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

21.10.11 16:22
/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 negative closure on Kazakhstani issuers in London the day before. Further, during the day, according to analysts, the dynamics on locale will depend on mood of foreign investors. Analysts of BCC Invest JCS note the following events on Kazakhstani market today: - KMG EP will review the amount of purchase from its parent organization shares in number of oil companies. The cost of acquisition by KazMunaiGas Exploration Production JCS shares in oil companies in the parent NC "KazMunayGas" will be revised, said CEO of KMG EP Askar Balzhanov at a meeting with investors in Almaty. "Not lower than the price a year ago, but not much higher", - said A. Balzhanov answering the question in what direction will review the transaction to acquire 50% stake in Mangistau Investments BV, which owns 100% shares of JSC" MangistauMunaiGas. "He said that the timing of the closing of the acquisition of MangistauMunaiGas planned the same - before the end of this year. In 2012, Balzhanov recalled, close of the acquisition of shares in "Kazakhoil Aktobe" and "Kazakhturkmunai" is scheduled. "The sum of these transactions will also be revised", - he added. It was reported that RD EP gets from its parent organization - the national company "KazMunayGas" 50% stake in LLC "Kazakhoil Aktobe", 51% of the Company "Kazakhturkmunai" and a 50% stake in Mangistau Investments BV, which owns 100% shares of JSC "MangistauMunaiGas." acquisition price of these three assets totaled $ 750 million, of which $ 350 million is the price of 50% stake in "Kazakhoil Aktobe", $ 70 million - "Kazakhturkmunai", $ 330 million - in Mangistau Investments BV Previously, Credit Suisse and Visor Capital provided the Board of Directors of KMG EP's opinion on the that the transaction amount to be paid for the acquisition of KMG EP's share in "MangistauMunaiGas" is fair from a financial point of view. Board of Directors was also granted to Deutsche Bank concluded that the transaction amount, payable to KMG for the acquisition of shares in "Kazakhoil Aktobe" and "Kazakhturkmunai" is fair to the company from a financial point of view. "Kazakhoil Aktobe" has the contract for subsoil Alibekmola and Kozhasai located in Aktobe region of Kazakhstan (west). The production volume in 2009 amounted to 930 thousand tons (19 thousand bpd), the proven and probable reserves are estimated at 30 million metric tons (217 million barrels of oil equivalent). The second shareholder is Caspian Investments Resources. "Kazakhturkmunai" has two contracts for subsoil use and develop five fields: West Yelemesov, Northeast Saztobe, Southeast Saztobe Mangistau region (the west), and Laktybay Karatobe South - in the Aktobe region. The production volume in 2009 amounted to 220 thousand tons (4.5 thousand barrels per day), the proven and probable reserves are estimated at 5.6 million tons (41 million barrels of oil equivalent). The second shareholder is Turkish Petroleum Corporation (TPAO). Analysts of BCC Invest JCS expect the following developments on international markets today: - Russia is expected to publish data on the monetary base in a narrow definition. - in France at 12:45 (AST) will be published indexes prospects of the productive sector and the business climate. In Germany at 14:00 (AST) to be published data on the IFO business climate index, the current situation and expectations. In the UK at 14:30 (AST) to be published data on public finances. At 15:00 (AST) will be published value of the ratio of budget deficit to GDP in the Eurozone. - no important publications in the U.S. economic statistics are expected. - today General Electric Co, Verizon Communications Inc, McDonald's Corp, Schlumberger Ltd, Honeywell International Inc, 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 245 320 +30.61 Neutral KKGBp 148 157 +6.08 Neutral Halyk Bank HSBK 210 322 +53.33 Buy Bank CenterCredit CCBN 315 608 +93.02 Buy Tsesnabank TSBN 865 1,030 +19.08 Neutral KazMunaiGaz RDGZ 14,299 15,900 +11.20 Buy Kazakhmys PLC GB_KZMS 2,030 2,440 +20.20 Buy ENRC PLC GB_ENRC 1,575 1,900 +20.63 Buy Kazakhtelekom KZTK 18,153.27 27,500 +51.49 Buy KZTKp 10,500 8,900 -15.24 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. [2011-10-21]