Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 23, 2010

/IRBIS. December 23, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 23, 2010. Analysts of JSC "BCC Invest" now expect a positive opening of trading on KASE on the backdrop of rising stock prices, and depositary receipts of Kazakhstan issuers yesterday in London. According to forecasts of JSC "BCC Invest", KASE index finished the day in positive territory. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Fitch Ratings affirmed the long-term issuer default ratings (IDR) in foreign currency four Kazakh state-run companies: "KMG", Kazakhstan Temir Zholy (KTZ), Kazakhstan the company's electricity grid (KEGOC) and Mangistau Electricity Distribution Company (MEDNC). As stated in Fitch, the national company KazMunaiGas long-term foreign currency IDR is affirmed at "BBB-", in national currency - at the level of "BBB", the short-term foreign currency IDR - at the level of "F3", its senior unsecured rating - at ' BBB-". The outlook is stable. Long-term foreign currency IDR of the national railway KTZ affirmed at" BBB-"(stable outlook), senior unsecured rating - at the level of" BBB-". Long-term foreign currency IDR: affirmed KEGOC at "BBB-", a long-term local currency IDR - at "BBB". The outlook on these ratings was changed from "stable" to "positive." Short-term foreign currency IDR is affirmed at "F3". Long-term foreign currency IDR: affirmed MEDNC at the level of "BB" (stable outlook), senior unsecured foreign currency - at the level of "BB", short-term RDE in foreign currency - at a level "B", a long-term local currency IDR - at the level of "BB +" (stable outlook), senior unsecured rating in national currency - at the level of" BB + ", National Long-term - at the level of" AA-(kaz) "(Stable Outlook). The rating actions Fitch reflect the confirmation of 20 December 2010 long-term IDR of Kazakhstan foreign and local currency at "BBB-" and "BBB", respectively, as well as short-term foreign currency IDR at "F3", said the agency. The outlook for long-term IDR of Kazakhstan in foreign and local currency ratings agency when it changed from "stable" to "positive." - February 9, 2011 held an extraordinary general meeting of shareholders with the following agenda: the inclusion in the KASE listing for common shares, including in the Luxembourg Stock Exchange listing of depositary receipts issued for common shares of the bank. The list of shareholders entitled to participate in this meeting, made as of December 20, 2010. In the absence of a quorum re-meeting of shareholders held February 10, 2011 at the same time at the above address. - Director of Rusal wants to audit the transactions for the sale of 8% of MMC Norilsk Nickel Trafigura. According to the information portal to Bloomberg, Maxim Juice, Vice Chief Executive Officer of UC Rusal, as well as non-executive director of MMC Norilsk Nickel wants to test the recent deal to sell Trafigura Beheer BV 8% stake in Norilsk Nickel. Maxim Juice said that he wanted to make sure that the transaction was conducted in the interests of all shareholders and will have no negative impact on the financial condition of Norilsk Nickel. According to the JSC "BCC Invest", the news is neutral for the stock prices of Norilsk Nickel, however, is a continuation of the corporate conflict between the shareholders of the company. Rusal has expressed its concern over the sale of the asset value of over 3.5 billion dollars without the consent of the board of directors, which has its representatives. - On Wednesday, December 22, will be a meeting of the Committee on Norilsk Nickel (RTS: GMKN) under the Board of Directors of UC Rusal, which is obtained from the review of MMC Norilsk Nickel's offer to repurchase shares," Rusal "in the MMC, said," Interfax "a source familiar with the situation. According to a source close to shareholders of Rusal, management Rusal has attracted bank Merill Lynch to determine the fair value of 25% stake in Norilsk Nickel," to obtain an independent valuation of the shareholding including for audit purposes. "Discussion of the proposal in Norilsk Nickel in the committee complies with the principles of corporate governance" Rusal "- as opposed to how things work in Norilsk Nickel, which could not stand on its board of directors deal with Trafigura", - the source added. In "Rusal" Interfax "confirmed information about the date of the committee. Previously reported that Norilsk sent a Rusal buyout offer-owned aluminum company, blocking stake in MMC for $ 12 billion was reported that an offer had been discussed full-time board of directors of Norilsk Nickel and received the support of independent directors. MMC waiting for a response Rusal until December 28. Offer MMC worked out taking into account consultations with banks JP Morgan, Morgan Stanley, Goldman Sachs, Societe Generale, UBS, Deutsche Bank, HSBC and other banks. In the event that the proposed transaction, Norilsk Nickel is planning for 2-3 years, depending on the situation in the markets, carry out a program to redeem its own shares, using the mechanisms provided by the current legislation, up to 20 % of the share capital of the company (about 8,5% of MMC is currently owned by its subsidiaries). Part of the acquired shares may also be used to issue financial instruments to reduce the debt burden of Norilsk Nickel. Also, recently reported that Norilsk Nickel sells more than 8% of its shares in the Netherlands quasi-treasury Trafigura Beheer BV, the world's largest independent trader to the commodities. The transaction amount and sources of fund raising for her were not disclosed. Analysts of JSC "BCC Invest" will await publication of the results of this meeting, and do not exclude the possibility of a positive resolution of corporate conflict through the adoption of an offer to buy shares in Norilsk Nickel. Currently, the company has attracted an appraiser, which may lead to a counter-proposal to repurchase shares, and probably with another price. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - Russia is expected to publish data on international reserves at 17 December of this year. - in France 13:45 (AST) is expected to publish data on consumer spending and on producer prices. At 15:30 (AST) in the UK is expected to publish data on an index of activity in the services sector and the volume of mortgage loans from the BBA. - U.S. at 19:30 (AST) are expected to publish data on orders for durable goods, for personal income-expenditure on the basic index of consumer spending, as well as primary and repeated requests for unemployment benefits. At 20:55 (AST) will be published data on consumer confidence from the University of Michigan. At 21:00 (AST) is expected to publish sales data on the primary housing market. - Today reports Micron Technology Inc and others. 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 427 479 +12.18 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 366 386 +5.46 Buy Bank CenterCredit CCBN 590.82 646 +9.34 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 17,500 22,300 +27.43 Buy Kazakhmys PLC GB_KZMS 3,541 3,977 +12.31 Hold ENRC PLC GB_ENRC 2,280 2,298 +0.79 Sell Kazakhtelekom KZTK 18,500 19,200 +3.78 Buy KZTKp 8,700 9,300 +6.90 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. [2010-12-23]