Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 18, 2010

/IRBIS, November 18, 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 18, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - bidding for major Western sites resulted in different directions. Major stock indexes in Europe, on news that the EU representatives and the IMF announced that negotiations regarding the allocation of assistance to Ireland, following the last trading session slightly adjusted after fall on Tuesday. U.S. indexes most of the session were consolidated, and finished trading opposite changes Quotes: Dow Jones fell by 0.14%, S & P 500 closed at floating marks. The reason for the uncertainty of market participants in the United States made the publication of macroeconomic statistics, so the CPI in the last month rose by 0.2%, with analysts' expectations of growth rate at 0.3%, to some extent reduced the fear of inflation caused by the recent adoption of a plan the Fed to support the economy. At the same time, the number of new houses, commissioned in the United States amounted to 519 thousand units, while experts expected increase to 600 thousand in the United States today, 30 minutes after the opening of trading on the NYSE will be published by the index of leading indicators, analysts Financial company "REAL Invest.kz" forecast that the index in October rose by 0.5%. - Site emerging markets on the basis of trading on Wednesday closed in different directions. For a sufficiently long period, the site of the emerging economies does not show unanimity, completing trades opposite change in the indices. A similar situation occurred in the course of the past trades - the Chinese and Brazilian sites adjusted after a significant decline in the beginning of the week, the Russian and Indian sites in contrast, continued their downward trend. Today's premarket for emerging markets should be regarded as neutral ground Asia started the day with the growth of quotations. - Oil prices on trading results on Wednesday, fell by more than 1%, ending the day at $81 a barrel. As a result of the last five trading sessions quotes "black gold" have become the order of 8.5%, down from $88.5 to $81 per barrel, it is noteworthy that reverse the trend could not even weekly report on the status of stocks of petroleum and petroleum products in the U.S., published the day before, wearing an extremely positive. Thus, stocks of crude oil and gasoline in the United States for the week declined by 7.2 million and 2.6 million barrels, respectively, even though analysts had expected growth of oil reserves by 100 thousand barrels, gasoline inventories and a reduction of up to 800 thousand barrels. - gold prices on the session-adjusted 0.7% after more than a 5.5% decline the previous four trading days. The main factor of such dynamics is probably made by some depreciation of the U.S. currency - so the U.S. dollar index, on the basis of trading on Wednesday adjusted the values of the maximum six-more than half a percent. This circumstance does not allow a high degree of probability say that the decrease in ounces of gold was halted at $ 1,330 and in the short term we should expect a reversal of the downtrend. Analysts of "REAL Invest.kz" believe that with a certain probability, in the short term, moderate price correction "precious metal" will continue, possibly also the beginning of the consolidation of quotations, which can last until the very end of the year. The euro exchange rate is reduced 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. - the two major currency pairs in the Forex market during the last session is unimportant adjusted against the U.S. dollar - the pair EUR/USD, fighting off competition from the mark of 1.35, grown on 0,55%, the British pound adjusted to 0.3%, closing above level of 1.59. To date, forecast future dynamics of these currency pairs is a difficult occupation, and not too justified, but if the situation with the British pound to date remains uncertain, the euro, according to "REAL Invest.kz", waiting for further decline. 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. [2010-11-18]