Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for May 5, 2011

/IRBIS. May 5, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 5, 2011. The analysts are expecting a negative opening on KASE in the background of decrease of quotations of stocks and depository receipts. During the day, the KASE index stock quotations dynamics will be changeable and the index will probably play off part of daily loss by the end of the session and will end the day on neutral territory. Analysts of JSC "BCC Invest" expect the following developments in international markets today: - The surplus of current account balance of Kazakhstan in I quarter has grown in 1.7 times - the National Bank. Surplus of current account of balance of payments in Kazakhstan in January-March 2011, according to preliminary estimates, reached $ 4,843 billion against $ 2,777 billion in the corresponding period in 2010, the National Bank of the country reported. Thus, this index increased 1.7 times. According to National Bank, the trade balance in the first quarter of 2011 was formed with a surplus of $ 11,149 billion, compared with I quarter of 2010 by 1.4 times ($ 8,015 billion). During the reporting period deficit on services was $ 1,449 billion, compared with the first quarter of last year, only 0.9% ($ 1.436 billion). Surplus in capital account and financial transactions in the first quarter of 2011 decreased compared to the same period of 2010 to 1.6% - from $ 1,501 billion to U.S. $ 1,477 billion - KMG Exploration and Production JSC acquired on KASE 196,172 of its preferred shares (RDGZp) for 19,773.24 tenge per share from April 4 to May 4. Auction was attended by 22 members of KASE, who submitted 223 applications, of which at the end of the enrollment period 200 applications for sell of 207,024 shares left active. The supply amounted to 5.0% of the announced volume. In the total volume of active orders, the proportion of broker-dealer firms was 10.0%, their customers - 90.0%. According to the trades the buyer set cut- off price at 19,773.24 tenge per share and has documented its intention to KASE to fulfill 178 bids on 196,172 shares. If successful, the purchase amount will be 3,878,956 037.28 KZT (equivalent to 26 604 636.74 U.S. dollars at the current exchange rate). For the first nine trading (09, 10 March, 11 March, April 9, April 30-May 28, 01-30 of July, 01-30 of September, 01-30 of November 2010, 01-31 of January 2004, April 4 - May - 4, 2011) the total number of preference shares, the acquisition of which was documented by the purchaser, was 1,778,815 shares. - Kazakhmys PLC released its operational results for the first quarter of 2011. May 4, 2011 the company released its operational results for the first three months of this year. Production of copper in cathode equivalent coincides with the expectations of JSC "BCC Invest" in 2011. Reducing the concentration of the ore came out a bit more than expected by JSC "BCC Invest", but in general the company carries out its plan for terms of production in 2011. Reduced production of silver and gold is caused by repairs of anode furnace in January and February at the Balkhash plant, which has led to a decrease in production volume. Analysts of JSC "BCC Invest" leave its current recommendation to "buy" with target price of ? 16.31 and 3,870 KZT per share. - Kazkommertsbank will not pay dividends on common shares for 2010. This was decided at the recent annual stockholders' sitting on May 4, the bank's report indicated. Meanwhile, the bank will pay dividends over the past year on preferred shares for $ 0.04 per paper. This amount of dividend "preferred shares" is fixed. Number of outstanding preferred shares KKB is 125 million units, simple - 779 million 338 thousand 177. Correspondingly, the bank will send the payment of dividends on the "preferred shares" of $ 5 million, with the beginning date of payment of dividends on preferred shares of Dec. 12, 2011. The shareholders also decided to leave the bulk of profits for the year 2010 retained. In accordance with the requirements of state regulator the decision to finish forming the reserve capital of the bank to the amount of 10 million 448 thousand KZT from the undistributed profits of previous years of 50 billion 17.448 million tenge (current 145.79 / $ 1). As reported, net income of KKB under IFRS in 2010 totaled 22 billion KZT, or 15.6% more than in 2009. Analysts of JSC "BCC Invest" do not expect the strong influence of the news on quotes of equity securities of the bank, as the news of the dividend equal to the expectations of JSC "BCC Invest", the recommendation "Neutral" is confirmed. The "BCC Invest" analysts expect the following key events on the international markets today: - Today in Russia on 10:00 (AST) the data on PMI business activity index in services sector will be published, and during the day data on international reserves and consumer price index is to be published. - In Great Britain at 14:30 (AST) the data on PMI business activity in services sector, change of official reserves will be published, at 17:00 (AST) - the decisions for rates and the "Asset Purchase Target" indicator from the Bank of England. Also the data on real estate prices index from Halifax is expected. 16:00 (AST) - in Germany - the data on industrial orders, 17:45 (AST) the euro area's Central Bank will publish the decision on general percentage rate. - Today in USA the data on consumer sentiment "Consumer Outlook Index" from RBC will be published at 18:00 (AST). At 18:30 (AST) - the data on primary and secondary applies for unemployment benefit, expenditures on labor force, productivity in non-agricultural sector, and at 19:45 (AST) - on the consumer comfort index from Bloomberg. Today the following companies will be reporting: Vale SA, Kraft Foods Inc, American International Group Inc, Visa Inc, General Motors Co, CVS Caremark Corp, Banco Bilbao Vizcaya Argentaria SA, DIRECTV, Iberdrola SA, Zurich Financial Services AG, Societe Generale, ING Groep NV, Telecom Italia SpA and the others. Analysts of BCC Invest JSC are giving the following advice for investors in securities of issuers in internal market: ------------------------------------------------------------- Closing Target Potential, Issuerт Code price price % Recommen- dation ------------------------------------------------------------- Kazkommertsbank KKGB 509.50 583 +14.43 Neutral KKGBp 210 196 -6.67 Neutral Halyk Bank HSBK 351 415 +18.23 Hold Bank CenterCredit CCBN 516.55 646 +25.06 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 19,500 20,500 +5.13 Hold Kazakhmys PLC GB_KZMS 3,250 3,870 +19.08 Buy ENRC PLC GB_ENRC 2,170 2,550 +17.51 Hold Kazakhtelekom KZTK 19,600 Review KZTKp 9,350 9,300 -0.53 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. [2011-05-05]