Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 4, 2010

/IRBIS, November 4, 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 4, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - bidding for major U.S. and European venues finished multidirectional change quotations. European market participants for most of the session trying to keep their positions in anticipation of the Fed meeting, which led to a decrease in the main indices of sites in the region ranging from 0.15% - up to 0.59%. Bidding in the States all the past day, passed near floating markers, only 2 hours before closing, after the publication of the results of a meeting of the Central Bank, the market has come a revitalization that has allowed the session to complete an increase of 0.24% -0.37%. Nature of macroeconomic statistics, published on Wednesday proved to be quite positive. The index of business optimism in the services sector last month rose by 1.2 point, down to 54.3 points, which was much more than analysts' forecasts. In addition, production orders in the U.S. in September rose by 2.1%, which was 0.4% more than analysts' forecasts. Finally, the Fed announced it would inject into the American economy $ 600 billion by the end of July next year, against the backdrop of the fact that "the pace of recovery in output and employment remain slow." The reaction of market participants was immediate: quotes of major U.S. indexes initially dipped 0.7% amid what amounts pledged assistance were far more modest average of experts' expectations, but then, investors have overestimated the release of the Fed, arguing that the limited amount of assistance in the first place indicates that is not so bad the current situation in the economy, and secondly, it will save failing with respect to the dollar. Index S & P 500 finished the day near the psychological mark of 1,200 points, and if a certain outcome of today's publication of data from the labor market, the psychological support level can be taken before the end of the week. - the site of the emerging economies are mostly finished the trading session day growth of quotations. The dynamics observed in the commodity areas, where traders like and do not pay attention to the mood of uncertainty in the stock traders' sites, provided the growth of quotations on the emerging markets-at least during the first half of the week. In light of this, published yesterday the results of the Fed meeting is unlikely to bring significant changes to the actions of regional traders, however, the external background, the dynamics of the western areas, which is likely before the end of this week will be positive, of course, will influence the decisions of investors emerging markets. Today's premarket characterized by "REAL Invest.kz" as moderately positive, Asian area started the day steady growth - The cost of a barrel of oil up to the last three sessions has increased by 4% to a mark of $ 85.28, almost reaching the level of annual maxima, recorded in April. Analysts of "REAL Invest.kz" have noted that oil traders seemed to live in isolated areas of the total external background conditions and it seems to focus on shopping and more. With this in mind, "REAL Invest.kz" several adjusts its forecasts and is now likely to achieve a level of $ 90, in the case of imminent confident of taking the annual maximum. - troy ounce of gold rather significantly responded to yesterday's publication of the outcome of the meeting, just repeating the dynamics of the major indexes, and finished the day inconsequential change in quotations. In general, the quotations "precious metal" for the past twelve sessions is in a state of correction, which can be interrupted before the end of this week, following a final decision of market participants regarding how costs respond to the declared amount of incentives. - foreign exchange market, as expected, the most sensitive reaction to the statements of officials of the American Central Bank, and announced the stimulus package in the $ 600 billion, considerably weakened the dollar. Major Currency Pairs Forex market up to the day managed to overcome the resistance levels that inhibit growth of quotations. The EUR/USD closed the day above the mark to 1.41, which to some extent determines the continuation of its growth soon, the pair GBP/USD up to date has managed to consolidate above the level at 1.61. The pound is now at the levels of the February peak, and the likelihood that in the near future will set a new high, high enough. 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. [2010-11-04]