Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for May 10, 2011

/IRBIS. May 10, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for May 10, 2011. The analysts are expecting a mixed and multidimensional opening on KASE on the ambiguous external background. During the day, the KASE index stock quotations dynamics will be changeable and the index will probably end up within the neutral point. Analysts of JSC "BCC Invest" expect the following developments in international markets today: - Shareholders of ENRC PLC require re-electing for the Board of Directors - Financial Times. News agency reported that the decision of the owners of 43% stake in ENRC came in after the disputes have arisen regarding the purchase of the disputed asset in the Democratic Republic of Congo last year. Financial Times did not identify the source. According to analysts of JSC "BCC Invest", the news would have a negative impact on the quotation of securities of ENRC PLC. JSC "BCC Invest" believes that the conflict of the tangent of the asset purchase of copper in the DRC is a major cause of the discount with low-cost of the company at the moment. Earlier this year the media has made public the news of the lawsuit of First Quantum Management (the last owner of the copper asset Kolwezi) for $ 2 billion, which has considered exclusion of an asset, which was already invested $ 700 million over 6 years, unfair. It is not known whether the Board of Directors would be re-elected at the AGM on June 8, and how would it affect the company's strategy. Analysts of JSC "BCC Invest" keep their current recommendation to "hold" with a target price of ?10.80 per share. - U.S. Plant of Severstal Columbus resumed its work after the hurricane. The plant is now not working at full capacity due to restrictions in the supply of electricity and will increase the volume of production in the nearest future, was said in a statement released today through the Regulatory News Service. Analysts of JSC "BCC Invest" expect a moderately positive effect of this news on quotes of equity securities of Severstal OJCS. As a result, the plant stood for about 10 days, which would certainly lead to a decrease in production volumes, but not at the critical level. - Norilsk Nickel and Nusantara Smelting plan to develop deposits in Indonesia, to build smelters. On Friday a meeting of the general director of MMC Vladimir Strzhalkovsky with Industry Minister Suleiman Mohamed Hidayat of Indonesia and chairman of the National Coordinating Committee on Investment Gita Giryavan was held. Following the meeting, a memorandum was signed. At the meeting issues concerning the development of business projects in Norilsk Nickel in Indonesia and the development of promising fields in the country were discussed. Earlier, Norilsk Nickel reported attention to a number of projects in Indonesia, without specifying the object of attention. Nusantara Smelting in August 2008 announced the building plans for Bontange (the island of Borneo, East Kalimantan Province) of smelter with annual capacity of 200 tons of copper. Investments in the project were estimated at $ 850 million. It was planned that the plant will provide feedstock for local unit of American Freeport- McMoRan Copper & Gold Inc (PT Freeport Indonesia) and Newmont Mining Corp. Part of the copper concentrate Nusantara Smelting wanted to import. Construction of the plant was scheduled to begin in 2009 and run - in the second half of 2011. Such a plant would claim for the second place on the scale in Indonesia after the Gresik plant in East Java. Analysts of JSC "BCC Invest" believe that this news will have a moderately positive effect on stock prices and depositary receipts of MMC Norilsk Nickel. The company has major projects to expand production in the next 4-5 years, which imposes certain adjustments to the value of the company. On the one hand - a good growth potential, on the other - growing risks associated with the projects. "BCC Invest" analysts are expecting the following events on international markets today: - No important economic statistics will be published today in Russia. - The data on industrial producing will be published today at 12:45 (AST) in France and at 14:00 (AST) in Italy. - Today in USA at 17:30 (ASR) the data on small business optimism from NFIB will be published, at 18:30 (AST) - on import prices index, at 20:00 (AST) - the data on wholesale stock and economic optimism index from IBD/TIPP. Today the reports of Walt Disney Co, BG Group PLC, Enterprise Products Partners LP, Imperial Tobacco Group PLC, Deutsche Post AG will be presented. 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 486 583 +19.96 Neutral KKGBp 210 196 -6.67 Neutral Halyk Bank HSBK 345 415 +20.29 Hold Bank CenterCredit CCBN 495 646 +30.51 Hold Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 19,000 20,500 +7.89 Hold Kazakhmys PLC GB_KZMS 3,156.05 3,870 +22.62 Buy ENRC PLC GB_ENRC 2,100 2,550 +21.43 Hold Kazakhtelekom KZTK 19,200 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. [2011-05-10]