The review of key events from "Asyl-Invest" JCS analysts for May 26, 2011

/IRBIS, May 26, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for May 26, 2011 Trading on the Kazakhstan stock market on Wednesday ended with the growth of the second day in a row. KASE index on the basis of trades rose by 0.73%. In terms of index growth was observed for shares of BCC (3.6%), Kazakhmys (1.08%), NSBK (+1%). No shares of the index on Wednesday have suffered losses. Trading activity continued to remain low. The trading volume of KASE index on Wednesday totaled 14.8 million tenge. Trading of shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Wednesday ended with growth. Shares and depositary receipts of raw materials companies led the way for trading on the background of recovery in prices on commodity markets. Kazakhmys shares were up 1.7%, shares of ENRC - by 1.4%. GDR of KMG grew 1.5%. GDR of NSBK lost 0.6%. Today, the external background for the Kazakhstani stock market develops moderately positive. From European trading today, we expect price growth. According to trading KASE index probably will rise. In addition, analysts of ASYL INVEST note the following events on world markets: - Major U.S. stock indexes at the opening of trading on Wednesday declined against the weakness of foreign equity markets and disappointing data on orders for durable goods in April. However, the indices were on the negative territory not for long - support from the commodity markets made stocks sectors dependent on cyclical growth upwards. As a result, U.S. stock indexes showed modest growth. Thus, the three-day market decline has been interrupted. The best dynamics in the auction of shares among the broader market was led by the sector of the basic materials (1.66%). Further, with a plus sign played stocks of sector of the oil and gas (1.51%). Growth in these sectors was due to increased commodity prices. CRB Commodity Index rose 1.57%. July futures for WTI crude oil increased by 1.74% to $101.32 a barrel. Support for oil prices was provided by U.S. Department of Energy data on oil reserves, reporting the growth in demand. The U.S. dollar has not strongly influenced the prices. The value of the U.S. dollar index rose 0.06% to 75.924. Of the economic statistics in the United States on Wednesday were important data on orders for durable goods in April. The index fell 3.6% after a revised 4.4% growth in March, which was the biggest fall in October 2010. Economists forecasted a drop in rate at 2.5%. Without taking into account volatile transportation component, the index fell by 1.5%. Economists had forecast an increase of 0.5%. Basic orders for durable goods in April decreased by 2.6%, while economists had expected the fall by 2.1%. New orders were quite weak. The main decline occurred in the part of transport orders (-9.5%), sales of motor vehicles (- 4.5%). Given that orders for durable goods in March increased by 4.4%, their fall in April at 3.6% does not look so bad, there is no reason to talk about the beginning of new trend. - Today in the U.S. important economic statistics is expected. Today, there are data on U.S. gross domestic product for 1 quarter in the second evaluation, data on the number of initial claims for unemployment benefit for the week ended on May 21. In general, the dynamics at the auctions will likely depend on changes in foreign stock markets, commodity markets, domestic economic statistics and market sentiment to continue the growth. - The main stock indexes of Western Europe finished the session with growth due to the dynamics of medium banks' shares and growth on U.S. equity markets. The British FTSE 100 index up to the session on Wednesday showed moderate growth. Positive dynamics of the British index contributed to the rise in prices on commodity markets and restore of U.S. indexes after disappointing data on orders for durable goods in April. In addition, the GDP of Great Britain in I quarter has grown by 0.5%. German DAX index also showed moderate growth. Positive influence was put by message that the rating agency Fitch Ratings will not take rating actions with respect to German banks, as, according to the agency, the volume of the Greek debt on the balance sheets of German banks is completely controlled. - Today, the external background before opening of trading in Europe formed moderately positive. At the opening of trade growth is likely for the major indices in Western Europe. - Major Asian stock indexes are now showing growth due to the increase in commodity markets, the positive closure of trading in the U.S. - Oil prices today demonstrate multidimensional dynamics, the U.S. dollar is falling. July futures for WTI crude oil are currently increasing by 0.1%, while the July futures for Brent crude oil decreased by 0.1%. Gold today adds 0.2%, silver - 2.1%. U.S. dollar yields 0.4% to its main competitors. The euro/dollar is rising by 0.5%. 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 [2011-05-26]