Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 28, 2010

/IRBIS. December 28, 2010/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 28, 2010. Analysts of JSC "BCC Invest" expect a mixed and multi-directional opening of trading on the ambiguous external background. JSC "BCC Invest" also notes the following important events in the Kazakh market: - Money supply in Kazakhstan in January-November 2010 grew by 13.9% to KZT8 trillion 526.2 billion, said the National Bank. During November 2010 the money supply decreased by 1.5%. The volume of cash in circulation since the beginning of the year grew by 17.7% to KZT1 trillion 74.8 billion (November decline of 1.9%). Deposits in the banking system grew by 13.3% up to KZT7 trillion 451.3 billion (down 1.5%). The monetary base (reserve money) from the beginning of the year shrank by 3.2% to KZT2 trillion 372.6 billion (in November - by 13.5%), the narrow monetary base (does not include time deposits of banks in the National Bank) - increased by 3 1% to KZT2 trillion 23.4 billion (in November - has shrunk to 12.6%, respectively). - OJSC MMC Norilsk Nickel (RTS: GMKN) is ready to discuss the possibility of increasing the offer price for redemption of blocking stock in MMC in UC RusAl, said in Norilsk Nickel. In case of failure of talks with RusAl "MMC will be forced to seek other ways to neutralize the negative impact of conflict on the current joint activities of the company - in particular, Norilsk Nickel is planning to submit for approval by the Board of Directors a proposal for redemption of shares. "The company has accumulated sufficient funds to implement this option without external funding" - the report says. In a statement at the same time saying that the final transaction price can not exceed the level at which Norilsk Nickel provides the current level of production, the stability of the long- term production strategy, social programs and modernization program. As stated in the report, MMC accumulated a substantial amount of money to buy back equity shares in RusAl. "The company's management believes that in today's environment is a necessary step towards the elimination of corporate conflict, constraining growth in shareholder value," Norilsk Nickel "- said in a statement. According to MMC, the sale of shares is positive and for the aluminum company, because it will reduce the level of debt, which amounts to date is significant and is a deterrent for the growth of capitalization of RusAl. "This confirms the fact that the quotes UC RusAl increased by 5% immediately after the announcement of MMC proposal to repurchase their shares," - said in a statement in Norilsk Nickel. Support the idea of selling two shareholders RusAl - Mikhail Prokhorov and Vekselberg (is also chairman of the board of directors OK). Despite this, according to Norilsk Nickel, "is actually a full-fledged negotiating process to date has not begun." MMC said that the term of the offer will expire at 15:00 on December 28. It was at this time to begin meeting of the Board of Directors of Norilsk Nickel, which will consider the adoption of the budget for 2011, the long-term development strategy until 2025, received offers to sell controlling stake in OGK-3 and conducting repurchase shares of MMC for $ 4.5 billion, according post Bloomberg, Helen Rollins, a representative of the controlling shareholder of RusAl, En + Group, in a telephone call, said that RusAl is not going to sell this asset and that it is a strategic and cost at least $ 15 billion, plus an additional allowance for the fact that the asset is a controlling. In this case, things are moving, as assumed in the JSC "BCC Invest" earlier. RusAl gave his opinion on the price of the asset. At the moment, analysts of JSC "BCC Invest" will wait for the response of MMC to the representative, the more so because the offer expires today. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - Russia is expected to publish data on an index of business activity in the service in December. - in France 12:30 (AST) will be published GDP data for the third quarter of this year. - U.S. at 20:00 (AST) is expected to publish data on the S & P/CaseShiller index of house prices and a composite index. At 21:00 (AST) are expected to publish data on consumer confidence and manufacturing activity index, FRB Richmond. 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 440 479 +8.86 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 375 386 +2.93 Buy Bank CenterCredit CCBN 590 646 +9.49 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 17,550 22,300 +27.07 Buy Kazakhmys PLC GB_KZMS 3,580 3,977 +11.09 Hold ENRC PLC GB_ENRC 2,300 2,298 -0.09 Hold Kazakhtelekom KZTK 18,600 19,200 +3.23 Buy KZTKp 8,910 9,300 +4.38 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. [2010-12-28]