Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 21, 2010

/IRBIS. December 21, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 21, 2010. Analysts of JSC "BCC Invest" now expect positive opening trades at KASE on a positive external background. According to forecasts of JSC "BCC Invest", KASE index have finished the day with a moderate rise. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Fitch confirmed the ratings of Kazakhstan, and changed the ratings outlook to "positive." Fitch Ratings revised its outlook on long-term Issuer Default Ratings (IDRs) of Kazakhstan in foreign and local currency ratings from "stable" to "positive" and affirmed the ratings at "BBB-" and "BBB", respectively. In addition, the agency affirmed the country's short-term RDE in foreign currencies at the "F3" and the country ceiling rating of "BBB". "The outlook revision on Kazakhstan's rating reflects the continued recovery from the severe impact of the global financial crisis, as evidenced by the growth, improved balance of payments signs of stabilization in the banking system, reducing the fiscal deficit and balance the strengthening of the state - said Mr. Ed Parker, head of Fitch's sovereign ratings in Europe's emerging markets. - At the same time, the NPLs in the banking sector remain a significant source of risk and a major constraint on the sovereign rating. "Potential factors that could cause rating actions in the future include an increase in confidence that investments in natural resources sector and other development projects provide robust growth prospects and good positions in the balance of payments, which may lead to improved ratings. More robust evidence of recovery of the banking system with the reduction of problem loans and the lack of need for further costly government support can also lead to improved ratings. Pressure on the ratings upwards is possible in case of strengthening of the sovereign balance sheet. In contrast, the emergence of the banking system are more important issues than is currently expected to Fitch, a serious and prolonged decline in oil prices or the weakening of fiscal discipline may lead to negative rating actions. - Norilsk sells 8% stocks of quasi-treasury to Trafigura trader. OJSC MMC Norilsk Nickel (RTS: GMKN) has agreed to sell 8% of the shares of MMC kvazikaznacheyskih trader Trafigura Beheer BV, the report said Norilsk Nickel. "As stated in the message, Trafigura currently no plans to increase its stake in the company to 10% of the share capital of MMC. Trafigura has undertaken to refrain from the sale of ADR "Norilsk Nickel acquired in this transaction, in favor of non- affiliated third parties until June 30, 2011. Shares in Norilsk Nickel in trading on the MICEX on Monday traded at 6.68 thousand rubles per security. Thus, an 8% stake valued at $ 3.3 billion. As have informed "Interfax" in the MMC sold the shares owned by subsidiaries of Norilsk Nickel - accordingly, this transaction does not require consideration by the Board of Directors parent company. Representative of Rusal, which owns 25% s share of Norilsk Nickel, said that the aluminum company is not familiar with the terms of the deal, because it is not imposed on the council. However, as noted by Rusal, can not be worried by the fact that shares of MMC sold the company Trafigura, which is a direct competitor in Norilsk Nickel sales of the company's metal. "" It is also unclear for what purpose will be used derived from the sale of assets ", - the company said. The message" Norilsk Nickel said that proceeds from the transaction will be aimed at general corporate purposes. "This transaction strengthens the business relationship between Norilsk Nickel and Trafigura. As a result of the transaction of MMC Norilsk Nickel was able to get substantial profits from investments in securities, "- said in a statement. The deal with Trafigura" Norilsk Nickel "did not disclose. However, as suggested by Marat Gabitov from Unicredit," the trader is unlikely to offer Nornikel premium to market value. "According to analysts of JSC" BCC Invest "the news is positive for the company and will have a positive impact on share prices of the company, as it appears on the company's attempts to resolve corporate issues, namely the heated conflict between shareholders because the board of directors. Analysts of JSC "BCC Invest" reminds us those four days before the proposed Rusal Norilsk Nickel to sell 25% stake for 12 billion U.S. dollars, but Rusal said in comments that the package is "strategic" and it does not intend to sell. Nevertheless, JSC "BCC Invest" leaves the current recommendation to "hold" with a target price of 25.08 dollars per depositary receipt. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - In Russia the publication of important economic statistics are not expected. - in Germany 13:00 (AST) is expected to publish data on consumer confidence index from the GfK in December. In the UK, 15:30 (AST) is expected to publish data for November on the Composite Consumer Price Index, public finance and public sector net borrowing. - In the U.S. today the publication of important economic statistics are expected. - Today reports Adobe Systems Inc., ConAgra Foods Inc, and Carnival Corp. 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 430 479 +11.40 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 365 386 +5.75 Buy Bank CenterCredit CCBN 589.99 646 +9.49 Hold Tsesnabank TSBN 908 1,030 +13.44 Neutral KazMunaiGaz RDGZ 17,500 22,300 +27.43 Buy Kazakhmys PLC GB_KZMS 3,570 3,977 +11.40 Hold ENRC PLC GB_ENRC 2,200 2,298 +4.45 Hold Kazakhtelekom KZTK 18,450 19,200 +4.07 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. [2010-12-21]