Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for January 18, 2011

/IRBIS. January 18, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for January 18, 2011. Analysts of JSC "BCC Invest" now expect a positive opening of trading on the background of the growth of quotations of 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: - January 19, 2011 in the trade system of KASE place specialized auction on placement of short-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEKKAM-12 production 112. Circulation period of 12 months. Bonds non coupon discount. Declared level of accommodation - 15,000 million KZT. Subject of bargaining will be the bond price as a percentage of nominal value, expressed up to the fourth decimal place. - In Kazakhstan, in 2010, investment in fixed assets amounted to 4,773.2 billion KZT (current 147.07/$1), which is 0.5% less than in 2009, stated in the circulated report of the State Agency for Statistics. According to statistical data, the most attractive industries for investments are the mining and quarrying, whose share in total investment was 36%. The largest investments are in the period under review, large enterprises, whose volume declined compared with 2009 by 3.4% and amounted to 2,242.5 billion KZT. In 2010, the share of large companies had 47% of investments against 48.4% in 2009, on average - 13.3% vs. 22.7%, respectively, for small - 39.7% vs 28.9%. Predominant sources of investment funds remain the property of economic entities whose share in total during the reporting period amounted to 45.9% against 32.6% in 2009. The share of the state budget amounted to 21.1% against 18.9%, respectively, of foreign investments - 24.4% and 37%, loan - 8.6% and 11.5%. - One of the lead managers IPO Nord Gold (gold mining division of OJSC Severstal (RTS: CHMF)) evaluated the company at $ 4.3 billion, has informed agency "Interfax-AFI" a source in financial circles. According to him, all the three bank-lead managers to evaluate a company roughly the same range. Previously reported that Nord Gold intends to place in its IPO on the London Stock Exchange at least 25% of the shares. Thus, based on an assessment of the investment, the amount of involvement may be at least $ 1.075 billion on Monday kicked off premarketing IPO. Road show management will begin on January 27, Pricing is scheduled for February 11, told Interfax-AFI "a source in one of the investment funds, referring to the material of one of the lead bank. The raised funds will be allocated for the payment of debts "Severstal" and funding strategy Nord Gold, which includes exploration and development of existing assets and potential acquisitions. The proposal would consist in part of the additional issue of shares, as well as the existing securities offered for sale 100% subsidiary of Severstal "Lybica Holdings BV The organizers of the deal are the Morgan Stanley, Credit Suisse and Troika Dialog (RTS: TROY), it is assumed that they will have the option to oversubscription of up to 15%. - Of course, an IPO gold division has had a positive impact on share prices OJSC Severstal, and the ability to attract $ 1 billion in the course listing will add points to the company. The current recommendation of JSC "BCC Invest" - "HOLD" with a target price of $ 25.92 per depositary receipt. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - publications in Russian economic statistics are expected. - The UK 06:01 (AST) were published data on consumer confidence and house price index from the RICS. At 15:30 (AST) in the UK are expected to publish data on housing price index from the DCLG, the price index consumer price index of manufacturers and the retail price index. At 16:00 (AST) will be published data on the index of sentiment in the business environment of the ZEW for Germany and the euro zone. - U.S. at 19:30 (AST) will be published data on the manufacturing index Empire Manufacturing, at 20:00 (AST) - net purchases of long-term U.S. securities, and net purchases of these securities by foreign investors, and in 21:00 (AST) to be published data on the housing market index from NAHB. - Today reports Citigroup Inc, Apple Inc, International Business Machines Corp, 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 447 479 +7.16 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 397 386 -2.77 Buy Bank CenterCredit CCBN 640 646 +0.94 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 19,046 22,300 +17.08 Buy Kazakhmys PLC GB_KZMS 3,710 3,977 +7.20 Hold ENRC PLC GB_ENRC 2,520 2,298 -8.81 Neutral Kazakhtelekom KZTK 18,900 19,200 +1.59 Hold KZTKp 8,881 9,300 +4.72 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. [2011-01-18]