Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for November 2, 2010

/IRBIS. November 2, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for November 2, 2010. Today, Analysts of JSC "BCC Invest" expect a positive opening of trading on the shares included in the KASE index, on a positive external background. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Inflation in Kazakhstan in October 2010 was 0.9%. Food prices in the past month increased by 1.3%, non-food goods - by 0.6%, paid services - by 0.7%. - Prices of manufacturers of industrial products in October 2010 increased by 3.5%. In October, compared with the previous month, prices in the mining industry increased by 4.4%, manufacturing industry - by 2.3% in the production and distribution of electricity, gas and water - remained unchanged. In the past month increase in prices observed for propane and butane are liquefied by 5.8%, oil - by 4.7%, the condensate gas - by 2.5%, metal ore - 2.4%, fuel oil - 0.2 %, natural gas - by 0.1%, their reduction on kerosene - on 2.5%, petrol - on 1.3%, diesel fuel - by 0.2%, coal - by 0.1%. Prices for lead for the month were up 10% and precious metals - by 8.1%, Copper - 6%, raw aluminum - by 1.9%, zinc and ferro-on 0.2%, for ferrous metals - below 0.1%. - The Republican Budget of Kazakhstan in January-September, with a deficit 17% of the costs. The national budget deficit of Kazakhstan on October 1, 2010 amounted to KZT526,811 million. Income from the national budget in January-September totaled KZT2,546 600.4 million, the costs - KZT3,073,411.4 million. Thus, the budget was executed with a deficit of 17% of the costs. In the revenue budget own revenues amounted to KZT2,530,684.5 million, the income from repayment of budget credits in KZT15,831.5 million from the sale of financial assets of the state - KZT84.4 million. In the expenditure budget expenditures amounted to KZT2,799,558.3 million, low cost loans - KZT103,137 million, the cost of acquisition of financial assets - KZT170,716.1 million. - The international rating agency Moody's Investors Service lowered the corporate rating of the National Company KazMunaiGas to one stage - to "Baa3", the ratings outlook changed to stable from negative. Simultaneously to the same level downgraded the ratings of bonds "KMG", ratings of "Exploration and Production KMG, KazTransGas and its other subsidiaries. The downgrade, the agency said in a statement reflects his views on weakening financial profile of the company. In particular, it is due to uncertainty about the level of dividends from subsidiaries in connection with an increase in investment; large investment commitments of the group, most of which are associated with new projects that will not give an immediate financial return, the expected increase in the next three years, the consolidated debt of the group. - Kazakh national company KazMunaiGaz has appointed Credit Suisse, The Royal Bankof Scotland and UBS Investment Bank organizers issue of Eurobonds in the U.S. Accommodation will be held under rule Reg S/144A within the framework of medium-term borrowings by $ 7.5 billion. Halyk Bank and Visor Capital will act as lead managers of Kazakhstan. The deal will be launched shortly, depending on market conditions. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - Important publications in Russia's macroeconomic statistics and corporate reports are not expected. - in Italy, France and Germany 14:45 - 14:55 (AST) will be published indexes of business activity in manufacturing PMI for October, and 15:30 (AST) in the UK - the index of business activity in the construction sector PMI . Today in Europe report BG Group Plc, BP Plc., Metro AG. - in U.S.A. publications relevant macroeconomic statistics is expected. Today begins the meeting of Federal Open Market Committee (FOMC) U.S. Federal Reserve. Reporting season continues. Today accountable Electronic Arts, NYSEEuronext, Archer-Daniels-Midland, MasterCard Inc., Newmont Mining Corp., Pfizer, Hertz Global Holdings Inc., 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 420 479 +14.05 Neutral KKGBp 215 335 +55.81 Buy Halyk Bank HSBK 320 386 +20.63 Buy Bank CenterCredit CCBN 585 646 +10.43 Hold Tsesnabank TSBN 940 1,030 +9.57 Neutral KazMunaiGaz RDGZ 15,200 22,300 +46.71 Buy Kazakhmys PLC GB_KZMS 3,160 3,392 +7.34 Neutral ENRC PLC GB_ENRC 2,100 2,858 +36.10 Buy Kazakhtelekom KZTK 15,750 19,200 +21.90 Buy KZTKp 7,510 9,300 +23.83 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. [2010-11-02]