Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for September 6, 2011

/IRBIS, September 6, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for September 6, 2011. Analysts of JSC "BCC Invest" now expect negative open of trades amid decrease in quotations of stocks and depository receipts of Kazakhstani issuers in London the day before. Further, during the day, according to analysts, in the local market dynamics will be mixed and multidimensional, and the index of KASE, probably, will end the day with decrease. Analysts of JCS "BCC Invest" expect the following development on Kazakhstani market today: - JSC "Exploration and Production KMG" reported financial and operating results for the first half of 2011. In the first half of 2011 KMG including shares in the LLP "JV "Kazgermunai" (hereinafter - Kazgermunai, KGM), CCEL (hereinafter - Karazhanbasmunai , CCEL) and "PetroKazakhstan." further - CRP) produced 6311 tons of oil (258 thousand barrels per day) to 216 thousand tons, or 3% less than during the same period in 2010 Proportion of KMG EP's production company CCEL, CGM, and PCR NBK for the six months 2011 amounted to 2,196 million tonnes (91 thousand barrels per day), which is 15 thousand tons, or less than 1% over the same period last year. Net income in the first half of 2011 amounted to 114 billion tenge (783 million U.S. dollars), up 14% over the same period in 2010, which is mainly due to higher oil prices, partially offset by lower production in result of illegal protests, increased operating taxes, operating expenses, selling expenses and administrative costs. In general, according to analysts of JSC "BCC Invest", published financial results of JSC "KazMunaiGas" are negative for stock prices, and depositary receipts of the company. Despite the growth in revenue and net income, these figures were significantly below analysts' expectations and the expectations of market participants. In addition to reducing production at PF Ozenmunaygaz due to labor conflict, a negative impact on the financial performance of the company had reduced exports by increasing domestic shipments, as well as faster growth in operating expenses. Analysts of JSC "BCC Invest" withdraw their recommendation on the shares and Depositary Receipts of JSC "Exploration Production KazMunaiGas" - JSC Kazakhtelecom has published its financial statements for the first 6 months of 2011. Key financial indicators for the first 6 months of 2011: Sales of services amounted to 80,845 million tenge (an increase of 10.14% compared to 1H 2010), operating profit amounted to 17 802 million tenge (an increase of 27.31% compared the 1st half of 2010) Share of profit of GSM Kazakhstan LLP was 16 189 million tenge (an increase of 39.01% compared to 1st half 2010) Net income from continuing operations was $ 29 394 million tenge (growth at 51.40% compared to 1st half of 2010) Cash flow from operating activities amounted to 24,043 million tenge (down 14.4% compared to 1st half 2010) Capital expenditure amounted to 9,473 million tenge ( down 27.23% compared to 1st half of 2010). Cash and cash equivalents as at 30.06.2011 was 73,207 million tenge (compared to 58,023 million tenge on 31.12.2010 and 48,859 million tenge on 30.06.2010). In general, the results of a preliminary analysis of JSC "BCC Invest", the financial results of JSC Kazakhtelecom are positive - the growth in revenues and profits meet their expectations, and in some segments even exceed them. Analysts of JSC "BCC Invest" withdraw their recommendation on common and preferred shares of Kazakhtelecom. - Board of Directors of RUSAL unanimously refused the offer of GMK "Norilsk nickel" to consider the sale of the Company's stake in MMC. UC RUSAL, the world's largest aluminum producer and owner of 25% of shares GMK "Norilsk nickel", informs that the Board of RUSAL, a detailed and thoroughly discuss the MMC from a letter offering to sell 15% stake in MMC, unanimously decided to refuse from the sale of 15% from 25% owned by Rusal shares of "Norilsk nickel" in connection with the proposed terms do not reflect the fundamental value of the blocking package of shares "Norilsk nickel", which is a strategic investment of RUSAL. According to analysts of JSC "BCC Invest" the message is neutral for the quotations of securities of MMC Norilsk Nickel and UC RUSAL, since such a result was most unexpected. Now, after an official denial UC RUSAL from the sale of shares of MMC Norilsk Nickel offer to buyback the minority shareholders and GDR on the same conditions, suggesting $ 306 per share or $ 30.6 per GDR, as analysts of JSC "BCC Invest" believe, may be grounds for speculation of shares and GDRs of MMC Norilsk Nickel. Currently, recommendations on these issuers are to be reviewed. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - In the next two days Russia is expected to publish data on consumer prices, and within a week - on the basic interest rates. - During the week Russia is expected to publish data on key interest rates. - Today at 15:00 (AST) will be published data on euro area GDP, indices of gross expenditure, consumption, private and public sectors. In Germany, at 16:00 (AST) to be published data on industrial orders in the UK are now expected to publish data on registrations of new cars. - Today, in the United States at 20:00 (AST) will be published the composite index for the ISM non-manufacturing sector. 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 282.00 Review KKGBp 150.00 Review Halyk Bank HSBK 248.01 Review Bank CenterCredit CCBN 385 608 +57.92 Buy Tsesnabank TSBN 940.29 1,030 +9.54 Neutral KazMunaiGaz RDGZ 14,500 20,500 +41.38 Buy Kazakhmys PLC GB_KZMS 2,480 3,500 +41.13 Buy ENRC PLC GB_ENRC 1,600 2,200 +37.50 Buy Kazakhtelekom KZTK 17,000 Review KZTKp 7,851 9,300 Review MREK MREK 1,251 1,130 -9.67 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. [2011-09-06]