Review of key events and forecasts from ASYL INVEST JCS (Kazakhstan) analysts for November 16, 2011

/IRBIS, November 16, 2011/ - ASYL INVEST JCS (Almaty) provided IRBIS with the review of main events and its investment ideas and forecasts for November 16, 2011. Analysts of ASYL INVEST JCS note the following tendencies on Kazakhstani and world markets: - Trading in Asia today is in negative territory on concern about the euro area, due to record growth in government bond yields of richer countries in the region, France, Belgium and Austria. Japan's Nikkei today is reduced to 0.7%, while China's Hang-Seng and Shanghai Composite lost 1.5% weight. Futures on U.S. indices today fall within 1%. Mario Monti, today appointed to the position of prime minister of Italy, will present the new government to President, Giorgio Napolitano. Earlier, Mario Monti, was unable to obtain the consent of the political parties for their participation in the so- called technical office for talks on Monday. Lack of support from political parties could jeopardize the implementation of government measures to reduce the budget deficit. - Commodity markets today show a negative trend. Quotes of WTI oil and Brent went down within 1%. Copper in electronic trading in New York drops by more than 1%, gold loses 0.8% of value. - The euro/dollar today is trading well below the mark of 1.35, falling in morning trading at 0.6%. The dynamics of the reflected investors' concerns about the outcome of today's auction of government bonds of France and Spain after the Italian bonds fell in price. Yesterday, trading showed that the bonds of France, Belgium, Spain and Austria, investors demand a higher premium to bond yields in Germany. Spreads on bonds reached these countries have reached record highs during the existence of the Eurozone. - The news background today is very negative for shares of mining companies in Kazakhstan, quotes of Kazakhmys, ENRC and EP KMG may show significant reduction. - Analysts of ASYL INVEST recommend to "buy" on Halyk Bank common stock, received good support at around 200 tenge. At current price levels, 218 tenge per share, they look extremely attractive. In fact, stocks are estimated at a book value that is not reasonable for the Bank, which has high growth prospects of net income and return on equity (ROE) due to higher net interest margins, reduce costs to the formation of provisions, effective control of operating expenses, the presence of significant levels of liquidity and low debt burden. - Analysts of ASYL INVEST recommend investors to "buy" preferred shares of Kazakhtelecom. As previously mentioned stocks have high growth potential after the company announced the sale of its 49% stake in mobile operator LLC "GSM Kazakhstan". Selling shares at a much higher price (of mobile communications sector, even in the current situation is estimated at more than 9 annual profits) than it is recorded on the balance sheet, positive impact on its net profit in 2012 and is likely to give big dividends to shareholders up to 2012. This material has only informative 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 given in this material. [2011-11-16]