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

/IRBIS, September 19, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for September 19, 2011. Analysts of JSC "BCC Invest" now expect negative opening of trades on negative external background. Further, during the day, according to analysts, on 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" note the following events on Kazakhstani market: - Board of Directors of JSC "EP "KazMunaiGas"approved the repurchase program of ordinary shares of the Company. JCS "EP "KazMunaiGas" ("KMG EP" or the "Company") announces the decision of the Board of Directors approve repurchase program of ordinary shares of KMG EP. Under this program, the Company intends to acquire common shares (KASE: RDGZ KZ), located on the Kazakhstan Stock Exchange (KASE) and Global Depository Receipts (GDR) (LSE: KMG LI), on the London Stock Exchange (LSE), worth $ 300 million. The program is designed to acquire the end of 2012 and will begin shortly, which will be announced later. Shares and GDRs will be acquired at the prevailing market price at the time of purchase. The Board of Directors believes that the current market price of shares and GDRs of the Company does not reflect its real value and significant potential based on the existing resource base, and opportunities for business development and sustainable financial position. In this regard, the Board of Directors of KMG EP has decided to buy back part of the outstanding common shares on the market and GDRs of the Company. Simultaneously with the implementation of repurchase program of ordinary shares and GDRs of EP KMG will continue the previously announced repurchase program of preferred shares, calculated to the end of 2011 is expected that the National Company "KMG" will not sell its shares of KMG EP. The company has significant financial resources and its production activity provides additional cash flow. This allows KMG to continue to implement its development strategy through exploration, acquisitions and investments in oil and gas assets. According to the JSC "BCC Invest", the message is positive for stock prices, and depositary receipts of the company, since it demonstrates the confidence of management that the securities of JSC "Exploration Production "KazMunaiGas" have significant growth potential value. Analysts of JSC "BCC Invest" recalled their recommendation on the shares and depositary receipts of the Company for review after the publication of financial statements for the 1st half of 2011. In the near future JSC "BCC Invest" will release a new survey on the issuer with the updated recommendations and target prices. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - In the coming days Russia is expected to publish data on unemployment, on producer prices, retail sales, according to disposable income, according to real wages and on investments in production capacity. - Russia is expected to publish data on the unemployment rate, retail sales, according to disposable income, the real wages and investment in productive capacity. - At 15:00 (AST) to be published data on euro area production volume in the construction sector. - In U.S. at 20:00 (AST) will be published Housing Market Index of NAHB. 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 285 Review KKGBp 158.40 Review Halyk Bank HSBK 247 Review Bank CenterCredit CCBN 369 608 +64.77 Buy Tsesnabank TSBN 870 1,030 +18.39 Neutral KazMunaiGaz RDGZ 14,300 Buy Kazakhmys PLC GB_KZMS 2,420 3,500 +44.63 Buy ENRC PLC GB_ENRC 1,595 1,900 +19.12 Buy Kazakhtelekom KZTK 18,550 27,500 +48.25 Buy KZTKp 8,560 8,900 +3.97 Buy 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. [2011-09-19]