Overview of key developments from analysts of Asyl Invest JSC (Kazakhstan) on March 10, 2011

/IRBIS, March 10, 2011/ - JSC ASYL INVEST (Almaty) provided IRBIS overview of major events and of their investment ideas and forecasts on March 10, 2011. Analysts of JSC ASYL INVEST note that trading on the Kazakhstan stock market on Wednesday finished lower KASE index for a substantial increase in trading volumes. The main negative effect on the index had a price drop of shares of Kazakhmys by 7%. Support index has increased prices of shares and KKB KMG on 1.7% and 1% respectively. Trading in shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Wednesday ended in negative territory. The worst dynamics demonstrated shares mining sector on concerns about declining levels of consumption by China, which have resulted in a decline in prices for base metals, particularly copper, futures contracts have reached 11 week low. Kazakhmys shares were down 1.9%, shares of ENRC - by 0.7%. GDR banking sector finished the trading session in negative territory: KKB GDR fell by 1.3%, GDR NSBK - 0.6%. GDR KMG declined by 1.5%. Additional pressure on the dynamics of trade has continued unrest in Libya. Today, the external background for the Kazakhstan stock market develops negative. Data on trade balance, published in China were much worse than economists' expectations and likely to provoke a wave of selling today, from which can be the most affected the mining sector. As a result of today's trading analytics ASYL INVEST expected drop index KASE. In addition, the analysts of JSC ASYL INVEST note the following events in world markets: - For most of the session on Wednesday, the Dow Jones industrial exhibited oscillations near the neutral line, the index of wide market S & P 500 during the bidding made several unsuccessful attempts to enter the positive territory, and high-tech NASDAQ Composite Index was trading exclusively on the negative territory. Relatively weak changes in indices were due to the lack of internal drivers of motion in the form of meaningful economic statistics and corporate news. NASDAQ Composite Index was again weaker than the other indices by reducing the prices of shares of the semiconductor industry. At the opening of trading pressure on the indices had a rise in oil prices, which, however, was short-lived. During trading, oil prices declined, that provided support for the indices. As a result of the April futures environment for WTI crude oil declined by 0.6% to $ 104.38 a barrel. The main influence on the dynamics of oil prices had investors' anxiety about the situation in the Middle East and North Africa. The news of an increase in crude oil reserves in the U.S. at 2.5 million barrels last week did not cause any special reaction in the market. In general, the activity of market participants in the stock trading was relatively weak. On Wednesday, the NYSE has been bought and sold 871.2 million shares, which is 13.1% lower than the previous day. - Today, the dynamics of the major U.S. stock indexes will depend on the dynamics of oil prices, the external background and perhaps from the domestic economic statistics. External background for the U.S. market, as the situation on oil markets, the sum is negative. In China today is much worse than expected data out on the trade balance. The April futures for WTI crude oil today is moderately increasing, the May futures for WTI crude oil traded above the level of $ 106 per barrel. Internal economic statistics on this background probably will not play the main role in the dynamics of the major stock indexes. Of the important economic data in the U.S. today to be published data on the U.S. trade balance for January and data on the number of initial claims for unemployment benefit for the week ended March 5. In general, analysts of JSC ASYL INVEST expected to reduce the major U.S. stock indices on the basis of today's trading. - The session was among the major stock indexes ended with the fall of Western Europe because of the renewed rise in oil prices and worries about the situation in Libya. The April futures for Brent crude on the basis of the medium increased by 2.5% to $ 115.94 a barrel amid news that OPEC will raise oil production only in the case of serious problems. In addition, the organization plans to hold an extraordinary meeting. Economic statistics, published yesterday in the countries of Western Europe was important, but a significant effect on the dynamics of the major stock indexes in Western Europe did not have. German industrial output in January rose by 1.8%, slightly exceeding the forecast of economists. Trade deficit of the UK in January, declined in comparison with December and amounted to 7,057 million pounds. - Today, trading in Europe will depend largely on the situation on the oil market, which now develops a negative for the markets. The April futures for Brent crude today, slightly increasing. Moreover, the effect on the indices of today will have a negative economic data from China, which are likely to lead to a fall in stock prices of metallurgical companies. Economic statistics, to be published today in Western Europe, probably a strong influence on stock trading will not. Today in Germany there are data on the balance of payments for January, in the UK, there are data on industrial production for January. Also today, a decision is expected by the Bank of England interest rate. Economists predict that rate will remain unchanged at 0.5%. - Major Asian stock indexes fall in the region today against the backdrop of rising oil prices, concerns about the situation in Libya and expectations of rate hikes by central banks. Bank of Thailand and Vietnam's Central Bank raised interest rates to fight inflation, and now to them also joined the Central Bank of South Korea. Investors fear another rate hike in China, for which inflation has become a major problem. In China today published the disappointing economic data. China's trade surplus was negative in February and amounted to -7.3 billion. Exports in February grew by only 2.4% year on year (the previous value of the growth of 37.7% of MHC), imports grew by 19.4% year on year (the previous value growth of 51% of MHC). In Japan today left the macroeconomic data. Japan's GDP in the IV quarter decreased by 0.7%, the index of wholesale prices in February rose by 0.2%. 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. [2011-03-10]