Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 2, 2010

/IRBIS, November 2, 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 2, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - bidding for venues in Europe and the U.S. ended in positive territory. The ambiguous nature of macroeconomic statistics, published on the eve did not influence significantly the dynamics of the western areas, where market participants choose not to take risks in anticipation of the Fed meeting. Thus, the personal income of U.S. citizens in the last month decreased by 0.1%, while analysts expected a growth rate at 0.2%. Personal expenses, for the same period increased by 0.2%, with expectations of professional growth rate at 0.4%. But the index of business optimism ISM in September rose by 2.5 points, while market participants waited for reducing the rate by 0.4 points. Today in Germany will be published statistics on retail sales, analysts expect the value of the index at an annual rate decreased by 2.2%. In the U.S., today released weekly statistics on oil and petroleum products in the country. In general, "REAL Invest.kz" expects low volume of trading today - the market participants were waiting tomorrow's Fed meeting, and are unlikely now to additional risks. - Site emerging markets on the basis of trading on Monday increased capitalization. As the main driver for purchases of securities of the regional sites, according to the "REAL Invest.kz", made confident the dynamics of commodity areas. However, even at sites of emerging economies, the current trade volumes are significantly understated, because of the expectation of the regional market participants such landmark events as the Fed meeting and the Summit of the largest twenty G20. Premarket platforms for emerging markets is neutral, in particular, confirms the uncertain start of trading on Asian markets. - The cost of a barrel of oil during the past two weeks of trading reached a maximum, de jure, about twelve breaking the resistance level at around $ 83 a barrel. The main reason that explains the similar dynamics of quotations of "black gold" advocates the continued weakening of the U.S. dollar in expectation of market participants adopting a new stimulus package Fed. Today's weekly report on inventories of crude oil and petroleum products in the United States may also affect the short-term dynamics of a barrel of oil. - The cost of ounce of gold at end of last session fell by 0.44% but remains above the level of $ 1,350. The volume of yesterday's trading was also quite low, thus, begs the conclusion that the major players did not participate in the course of trading on Monday. The situation with the possible approval of the plan "quantitative easing 2" definitely will affect the dynamics of trade "precious metal", but in the short term, analysts are "REAL Invest.kz" preserve the forecast that is expected to continue the growth of quotations of gold. - currency pair EUR/USD at end of last session, corrected for 0.64%, down below the level of 1.40, which is likely explained by the correction positions of market participants in anticipation of the Fed meeting. GBP/USD pair held a rare session slabovolatilnuyu, literally unchanged for the day. At the same time, the pound remains at eight- month highs, and likely soon to continue to grow. 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. [2010-11-02]