Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for November 22, 2011

/IRBIS, November 22, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for November 22, 2011. Analysts of JSC "BCC Invest" now expect negative opening of trades on negative external background. Further, during the day, according to analysts, the dynamics will be mixed and multidimensional, but the KASE index will, probably, end the day with decrease. Analysts of BCC Invest JCS note the following events on domestic market today: - Fitch Ratings upgraded the long-term Issuer Default rating ("IDR") of the Republic of Kazakhstan in foreign currency from "BBB-" to "BBB" and long-term local currency IDR - from 'BBB' to "BBB +". Outlook on these ratings is "Positive". The agency has also upgraded the country ceiling rating of Kazakhstan to the level of "BBB +" and affirmed the short-term foreign currency IDR "F3". "Kazakhstan has improved the state of balance and net foreign assets of the state provide an increasing bag in case of shocks in income, causing the "positive" outlook", - said Charles Seville, director in Fitch's analyst group on sovereign ratings. Fitch expects that the net foreign assets of the state reach 49% of GDP by the end of 2013 against about 37% of GDP in late 2010, the agency forecasts, the total state budget will be executed with a surplus of 6% -7% of GDP in 2011-2013 years. Assumptions on the price of oil to Kazakhstan's budget are conservative, and the budget will have a surplus in 2012, even if the price of oil falls to 80 dollars/barrel. - The company Max Petroleum PLC has published the initial results of testing wells KZIE-1 on site East Kyzylzhar 1 in Block E. The company began testing wells KZIE-1 on site East Kyzylzhar 1 in Block E. According to the initial testing of the flow of oil to 42o API is 1484 barrels per day through 24/64" choke at a stable level with pressure of 20 bar for 24 hour test period with a perforated interval of the Jurassic deposits of 6 meters (vertical depth - 1,100 - 1,118 meters). The well was connected to a temporary production infrastructure and transferred to the regime of long-term test production. The company, taking into account all production wells reached a record level of production in 5,625 of oil per day as of November 19, 2011, and plans to implement later this year start another 7 additional wells. The future level of average daily production will vary considerably due to the fact that some of the wells are in the mode of long-term testing will stop periodically according to the technological processes. The level of the company's production in the period from September 30, 2011, amounted to 3,235 barrels per day, and during the period from October 31 - 3,639 barrels per day. According to the JSC "BCC Invest", published information is positive for the stock prices of the company, as evidenced by the success of the company and reducing credit risk in the future. JSC "BCC Invest" reiterates the recommendation to "buy" on the shares of Max Petroleum PLC with target price of 21 pence per share. - JSC "Shubarkol Komir" published statements for the nine months of 2011. According to the JSC "BCC Invest", statements of "Shubarkol Komir" for the first nine months of the year is neutral for the stock prices of ENRC PLC, as the decision to execute an option to purchase coal company is in question, owing to the uncertainty and periods of high volatility in global financial markets . JSC "BCC Invest" affirms the current recommendation on the shares of ENRC PLC at 'BUY' with a target price of 8.00 pounds per share. Analysts of BCC Invest JCS expect the following developments on international markets today: - In the next two days Russia is expected to publish data on foreign direct investment in the 3rd quarter of 2011. - In the UK at 15:30 (AST) will be published data for October on public finances. At 21:00 (AST) will be published preliminary index of consumer confidence in the eurozone in November. - In the United States in 19:30 (AST) will be released revised data for the 3rd quarter of 2011 GDP, personal consumption, the GDP price index, and core consumer price index. At 21:00 (AST) will be published index of manufacturing activity for November, Richmond Fed. At 01:00 (AST) will be published protocol of the last meeting of the Committee on the Federal Open Market U.S. Federal Reserve. - Today Medtronic Inc, Nuance Communications 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 225 320 +42.22 Neutral KKGBp 156.20 157 +0.51 Neutral Halyk Bank HSBK 215 296 +37.67 Buy Bank CenterCredit CCBN 285 Review Tsesnabank TSBN 800 1,030 +28.75 Neutral KazMunaiGaz EP RDGZ 14,400 15,900 +10.42 Hold Kazakhmys PLC GB_KZMS 2,000 2,440 +22.00 Hold ENRC PLC GB_ENRC 1,455 1,900 +30.58 Buy Kazakhtelekom KZTK 17,720 27,500 +55.19 Buy KZTKp 12,200 8,900 -27.05 Sell MREK MREK 1,350 1,130 -16.30 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. [2011-11-22]