The review of key events and forecasts from "ASYL INVEST" JCS (Kazakhstan) analysts for August 10, 2011

/IRBIS, August 10, 2011/ - "ASYL INVEST" JCS (Almaty) has provided IRBIS with the review of key events and its investment ideas and forecasts for August 10, 2011 Analysts of "Asyl Invest" indicate that the news background for the domestic market today is positive. Significant growth of the U.S. market on Tuesday may be a signal to domestic players to purchase dramatically cheapened shares of the domestic companies. "Asyl INVEST" expects growth of quotations on all issuers of a representation of the index. Rising prices for oil and industrial metals mining companies support the campaign. Shares of the banking sector in recent days have experienced a sharp and deep drop in prices, which makes them attractive for purchase. Besides, ASYL INVEST analysts note the following events on world markets: - At the last FOMC meeting was also discussed a number of measures or instruments to stimulate economic growth, which the regulator is prepared to apply as needed. Gave a powerful impetus to the news of the banking sector shares. Quotes of Bank of America and Citigroup Inc. soared in price by at least 13%. Shares of mining companies rose due to higher gold prices, Freeport-McMoRan Copper & Gold has risen in the capitalization by 7.5%. On Monday, lowering the U.S. credit rating by agency S & P has not allowed to reverse the negative trend in the markets after the release of positive statistics on the labor market on Friday. On Monday, the index of "large market" has lost 6.7%, down to the level of 1119.5 points. According to Department of U.S. employment, the number of new jobs in non-farm sectors of the economy amounted to 117 thousand well above market expectations of 85 thousand in private sector employment increased by 154 thousand to 41 thousand that higher expectations of economists. Unemployment unexpectedly fell by 0.1 percentage points to 9.1%. Last week, the statistics reflect a significant U.S. economic slowdown. The index of business activity in the services sector in July ISM Manufacturing fell to 52.7 points from 53.5 points the previous month. The market was expecting a moderate growth rate to 53.5 points. Industrial orders in June fell by 0.8%, which was within expectations of economists, however, the growth rate in May was revised to decrease to 0.6% from 0.8% at initial assessment. Economic fears of investors on Thursday endorsed the U.S. statistics on initial applications for unemployment insurance. Last week, the number of applications dropped to 400 thousand, which means that little progress in the labor market. A few supported the market but the U.S. data on employment from the agency ADP, which showed job growth in the private sector of the U.S. economy by 114 thousand, slightly above market expectations (1,000 thousand). In July and early August, the market disappointed the weak U.S. data on GDP, in the second quarter of 2011, growth of the economy was only 1.3%. Orders of durable goods fell 2.1% in June, and the ISM Manufacturing Index showed a significant reduction in business activity in the manufacturing sector of the U.S. economy. According to figures for August 1, the index fell to 50.9 points in July, the very lowest level since August last year. - The Asian market is growing after the FOMC statement that the U.S. base rate will remain at current levels until at least mid-2013. The Nikkei today is growing by 1.0% while the Hang-Seng and and Shanghai Composite - 3.2 and 1.9% respectively. Futures for U.S. indices are adjusted after today on the eve of the growth by 0.2%. - The oil market yesterday also was supported the data from API that supplies of oil and petroleum products in the U.S. last week fell. Copper yesterday had no time to fully win back losses, obtained in the morning, under pressure from very negative end of trading in the United States a day earlier. By the end of the trading day the price of metal has grown up on a promise to support the Fed's soft monetary policy for another three years to support economic growth. Gold continued to rally yesterday on economic concerns, reaching a new historic high at $ 740.4 an ounce. Oil and industrial metals rise today on positive U.S. monetary policy, and industry news. Thus, the price of Brent crude is currently increasing at 0.4% and WTI - 3.1% on expectations of decrease of stock of crude oil and petroleum products in the United States. Copper futures for delivery in three months are rising by 3.0% in Shanghai, while in New York in electronic trading - 1.7% after it became known that copper imports to China rose in July to 9.5% , the second consecutive month, after the fall of stocks in companies using the metal in the production. Gold continued to rise today, adding 0.5%. The present material is exclusively informative and isn't an offer or recommendation to conclude any deals with stock. "IRBIS" Agency doesn't take responsibility for the opinions, given in the present material. [2011-08-10]