Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for October 12, 2011

/IRBIS, October 12, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for October 12, 2011. Analysts of JSC "BCC Invest" now expect neutral opening of trades on ambiguous external background. Further, during the day, according to analysts, dynamics on the local market will be mixed and multidimensional, and KASE index will probably end the day near the neutral point. Analysts of JCS "BCC Invest" note the following significant events on Kazakhstani market today: - Director of ENRC agreed to implement an option to acquire the remaining 75% of the ordinary shares of Shubarkol Komir JCS from "Eurasian industrial company". This decision is subject to approval by independent directors, the report indicates ENRC. 2 million 638 thousand 103 ordinary shares of "Shubarkol Komir" are planned to be bought for $ 600 million, ENRC will also have to assume the debts of the company in $ 50 million. This call option was provided to ENRC in connection with the acquisition by this holding of 25% shares of Shubarkol Komir JCS worth $ 200 million in February 2009. Originally, the call option can be implemented (at the discretion of ENRC) at any time prior to January 31, 2011, after the option was extended to 31 January 2012. According to the JSC "BCC Invest", the economic effect from the consolidation of the JSC "Shubarkol Komir" will be positive in the long run. In principle, the company has no pressing need to increase the production of coal, since the energy division, and so is selling about 30% -35% of the coal to external customers, as unused in manufacturing. According to management the purchase of an asset is fully consistent with the company's strategy to maintain low production costs and expand the resource base. Management believes that the purchase of an asset will not bring significant effect on the company's financial results in the short term. JSC "BCC Invest" affirms the current recommendation to "buy" with a target price of 8.00 pounds per share. Analysts of JSC "BCC Invest" expect the following developments on international markets today: - Today in Russia is expected to publish data on consumer price index, and over the next two days - to balance the budget since the beginning of the year. - In France at 11:30 (AST) to be published data on the consumer price index, and at 12:45 (AST) - Balance of Payments. In Germany at 12:00 (AST) will be published data on the index of wholesale prices. In the UK, at 14:30 (AST) to be published data on the labor market, in particular on applications for unemployment benefits, unemployment rate and the average wage. At 15:00 (AST) to be published data on euro zone industrial production in August. - In the United States at 17:00 (AST) to be published data on applications for mortgages to MBA, the index of optimism from small business NFIB, at 20:00 (AST) - the opening of vacancies from JOLTs, and is expected to publish the protocol of the last meeting of the Federal Committee operations on the open market the U.S. Federal Reserve. - Today PepsiCo Inc, State Bank of India, ASML Holding NV, Evraz Group SA, and others will be reporting. 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 260 Review KKGBp 148 Review Halyk Bank HSBK 230.05 322 +39.97 Buy Bank CenterCredit CCBN 334 608 +82.04 Buy Tsesnabank TSBN 903 1,030 +14.06 Neutral KazMunaiGaz RDGZ 13,780 15,900 +15.38 Buy Kazakhmys PLC GB_KZMS 1,980 2,440 +23.23 Buy ENRC PLC GB_ENRC 1,460 1,900 +30.14 Buy Kazakhtelekom KZTK 18,200 27,500 +51.10 Buy KZTKp 9,500 8,900 -6.32 Buy MREK MREK 1,299 1,130 -13.01 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. [2011-10-12]