Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for July 19, 2011

/IRBIS. July 19, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for July 19, 2011. The analysts expect negative opening of trades on KASE on negative external background. During the day, according to the forecasts, the dynamics of stocks included into KASE index, will remain mixed and multidimensional, and KASE index will end the day with moderate decrease. Analysts of JSC "BCC Invest" expect the following developments on Kazakhstani market today: - July 20, 2011 in the trade system of KASE held specialized auction on placement of long-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEUKAM-144 issue 4. Face value, KZT: 1,000.00. Payment date: 20/07/11. Date of circulation start: 07/20/11. Last circulation date: 19/07/23. Maturity date: 07/20/23. Circulation period: 12 years (4,320 days). Coupon frequency: 1 per year. Coupon payment date: July 20, annually. Declared level of accommodation, mln. KZT: 15,000.0. Trade subject: coupon - JSC "Aluminium of Kazakhstan" (Pavlodar region of Kazakhstan to the north) has increased its production capacity by 13.3% to 1.7 million tonnes of alumina per year, said the Eurasian Natural Resources Corporation (ENRC). Implementation of the project increase the capacity of the company started in 2007. Investments amounted to about $ 305 million According to the report, the yield on a new production capacity will allow the contractual obligations of the enterprise and close the demand for raw materials of JSC "Kazakhstan smelter", as well as to ensure the growth of local content and increase the export potential of Pavlodar region. - JSC "Aluminium of Kazakhstan" is planning to implement a pilot project, "Beyer - hydrochemical processing red mud" worth $ 11.4 million, has informed agency "Interfax- Kazakhstan", President of Diamond Ibragimov. A pilot project is designed for one year. "At the end of July will be a tender and the company that will offer the best conditions, will implement the project. It will be built a mini-factory, where new technology will be tested", - he said. According to the head of the company, is currently used for alumina production technology Bayer-sintering. When introducing new technology, will take one of redistribution - baking. This project will increase the output of traded alumina and reduce the cost of soda ash, coal and limestone. Will be reduced and emissions of oxides of carbon and nitrogen. "For example, today the company uses 180 tons of soda ash. The new technology will reduce its consumption by about 60%," - said Ibragimov. According to him, in the event of a successful pilot project to implement this technology in production will require 3 years non-stop business and about $ 580 million of investment. According to the JSC "BCC Invest", the data is moderately positive for the stock price ENRC PLC. The increase in production capacity for the production of alumina to 1.7 million tons per year corresponds to the investment program and, therefore, market expectations. JSC "BCC Invest" confirms the current recommendation to "buy" with target price of 9.40 pounds per share. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - In the coming days Russia is expected to publish data on the fiscal balance, retail sales, on investments in production capacity, the level of unemployment, disposable income and real wages. - at 15:00 (AST) to be published data on euro area production volume in the construction sector and the sentiment index in the business environment of the ZEW. In Germany, at 15:00 (AST) to be published data on the ZEW index of sentiment in the business environment and an index of the current situation. - in U.S. at 18:30 (AST) to be published data on the construction of new buildings and building permits. - today the reports of Apple Inc, Johnson & Johnson, Coca-Cola Co, Wells Fargo & Co, Novartis AG, Bank of America Corp, Yara International ASA, Goldman Sachs Group Inc, UnitedHealth Group Inc, VMware Inc, Bank of New York Mellon Corp , CSX Corp, State Street Corp, Yahoo! Inc, Peabody Energy Corp, HDFC Bank 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 385 545 +41.56 Hold KKGBp 188 168 -10.64 Neutral Halyk Bank HSBK 325 415 +27.69 Hold Bank CenterCredit CCBN 490 608 +24.08 Buy Tsesnabank TSBN 942.85 1,030 +9.24 Neutral KazMunaiGaz RDGZ 17,000.01 20,500 +20.59 Buy Kazakhmys PLC GB_KZMS 3,030 3,500 +15.51 Hold ENRC PLC GB_ENRC 1,926 2,200 +14.23 Buy Kazakhtelekom KZTK 19,700 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. [2011-07-19]