Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 9, 2011

/IRBIS. June 9, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 9, 2011. The analysts expect negative opening of trades amid decrease of quotations of stocks and depository receipts of Kazakhstani issuers in London yesterday, but, according to "BCC Invest" JCS forecast, in the afternoon, the negative impact of the external background will gradually disappear, and KASE index end the day near the neutral point or with a moderate decline. Analysts of JSC "BCC Invest" expect the following developments in international markets today: - OPEC failed to reach consensus on production quotas. The Organization of Petroleum Exporting Countries (OPEC) was unable to reach a consensus on production quotas at a meeting on June 8, said OPEC Secretary General Abdullah al- Badri, at a press conference after the meeting, was reported by Bloomberg. During the meeting, views were expressed about the need to take a decision to increase quotas. According to him, production of the cartel in May amounted to 29 million barrels per day. He also noted that the situation in Libya was not discussed. Later, the chairman of the meeting, Acting Oil Minister Mohammad Aliabadi said that formally the quotas until the remains at 24.845 million barrels per day. However, he stressed that OPEC countries were unable to reach a unanimous verdict. He also noted that the president of OPEC will be able, if necessary, to collect an extraordinary meeting, and yet within three months, analysts cartel would closely monitor the global market. Following the meeting, the experts during the live broadcast on the site of OPEC have expressed confusion about this decision cartel. They noted that the organization could announce that maintained the quota at the same level as did so many times. However, countries have opted to declare that failed to agree. According to analysts of JSC "BCC Invest", the decision of OPEC will not have significant impact on the quotations of oil in the medium term, and the current surge in quotes is speculative. - Board of Directors of ENRC PLC was abandoned by four directors. June 8, 2011 ENRC PLC released results of the annual general meeting of shareholders. Abdraman Edilbaev and Edward Utepov did not stand for reelection to the board of directors. Johannes Sittard, Chairman of the Board of Directors, announced that the group began a detailed review of ENRC corporate governance. This review will be conducted within three months, whose goal is to create a management structure that will meet the best UK corporate governance practices. The President also said: "In general, our view for 2011 remains unchanged, according to the situation, published in the Interim Management Statement on 12 May 2011. As a result of the EGM two directors have left the board: Kenneth Olisa and Sir Richard Sykes, against whom it was given to 83% of the vote. Analysts of JSC "BCC Invest" believe that this news will have some negative impact on share prices of ENRC PLC due to confirmed market expectations about the controversy on the board of directors and a possible change of control. In the daily survey from April 18, 2011, JSC "BCC Invest" referred to the disagreement on the board of ENRC PLC, while the media reported that several directors, without names, have expressed their desire to leave the board of directors. Another source said that Sir Richard Sykes, Ken Olisa and Sir Paul Judge were concerned about compliance with the UK regulator of financial markets. Until now, there is uncertainty regarding a claim FQM in $ 2 billion over the disputed asset Kolwezi. Positive aspect was the message that the position of the leadership on business activity in 2011 remains unchanged and, hence, the development strategy remains unchanged. Analysts of JSC "BCC Invest" leave their current recommendation to "buy" with target price of ?10.80 per share. - Board of Directors of Rusal did not consider the additional issue - the company. The Board of Directors of UC Rusal did not consider the new issue of shares, the company said. On Wednesday, that Rusal is considering the possibility of an additional issue in the amount of 7-10% of the share capital to debt settlement, said the president of Onexim Group, a minority shareholder in the aluminum company, Mikhail Prokhorov. "This is - one of the options that the board of directors of Rusal is considering," - said Mikhail Prokhorov. On the possibility of SPO "Rusal" in the amount of 7-10% of the capital earlier, citing unnamed sources reports Bloomberg. "The company has successfully reduced its debt, realizing payments on loans ahead of schedule from its own funds. Simultaneously, RUSAL is completing negotiations with a syndicate of Western banks to refinance the current debt. The transaction to refinance the debt does not assume any obligation to issue new shares or sell assets of the company, "- says Rusal. Wednesday evening, its position adjusted Prokhorov, on whose behalf the Onexim sent out this statement: "I would like to clarify that I neither confirm nor deny plans for Rusal to place new shares. As far as I know, the board never discussed this plan. I have stated that this matter is the responsibility of the company's management and its board of directors. I fully support the efforts of management to reduce the debt load the company through control over cash flow and refinancing debt on more attractive terms. "It was previously reported that Rusal expected to refinance about $ 11.3 billion of debt by September. This amount includes about $ 5.4 billion syndicated loan from international creditors of the company, about $ 4.5 billion debt to Sberbank (RTS: SBER) (SBER) (was taken for the purchase of a blocking stake in Norilsk Nickel (RTS: GMKN) (GMKN)) and about $ 2 billion debt to Russia's creditors (in particular, Sberbank, Gazprombank and VTB (RTS: VTBR) (VTBR). with foreign banks Rusal agreed on basic conditions of syndicated loan volume of $ 5.4 billion in March, included in Rusal "Bratsk Aluminum Smelter" (Bratsk) placed ruble-denominated bonds by 15 billion rubles, with maturity of 7 years at 8.3% per annum. Borrowings were also sent by Company to refinance debt. Rusal prepares issue Eurobonds for $ 1 billion and plans to register the program issue of ruble bonds worth about 30 billion rubles. Analysts of JSC "BCC Invest" believe that the message is neutral for the stock prices of RUSAL and leaves its current recommendation to "buy" with target price of 15.57 HKD. "BCC Invest" analysts are expecting the following events on international markets today: - Today in Russia is expected data on international reserves, the fiscal balance, exports, imports and trade balance. - Today in France 11:30 (AST) will be published data on the balance of jobs outside the agricultural sector, and in 12:30 (AST) - an index of business activity from the Bank of France. In Germany 12:00 (AST) will be published data on wages. In the UK, at 14:30 (AST) will be published data on the trade balance, and at 17:00 (AST) the Bank of England will publish the decision on interest rates. At 17:45 (AST) will be published on the ECB's decision to the basic interest rate. - Today, in the United States in 18:30 (AST) will be published data on the trade balance, according to first and second applications for unemployment benefits, at 19:45 (AST) - an index of consumer comfort from Bloomberg, and at 20:00 (AST) - wholesale inventories. 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 438.70 583 +32.89 Neutral KKGBp 198 196 -1.01 Neutral Halyk Bank HSBK 335.19 415 +23.81 Hold Bank CenterCredit CCBN 518 608 +17.37 Buy Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 18,600 20,500 +10.22 Buy Kazakhmys PLC GB_KZMS 3,000 3,870 +29.00 Buy ENRC PLC GB_ENRC 2,065 2,550 +23.48 Buy Kazakhtelekom KZTK 19,570 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. [2011-06-09]