Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for January 13, 2011

/IRBIS. January 13, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for January 13, 2011. Analysts of JSC "BCC Invest" now expect a positive opening of trading on the backdrop of rising stock prices, and depositary receipts of Kazakhstan issuers yesterday in London. Further, during the day at the KASE trading dynamics will depend on investor sentiment in the western trading floors. JSC "BCC Invest" also notes the following important events in the Kazakh market: - The international rating agency Standard & Poor's raised the rating of "Analysis and evaluation of the effectiveness of corporate governance, accountability and management" (GAMMA) Kazakh company Kazakhtelecom of GAMMA-5 GAMMA-5 +. Rating increased primarily due to improved procedures for the Board of Directors of the company in 2010, the report said S & P. "The work of the board of directors adopted a more regular form, conducting face to face meetings become the norm, whereas before, the practice of informal meetings with some members of the Board of Directors and Management", - said analyst Governance Services S & P Mrs. Elena Pastukhova, whose words are reported. She noted that in 2010 the Board held six classroom sessions over two meetings in 2009, "Also in 2010, increased the proportion of independent directors on the board. In addition, Kazakhtelecom conducting continuous process improvement and risk management strategic planning, "- she said. "However, - noticed Mrs. Pastukhova - incomplete disclosure of beneficial ownership, the requirement of decision-making board of directors of a qualified majority, and late periods of the annual general meeting (AGM) continue to hold the rating level." SOURCE: According to the JSC "BCC Invest", the message is moderately positive for the stock price Kazakhtelecom. However, analysts of JSC "BCC Invest" believe that current stock prices already reflect this increase in ratings and market expectations on operating and financial performance for the year 2010, and growth drivers of shareholder value in the short term, no. Accordingly, analysts JSC "BCC Invest" save target prices for shares of Kazakhtelecom at 19,300 KZT per common share and 9,200 KZT per preferred share, but lowered the recommendation to "buy" to "hold". - Also in connection with a large excess of target price 9.98 pounds, and 2,298 KZT per share analysts of JSC "BCC Invest" changing a recommendation on the shares of ENRC PLC from "hold" to "neutral." - Also in connection with a large excess of target price $ 8.70 per depositary receipt analysts of JSC "BCC Invest" changing a recommendation on depositary receipts ZhaikMunai LP with a "HOLD" to "neutral." Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - in Russia is expected publication of data on weekly inflation. - in France 12:30 (AST) will be published inflation data for December, in Germany 13:00 (AST) - an index of wholesale prices in the UK - data on the volume of industrial production for November. At 18:00 (AST) will announce its decision the Bank of England, and in 18:30 (AST) - European Central Bank decision on interest rates. - U.S. at 19:30 (AST) is expected to publish data on the number of weekly requests for unemployment benefits, as well as the Producer Price Index for December and the trade balance for November. 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 380 386 +1.58 Buy Bank CenterCredit CCBN 611 646 +5.73 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 17,600 22,300 +26.70 Buy Kazakhmys PLC GB_KZMS 3,700 3,977 +7.49 Hold ENRC PLC GB_ENRC 2,500 2,298 -8.08 Neutral Kazakhtelekom KZTK 18,897 19,200 +1.60 Hold KZTKp 8,850 9,300 +5.08 Hold 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. [2011-01-13]