Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for June 22, 2011

/IRBIS. June 22, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for June 22, 2011. The analysts expect positive opening of trading on KASE on positive exterior background. During the day, following the forecast, the activity of market participants will be low, as the dynamics of movement of stocks quotations will be predominantly positive, and the KASE index will end the day with increase. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - Reserves of developed JSC "Polymetal" (RTS: PMTL) of gold Varvarinskoye deposit in Kazakhstan for JORC Code are estimated at 878 thousand ounces (27.3 tonnes) of gold and 57.5 thousand tons of copper, the company reported on results of Snowden Mining Industry Consultants audit of the resource base. The combined ore reserves comprise 30.6 million tons at an average grade of gold ore at 0.9 grams per tonne, copper - 0.5%. Estimate was made on the assumption that the gold price of $900 per ounce, Copper - $6,500 per ton. Our reserves will provide operation of the company for 7 years on a chain and cyanide for 12 years on a chain of flotation, the report said. Life of field can be extended to 5 years on a chain and cyanide for 6 years on a chain of flotation in the event of full inclusion of resource categories measured (measured) and indicated (identified) in the mine plan. It will be economically feasible in the preservation of the price of gold and copper at the current level in the long run. Shares (not including converted to ore reserves) are 1.1 million ounces (34.2 tonnes) of gold at an average grade of 0.8 grams per tonne and 76 tonnes. copper with an average grade of 0.44% to 42.4 million tons of mineralized rock. The assessment is based on the price of gold in the $ 1,150 an ounce, copper - $ 8400 per ton. "We will continue to seek opportunities to expand the reserve base of the deposit and to generate new option to create an asset," - said general director of "Polymetal" Vitaly Nesis, whose words are reported. Analysts of JSC "BCC Invest" believe that the message is positive for the stock price and the GDRs of JSC "Polymetal", and confirm their current recommendation to "buy" with target price of $22.60 per depositary receipt. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - today in Russia consumer price index will be published. - in France at 12:45 (AST) to be published data on the prediction of the productive sector of private companies, the indicators of business climate and prospects for the manufacturing sector. In the UK, at 14:30 (AST) will publish the proceedings of the Bank of England. At 15:00 (AST) to be published data on euro area industrial new orders, and at 20:00 (AST) - on consumer confidence. - in U.S. at 17:00 (AST) to be published data on applications for mortgages from an MBA, at 20:00 (AST) - an index of housing prices, and at 22:30 (AST) will be published FOMC decision on a discount rate. - today the reports of Hennes & Mauritz AB, FedEx Corp 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 411,50 583 +41,68 Neutral KKGBp 188 196 +4,26 Neutral Halyk Bank HSBK 333 415 +24,62 Hold Bank CenterCredit CCBN 500 608 +21,60 Buy Tsesnabank TSBN 942,85 1 030 +9,24 Neutral EP KazMunaiGaz RDGZ 18 150 20 500 +13,26 Buy Kazakhmys PLC GB_KZMS 2 920 3 870 +32,53 Buy ENRC PLC GB_ENRC 1 880 2 550 +35,64 Buy Kazakhtelekom KZTK 19 600 Review KZTKp 9 400,01 9 300 -1,06 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. [2011-06-22]