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

/IRBIS, August 19, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for August 19, 2011. The analysts expect negative opening of bidding at KASE amid sharp decrease of quotations of stocks and depository receipts of Kazakhstani issuers in London the day before. During the day, according to the forecasts, on the local market the dynamics of trading will be negative, and KASE index will possibly end the day with significant decrease. Analysts of JCS "BCC Invest" expect the following developments on Kazakhstani market today: - Ministry of Finance of Kazakhstan placed on KASE August 18 11.5 million MEUKAM-180 under the fourth edition for 5.50% per annum. August 18, 2011 in the trade system of KASE specialized auction on placement of long-term treasury bills of the Ministry of Finance of the Republic of Kazakhstan MEUKAM-180 Release 4 with maturity of 15 years (5400 days) and a frequency of coupon payment every year was held. According to the JSC "Central Depository of Securities" (Almaty), all transactions on placement MEUKAM-180 of fourth edition by the end of calculations based on trades had been executed. 14.8% of the total bonds were purchased by pension market subjects, 52.2% - STB, 4.3% - STB clients, 1.7% - by broker-dealer companies, 27.0% - clients of broker-dealers. - Almaty Akimat and Kazkommertsbank signed a Memorandum of public-private partnership to address issues of socio-economic development. The document was signed by Akim of Almaty Akhmetzhan Yesimov and Chairman of the Board of JSC "Kazkommertsbank" Nina Zhusupova. As part of the socio-economic development of Almaty 2011- 2012, Kazkommertsbank plans to provide funding for an amount not less than 150 billion, including the following areas: housing - to 75.0 billion tenge, construction and completion of infrastructure including hotels and tourist sites and sports - to 60.3 billion tenge, financing small and medium-sized businesses and mortgage lending - up to 14.67 billion tenge in the sponsorship of culture and philanthropy - to 0.03 billion. For its part, Almaty city administration will create a permanent working group with representatives from the Bank's project companies, city departments to effectively address issues related to the sale of the Memorandum. The Working Group carries out the legislation in the Republic of Kazakhstan coordination activities. In particular, it concerns the registration of title deeds for land and issuance of the APZ, the issuance or renewal of technical conditions of engineering services, building permits, approval of draft service city, providing expert assistance for issues that arise during the sale of the Memorandum. According to the JSC "BCC Invest", the message is neutral for the stock price and the GDR of JSC "Kazkommertsbank". On the one hand an increase in the loan portfolio of 150 billion tenge in cooperation with the State is a good prospect for the bank, but an increase in the share of media concentration in the construction sector in the country negatively affects the credit risk of the bank. Analysts of JSC "BCC Invest" leave the current recommendation to "hold" with a target price of 545 tenge 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 Germany at 12:00 (AST) to be published data on producer price index and in the UK at 14:30 (AST) to be published data on public finances. - no important publications of the U.S. economic statistics are expected. - today will be reporting China Construction Bank Corp, MGM China Holdings Ltd, Yanzhou Coal Mining Co Ltd, 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 290 545 +87.93 Hold KKGBp 144 168 +16.67 Neutral Halyk Bank HSBK 250 415 Review Bank CenterCredit CCBN 410.88 608 +47.98 Buy Tsesnabank TSBN 940.29 1,030 +9.54 Neutral KazMunaiGaz RDGZ 14,000 20,500 +46.43 Buy Kazakhmys PLC GB_KZMS 2,500 3,500 +36.19 Buy ENRC PLC GB_ENRC 1,600 2,200 +37.50 Buy Kazakhtelekom KZTK 18,190 Review KZTKp 8,300 9,300 +12.05 Hold MREK MREK 3,000 1,130 -62.33 Hold ------------------------------------------------------------- The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. IRBIS Agency doesn't take responsibility for the opinions which are in given material. [2011-08-19]