The review of key events from "Asyl-Invest" JCS analysts for May 24, 2011

/IRBIS, May 24, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 24, 2011 Trading on the Kazakhstan stock market on Monday ended with the fall in the negative external background. KASE index on the basis of trades fell by 3.22% to 1,558.91 points. Index KASE, thus, showed the largest drop in one day from March 15, 2011. The fall in prices observed across virtually the entire spectrum of the most liquid stocks. The greatest losses up to the day were experienced by KMG (-5.8%). Further, with a minus sign there were stocks of KKB (-4.7%), ENRC (- 4,6%), NSBK (-3.1%), BCC (-2.9%), Kazakhmys (-1,6%) . A drop in prices was accompanied by an increase in trade turnover. The trading volume of KASE index on Monday rose 1.7 times compared to the previous day and reached 48.6 million tenge. Trading in shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Monday ended with decrease. Shares and depositary receipts were under aggressive sales due to concerns of market participants regarding the budget and debt problems of the eurozone. Shares of commodity companies have demonstrated a significant drop amid falling commodity prices. GDR KMG EP by the results of the trades fell by 4.61%, Kazakhmys shares - by 3.36%, shares of ENRC - by 2.63%. GDR of banks also suffered a deep correction. KKB GDR fell by 4.72%, GDR NSBK - by 2.06%. Today, the external background for the Kazakhstan stock market develops moderately negative. European markets are likely to rebound today, which may be played only on Thursday. As a result of today's trading analytics of ASYL INVEST expect the reduce of KASE index. In addition, analysts of ASYL INVEST note the following events on world markets: - Major U.S. stock indexes on Monday had suffered substantial losses amid falling commodity prices and a stronger U.S. dollar due to concerns of market participants about a slowdown in global economic recovery and the debt problems of the eurozone. U.S. stock indexes fell sharply at the opening. In further trades serious attempts to win back the morning decline were not made. The euro has strengthened relative to the U.S. dollar, which rose to maximum values of nearly two months. As a result of Monday, the U.S. dollar increased by 0.94% against a basket of currencies. As a result, prices in commodity markets have experienced pressure. CRB Commodity Index, a global benchmark, which measures changes in prices for commodities, fell by 1.37%. July futures for WTI crude oil fell by 2.4% to $ 97.7 per barrel. A sharp drop in commodity prices and significant strengthening of the dollar led to a maximum daily fall of the major U.S. stock indexes per month. Stock volatility is thus increased. Stock volatility index VIX rose 4.82% to 18.27. During the auctions the index VIX exceeded 20. - Today in U.S. there are data on sales in the primary market in April, data for the index of manufacturing activity FRB Richmond in May. Dynamics at the opening of trading will likely be determined by changes in the external background. Analysts of ASYL INVEST do not exclude the rise of the index after a significant two-day drop to a minimum for the last month. - Major stock indexes in Western Europe finished the session on Monday against the backdrop of a significant drop in investor concerns regarding fiscal and debt problems of the eurozone. Anxiety of investors was provoked by the news that the international rating agency Fitch Ratings downgraded the long- term issuer default rating to BB + Greece to B +. The British FTSE 100 index fell 1.9% in the trades as a result of falling share prices of commodity companies amid falling prices for base metals. Significant losses also were suffered by shares of airlines on the background of the news that a cloud of volcanic dust from the Icelandic volcano can reach the UK by Tuesday. German DAX index on the basis of trading on Monday fell by 2% to the minimum values for more than 1 month. Negative influence on the stock trades in Germany in addition to concerns about the fiscal and debt problems of the eurozone had put the news that the financial institution Commerzbank (CBK) will increase its equity capital by 5.3 billion euros by selling shares to 45% discount. Commerzbank shares on the trade results fell by 5.3%. Also negative for stock trading on the main market of Western Europe was economic statistics. Eurozone PMI manufacturing index for May fell 58 points to 54.8 points. Economists forecasted a decline to 57.5 points. - Today, the stock markets of Western Europe are likely to increase at a public auction. Further dynamics of trade will depend largely on changes in commodity and currency markets, as well as economic statistics. Today in Germany there are data on GDP for a quarter, data from the IFO index for May business climate index of the current situation, the index of expectations. Also today, there are data on the new industrial orders in eurozone in March. - Major Asian stock indexes are now showing multidirectional dynamics, most of the major stock indexes show a slight increase. - Oil prices are now rising, the U.S. dollar shows little change. July futures for WTI crude oil currently are increasing by 0.5%, the July crude oil futures for Brent - by 0.5%. Gold prices today have not changed. 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. [2011-05-24]