Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 14, 2010

/IRBIS. December 14, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 14, 2010. Analysts of JSC "BCC Invest" now expect positive opening trades at KASE on the background of the positive close of trading on the shares and depositary receipts of Kazakhstan issuers yesterday in London. According to forecasts of JSC "BCC Invest", KASE index end the day a moderate rise. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Growth of Kazakhstan's GDP in January-November 2010 will be 7.2%, predicts the head of the Statistics Agency of the Kazakhstan Republic Mr. Alikhan Smailov. "Proceeding from the fact that short-term economic indicator in the basic industries, constituting 67-68% of GDP, amounted to 107.2%, GDP in January-November will be in the same range - 7.2%", - said A. Smailov at a press conference in Astana. According to the latest forecast by the government of Kazakhstan, the republic's GDP growth this year is 5%. In January-October 2010 compared to the same period of 2009, GDP grew by 7.1%. GDP growth in Kazakhstan in 2009 amounted to 1.2%. - The Republican Budget of Kazakhstan in January-November, was executed with a deficit of KZT591,374 million, told Interfax- Kazakhstan in the Ministry of Finance. Income from the national budget on December 1, 2010 totaled KZT3,230,320.5 million, the costs - 3,821,694.7 million KZT. Thus, the republican budget of Kazakhstan in January-November, with a deficit 17% of the costs. In the structure of income of the republican budget own revenues amounted to 3,181,433.1 million KZT, the income from repayment of budget credits - 48,742.7 million KZT from the sale of state assets - 144.7 million KZT. In the expensive part of the budget, the actual expenditure amounted to 3,455,957.2 million KZT, low cost loans - 110,216.1 million KZT, the cost of acquisition of financial assets - 255,521.4 million KZT. It was reported that the budget deficit for 2010 was approved in the amount of 803.6 billion KZT (4.1% of GDP). Income from the national budget this year, approved at the level of 3,378.4 billion KZT expenses - KZT4,182 billion. In September this year, revenues and expenditures of the republican budget of Kazakhstan for 2010 were increased by 139.4 billion KZT. Refined parameters of the national budget are as follows: income - KZT3,517.8 billion, expenditures - KZT4,321.4 billion, the deficit - KZT803.6 bln. - Positive trade balance in Kazakhstan in January-October 2010 totaled $27.1 billion, which is 2.5 times larger than the corresponding period in 2009, reported stat. office. Foreign trade turnover in January-October 2010 compared to the same period of 2009 increased by 19.2% to $ 67.5 billion, including exports of $ 47.3 billion (40.6% increase) and import - $ 20.2 billion (up 12% less). According to statistical data, a significant share of the export commodity structure occupied by mineral products (in January- October 2010 - 76.3%), imports - machinery, equipment, vehicles, instruments and apparatus (40.2%). A month ago, these figures were 77% and 40.2% respectively. The main buyers of Kazakh products in the reporting period were China - 17.1% (of total exports of the country) against 16.9% a month earlier, Italy - 16% (16.2%), France - 8.4% (8.4%) and Russia - 6.4% (7%). The main importers of Kazakhstan in the period were Russia - 27.2% (of total imports) versus 29.9% a month earlier, China - 14.9% (14.2%), Germany - 7.5% (7.4 %) and Italy 5.9% (in January- September 2010 before the 4 th place in terms of Ukraine (5.4%)). Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - In Russia the publication of important economic statistics is expected. - The UK 06:01 (AST) were published data on house price index from the RICS. At 15:30 (AST) in the UK are expected to publish data on house price index from the DCLG, the consumer price index, the retail price index and producer price index. At 16:00 (AST) are expected to publish data on industrial production, as well as the sentiment index in the euro area's business environment. - U.S. at 19:30 (AST) is expected to publish data for November retail sales and producer price index. At 21:00 (AST) is expected to publish data on the inventory in October. - Today reports Betfair Group PLC, Mechel and Best Buy Co Inc. Analysts of JSC "BCC Invest" give the following advice for investors in securities of issuers in the domestic Kazakh market:: ---------------------------------------------------------------------- Issuer Last price Target Predicted price. code price % Recom- mendation ----------------- ------- ---------- ------ ---------------- --------- Kazkommertsbank KKGB 435 479 +10.11 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 368 386 +4.89 Buy Bank CenterCredit CCBN 585 646 +10.43 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 17,850 22,300 +24.93 Buy Kazakhmys PLC GB_KZMS 3,550 3,977 +12.03 Hold ENRC PLC GB_ENRC 2,250 2,298 +2.13 Buy Kazakhtelekom KZTK 18,000 19,200 +6.67 Buy KZTKp 8,550 9,300 +8.77 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. [2010-12-14]