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

19.10.11 16:52
/IRBIS, October 19, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for October 19, 2011. Analysts of JSC "BCC Invest" now expect negative opening of trades amid fall in quotations of stocks and depository receipts of Kazakhstani issuers in London the day before. Further, during the day, according to analysts, external background will sufficiently affect the trading on KASE, so KASE index will probably end the day on neutral territory Analysts of BCC Invest JCS note the following events on Kazakhstani market today: - Shareholders of Shubarkol Komir JCS approved the transaction for the supply of TELF AG (Switzerland) of coal valued at more than $ 25 million, according to the protocol of extraordinary general meeting of shareholders of the company, the text of which is published on KASE. The total contract amount of sales is over 25 million U.S. dollars, the term of the contract not less than 10 years, the total coal supply at least 57 million tonnes", - was stated in the text of the protocol. "Shubarkol Komir" is a major coal producer in Kazakhstan. The current annual production capacity of about 6 million tonnes with a view to increase production to about 8-10 million tons. Controlling stake in Shubarkol Komir belongs to the Eurasian Industrial Company (75% of ordinary shares), a private company owned by three shareholders of their ownership, the founders of ENRC. The rest of the shares of JSC "Shubarkol Komir" belong to "Kazchrome" (in the ENRC). According to the JSC "BCC Invest", the message is neutral for the stock price of ENRC PLC, as it does not have a significant impact on the fundamentals of the company. Previously, the company reported that the consumption of coal from this plant is about 1 million tons, and the performance of option to purchase, ENRC will sell excess coal to third parties. JSC "BCC Invest" leaves the current recommendation for the issuer's shares at "buy" with a target price of ? 8.00 per share. Analysts of BCC Invest JCS expect the following developments on international markets today: - In Russia no publications of important economic statistics are expected. - At 14:00 (AST) will be published the current data and the balance of payments of the Eurozone, as well as data on Italian industrial orders and sales. At 15:00 (AST) to be published data on euro area production volume in the construction sector. - In the United States before the opening of trading at 17:00 (AST) to be published data on applications for a mortgage from an MBA, 18:00 (AST) - on consumer prices and the construction of new homes. During the day, is expected to publish economic digest the U.S. Federal Reserve "Beige Book". - Today Abbott Laboratories, United Technologies Corp, LVMH Moet Hennessy Louis Vuitton SA, American Express Co, US Bancorp, Freeport-McMoRan Copper & Gold Inc, Morgan Stanley, Danone, POSCO, BlackRock Inc, PNC Financial Services Group Inc, Bank of New York Mellon Corp, State Bank of India, and others are 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 258 320 +24.03 Neutral KKGBp 148 157 +6.08 Neutral Halyk Bank HSBK 210 322 +53.33 Buy Bank CenterCredit CCBN 329.90 608 +84.30 Buy Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 14,300 15,900 +11.19 Buy Kazakhmys PLC GB_KZMS 2,050 2,440 +19.02 Buy ENRC PLC GB_ENRC 1,550 1,900 +22.58 Buy Kazakhtelekom KZTK 18,200 27,500 +51.52 Buy KZTKp 10,200 8,900 -12.75 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. [2011-10-19]