The review of key events from "Asyl-Invest" JCS analysts for May 5, 2011

/IRBIS, May 6, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 05, 2011 Trading on the Kazakhstan stock market on Thursday finished the lateral dynamics. KASE index on the basis of trades fell by 0.07% to 1,690.97 points. Decrease of the index was due to falling stock prices of Kazakhtelecom (-1%) and KMG (-0,5%). Activity of market participants was relatively high. The trading volume of KASE index on Thursday rose 19.8 times the previous day and reached 107 million KZT. Trading in shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Thursday was negative. Fall in commodity prices had a negative impact on the trades of commodity companies. Shares of Kazakhmys fell by 3.5%, shares of ENRC - on 0.85%, GDR KMG - 0.4%. KKB GDR fell by 1.5%. Today, the external background for the Kazakhstani stock market develops negative. The worst dynamics at the auctions are likely to be shown by stocks of commodity companies. Negative background stays for the sum of shares of KMG EP. Yesterday there was a fall in prices for Brent crude at 8.57% today, oil is growing at 1%. European markets today are likely to show decline at the opening. Analysts of ASYL INVEST expected incidence of KASE index on the basis of today's trading. In addition, analysts of ASYL INVEST note the following events in world markets: - Major U.S. stock indexes suffered losses on Thursday, for the fourth day. During the auctions the index made a weak attempt to grow, but did not stand the pressure from the sellers. Negative on the markets have made the data from the labor market. The number of initial claims for unemployment benefit for the week ended April 30, taking into account seasonal adjustments increased by 43 thousand compared to the previous week and amounted to 474 thousand, the highest level since April 2010. Economists forecast a decline to 410 thousand four-week average index grew by 22.25 thousand compared to the previous week to 409 thousand U.S. unemployment (insured unemployment rate) for the week ended April 23, taking into account seasonal adjustments increased from 2.9% to 3%. The data, given by ADP, which came the day before yesterday, did not impress investors, as well as taking into account the increase in the number of initial claims for unemployment benefit last week, market participants' concerns about today's employment report seemed justified. The remaining statistics, released yesterday, hasn't attracted attention of the investors. The best dynamics of the indices was shown by high-tech Index NASDAQ Composite, partly because of published corporate reports, including company Electronic Arts (ERTS). The worst dynamics among stock market was demonstrated a broad sector of the oil and gas (-2.13%). June futures for WTI crude oil fell by 8.64% to $ 99.8 per barrel, The U.S. dollar index rose by 1.5%. - Today very important statistics, which could affect the trading on main floors, will be published in USA. 18:30 (ALM) - data on DOL report for employment for April, including the change of number of employers in non-agricultural, private, industrial sector, data on average one-hour fee, on average week duration and the unemployment index. If the data turn out to be disappointing, than nothing more could restrain the indices from the fall. The corporative reports will play no role. - Bidding for major stock markets of Western Europe on Thursday ended with multidirectional dynamics. Negative influence on the trades originally was caused by financial results being much worse than the forecast for the first quarter 2011 of bank Lloyds (LLOY). Net loss of the bank in I quarter has made 0.04 GBP, while analysts had forecast net profit of 0.009 GBP. Further, market participants have negatively perceived the data on industrial orders in Germany in March. Rate in March decreased to 4%. Economists had forecast an increase of 0.4%. The ECB and the Bank of England left interest rates steady. Investors negatively perceived the comments of ECB President JK Trichet. Oil prices fell sharply. June futures for Brent crude fell by 8.57% to $ 110.8 per barrel. - Today, the external background for Western European stock exchanges continues to be negative. The indices are likely to incur losses because they haven't met main drop in U.S. markets. Markets will be influenced by expectations of output data from the labor market. From domestic economic statistics today, there are data on industrial production in Germany in March, data on producer price index for April at the entrance in the UK, data on wholesale prices index for April in the UK. - Major Asian stock indexes are now showing a decline. Negative impact on the course of trading in shares has the fall in oil prices and concern about the release of a report on U.S. employment. June futures for WTI crude oil are currently increasing at 0.5%, the June crude oil futures for Brent - 1%. Gold prices are currently increasing by 1%. The U.S. dollar today has not changed. 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. [2011-05-06]