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

22.07.11 15:00
/IRBIS. July 22, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for July 22, 2011. The analysts expect positive opening of trades on KASE amid growth of stocks and depository receipts in London the day before. 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 increase. Analysts of JSC "BCC Invest" expect the following developments on Kazakhstani market today: - Construction work on the project of Eurasian Natural Resources Corporation (ENRC) creation of anode production in Pavlodar region (north Kazakhstan) has been completed by 60%, has informed agency "Interfax- Kazakhstan", President of JSC "Kazakhstan smelter" (KAS) Almaz Ibragimov. According to him, at the present time the company started the anode furnace lining, which is scheduled for completion by the end of October this year. It was reported that this project is based on the KAS. Equipment for anode production was commissioned by European enterprises and Buss Riedhammer. Power plant for the production of baked anodes is worth about $ 250 million, with the amount of production of 150 thousand tons per year. To complete its construction in 2012. With the launch of the production there will be no need to buy raw materials abroad. To produce 1 ton of aluminum 500 kg of anodes is required. Raw materials for the anode plant will be supplied from Kazakh enterprises: the calcined coke from the Pavlodar petrochemical plant, coal pitch will provide "ArcelorMittal Temirtau". The commissioning of this plant will also reduce production costs, improve quality aluminum and will create about 500 jobs. According to the JSC "BCC Invest", the message is neutral for the stock prices of ENRC PLC, as it contains fundamentally new information. The project to create the anode plant is declared in the investment program of the company, and of the progress in implementing the project meets the expectations of the market. Analysts of JSC "BCC Invest" support 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: - Russia is expected to publish data on monetary base in narrow definition. - in France at 12:45 (AST) to be published data on the indicator of business climate index for the prospects of the productive sector and the manufacturing sector is forecast by private companies. In Germany, at 14:00 (AST) IFO will publish indicators on business climate, according to the current situation and expectations. In Italy at 14:00 (AST) will be released retail sales data. At 15:00 (AST) to be published data on euro area on new industrial orders. - In USA, no important economic statistics is expected; - Today the following enterprises will publish their reports: General Electric Co, Schlumberger Ltd, McDonald's Corp, Vodafone Group PLC, Caterpillar Inc, Syngenta AG, Verizon Communications Inc, Syngenta AG, MMC Norilsk Nickel, CaixaBank, and others. 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 390.55 545 +39.55 Hold KKGBp 188 168 -10.64 Neutral Halyk Bank HSBK 320 415 +29.69 Hold Bank CenterCredit CCBN 490 608 +22.83 Buy Tsesnabank TSBN 942.85 1,030 +9.24 Neutral KazMunaiGaz RDGZ 17,550 20,500 +16.81 Buy Kazakhmys PLC GB_KZMS 3,200 3,500 +9.38 Hold ENRC PLC GB_ENRC 1,850 2,200 +18.92 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. [2011-07-22]