Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for February 24, 2011

/IRBIS, February 24, 2011/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for February 24, 2011. Analysts of IFH RESMI give attention to the following to the important events in the markets: - On Wednesday, February 23, Kazakhstan Stock KASE index decreased by 0.63% and reached 1,793.14 points. The volume of transactions with shares, included in the representative list decreased from the previous trading day by 18.2% to 53.2 million KZT ($ 364.3 million). Most of the issuers included in the representative list of KASE, have shown reductions in quotes. For example, declined in the stock price ENRC, Kazakhmys and KazakhTelecom 1.7%, 1.4% and 1.0% respectively. Leader fall yesterday was the People's Bank (-2.1%). Representatives of the Green Zone have become shares of Exploration and Production KMG and Bank CenterCredit, which grew by 1.3% and 0.9% respectively. No change in the share price KKB. - The geopolitical situation in the Middle East affects the state of stock markets in the U.S. and Europe. Thus, the continued negative trend in the U.S. market, where trading ended with the fall of leading indexes. As a result of trading the Dow Jones index dropped by 178.46 points (-1.44%) - to 12,212.79 points, the index S & P - at 27.57 points (-2.05%) - to 1315.44 points, while the index Nasdaq - by 77.53 points (-2.74%) - to 2756.42 points. The market also pressured corporate news. Thus, a major disappointment for the stock market was Wal-Mart Stores Inc. Net income for the 2010-2011 fiscal years, increased by 14.1% - to 16.389 billion dollars, compared with a year earlier. Despite this, investors have come to expect from Wal-Mart for more. Thus, the company's shares closed the trading session fell in price by 3.09%, which negatively impacted on the dynamics of index Dow (Wal-Mart enters the payment base index of "blue chips"). Further declines in the banking sector: Bank of America shares lost in the price of 3.86%, Citigroup - 4.48%, Wells Fargo - 3.86%, JP Morgan - 4.15% and Goldman Sachs - 3.03%. Yesterday, February 23, stock trading in Europe ended with the fall of most indices in the background of turmoil in Lebanon and fears of further rise in oil prices. Thus, the British index FITSE 100 fell 73.23 points (-1.22%) - to 5,923.53 points, the German DAX dropped to 123.75 points (-1.69%) - to 7,194.60 points. - Trading on the commodity markets were in a mixed way. Industrial metals traded in the "red zone", with the exception of aluminum (primary increased by 0.46%, 0.85% alloy and NASSAC - +0.08%). Like yesterday, the impact on the value of "black gold" has a destabilization of the situation in Libya. On the background of confrontation and opposition to the authorities, Libya has stopped oil supplies, in addition, is gradually reduced and the supply of gas from the country. Thus, the cost of Brent crude oil for the trades was 112.1 U.S. dollars per barrel, increased by 5.61%. WTI oil price also increased to 96.5 (3.13%). Agricultural products have demonstrated mixed dynamics of price changes. For example, wheat and maize rose by 0.1% and 1.73% and sugar and cotton have fallen in price by 3.29% and 0.73% respectively. Analysts of IFH RESMI give the following advice for investors in securities of issuers in Kazakhstan: -------------------------------------------------------------------------- Issuer Last price Predicted price* Up/down from Target RSI. Current price price** %*** ------------------ ---------- ---------------- ------------- ------- ----- Kazkommertsbak 583 On Review 490 50.07 Halyk bank 380 519 36.6% 456 40.29 Bank Center Credit 656 On Review 921 56.84 RD KMG 19,30 On Review 23,806 55.44 Kazkhtelekom 19,500 On Review 25,839 46.97 -------------------------------------------------------------------------- Fundamental evaluation IFH RESMI for 12 months (weekly review) ** Target according to the consensus forecast of analysts surveyed by Bloomberg *** Relative strength index - an indicator of technical analysis. determines strength of trend and likelihood of change. Overbought/oversold - when RSI indicator value is closer to 100%/0%. - Cost of common shares Kazkommertsbank assessment IFD "RESMI" will cost no less than KZT796 per share by the end of 2010; - Halyk Savings Bank of Kazakhstan is estimated IFD "RESMI" as the most promising in terms of business development financial institution in Kazakhstan. Analysts see the growth of the bank's shares up to KZT409 per share; - Shares of Bank CenterCredit in the long term analysts IFD "RESMI" about the outlook for growth in securities of the bank to the level of 1.230 m.; - Stocks of Kazakhtelecom are looking most attractive for investment in the long term. Analysts IFD "RESMI" recommend buying simple shareholders of the issuer. - The updated target price of shares of JSC Exploration Production KMG is KZT24.895 per share. 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. [2011-02-24]