Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for February 1, 2011

/IRBIS. February 1, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for February 1, 2011. Analysts of JSC "BCC Invest" now expect a mixed and multi-directional opening of trading on the ambiguous external background. Further, during the day at the KASE, is likely to see moderate growth in quotes - a rebound after yesterday's fall, and this, according to JSC "BCC Invest", to be a good opportunity to close the positions and take profits for those who did this last week . Analysts of JSC "BCC Invest" continue to believe that the likelihood of a global correction in world stock markets in the near future is very high. JSC "BCC Invest" also notes the following important events in the Kazakh market: - JSC Exploration and Production KMG acquired on KASE from January 5 to 31 of its 236,430 preferred shares (RDGZp) to 19,253.25 KZT per share. KASE reports that from January 5 to 31, 2011 in the KASE trading system were the eighth specialized trades to acquire preferred shares KZ1P51460114 JSC "KazMunaiGas. As an authorized purchaser for the specialized trades acted JSC "VISOR Capital" (VISOR Capital). The total amount authorized and outstanding preferred shares of Exploration and Production KMG currently stands at 4,136,107 units. The buyer intends to purchase up to 100% of the specified number of securities. The auction was attended by 25 members of KASE, have submitted 253 applications, of which at the moment the end of the application period were 230 active applications for the sale of 246,855 shares. of bids totaled 6.0% of the announced the acquisition volume. The volume of active orders, the proportion of broker-dealer firms had 14.5% of their clients - 85 5%. Following the auction the buyer set the price cut at 19,253.25 KZT per share and has documented its intention to meet the KASE 200 applications for sale of 236,430 shares. If successful, the settlement amount of the purchase amount to 4,552,045,897.50 KZT (equivalent to 30,993,708.02 U.S. dollars at the current exchange rate). According to the JSC "BCC Invest", the message is neutral for the quotations of ordinary shares and depositary receipts of Exploration and Production KazMunaiGas as repurchases of preferred shares by the issuer in accordance with previously announced program. Analysts of JSC "BCC Invest" confirm the recommendation to "buy" on ordinary shares and depositary receipts of Exploration and Production KazMunaiGas with target prices of 22,300 KZT per share and $ 25.30 per ADR. - On January 31 this year, OJSC MMC Norilsk Nickel announced preliminary operating results for the fourth-quarter 2010 and for the entire 2010 Polar and Kola Divisions in Russia, as well as international operations in Finland, Botswana and South Africa. - OJSC MMC Norilsk Nickel plans in 2011 to produce 300-315 tons of nickel, the company said. At the same time at the Russian enterprises of the group will be released 240-245 thousand tons, and another 60-70 thousand tons - enterprises Norilsk Nickel International (Australia, Botswana, and Finland). Copper production is expected to reach 360- 365 thousand tons in Russia and 20-25 thousand tons - in enterprises Norilsk Nickel International. Also in 2011, is planned to produce 2.7 - 2.715 million troy ounces of palladium at Russian enterprises, and 150- 155 thousand ounces - on foreign. Platinum production is expected at 665-675 thousand ounces in Russia and 40-45 thousand - in enterprises Norilsk Nickel International. As explained "Interfax" in Norilsk Nickel, the increase in nickel production in Russia in relation to 2010 could be possible thanks to the efficient reallocation of resources between the Russian (Kola MMC) and Finnish (plant Harjavalta) divisions of the company. "Also in mid-2011, MMC intends to resume production of nickel concentrate at its plant in Australia, Lake Johnston, the expected volume of production - more than 4.5 tons. It was reported earlier that the company expects to Russian enterprises nickel production at 235 thousand tonnes, copper - up to 358 thousand tons of platinum - up to 21 tonnes of palladium - up to 84 tons. Norilsk Nickel announced that the production plan for the current year provides for taking into account changes in the structure of ore increase its production. According to the JSC "BCC Invest", publication production results for 2010 will have a moderately positive effect on the quotations of equity securities of the company, but no more, as these volumes were expected by the market. Moreover, forecasts of JSC "BCC Invest" in 2011 almost coincide with the projections of the company, which analysts of JSC "BCC Invest" leave the current recommendation Hold with a target price of $ 25.08 per depositary receipt. - Term of the option to repurchase Eurasian Natural Resources (ENRC) the remaining 75% of the ordinary shares of Shubarkol Komir extended for 12 months - until January 31, 2012, stated in the circulated report ENRC. According to the report, the option gives ENRC right to acquire 75% of ordinary shares of Shubarkol Komir worth about $ 600 million in all other option terms and conditions remain unchanged. As we know, this call option was granted ENRC in connection with the acquisition of this holding 25% share of Shubarkol Coal for $ 200 million in February 2009. Originally it was assumed that the option buyer can be realized (at the discretion of ENRC) at any time before January 31, 2011. According to the JSC "BCC Invest", the news will have no impact on share prices ENRC PLC, since we do not expect fundamental changes in the activity of the company upon redemption of shares of coal producer. JSC "BCC Invest" reserves the recommendation of "Neutral" with a target price of 9.98 pounds per share. Analysts of JSC "BCC Invest" and expect the following developments in international markets today: - in Russia 11:00 (AST) is expected to publish data on the manufacturing PMI index for January, as well as during the day, the Reserve Fund and National Welfare Fund. - The UK 13:00 (AST) will be published data on house prices, in 15:30 (AST) - on the production index PMI, the pure volume of both consumer and mortgage loans, mortgage approvals, as well as cash aggregate M4. At 14:55 (AST) in Germany to be published data on unemployment and manufacturing index PMI. At 15:00 (AST) will be published data on the Euro zone manufacturing index PMI, and 16:00 (AST) - the level of unemployment. - U.S. at 21:00 (AST) will be published data on the volume of expenditure in the construction sector, as well as ISM publish data on an index of business activity in the manufacturing sector and the index of gradual acceleration of inflation. - Today reports Baidu Inc, BP PLC, Pfizer Inc, Rosneft Oil Co, JVC Kenwood Holdings Inc 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 462 479 +3.68 Neutral KKGBp 210 335 +59.52 Buy Halyk Bank HSBK 390 432 +10.77 Buy Bank CenterCredit CCBN 658 646 -1.82 Hold Tsesnabank TSBN 870 1,030 +19.08 Neutral KazMunaiGaz RDGZ 19,400 22,300 +14.95 Buy Kazakhmys PLC GB_KZMS 3,510 3,977 +13.30 Hold ENRC PLC GB_ENRC 2,400 2,298 -4.25 Neutral Kazakhtelekom KZTK 19,550 19,200 -1.79 Hold KZTKp 9,301 9,300 -0.01 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. [2011-02-01]