Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 7, 2011

/IRBIS. June 7, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 7, 2011. The analysts are expecting a mixed and multidimensional opening on KASE on the ambiguous exterior background. During the day, the KASE index stock quotations dynamics will be depending on the mood of investors from external markets. Analysts of JSC "BCC Invest" expect the following developments in international markets today: - The company Max Petroleum PLC released news about its operations. Exploration wells NARS-1 on the site Narmundanak South of Block E had reached a total depth of 1,589 meters, electrologging diagram indicates the presence of oil-saturated of productive layers with thickness of 4 meters at depths ranging from 1,280 to 1,290 meters in the Triassic formations with porosities of 18 to 25%. A sample of fluid taken from a depth of 1,283 meters contains oil 32O according to API. The company is building the casing and production casing is ready for testing wells NARS-1 on the commercial viability within the next 60 - 90 days after obtaining permission from the government. Plot Borkyldakty after obtaining permission from the government was transferred to the mode of trial operation (Trial Production Project, TPP). TPP up to March 2013 allows the company to implement production at the site and carry out drilling of new exploration and appraisal wells in order to obtain additional information for the preparation of development plan for the deposit. The company returned to the well BOR-1 mode of operation and plans to carry out development well drilling BOR-3 in June of this year, using the rig IDECO after drilling NARS-1. On the stock quotes Max Petroleum PLC this message there was little influence. Likely, market participants felt that the discovery of oil in the area south of Block E in the short and medium term will have no significant impact on operating and financial performance of the company against the backdrop of the start of the high cost of deep drilling program subsalt exploration wells. Indeed, the outcome of drilling the first two deep subsalt exploration wells cost about $ 30 million each, scheduled for the current year will depend very much. If successful, at least one well expected cash flow in the future, according to our estimates, will grow many times, but also the need for financing will also increase, which could lead to an additional issue shares and smearing fraction of existing shareholders. In case of failure of tens of millions of dollars will be "thrown to the wind, which can lead to inability of the company to service their debts. Analysts of JSC "BCC Invest", given the significant decrease in quotations of the past few weeks, are changing the recommendation on the shares of Max Petroleum PLC from "hold" to "buy" with unchanged target price - 21 pence per share. However, buying shares of Max Petroleum PLC, as recommended by JSC "BCC Invest" is largely speculative and carries a high degree of risk, and therefore not suitable for all investors. - Rusal considers stock offering at $ 2 billion - the sources. Rusal is considering placing shares worth up to $ 2 billion to reduce debt load, said two sources familiar with the preparation of the transaction. The largest aluminum producer in the world can sell new shares in an amount equivalent to 7- 10 per cent equity, $ 1.5-2 billion, sources said, asked them not to call because of the preliminary nature of the negotiations. The deal is still under discussion at the level of large shareholders, sources said. According to analysts of JSC "BCC Invest", the news about the offering of shares in this time is uncertain for stock quotes of UC RUSAL. At first glance, increasing the number of shares in the market can play a negative effect, as usually happens with an increase in the number of shares, but the very purpose of reducing the debt burden, the confirmation of the transaction, should have a positive impact on the company as a whole. JSC "BCC Invest" leaves its current recommendation to "buy" with target price of 15.57 HKD per share. "BCC Invest" analysts are expecting the following events on international markets today: - Today in Russia no important economic statistics will be published. - Today at 15:00 (AST) will be published data on Eurozone retail sales, and at 16:00 - on industrial orders in Germany. In a few days in Great Britain will be published the real estate price index from Halifax. - Today in USA at 20:00 (AST) will be published the IBD/TIPP economic optimism index and the data on opened vacancies from JOLTs. Today the reports of Koninklijke Ahold NV, TPK Holding Co Ltd and others will be heard. Analysts of BCC Invest JSC are giving the following advice for investors in securities of issuers in internal market: ------------------------------------------------------------- Closing Target Potential, Issuer Code price price % Recommen- dation ----------------- ------- ------- ------ ---------- --------- Kazkommertsbank KKGB 425 583 +37.18 Neutral KKGBp 198 196 -1.01 Neutral Halyk Bank HSBK 320.01 415 +29.68 Hold Bank CenterCredit CCBN 518 608 +17.37 Buy Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 18,000 20,500 +13.89 Buy Kazakhmys PLC GB_KZMS 2,961 3,870 +30.70 Buy ENRC PLC GB_ENRC 2,050 2,550 +24.39 Buy Kazakhtelekom KZTK 19,550 Review KZTKp 9,500 9,300 -2.11 Hold MREK MREK 1,100 1,130 +2.73 Hold ------------------------------------------------------------- The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. Agency Irbis doesn't take responsibility for the opinions which are in given material. [2011-06-07]