Market reveiws and recommendations of Financial Company REAL INVEST.KZ (Kazakhstan) analysts on January 26, 2011

/IRBIS, January 26, 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 26, 2011. JSC Financial Company REAL Invest.kz notes the following significant developments on the world stock, commodity and currency market: - for most of the Tuesday session major U.S. stock indices showed fluctuations in negative territory with an uncertain external background, but by the end of the session were able to rectify the situation, ending the session near the previous close. Financial results for last quarter of American companies in general were better than analysts' expectations, but the impact on the trades have not had, since market participants are counting on strong results. Economic statistics, published in the U.S. has supported major stock indexes. For example, U.S. consumer confidence index for January rose to 60.3 points from the revised values for December to 53.3 points, well above the forecasts of economists who had expected growth to 54 points. The growth index of consumer confidence was well over the past 20 months and was caused by the rising expectations of 72.3 points to 80.3 points and increasing the index of current conditions from 24.9 points to 31 points. In this case, positively, that the estimate of the semi-annual outlook for the labor market has improved, as evidenced by the improvement in the labor force index to minus 38.2 points. Overall, the growth of consumer confidence has a positive effect on consumer spending, which will support economic growth. The rest of economic statistics in the United States had no effect on the trading session. - Today the U.S. is expected to publish quarterly reports of 137 companies, including reports of companies Automatic Data Processing (ADP), Xerox (XRX), Boeing (BA), Occidental Petroleum (OXY), ConocoPhillips (COP), Netflix (NFLX), and Symantec (SYMC). Today is expected to be published macroeconomic statistics: sales in the primary housing market in December and an application for a mortgage on the MBA in December. Also today, the FOMC will take a decision on interest rates. Analysts of JSC ASYL INVEST believe that corporate reports and economic statistics will not play a key role in trading today. Session, according to ASYL INVEST, may terminate the growth of the major U.S. stock indices. - trading on stock exchanges in Western Europe ended lower on Tuesday, major stock indexes on the background of volatility in trading in Asia and the negative dynamics of the major U.S. stock indexes at the opening. Influence of the session also had a message on the reduction of UK GDP in the IV quarter at 0.5%. Economists had forecast that the growth of UK GDP was 0.5%. Negative impact on the dynamics of the main stock indexes in Western Europe has also had negative changes in the commodity markets. - Today in Germany there are data on the import price index for December, in the UK - data on the volume of mortgage loans from the BBA in December. Also today, will publish minutes from the last meeting of the Bank of England. Analysts of JSC ASYL INVEST expect growth in the major stock markets of Western Europe on the basis of today's trading. - major Asian stock indexes are now showing multidirectional dynamics. Nikkei 225 drops after its growth on Monday against the backdrop of increasing the GDP estimates of the Bank of Japan from 2.1% to 3.3%. The remaining major stock indexes in the Asian region, in contrast, show a positive change in values. 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. [2011-01-26]