Overview of key developments from analysts of Asyl Invest JSC (Kazakhstan) on December 24, 2010

/IRBIS, December 24, 2010/ - JSC ASYL INVEST (Almaty) provided IRBIS overview of major events and of their investment ideas and forecasts on December 24, 2010. Analysts of JSC ASYL INVEST note that trading on the Kazakhstan stock market on Thursday resulted in the growth due to the positive dynamics of most securities index KASE. External background while formed a moderately positive. Trading activity on the domestic market on Thursday was relatively low. Following the auction on Thursday, KASE index increased by 0.8%, while the best the dynamics of the auction was led by ENRC (+2.85%). Shares and GDRs of Kazakhstan issuers on the London Stock Exchange on Thursday showed no uniform dynamics. In positive territory completed trades GDR KKB shares ENRC, on the negative - Germany NSBK, shares of Kazakhmys, the GDR KMG. Today, the external background for the Kazakhstan stock market develops moderately negative. Trading activity on the domestic market today is likely to be weak, since trading in Europe today will not meet on the occasion of Christmas. It is likely that market participants will take a waiting attitude. As a result of trading today, analysts of JSC ASYL INVEST expect the weak dynamics of the index KASE. In addition, the analysts of JSC ASYL INVEST note the following events in world markets: - trade results on Thursday, the Dow Jones industrial rose, broad market index S & P500 and the tech heavy Nasdaq Composite fell. Yesterday in the U.S., a series of macroeconomic data, but the reaction of market participants on the published economic statistics has been weak due to the upcoming festive holiday. Before the opening of trading, it became known that orders for durable goods in November decreased by 1.3%. Economists forecast a decline to 0.5%. Changing the index in October was revised from -3.3% to -3.1%. Published data on orders for durable goods can not be called negative, quite the contrary. If we consider the index excluding volatile component in the form of vehicles, in November, it rose by 2.4%. Economists had expected growth of this indicator on 1.8%. Positively and that the change of this index in November was revised from -2.7% to -1.9%. Thus, the decrease in orders for durable goods was due to lower transportation orders, which in November fell by 11.9%. Basic orders in November rose by 2.6%. Economists have been better than expected data on personal income. In November, personal income grew 0.3%, slightly above economists' forecasts (an increase of 0.2%). Personal spending in November rose by 0.4%, slightly below economists' forecasts (an increase of 0.5%). Published data on revenues and expenditures are not positive, their stability is in doubt. Negative impact on wages and, consequently, the income has high unemployment. The wages of Americans in November rose by only 0.1%. Due to the low revenue growth, expenditure growth is weak, that is a negative factor for economic development. In real terms, personal spending in November rose by 0.3%. Optimism is only the increase in consumption of services, which in November was strong enough. Negative aspect can be called low inflation. Base prices in November rose by only 0.1%. In annual terms, core prices grew by 0.8%, its lowest level in 50 years. Yesterday also went out data on the number of initial claims for payment of unemployment benefits for the week ended Dec. 18. The figure for the period declined from 423 thousand to 420 thousand, which coincided with expectations of economists. Also at the level of expectations of economists came out data on consumer confidence from the University of Michigan. Rate in December was 74.5 points. Worse than expectations of economists were data on home sales in the U.S.. This index in November rose by 5.5%, while economists had expected growth of 6%. In general, during yesterday's trading investors did not show adequate response to the output of macroeconomic statistics. Trading activity was relatively weak. - Today the U.S. markets will be closed in observance of Christmas. - the main stock indexes in Western Europe were closed on Thursday differently. Negative impact on the trades had heard from a rating agency Fitch lowered ratings on Portugal and Hungary. - Today the European markets will be closed in observance of Christmas. - the main stock indexes in the Asian region today show a negative trend. 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. [2010-12-24]