Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on January 17, 2011

/IRBIS, January 17, 2011/ - JSC Finance Company REAL Invest.kz (Almaty, REAL Invest.kz) provided to IRBIS overview of major developments in Kazakhstan and the world markets on January 17, 2011. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - final on the last trading day of the week, major U.S. stock indices, and Europe completed the predominantly growth of quotations. Week in confident black. Uncertainty due to the presence of ambiguous general economic background, tormented European players on Friday, the full impact on the dynamics of the regional indices, which started the session lower quotations, but closer to closing the managed switch to "green area". Among exerted pressure on the Western players of factors should be noted increase in the People's Bank of China to the deposit reserve requirements of banks in the fight against inflation, for the seventh time since 2010, as well as unconvincing as a whole macro statistics from the U.S. Consumer Price Index in the United States in December rose by half a percent, while analysts were expecting growth rate by not more than 0.4%, in addition, retail sales in the same month in the country increased by 0.6%, which is 0.1 % less than the preliminary forecasts of experts, finally, the value of the indicator of consumer sentiment, University of Michigan Mich Sentiment in December was the mark of 72.7 points, while the consensus forecast of analysts was the level of 75.5 points. Nevertheless, both the European and American markets were able to complete the week of good growth indices, which was due to a positive start of the season, corporate reports, where after the players recovered confidence report, Alcoa, their results of the public also shared computer giant Intel, the largest U.S. bank with assets total The $ 2.3 trillion. J.P. Morgan Chase. Both companies, which have strategic importance for the U.S., have shown significant gains in the first case the shareholder return of $ 0.59 per share, though analysts predicted rate only at the level of $ 0.53 in the second case, shareholders have earned $ 1.12 per share, while the consensus forecast does not exceed the level of $ 0.99 per share. Next week for sites developed countries promised to be "hot" on Monday, States have a rest, but on Tuesday and Wednesday will be published important data from the real estate market, and on Thursday will be published data on the index of business activity department Fed. Reserve of Philadelphia. In addition, the expected onset of the active stage of the season of corporate reporting, in particular, will publish its financial results by companies such as Apple, IBM, eBay, banks Citigroup, Bank of NY, Goldman Sachs, Wells Fargo. In Germany, on Tuesday will be published values of the indicator of economic sentiment German institute ZEW, on Wednesday there are data on the state of the current account in the euro area and the data on unemployment in the UK - it is expected that the rate last month remained unchanged at the level of 7,9%. In addition, on Thursday in Germany to be published data on the index production prices, and on Friday in the UK, there are data on retail sales. - past week for sites emerging markets turned mixed - Indexes BRIC countries differed significantly on the dynamics. Increasing the key refinancing rate by the Central Bank of South Korea, as well as the tightening of reserve requirements on deposits of commercial banks in China - both of these factors most negatively affected by it in Indian and Chinese sites, the first - BSE dropped in the week at 4.23%, while the second - SSEC at 1.69%. At the same time, the Bovespa in Brazil and in full "rested" the Russian market PTC showed a lot of optimism, because the first has grown on 1,26%, for the second, the first working week ended with a strong gain of 5.64%, resulting in a new two-year highs on elevation above 1,870 points. Determining the mood for next week for sites emerging markets likely to perform reporting season in the U.S. and, given its relatively positive start, we can assume the formation of optimistic sentiment among the regional players and the consequent increase in the indices. - The cost of the contract for the supply of a barrel of light crude oil reference mark WTI, on the results of last week, went up by 2.95% to $91.6 per barrel. Last week for quotes "black gold" was marked by recovery, crisis of the early years appear to have been successfully overcome, and all the most pessimistic mood of the players drowned out the factor of the successful placement of government bonds of the two remaining troubled Euro zone countries - Spain and Portugal, in addition, to create a positive attitude the players affected, "cheerful" start to the season of corporate reports in the U.S.. At the same time, the actions of traders' commodity platforms like never clearly manifested caution - "overheating" the price of commodities, is fraught with complete decline of quotations, the kind that showed oil prices earlier this year - probably traders returned to earth and recalled the need for caution. Thus, in the case of stabilization of the total foreign trade at current background levels, quotes the "black gold" may continue to rise, but this growth will be very moderate and likely many corrections in oil prices. - The cost of the contract for the supply of gold troy ounce on the results of last week, in turn, decreased by 0.65% to $ 361.2 an ounce. All of the above factors, in varying degrees, which provided a positive course of trading contracts for the supply of a barrel of oil, which is called turned downside for gold prices - under the right conditions for the emergence of the investors' risk appetite, interest in the "protective" assets gradually faded, and the attention of traders once again focused on the riskier instruments. Quotes "noble metal" as well as at the end of last year, went into a long consolidation, forming a price range between the levels of $ 1,370 - 1,390 per ounce. Despite the fact that the end of the week has passed below a specified level of support, the current level of quotations "noble metal" is still located above the psychological mark of $ 1,350 per ounce, and probably immediately after the end of the season of corporate reports in the U.S. interest in the defensive asset investors return to the levels start of the year. - The cost of a regional European currency, the euro up to last week "jumped" right on 3,7% to 1.3387 dollars per 1 euro. "REAL Invest.kz" consider the undisputed fact that the growth of European currencies was supported primarily successful deployment of the national debt by Spain and Portugal, but in favor of the weakening U.S. dollar also played the inflation data showing that prices in the U.S. in December, some exceeded analysts' expectations. The current level of foreign exchange quotes the EUR/USD is the highest since mid-November last year, but it is from this level of the euro has already twice "fought back", and in our view there is every reason to expect a breakout in the 1.35 mark the third attempt. - British pound could boast far more modest achievements of the past week, but in conjunction with the week that preceded it, the growth of the currency pair GBP/USD was slightly less than 3%. From the perspective of technical analysis, currency pair GBP/USD likely completed more than two-month downward trend, and now the prospects for the British currency, at least from the perspective of technical analysis, it is much brighter than even a few weeks earlier. Analysts of "REAL Invest.kz" noted that the most attractive stories among the shares of Kazakh companies are RD Kazmunaigas, Kazakhtelecom and Halyk Bank. Especially attractive EP KMG and Kazakhtelecom, as both companies are very strong balance sheet with low debt burden, the EP's net debt at all negative, i.e. cash flows of the company exceed liabilities. Besides their business generates more free cash flow, which allows them to pay a very solid dividends. Dividend income on preferred shares of KMG and Kazakhtelecom is 6-8% and 3-4% of ordinary shares. Shares of these companies are traded much cheaper than the shares of similar companies in other emerging markets. 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. [2011-01-17]