Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 15, 2010

/IRBIS. December 15, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 15, 2010. Analysts of JSC "BCC Invest" now expect neutral opening trades at KASE on ambiguous external background. According to forecasts of JSC "BCC Invest", KASE index the day will end moderately lower due to profit taking before the long weekend. JSC "BCC Invest" also notes the following important events in the Kazakh market: - GDP growth in Kazakhstan up to 2010 will exceed 6% said Minister of Economic Development and Trade Mrs. Zhanar Aitzhanova. "We think that this (growth of GDP in 2010) will be more than 6%," - she told reporters after a government meeting on Tuesday in Astana. According to statistical data, GDP growth in Kazakhstan in January-October 2010 compared to the same period last year amounted to 7.1%. Previously reported that according to the latest forecast by the government of Kazakhstan, the republic's GDP growth this year is 5%. - The Minister of Finance of Kazakhstan, Mr. Bolat Zhamishev promises almost complete mastery of the expenditure part of the national budget this year. "According to the joint administrators of budgetary programs performance analysis of costs, means the national budget is expected to learn at KZT4 trillion 303.2 billion or by 99.6%," - he said at a cabinet meeting on Tuesday in Astana. "Failure to plan for the payments will be reduced compared to the year 2009 by 70% to around KZT20 billion. It is not associated with undeveloped breakdown of any major state problems and develops through savings in government procurement, foreign exchange and in connection with an incomplete distribution of government reserve ", - explained the Minister. In this case, according to him, the execution of the republican budget for 11 months was 95.1%. - JSC "KazMunaiGas (" KMG EP "or the" Company ") held a regular full-time meeting of the Board of Directors (the" SD "). The Board of Directors approved a budget of KMG EP in 2011, taking into account the price per barrel of Brent crude $ 65 United States, according to official forecasts of the Government of Kazakhstan and KazMunaiGas. "Capital expenditures for 2011 are planned in the amount of KZT99.1 billion ($ 661 million), more than projected in 2010 spending for the same purpose by 15%. Growth capital investment is associated with an increase in drilling from 213 to 239 wells and increase capital spending on exploration from 4 billion KZT ($ 27 million) to 8 billion KZT ($ 55 million), compared with a budget of KMG EP in 2010. The cost of drilling subsalt wells will be considered separately. According to the approved budget, among the factors that negatively affect the profitability in 2011, called the wage increase in manufacturing affiliates of KMG EP in June this year, the introduction of export duty (ETP) in August this year and of a possible increase in its. There will be growth in production volumes for 2011 on the core assets (PF "Ozenmunaygaz" and PF "EMG") up to 9,100 tons (183 thousand barrels/day) with planned in 2010, 8781 tons (177 thousand barrels per day). 1,900 tons of these amounts will be supplied to the domestic market for further processing at the Atyrau refinery. In 2011, the program will continue to repurchase shares. The program is expected to be completed before December 31, 2011. Currently, the number of remaining outstanding preferred shares is 2,789,894. According to the JSC "BCC Invest", the message is moderately positive for stock prices, and depositary receipts of Exploration and Production KazMunaiGas. Although most of the budget figures for 2011 and the company's development strategy until 2020 are within the expectations of market participants, their publication brings some clarity to the company's plans for the short and medium term. Analysts of JSC "BCC Invest" confirm the recommendation to "buy" on shares and depositary receipts of companies with target prices of 22,300 KZT per share and $ 25.30 per GDR - KASE has established lists of liquid and illiquid shares on the first quarter of 2011 from the number of shares admitted to trading on the KASE. These lists are formed in order to apply to the shares owned them, the rules of the internal document KASE "Regulation of trades and system verification" (Schedule). In accordance with the Regulations of 1 January 2010 trades in illiquid stocks are held on KASE on weekdays from 15:00 to 17:00 Almaty time, liquid - from 11:30 to 17:00 Almaty time. A list of liquid shares: ordinary shares of Bayan Sulu (BSUL); common shares of JSC "BTA Bank" (BTAS); common shares of Bank CenterCredit" (CCBN); common shares EURASIAN NATURAL RESOURCES CORPORATION PLC (GB_ENRC); common shares KAZAKHMYS PLC (GB_KZMS); common shares of the "National Savings Bank of Kazakhstan" (HSBK); common shares Kazkommertsbank "(KKGB); common shares Kazakhtelecom" (KZTK); preferred shares Kazakhtelecom "(KZTKp); simple shares of "KazMunaiGas" (RDGZ); preference shares of JSC "KazMunaiGas" (RDGZp); common shares of JSC "SAT & Company" (SATC); common shares "Kazcat" (ZERD). Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - Russia is expected to publish data on the Consumer Price Index for the week and the beginning of the year. - The UK 15:30 (AST) are expected to publish data on the level of applications for unemployment benefits, to change the number of unemployed, and according to other sources of labor market. At 16:00 (AST) are expected to publish data on employment in the Euro zone for the third quarter. - U.S. at 19:30 (AST) is expected to publish data for November consumer price index to the various components. At 20:00 (AST) is expected to publish data for November on the net turnover of purchases of long-term U.S. securities, and net purchases of these securities by foreign investors. At 20:55 (AST) is expected to publish data for November on industrial production and capacity utilization. - Today reports Inditex SA, Joy Global Inc and Comverse Technology 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 439.40 479 +9.01 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 365 386 +5.75 Buy Bank CenterCredit CCBN 585 646 +10.43 Hold Tsesnabank TSBN 870 1,030 +13.44 Neutral KazMunaiGaz RDGZ 17,720 22,300 +25.85 Buy Kazakhmys PLC GB_KZMS 3,625 3,977 +9.71 Hold ENRC PLC GB_ENRC 2,239.50 2,298 +2.61 Buy Kazakhtelekom KZTK 18,300 19,200 +4.92 Buy KZTKp 8,500 9,300 +9.41 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. [2010-12-15]