Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for July 15, 2011

/IRBIS. July 14, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for July 14, 2011. The analysts expect negative opening of trades amid decrease of stocks and depository shares of Kazakhstani issuers in London the day before. During the day, on the forecast, the dynamics of quotations of most stocks included into KASE index will be mixed and multidimensional, and KASE index will end the day with decrease. Analysts of JSC "BCC Invest" expect the following developments on Kazakhstani market today: - Kazakhmys will invest 23 billion tenge (current 146.13/$ 1) to restore power on the N8 Ekibastuz-1 (Pavlodar region, northern Kazakhstan), the company said. Reconstruction work on the power unit was started in 2009, and put it into operation in 2012. To date, disbursed 64% of the total project cost to restore power, holds 40% of all the work required. Its launch will allow the station to increase its production capacity to 3 MW and in 2013 to develop the company to 18 billion kW / h of electricity. To date, the control assembly is made of cylinders of internal-pressure turbine generator. Ongoing maintenance of the turbine generator and completed the dismantling of the precipitator. In July of this year, began to supply electrical equipment for an electrostatic precipitator production company "Alstom Power Stavan." In general, the reconstruction program covers the replacement boilers, turbines, electrical equipment and installation of modern equipment for automatic control, and commissioning of an electrostatic filter. In the recovery operation involved representatives from 10 contractors, this will allow to create about 500 temporary jobs each year. By the start of the work unit N8 station will create 25 permanent jobs. N8 power unit was commissioned in 1984 and stopped in 1995 due to reduced demand in the electricity market. After the withdrawal of the unit out of service parts and ground support equipment used to replace obsolete equipment in other operating power units. Ekibastuz-1 on a par is controlled by a group Kazakhmys and public funds, "SK". According to the JSC "BCC Invest", the message is neutral for the stock prices of Kazakhmys PLC, since they correspond to the stated plans of the company and market expectations. Analysts of JSC "BCC Invest" reaffirm their current recommendation to "hold" with a target price of 15.00 pounds per share. "BCC Invest" analysts are expecting the following events on international markets today: - Russia is expected to publish data for fiscal balances and the monetary base in narrow definition, but in the next few days - on industrial production. - at 12:00 (AST) to be published data on the Eurozone registration of new vehicles, at 15:00 (AST) - trade balance, and at 22:00 (AST) - the results of stress tests European bank regulator from EBA. - in U.S. at 18:30 (AST) to be published data on the Consumer Price Index and the Industrial Index Empire Manufacturing, at 19:15 (AST) - Industrial production and capacity utilization, and 19:55 (AST) - for consumer confidence from the University of Michigan. 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 385 545 +41.56 Hold KKGBp 188 168 -10.64 Neutral Halyk Bank HSBK 329 415 +26.14 Hold Bank CenterCredit CCBN 490 608 +24.08 Buy Tsesnabank TSBN 942.85 1,030 +9.24 Neutral KazMunaiGaz RDGZ 17,050.01 20,500 +20.23 Buy Kazakhmys PLC GB_KZMS 3,200 3,500 +9.38 Hold ENRC PLC GB_ENRC 1,926 2,200 +14.23 Buy Kazakhtelekom KZTK 19,600 Review KZTKp 9,210 9,300 +0.98 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. [2011-07-15]