The review of key events and forecasts from "ASYL INVEST" JCS (Kazakhstan) analysts for August 18, 2011

/IRBIS, August 18, 2011/ - "ASYL INVEST" JCS (Almaty) has provided IRBIS with the review of key events and its investment ideas and forecasts for August 18, 2011 Analysts of "Asyl Invest" indicate that the news background for the domestic market today is moderately negative. On the Asian session, the main indicators show mixed trends. Oil prices are falling at a moderate pace, metals rise in the price. The stock market shows a moderate rate of decline. The main corporate idea in today's trading will be ENRC. Last day for the company came out two key events. First the company reported for the first half showed a 32% rise in revenue y/y driven by higher prices for industrial metals. Revenues for the period totaled $ 4.0 billion, EBITDA grew by 33.3% to $ 1.93 billion profit before taxes was $ 1.63 billion, or 33% higher profits in the same period last year. The results exceeded analysts' expectations in terms of revenue coincided with expectations of net profit. Overall, the results have been received positively, sending share prices of companies traded in London at 3.7%. The second news was reported that Alexander Mashkevich, who owns 14.59% shares of the company, is preparing to sell his stake. According to sources, the Israeli portal IzRus acts as the buyer's biggest commodity trader Glencore. According to analysts of the "Asyl INVEST", against the background of internal corporate issues in ENRC decision of the principal shareholder of the sale of shares may be perceived negatively by the market. Given the growth of ENRC in London, today growth of quotations on the domestic market is possible. Besides, ASYL INVEST analysts note the following events on world markets: - Yesterday growth of indices for the opening of trading as a result of the publication of reports of retail companies and a positive outlook for sales, soon gave way to recession. President of the Federal Reserve Bank of New York said yesterday that the Fed's decision to maintain rates at current levels until mid-2013 was "inappropriate policies at the wrong time". The event has caused by speculation that the Fed might not consider new economic incentives to prevent possible recession. - In the Asian session today, the equity markets decline. The Nikkei and the Shanghai Composite lost today by half of one percent, while the Hang-Seng index is trading just below yesterday's close. The reason for the pessimism of today are the assumptions that the new economic stimulus from the Fed would not be against the opposition of individual representatives of the Federal Reserve this action. In Japan, the pressure on the market also has a strong national currency. Shares of the leading exporters are falling in price by more than 1%. Investor sentiment was further damaged after Japan's exports in July fell by 3.3%, exceeding the rate of decline that had been expected by the market. - Yesterday during the day, the euro/dollar reached a mark of 1.4518, where it found great resistance. By the end of the day the euro fell after data on U.S. producer price index showed prices above market expectations. Today, the euro/dollar declines by 0.2% before the release of U.S. statistics on consumer price index. Economists expect a rise in prices in July by 0.2% compared to the previous month. Except for the volatile prices of food and energy prices also have to add 0.2%. In addition to inflation, today will be available weekly data on the number of initial claims for unemployment benefits (was expected to increase by 5 thousand), the index of leading indicators (was expected to increase by 0.2% in July), an index of business activity in Philadelphia County (was expected to decline 2 points in August from 3.2 the previous month) and sales of homes on the secondary market (was expected to increase by 2.7% in July). - Today the reason for buying was the strengthening of the euro to a mark of 1.45, which was a signal to increase the demand for risky assets. Industrial metals in the environment have been under pressure from weak statistics for Germany, reflecting weak demand for industrial products of the country in foreign markets. Prices for copper for delivery in three months fell by 0.9%, while lead lost 1.75% of the cost. Gold rose in price yesterday, again by 1.2% in response to fears of economic growth against a background of weak statistics for the leading economies in the world. - Today, commodity market shows mixed trends. Brent crude oil decreased by 0.2%, while the WTI - 0.3% after U.S. data on oil and petroleum products have shown their growth from the previous week. In addition, investors were disappointed statements made by some Fed officials voiced that it was premature at the last FOMC meeting measures to support the economy. Copper for delivery in three months today, going up in price by 0.6% in Shanghai and by 0.1% in New York after rising on the eve of copper in London. Gold today is trading just above yesterday's close. 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. [2011-08-12]