Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on November 22, 2010

/IRBIS, November 22, 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 22, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - the final trading session of last week for the indexes in Europe and the U.S. ended multidirectional change quotations. Actions of monetary authorities in China, coupled with warm concerns about the budget and debt problems of Ireland - the factors that led to the start of trading in the Western areas of the sales. Representatives of the People's Bank of China announced to raise reserve requirements on bank deposits by 50 basis points, on a plan that Chinese authorities will reduce the volume of loans issued, which in turn will help reduce consumer price inflation in the country. Thus, investors regarded the move as a harbinger of more severe tightening of monetary policy, China, in particular, increasing the refinancing rate. In turn, representatives of the Irish Government acknowledged, finally, the need for external assistance, which in this case would amount to tens of billions of euros, and on Saturday it became known that the IMF and EU are preparing a 100-billion financial aid package Ireland by early December. Against this background news, trades in Europe on Friday began a significant decline in the index, but the correction in the second half of the session allowed play a significant part of the losses. Over the past week the German DAX has grown on 0.75%, French CAC 40 increased 1.62% capitalization, and the British FTSE 100 index adjusted by 1.01%. Trades in the U.S. on Friday opened a gap half-point down, but by the end of the session the Dow Jones and S & P 500 on small volume corrected, fully offset by a decrease in the morning, and even finished the day an increase of 0.2% and 0.25% respectively. Over the past week Dow Jones increased by about 0.1%. S&P500 has barely changed in value, with important notes end Friday session just below the mark of 1,200 points. Next week will be final in the penultimate month of the year, and mark the output of the following statistics. In the United States will leave the revised GDP data, data from the secondary housing market, as well as data on orders for durable goods. In the Euro zone, the most important events marked the publication of statistics on an index of consumer confidence, as well as data on the M3 monetary indicator. - Site emerging markets increase the Friday the major indices were able to partially offset the fall beginning of the week. Past meetings of the leaders of the world's largest countries in the G20 Summit and APEC have been quite positive for the prospects of countries with developing economies, however, came from the West negativity, coupled with expectations of tighter monetary policy in China has not allowed the majority of sites emerging markets finished the week positively. Indian BSE in the first five trading sessions fell by 2,8%, the Chinese SSEC closed lower by 3.12%, Russian PTC decreased in capitalizing on the 0.62% and the Bovespa in Brazil only in the week managed to add about 0.75%. Next week will be marked by expectations of action by Chinese authorities, a substantial macro- economic statistics in emerging markets will not be published, which led to increased Western influence on the dynamics of regional sites. - Quotes barrel on Friday showed quite volatile dynamo, first try to Exceed $ 82, and a few hours later we tested the level at around $ 81 a barrel. As a result of weeks of the loss of "black gold" is about 4%, with relative maximum values of last Friday the reduction was 7.7%. Given the similarity in terms of technical analysis, the current situation with the April and August the scenarios in the short term, analysts of "REAL Invest.kz" are expect continued consolidation quotes "black gold", which probably could last until the first trenches of assistance to Ireland from the IMF, which is scheduled for early December. - The cost of the nearest contract to supply troy ounces of gold in the meantime on the results of last week fell by 2.3%, with fairly well established at the turn of $ 1,350 per ounce. Discount the current price level, "precious metal" with respect to historic highs, which is located at around $ 1420 is about 4.7%. Analysts of "REAL Invest.kz" believe that the correction in gold prices was due to two main factors: the need to roll back a few months after the quotation rally, as well as the strengthening U.S. dollar, amid fears of warming around the debt problems of the Euro zone. At the same time, analysts are "REAL Invest.kz" believe that in the near term correction in gold prices will be finalized, and then begin a long consolidation or mild increase in quotes. By the end of the year, "REAL Invest.kz" expects value in gold prices near the level of $ 1,500. - Regional European currency on the results of last week, adjusted for the 1.4% relative to its minimum value, after more than 5% fall in ten consecutive sessions. Despite this, analysts of "REAL Invest.kz" are believe that a minor correction of last week - just a temporary "breathing space" before continuing downward dynamics - it's too big load of accumulated problems in the Euro zone, in addition, the most negative that the potential of these challenges currently not fully known. Problems exist in the U.S. economy, but the yield of a number of positive reports, to some extent reduced the fears of investors about the possibility of double-dip recession, while in the euro area, for Ireland, the problems which so far only scheduled, are already waiting in line, Portugal and Spain. - British pound, the whole last week valiantly fought for the mark of 1.60, but judging from the closing level of Friday, a battle lost. Despite the fact that on the daily chart, in terms of technical analysis currency pair GBP / USD is still in an uptrend, there are real fears of emergency changes on a downward trend. United Kingdom as we know is not in the euro zone, but the deficit in the UK no less alarming - about 12% of GDP. Against this background, any aggravation of these problems does have consequences for the pair GBP/USD, which is observed at this time. 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. [2010-11-22]