Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on December 20, 2010

/IRBIS, December 20, 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 December 20, 2010. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - major stock exchanges in Europe and the U.S. concluded last week opposite changes of the indices. The yield of macroeconomic statistics rather ambiguous nature, coupled with the same ambiguous final statement at the end of a two-day EU summit - all these factors resulted in the formation of the atmosphere of uncertainty in the Western trading floors on Friday. If the German index Ifo, a Munich regularly counted up eponymous institution based on a survey of owners and top managers of 7 thousand German companies and is considered the most accurate barometer of the economy of Germany, has grown from 109.3 points in November to 109.9 points in December, the U.S. advanced indicator showed less impressive dynamics, reaching 1.1% in November, which was less than analysts' expectations. In addition, the two-day EU summit, the latter in the past year, the Heads of State and Government of EU countries agreed to set up after 2013 a permanent fund to support the euro and gave guarantees to overcome the debt crisis in the EU. It is also expected that by Article 136 of the Treaty of Lisbon will be added to the two proposals to allow Euro zone countries to assist each other. Thus, positive news in general, on measures taken to strengthen the European currency, at the same time, is a kind of recognition of European politicians substantial extent the current problems that led to the need for such measures. As a result of Friday's trading, the major European markets fell within 0.6%, U.S. indices, after more than half-point reduction at the start of trading by the end of the session was able to rectify the situation and end the day near floating marks. According to the results of last week, the French CAC 40 added 0.26%, Germany's DAX fell by 0.34%, and Britain's FTSE 100 rose 1%. The U.S. Dow Jones index up to five trading sessions rose by 0.7%, the index of wide market S & P 500 rose 0.3%, closing on Friday not far from the psychological mark of 1,250 points. The penultimate week of the year expecting to be not too rich on the yield of macroeconomic data, as in Germany, will be published data on the index of producer prices - analysts expect that figure last month was 4.5% in annual terms, in the United States in the future will come on Wednesday revised values of GDP growth, experts expect that a 3 quarter had increased by 2.5%. - The last week has proved quite successful for the majority of sites emerging markets. Yield a range of corporate reports of major Brazilian and Indian companies recorded in the past year, a record for 2.5 crisis, the profit and dynamics of raw areas, which, although they were not marked by a singular activity, but still managed to hold at current levels - all factors which allowed most of the indices of developing countries on the basis of last week to put on market capitalization. Indian BSE up to five sessions has grown by 1.82%, the Brazilian Bovespa adjusted to 0.52%, Chinese SSEC added 1.87%, and finally the index of the Russian platform PTC on the basis of last week rose by 1.81%. Next week is expected to yield data on changes in the current account of Brazil, as well as publication of data on consumer confidence in Singapore. - quotations of "black gold" as a result of last week, dropped to 0.32%, ending Friday trading just above $ 88 a barrel. Oil prices consolidated in the range of $ 87.5-89 per barrel for the past seven sessions, and given the relatively high saturation level of the last week of various events, and thus the absence of significant changes in the dynamics of oil prices, currently there are no supposed to any revival of the dynamics of oil prices, factors. The latest consolidation of these nature long oil futures lasted throughout October and ended in a strong seven percent increase in early November. "REAL Invest.kz" suggests that there is a likelihood of recurrence of such dynamics - the price of oil could stay in this price range until the end of the year and in the presence of certain factors, we should start with strong growth in quotes. Based largely on assumptions, makes us almost complete independence of the dynamics of oil prices from both the technical and the fundamental and macroeconomic factors, observed over the past few months. - troy ounce of gold, at the end of last week, fell to 0.65%, giving the Bears line of $ 1,380. In general, any significant developments in trading futures contracts on gold at the moment does not occur, most likely, market participants have decided to postpone the beginning of more active operations the following year. Nevertheless, we note that in case of further stabilization of the situation with some kind of debt crisis in the EU, which is observed at the moment, there is some probability of moderate growth in prices for gold in the outgoing year. An additional factor that may to some extent, affect the dynamics of the "noble metal" may be the dynamics of the U.S. currency. - completion of a two-day EU summit, to be exact summarizing its results, led to the strengthening of the U.S. currency against a basket of six currencies - U.S. dollar index in the second half of the week was able to add more than 2%. In addition to inflationary fears caused by the decision of the ECB to raise capital and fund assistance to countries in the EU, in critical situations that adversely affect the euro tekstovka final statements by the EU, in fact conforms to the current crisis state of the economies of the Euro zone. Currency pair EUR/USD, after a little less than 2% growth in the early days of the week, over the past two sessions, plummeted by more than 2.2%, closing on Friday below the psychological mark of 1.32. In general, the recent positive dynamics of the currency pair, last week was interrupted by that very negative impact on the European currency in terms of technical analysis. - joyless finished the week for the British pound, cheapened up to five trading sessions, more than 1.5% and reached a mark of 1.55 on Friday. Currency pair GBP/USD is under significant pressure, no less than EUR/USD pair on the background all the same problems as the budget deficit, also characteristic of the United Kingdom. If the psychological level of 1.55 will be handed over, the coming year GBP/USD pair will meet substantially below last year's level. 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 EP KMG and 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. [2010-12-20]