Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for November 17, 2010

/IRBIS. November 17, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for November 17, 2010. Analysts of JSC "BCC Invest" expected today strongly opposed the opening of trading on the shares included in the index KASE, on the negative external background. According to the JSC "BCC Invest", the dynamics of KASE index on the day will be mixed and multidirectional, and KASE index end the day in negative territory. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Agency for Statistics of Republic of Kazakhstan has published a "Summary of the socio-economic development of Kazakhstan in January-October 2010". Short-term economic indicator in January- October 2010. January-October 2009 amounted to 107.1%. Calculation of short-term economic indicator is implemented to ensure efficiency and is based on the change in index of output at basic sectors: agriculture, industry, construction, trade, transport and communications constituting 67-68% of GDP. Industrial output in January-October 2010 amounted to KZT9,455.4 billion in current prices, that on 10,4% more than in January-October 2009. In mining and quarrying production rose by 5.4%, processing industry - 18.7%, electricity, gas, steam and air conditioning - by 6.5%, water supply, sewerage system, control over the collection and distribution of waste - 5.5%. The volume of gross agricultural output in January- October 2010 amounted to KZT1,236.4 billion, compared with January-October 2009 decreased by 12.4%. Investment in fixed assets in January-October 2010 amounted to KZT3,602.9 billion, or 1.8% less than the same period last year. - Standard & Poor's confirmed the rating of "Analysis and evaluation of the effectiveness of corporate governance, accountability and management" (GAMMA) JSC "KazMunaiGas" at the level of GAMMA-6, a press release from the agency. Corporate Governance Practices KMG EP as a whole is developing successfully. So, the company has taken deliberate steps to strengthen the financial rights of preferred shareholders, which actually allowed equalizing the financial rights of the two categories of shares - analyst noted the service of corporate governance ratings Mr. Oleg Shvyrkov whose words are given in the press release. "In addition to this, - he continued - Board of Directors of KMG EP has approved a new policy on cash management, which provides the program of action to resolve existing problems. The Board has also achieved inclusion in the agreement on purchase of bonds from KMG series of conditions to ensure the effective protection interests of minority shareholders in the context of the transaction, "- he added. S & P analysts believe that these results "positively characterize the efficiency of the Board of Directors." "However, - said Mr. A. Shvyrkov - the fact that the parent company of delaying approval of revised strategy KMG directly limits the level rating GAMMA". According to the JSC "BCC Invest", the message is moderately positive for stock prices, and depositary receipts of Exploration and Production KazMunaiGas. At present JSC "BCC Invest" is reviewing the published reports, news flows and results of the conference call, make adjustments to the their model estimates the shares, and if necessary amend the recommendations and price targets on shares and depositary receipts and released a new survey of JSC KazMunaiGas. - Fitch Ratings has assigned a final senior unsecured rating of "BBB" 7-year bonds of the national oil company of Kazakhstan KazMunaiGas volume of KZT100 billion with zero-coupon reported agency on Monday. The company has the following ratings: long-term issuer default rating (IDR) in foreign "BBB-", a long-term local currency IDR "BBB" and short-term foreign currency IDR "F3". The outlook on the long-term IDR - Stable. As reported, KMG planned release discount unsecured bonds worth KZT100 billion. The number of bonds specified in the $ 100 million, face value of one paper - KZT1000 The proceeds from the issue, the company planned to extend the financing of investment programs and refinance current debt of the company. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - Russia is expected to publish data on inflation for the week and the beginning of the year. - The UK 15:30 (AST) is expected publication of unemployment data for October, as well as the minutes of the Bank of England. At 16:00 (AST) is expected to publish data on the volume of production in the construction sector, the Euro zone in September. - in the U.S. before the market opens at 19:30 (AST) is expected to publish data on indexes consumer prices for October, as well as the number of permits issued for construction of new homes in October and the number of laid the foundations of new homes in October. After the market opened in 21:30 (AST) will be published data on oil and petroleum products over the past week. Today report Air France, Applied Materials, Blue Dolphin Energy, GeoPharmaInc., Limited Brands, Metro Inc., Target Corp. and other 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 450 479 +6.44 Neutral KKGBp 215 335 +55.81 Buy Halyk Bank HSBK 355 386 +8.73 Buy Bank CenterCredit CCBN 590 646 +9.49 Hold Tsesnabank TSBN 870 1,030 +9.57 Neutral KazMunaiGaz RDGZ 16,600 22,300 +34.34 Buy Kazakhmys PLC GB_KZMS 3,500 3,392 -3.09 Neutral ENRC PLC GB_ENRC 2,260 2,858 +26.46 Buy Kazakhtelekom KZTK 17,269 19,200 +11.18 Buy KZTKp 7,601.01 9,300 +22.35 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. [2010-11-17]