Review of key events and forecasts from ASYL INVEST JCS (Kazakhstan) analysts for November 24, 2011

/IRBIS, November 24, 2011/ - ASYL INVEST JCS (Almaty) provided IRBIS with the review of main events and its investment ideas and forecasts for November 24, 2011. Analysts of ASYL INVEST JCS note the following tendencies on Kazakhstani and world markets: - Trading in Asia except for the Japanese market today is in positive territory. In China, investors started to buy stocks with the support of speculation that at current levels they are resold, given indications that the state may soon begin to fold measures to limit bank lending. Japan's Nikkei index down today by 1.4% in response to negative news from Europe, while China's Hang-Seng and Shanghai Composite grow within 0.5%. Futures on U.S. indices today added 0.6% after falling the previous day. - Commodity markets today show a weak positive trend. Quotes of WTI oil and Brent are rising within 0.5%. Copper in electronic trading in New York rose by 0.9%. - The euro/dollar is traded today already in the corridor of 1.33-1.34. At today's auction rate adds 0.3% at 1.3379. - The news background is now moderately negative for stocks of mining companies in Kazakhstan, quotes of Kazakhmys, ENRC and KMG EP may show negative trend after lowering their quotes in yesterday's trading in Europe. - Analysts of ASYL INVEST recommend to "buy" on Halyk Bank common stock, which received good support at around 200 tenge. At current price levels, 212 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 prospects for growth in net profit. Yesterday the bank has confirmed our view of the prospects for profit growth, posting strong results for the 3rd quarter of 2011. The main activities of the bank showed a significant increase in operating profit. Expenses for provisions for loan portfolio decreased, but the bank, in our view, continues to maintain an adequate level of reserves. The resulting interest income on bank loan portfolio is consistent to accrue. Bank plans for the year to make a profit of $ 40 billion, which corresponds to our expectations. The Bank also announced the repurchase of preferred shares for $ 20 billion. Redemption of shares have a positive impact on the value of common shares, as equity, the level of which now seems redundant to decline, and its profitability (ROAE) will increase. As a result, in future the bank will be assessed in terms of higher price / book value. In addition, a diffuse net income per share by reducing shares placed will increase. Target price of "ASYL INVEST" on the shares of the bank is 474 tenge. - Analysts of "Asyl INVEST" also recommend investors to "buy" preferred shares of Kazakhtelecom. As noted earlier, the shares have high potential for growth, after the company announced the sale of its 49% stake in mobile operator LLP "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. Target price of "ASYL INVEST" on preferred shares of the company is 21,823 KZT. 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. [2011-11-24]