Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 17, 2010

/IRBIS, November 17, 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 17, 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 completed a significant reduction. Revision of last year's budget deficit the most problematic countries in the Euro zone - Greece with 13.6% to 15.4% of GDP, and growing tensions over similar problems of Ireland, which has publicly refused to formally request financial assistance from the euro-zone members - factors which had made substantially corrected the basic Stock, commodity and currency platform. An additional factor supporting the Bears an opportunity soon to tighten monetary policy by China against the background of speeding inflation, which reached, according to figures released last week, 25-month high. Macro statistics published on Tuesday in the U.S. has brought optimism to market participants - so that the producer price index last month raised less than half analysts' expectations - up 0.4% while industrial production at all showed zero growth, while experts expect the growth rate on 0.3%. Thus, a general negative background does not promise a peaceful end of the year. As a result of the last session, the main sites in Europe fell in the range from 1.9% - to 2.6%, the U.S. Dow Jones and S & P 500 finished trading lower quotations for 1.59% and 1.62% respectively. Today in the United States will be published data from the real estate market, as well as the changes come out of the CPI. - Site emerging markets finished the session impressive decrease in quotations. Site of the emerging economies yesterday began to win back the "Western" negative and, given the completion of trades in the United States, nothing positive can not be expected from regional investors, and during today's session. Brazil's Bovespa, the Chinese and Russian SSEC PTC lost in the capitalization of 1.67%, 0.72% and 2.66% respectively, while the main driver for sales of course were waiting early action, will toughen the monetary policy of China. Its say and said commodities, which are also in the course of the last session unanimously adjusted by more than 1%. Today's premarket sites for emerging markets negative, trading in China began with the sale. - Oil prices on Tuesday lost over 2%, and for the last four sessions quotes "black gold" adjusted to 6.8%. It is noteworthy that despite the recent achievement of a two-year high of just under $ 90 per barrel, from a technical point of view is being implemented similar to the April scenario in which, after a brief consolidation, and then her growth of quotations, one can predict algorithm: Correction - the resumption of consolidation - subsequent decline. It is noteworthy that at the moment, the realization of this scenario and may contribute to the overall macroeconomic environment, which, after worsening fiscal and debt problems of countries in the euro area heated to the limit. - troy ounce of gold on Tuesday continued its downward momentum four-day-adjusted 1.7%. Of the maximum value a week ago, quotes "noble metal" fell a little less than 6%. In addition to consolidating the dollar factor, an additional factor inhibiting new investment in gold, while forcing to record profits at current levels, is perhaps a three- month rise in prices, "precious metal". Noted several important points on which we can assume the continuation in the short term has recently begun a downward correction - it is: the most significant amount of correction of quotations from the beginning of growth in August, end of session below $ 1,350 an ounce, and the potential proximity of the mark at $ 1,500, which naturally could not but cause uncertainty and rehabilitative sentiment of market participants. Analysts of "REAL Invest.kz" believe that in the event of further reducing the price of gold, already in the short term can be achieved level of $ 1,300 per ounce, moreover, is not excluded and further declines in quotations. - euro down over the last nine sessions, and during this time, the correction has reached a level of 5.4% and came close to the mark of 1.35. Despite the fact that even after so much downward quotations currency pair EUR/USD, on the daily chart remains an uptrend, it is very likely that the growing problems of the Euro zone in the near future will allow this trend to change. At the moment, analysts of "REAL Invest.kz" are recommend buying the euro only in the very short-term speculative purposes, while maintaining that all necessary precautions, at the same time, we believe that we can try to open a short position in EUR/USD pair in case imminent breakout of the mark in 1.35. The British pound, following the last date adjusted by 1%, finished the day below $ 1.59. In the medium term from a technical point of view, there is still an uptrend. 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. [2010-11-17]