past sessions and shows the S & P 500, with the only difference being that the quotation of the index is still somewhat grown over the reporting period, while the price of "black gold" is not essential has changed in the opposite direction. Predict the dynamics of oil prices continued to release the results of the meeting of the American central bank, according to the "REAL Invest.kz", it makes no sense, but the current ten-day price range $ 80.5 - $ 83 are more likely to not be overcome. - troy ounce of gold last week, appear to have recently resumed the interrupted upward trend, adding more than 2.2%, and finished the week above the level of $ 1,350 per ounce. "REAL Invest.kz", as ever, believes that the growth of quotations of precious metal "would be supported whatever the outcome of the Fed meeting: If a decision on the need for excessive emissions, exceeding analysts' forecasts of the dollar, gold prices will rise on inflation concerns, whereas, if the U.S. central bank will limit itself to a small amount of emissions that, in general, it is unlikely, the fear of market participants regarding the future prospects of the global economy are transformed into an asset purchase of protective ounces of gold. Analysts "REAL Invest.kz" expect over the next two weeks to achieve the quotations of "yellow metal" recent maximum levels, while time limits may be muted immediately after publication of the Fed meeting on Wednesday 3 November. - The last week has not brought significant changes in the currency pair EUR/USD, reduction of quotations during the first three sessions, is fully compensated for the increase in the second half of the week. All the same the Fed meeting will give new impetus to the trading of the currency pair, but further growth of the euro is seen "REAL Invest.kz" yet more predictable, on the background is not overly optimistic macroeconomic reports coming out in the States. Thus, even if the amount of aid the economy will be lower than forecast, the strengthening U.S. dollar will, according to the "REAL Invest.kz", rather limited. Sign for the week was another major currency pair GBP/USD, overcame an August maximum value, and thus attained the new eight-month peaks. Analysts of "REAL Invest.kz" believe that this conclusion of the week will give currency to players' confidence, and in the short-term growth of pair GBP/USD will continue. 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. [2010-11-01]