The review of key events from "Asyl-Invest" JCS analysts for May 18, 2011

/IRBIS, May 18, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 18, 2011 Trading on the Kazakhstan stock market on Tuesday ended with a slight increase. KASE index increased by 0.22% to 1,617.85 points on the basis of trades. The growth of index was held by the movement of prices of shares of Kazakhmys by 3.4% and 2.9% - by NSBK. Falling by 4% and 1% respectively was detected for KKB and Kazakhtelecom shares. Trading activity of market participants was relatively low. The trading volume of KASE index fell 10.1 times comparing to the previous day and reached 8.1 million KZT. Trading in shares and depositary receipts of Kazakhstani issuers on the London Stock Exchange on Tuesday was negative. GDR of banks suffered the heaviest losses. KKB GDR fell by 3.42%, GDR NSBK - 1.4%. Among stocks of commodity companies shares of ENRC (-3%) were worse than the others. Shares of Kazakhmys trades fell 2%, GDR KMG - 1.11%. Today, the external background for the Kazakhstan stock market develops moderately negative. The opening of trades on European markets is likely to be held in positive territory. In addition, analysts of ASYL INVEST note the following events on world markets: - Aggressive sales during the Tuesday session led to a reduction in major U.S. indices to a minimum per month. Following the auction indices managed to recover most of the lost positions due to the dynamics of financial sector shares (+0.59%) and a weakening of U.S. dollar against its major competitors. The greatest losses were in shares of industrial companies (-1.16%), shares of the sector "basic materials (-0.62%). Further, a minus sign followed Sector of technologies (-0.29%), the weakness of which was caused by the financial results of the company Hewlett-Packard (HPQ) (-7.26%) for 2 quarter 2011 fiscal year, which was worse than analysts' expectations. The shares of Wal-Mart Stores (WMT) fell 0.93% despite better than analysts' expectations financial results for the 1 st quarter of 2012. Reporting company Home Depot (HD) for 1 quarter 2012 fiscal year has caused the growth of the company's shares to 1.14%. Shares rose, despite the statistics which appeared in the housing market, which generally turned out to be negative. Construction of new homes in April fell by 10.6% from 585 thousand to 523 thousand Economists had forecast an increase of 0.9%. Value of growth for March was revised from 7.2% to 12.9%. Construction of single-family homes in April fell by 5.1% to 394 thousand, multifamily construction - by 24.1% to 129 thousand indicator of future construction (building permits) in April, fell 4% after rising 7.5% in March. Published data on the housing market completely dashed achievements in March. Market for new housing in the U.S. is unable to withstand competition from the current housing market, the price at which is 25-30% lower. The number of new buildings located at the minimum levels is expected to improve in medium terms due to relatively high inventories of new homes. As soon as there is a significant improvement in terms of personal income of Americans and of employment, inventories of new homes will begin to shrink and thus the number of new buildings will begin to grow. Also disappointing was yesterday data on industrial production for April. Rate in April remained unchanged after rising 0.7% in March. Weakness of index was caused by the fall of the index of manufacturing by 0.4%. Engine production fell by 7% in April, which is the worst dynamics since March 2009. - Today's U.S. economic statistics are limited to the release of data on applications for mortgages from the MBA in May. These statistics will not influence the course of trades. Today the minutes of the last meeting of the U.S. Federal Reserve will be published, which incidentally, also influences the course of trades will not have, since to the main issues head of the U.S. Federal Reserve responded on the U.S. press conference after a meeting of U.S. Federal Reserve. Significant corporate reports will not be published. The dynamics of the auction in the U.S. today is likely to be largely determined by changes in the external background, and depend on the mood of market participants to take risks - Major stock indexes in Western Europe have completed the session on Tuesday with the fall for the fifth day in a row. The main negative influence on the trades had a speaker on the U.S. stock market. Market participants are negatively affected by data from the U.S. housing market and data on industrial production in the U.S. Economic statistics includes data on consumer price index in the UK. In April, it rose by 1% m or 4.5% of the MHC. Economists had forecast growth of 0.7% m or 4.1% MHC. - Today in the euro area, the data on the volume of production in the construction sector in March will be published. In the UK, minutes of the last meeting of the Bank of England, data from the labor market in March and April will be published. Analysts of ASYL INVEST expected growth in the major indices in Western Europe at the opening of tenders. - Major Asian stock indexes are now showing growth after a long decline. Dynamics on the commodity markets contributes to the indices growth. - Oil prices are now rising, the U.S. dollar weakens. July futures for WTI crude oil are growing today by 0.75%, the July oil futures for Brent - by 0.73%. Gold prices are currently increasing by 0.4%. The U.S. dollar today is decreased 0.27% relative to its main 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. [2011-05-18]