The review of key events from "Asyl-Invest" JCS analysts for May 20, 2011

/IRBIS, May 20, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 20, 2011 Trading on the Kazakhstan stock market on Thursday resulted in the growth. KASE index on the basis of trades rose by 1.2% to 1611.33 points. Contribution to the growth of the index have made stocks of ENRC (+4.9%), BCC (2.6%), KKB (1.3%), Kazakhmys (-0.6%). In negative territory trading was finished for the shares of NSBK (-0.6%). Trading activity of market participants was relatively high. The trading volume of KASE index on Thursday rose 2.3 times the previous day and reached 79.9 million tenge. Trading in shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Thursday ended with multidirectional dynamics. The rise in prices on commodity markets, the U.S. Federal Reserve report, success of the IPO by the world's largest commodity trader Glencore, data on retail sales in the UK had positive impact on the dynamics of the stocks of commodity companies at the opening of tenders. However, not everyone manages to end the trading at positive territory. Kazakhmys shares fell 1.5% in the bidding. ENRC shares rose 0.5%, GDR EP KMG - 0.8%. Banks have shown a weak trend. GDR NSBK on results of trades fell by 0.2%. Today, the external background for the Kazakhstani stock market develops neutral. European markets are likely to decline today. Following the auction analysts of ASYL INVEST expect reduce of the index KASE. In addition, analysts of ASYL INVEST note the following events on world markets: - Major U.S. stock indexes rose on the results of trades on Thursday. Growth at the opening of trading was supported by statistics released on the labor market. The number of initial claims for unemployment benefit for the week ended May 14, taking into account seasonal adjustments decreased by 29 thousand compared to the previous week and amounted to 409 thousand, economists forecast a decline to 420 thousand. Four- week average of the index increased by 1.25 thousand compared to the previous week to 439 thousand. The statistics released after the opening of trading disappointed market participants and led to a decrease in the indices. Negative on the markets was drawn by data on an index of activity of FRB Philadelphia in May, data on sales of existing homes in April. The index of business activity FRB Philadelphia in May fell from 18.5 points to 3.9 points, while economists forecasted growth of 20 points. Decrease was observed in almost all sub-indexes, except for the employment sub-index. Thus, business activity in the manufacturing sector of the industry declined sharply after the second consecutive month, after the peak values in 1 quarter (43.4 points) for many years. With sales of existing homes in April fell by 0.8% to 5.05 million, economists had forecast growth of 2%. The median price of a house in April rose 2.4% to $ 163.7 thousand. Indices reacted with decrease to the data on the index, "Philly Fed" and the data from the secondary housing market, but the decline was used by buyers. In addition, the weakening of U.S. dollar against major rivals supported the markets. In general, trading volume on the NYSE on Thursday totaled 872.19 million shares, while turnover - $ 26.1 billion - Today in USA no economic statistics will be published, so the session opening dynamics in USA will depend on changes on external background. - Major stock indexes of Western Europe finished the session on Thursday with growth. Bidding opened in positive territory, the positive dynamics of the opening of trading was demonstrated by shares of commodity companies against the backdrop of rising prices for raw materials. Positive on the markets was drawn by the data from the protocol of the last meeting of the U.S. Federal Reserve, according to which it is clear that raising the federal funds rate is a distant prospect. In addition, a positive for market has been drawn by the success of the IPO by the largest commodity trader of the world - the Swiss company Glencore. The company was placed in the middle of the price range of 530 pence per share. At the announced price Glencore business is valued at $ 53.31 billion Company raised approximately $ 10 billion, company's shares closed at a price of 530 pence, the highest price during the trading amounted to 553.17 pence. Positively on the dynamics of trading on the LSE influenced released economic statistics. Retail sales in the UK in April rose by 1.1%. Economists had forecast an increase of 0.8%. - Today, the stock markets of Western Europe may suffer correction after yesterday's growth. Of the economic statistics today, there are data on the current account balance of payments within euro-zone in March, data on consumer confidence of the Eurozone. Furthermore, in Germany today, there will be data on producer prices for April. - Major Asian stock indexes are now showing multidirectional dynamics, most of the major stock indexes show near-zero momentum. Support for indices in Japan, has a decision of the Bank of Japan to leave interest rate unchanged and to maintain incentives. - Oil prices are now rising, the U.S. dollar shows little change. July futures for WTI crude oil are currently increasing by 0.4%, the July crude oil futures for Brent - by 0.2%. Gold prices are currently increasing by 0.3%. 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. [2011-05-20]