The review of key events from "Asyl-Invest" JCS analysts for May 11, 2011

/IRBIS, May 12, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 11, 2011 Trading on the Kazakhstan stock market on Wednesday resulted in the growth after falling for six trading days. KASE index on the basis of trades rose by 0.5% to 1644.66 points. Increase in completed trades showed the shares of KMG EP (2.1%), Kazakhmys (1.4%), Kazakhtelecom (1.1%), decrease - the shares of KKB (-1,7%). Activity of market participants was relatively high. The trading volume of KASE index on Wednesday rose to 5.2 times the previous day and reached 71.2 million tenge. Trading of shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Wednesday ended with multidirectional dynamics. Day was negative for stocks of companies of MMC, which suffered heavy losses amid falling commodity prices. Kazakhmys shares fell 2.8%, shares of ENRC - by 2.2%. KMG GDR rose by 0.14%. NSBK GDR fell by 2%. Today, the external background for the Kazakhstan stock market develops moderately negative for the shares of banks and negative for stocks of companies of MMC. Analysts of ASYL INVEST expect the fall 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 fell sharply during the session on Wednesday against the backdrop of a stronger U.S. dollar. The main drop in the indices occurred close to midday. Prices in commodity markets have experienced pressure, leading to a drop in stock prices sensitive to changes in commodity prices. The dynamics of the stock trades sector was the worst in the oil and gas (-3%) and the sector of basic materials (-2.9%). CRB Commodity Index, a global benchmark, which measures changes in prices for commodities, fell by 3%. June futures for WTI crude oil fell by 5.5% to $98.21 per barrel. The U.S. dollar rose by 0.9% relative to its major competitors. The main reason for the fall of the indices and commodity prices has served as investor concern about rising interest rates of Central Banks of the world, after the consumer price index in China has exceeded the purpose of the People's Bank of China and Bank of England said on expectations of inflation above 2% until the end of 2012. Also concerns among market participants were related to fiscal and debt problems in Greece. Corporate Records and released economic statistics didn't influence the trades. It was learned that the U.S. trade deficit widened from $ 45.4 billion in February to $ 48.2 billion in March. Economists forecasted a deficit of $ 47 billion. Exports in March rose by 4.6% from $165 billion to $172.7 billion. Imports rose 4.9% from $ 210.4 billion to $ 210.4 billion. A considerable increase in the deficit U.S. trade balance was affected by the oil prices. Now the U.S. GDP for the quarter I should be considerably revised downward, and this is a negative moment for the markets. - USA Today will publish an important economic statistics that can affect the course of trading shares. First of all, it's retail sales data for April and the data on the index of producer prices for April. Also in the U.S. today, there are data on the number of initial claims for unemployment benefit for the week ended May 7. Analysts of ASYL INVEST expect increased volatility in the U.S. stock market over the next 1-2 months. - Major stock indexes in Western Europe have completed the session with multidirectional dynamics. Negative influence on the trades had a decline in prices on commodity markets. June futures for Brent crude fell by 4.3% to $ 112.57 a barrel. Investors were worried about the coming out of the data on inflation in Germany and in China, as well as forecasts of the Bank of England regarding inflation. This has increased concerns about rising interest rates. Market participants also showed concern about the fiscal and debt problems in Greece. - Today, trading on European markets are likely to open with the fall on general negative background. Of the economic statistics today, there are data on industrial production of the eurozone and the UK in March. - Major Asian stock indexes fell today amid falling commodity prices and weak domestic corporate reports. Investors have shown concern about the fiscal and debt problems in Greece. - Oil prices are now showing recovery. June futures for WTI crude oil are currently increasing at 1.5%, the June crude oil futures for Brent - on 1.1%. Gold prices today are rising by 0.3%. The U.S. dollar is losing 0.1% against its major competitors. The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. Irbis Agency doesn't take responsibility for the opinions which are in given material. [2011-05-12]