Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for July 8, 2011

/IRBIS. July 8, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for July 8, 2011. The analysts expect positive opening of trading on KASE on positive external background. During the day, following the forecast, dynamics of quotations of most stocks included into KASE index, will be mixed and multidimensional - many players will fix the profits before the weekend, and KASE index will end the day on neutral territory. Analysts of JSC "BCC Invest" expect the following developments on kazakhstani market today: - JSC "EP KazMunaiGas" announced operating results for the first six months of 2011. JCS "Exploration Production "KazMunaiGas" ("KMG EP" or the "Company"), including shares in the LLP "JV" Kazgermunai" (KGM),"CCEL" (CCEL)," PetroKazakhstan Inc."(PKI) and LLP"NSC" (NSC) for the six months of 2011 extracted 6,311thousands of tons of oil (258 thousand bpd), up 216 thousand tons or 3% less than in the corresponding period in 2010. Production Branch "Ozenmunaygaz" (OMG) has extracted 2,733 tons (111 thousand bpd), 218 thousand tons less than in the corresponding period last year". Embamunaygaz" (EMG) has extracted 1,382 tons (56 thousand barrels per day), or 17 tons more than the same period last year, making total production of OMG and EMG in the first six months of 2011 amount to 4,115 tons (167 thousand bpd), 201 thousand tons, or 5% less than during the same period in 2010 when this production results in the first half had a negative impact outages, power constraints the fields due to adverse weather conditions in March and April of 2011, as well as protest on OMG. As a result of the protest, which began May 26, 2011, the total lag in oil production since the beginning of the protest was about 174 thousand tons. KMG share in mining companies CCEL, KGM, CRP and the NSC for the six months 2011 amounted to 2,196 million tonnes (91 thousand barrels per day), which is 15 tonnes or 1% lower compared to the same period last year. According to analysts of JSC "BCC Invest", reducing the production level for the underlying assets of KMG EP is already built into current stock prices, and depositary receipts of the issuer, but if the leadership of KMG EP in the near future will not be able to resolve the labor conflict, it is extremely adversely affect the value of the company. Analysts of JSC "BCC Invest" believe that the labor dispute will be resolved in acceptable to all participants way and confirm the recommendation to "buy" on shares and depositary receipts of JSC "EP "KazMunaiGas" with target prices of 20,500 tenge per share and $23.60 per GDR. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - Russia is expected to publish data on monetary base in narrow definition. - in Germany at 12:00 (AST) to be published data on export and import, of payments and trade balance. In France, at 12:30 (AST) will be published data on the index of business sentiment and at 12:45 (AST) - balance of the budget. In Italy at 14:00 (AST) to be published data on industrial production. In the UK, at 14:30 (AST) to be published data on producer price index. - U.S. at 18:30 (AST) will publish labor market data: the change in the number of people employed in private industry and non- agricultural sectors, the level of unemployment, average wages and average weekly working hours. At 20:00 (AST) to be published data on 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 415 545 +31.33 Hold KKGBp 188 168 -10.64 Neutral Halyk Bank HSBK 328 415 +26.52 Hold Bank CenterCredit CCBN 505.04 608 +20.39 Buy Tsesnabank TSBN 942.85 1,030 +9.24 Neutral EP KazMunaiGaz RDGZ 17,600.01 20,500 +16.48 Buy Kazakhmys PLC GB_KZMS 3,210 3,870 +9.03 Hold ENRC PLC GB_ENRC 1,875 2,550 +17.33 Buy Kazakhtelekom KZTK 19,550 Review KZTKp 9,200 9,300 +1.09 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. [2011-07-08]