Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for September 29, 2011

/IRBIS, September 29, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for September 29, 2011. Analysts of JSC "BCC Invest" now expect negative opening of trades amid falling quotations of stocks and GDR of Kazakhstani issuers in London the day before. 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 today: - ENRC PLC released revised policy on corporate governance. Eurasian Natural Resources Corporation PLC issued a press release according to which, the company revised its corporate governance policies (PKU). According to the best practices of corporate governance in the UK, the board of directors will consist of 11 members, six of whom are independent directors. Revision PKU concluded that the current Chairman of the Board of Directors J. Sittard must remain at the current position. The same applies to the Chief Executive Officer F. Vulis, who agreed to withdraw his resignation and continue to work as manager of the company. Of the changes in the composition of the Board of Directors: M. Dalman was appointed Senior Independent Director, the company introduced a new independent non-executive director T. Wilkinson. According to analysts of JSC "BCC Invest" the message is positive for the stock prices of ENRC PLC. Analysts of JSC "BCC Invest" believe that the consent F. Vulis to continue his role as CEO is a good signal and soon the pressure of the corporate conflict at the company quotes should loosen. Analysts of JSC "BCC Invest" reaffirm their current recommendation for ENRC PLC at 'BUY' with a target price of ? 8.00 per share. - Polymetal has published its operational and financial results for the first half of 2011. Key figures: in the first half of 2011, the Company has demonstrated a significant increase in profitability: net profit rose 77% to US $ 151 million, or US $ 0.39 per share, growth of adjusted EBITDA by 32% to US $ 249 million exceeded the 29% increase in revenue to the US $ 545 million, with adjusted EBITDA margin increased from 45% to 46%, total cash costs for the whole company, computed by the associated product, rose 23% to US $ 671 per ounce of gold equivalent, primarily as a result of 15 per dollar Inflation in Russia and began commercial production in Omolon cash costs per ounce is now higher than at existing oilfields, capital expenditure rose by 30%, with US $ 155 million to US $ 203 million as the Company continued the construction of several large- scale projects, and also increased its exploration, net debt increased by 17% to US $ 920 million, compared with US $ 785 million at the end of 2010. Debt ratios of the Company amounted to 1.9h adjusted EBITDA, while only 23% of the total debt was short term (ie less than 12 months). According to analysts of JSC "BCC Invest" this news is neutral for the company. The company has demonstrated strong financial results for the first half, which corresponds to our expectations, which can not be said about the operations showing a decline. According to the company's management in the second half of 2011 is expected to significantly increase production on Omolon Dukat and Albazino that can positively affect the present value of the company. Analysts of JSC "BCC Invest" to leave their current recommendation for equity securities of JSC "Polymetal" at the "BUY" with a target price of 22.60 per share. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - Today in Russia will be published data on international reserves and balance the budget. - Today in Britain at 12:00 (AST) to be published data on house prices, and at 14:30 (AST) - Credit and monetary aggregate M4. In Germany, at 13:55 (AST) to be published data on the unemployment rate. At 15:00 (AST) to be published data on euro area business climate index, the consumer, economic and industrial confidence, as well as an index of business sentiment in the services sector. In Germany, at 15:00 (AST) the Stabilization Fund will hold voting, which will address the possibility of providing more resources to countries most badly affected by the debt crisis. - Today in the U.S. before the opening of trading at 18:30 (AST) will be published the revised GDP data for the second quarter of this year, consumer prices, as well as data on applications for unemployment benefits. At 19:45 (AST) Bloomberg publishes the index of consumer comfort, at 20:00 (AST) to be published data on pending sales in the housing market, and at 21:00 (AST) Federal Reserve Bank of Kansas City will publish data on production. 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 265 Review KKGBp 148 Review Halyk Bank HSBK 237.52 Review Bank CenterCredit CCBN 350 608 +73.71 Buy Tsesnabank TSBN 903 1,030 +14.06 Neutral KazMunaiGaz RDGZ 13,600 15,900 +16.91 Buy Kazakhmys PLC GB_KZMS 1,970 3,450 +75.13 Buy ENRC PLC GB_ENRC 1,380 1,900 +37.68 Buy Kazakhtelekom KZTK 17,900 27,500 +53.63 Buy KZTKp 8,988 8,900 -0.98 Buy MREK MREK 1,182 1,130 -4.40 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. [2011-09-29]