The review of key events from "Asyl-Invest" JCS analysts for June 2, 2011

/IRBIS, June 2, 2011/ - "ASYL-INVEST" JCS (Almaty) has provided IRBIS with the review of main events and its investment ideas and forecast for June 2, 2011 Trading on the Kazakhstan stock market on Wednesday ended with a slight increase. KASE index on the basis of trades rose by 0.1% to 1629.72 points. Growth was observed for the shares of ENRC (+1.7%), KKB (0.7%), Kazakhtelecom (0.2%), decrease - for the shares of EP KMG (-1.6%), BCC (-0.2%). Activity of market participants was relatively high. The trading volume for shares of KASE index on Wednesday rose 29.2 times compared to the previous day and reached 63.3 million tenge. Trading of shares and depositary receipts of Kazakhstan issuers on the London Stock Exchange on Wednesday ended with multidirectional dynamics. The greatest losses has had the GDR of banks: KKB (-4%), NSBK (-3.23%). ENRC shares were down 1.54%, Kazakhmys shares - 1.52%. GDR of KMG rose 0.93%. Today, the external background for the Kazakhstan stock market develops negative. From European trading today, analysts of ASYL INVEST expect a fall. KASE index today is likely to fall, while the greatest loss may be incurred for the stocks of KKB, NSBK and ENRC. In addition, analysts of ASYL INVEST note the following events on world markets: - Major U.S. stock indexes on Wednesday had the worst session since mid-last year because of the published economic statistics that strengthened concerns about the disruption of economic recovery. Loss of the industrial index Dow Jones (-2.22%) was the worst since June 2010, the loss of index of wide market S & P 500 (-2.28%) - the worst since August 2010. Fall in the index was triggered by a change of statistics on employment by ADP in May, the statistics on the index of business activity in manufacturing ISM for May. Number of persons employed by ADP in May, after adjusting for seasonality has increased by 38 thousand compared to the previous month, while economists had forecast an increase of 175 thousand. Thus, the report from ADP indicates a sharp drop in employment in May. It is estimated by ADP that employment in the services sector grew by 48 thousand, while employment in goods production fell by 10 thousand after growth for 6 consecutive months. ISM index of business activity in the manufacturing sector in May is down from 60.4 points to 53.5 points. Economists forecasted a decline to 57.1 points. Value of the index in May was the lowest since September 2009. All the ten sub-indices suffered losses, but remained above the value of 50 points. Fall in major stock indexes on Wednesday intensified because of the news that ratings agency Moody's has downgraded Greek rating from B1 to Caa1, outlook - negative. Losses were observed in almost all sectors, while the greatest losses were observed for shares of the financial sector (-3.3%). Activity of market participants was high enough. The trading volume on the NYSE on Wednesday totaled 1,189.94 million shares, while turnover - $33.8 billion - Today the U.S. is expected to publish important economic statistics. On the focus of market participants will be data on the number of initial claims for payment of unemployment benefits for the week that ended on May 28. Also to be published performance data in non-agricultural sector for a quarter, data on labor costs for a quarter, data on industrial orders in April. In general, the activity of market participants is likely to be restrained, because tomorrow the U.S. will report on employment. - Major stock indexes in Western Europe have completed the session with drop. Negative influence on the trades has had released statistics on the PMI manufacturing index for May in the euro zone (particularly Germany) and in the UK. Negative opening of trading in the U.S. increased the drop of the indices. - The news of the lowered ratings of Greece by the rating agency Moody's came out late yesterday, so the indices in Europe today to fully play the news falling. In general, markets in Europe over the next 2 days will focus on data from the U.S. labor market and the debt problems of Greece. - Major Asian stock indexes are now showing a strong decline because of fears of disruption of economic recovery and falling metals prices. Oil prices are now falling, the U.S. dollar is falling. July futures for WTI crude oil are now down by 0.5%, the July crude oil futures for Brent - by 0.3%. Gold today is growing by 0.03%, silver falls by 1.6%. The U.S. dollar is growing by 0.1% against a basket of currencies. The euro/dollar rises by 0.25%. 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. [2011-06-02]