Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 6, 2011

/IRBIS, December 6, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 6, 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, and KASE index will, probably, end the day with decrease. Analysts of BCC Invest JCS note the following events on the local market: - ENRC has withdrawn a lawsuit against the MMK, the Court of Australia took the package with the arrest of the MMK in Fortescue. Court of Australia took a stake in the arrest of "Magnitogorsk Iron and Steel Works" (MMK) in the Australian iron ore Fortescue (4,997% shares of the market value of about $ 750 million), said the Flinders Mines. Enrc Marketing AG withdrew the claim on which the Court of December 1 has frozen Australian assets of MMK up to $ 866 million. Kazakh Eurasian Natural Resources Corporation (ENRC) November 10 warned that could sue MMK for breach of contract for the supply of iron ore. November 24 the company sent a lawsuit in federal court of Australia, the defendants were MMK and its mining subsidiary MMK-Mining Assets Management. According to contractual obligations, the MMK had to buy 1 million tonnes of iron ore per month during 2011, and the IV quarter of Works announced plans to purchase a maximum of 700 tons per month, said ENRC. November 25 MMK has made an offer to buy Australia's Flinders Mines at a price of AUD 0.3 per share, estimating the entire company at $ 537 million prize to the weighted average market price over the last three months - 92.5%. MMK owns 4.997% of the third largest Australian iron ore producer Fortescue market value of about $ 750 million, analysts believed that the company would be beneficial to use this package to finance the deal with Flinders Mines. Flinders Mines is developing several iron ore deposits in Western Australia, including in the region, Pilbara, where there are global giants - Rio Tinto, BHP Billiton, and Fortescue. Production at the field is scheduled to begin in 2014 with the release of 15 million tonnes of ore per year. MMK provided its own iron ore by 30%. The remaining volumes of the company purchased the Kazakh ENRC, which in the IV quarter could not agree on prices, then moved to purchase "Metalloinvest" and "Severstal" (RTS: CHMF). The company also owns the license to develop iron ore on Prioskolsky deposit. By September of this year, the MMK had planned to make a decision about joining the project developed by the Canadian-based Hatch feasibility study for development of the field. MMK is one of the largest Russian manufacturers of metal products. The primary beneficiary is the chairman of the plant. According to the JSC "BCC Invest", the message is neutral for the stock price of ENRC PLC. An amicable end to the dispute itself is positive for both companies, but the situation is still unknown about the subject matter - in what amounts MMK will now buy iron ore products in ENRC PLC. JSC "BCC Invest" leaves 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 Russia no important economic statistics to be published. - at 14:00 (AST) will be published house price index from Halifax in the UK in November. At 16:00 (AST) to be published data on the Eurozone Eurozone GDP per 3Q2011, as well as indices of gross fixed costs and consumption of private and public sectors. At 17:00 (AST) will be published on the data for October industrial orders in Germany. - In the United States at 21:00 (AST) index of economic optimism of IBD/TIPP will be published. 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 230 320 +39.13 Neutral KKGBp 156.20 157 +0.51 Neutral Halyk Bank HSBK 212 Review Bank CenterCredit CCBN 289.99 Review Tsesnabank TSBN 800 1,030 +28.75 Neutral KazMunaiGaz EP RDGZ 14,800 15,900 +7.43 Hold Kazakhmys PLC GB_KZMS 2,160 2,440 +12.96 Hold ENRC PLC GB_ENRC 1,548.49 1,900 +22.67 Buy Kazakhtelekom KZTK 17,500 27,500 +57.14 Buy KZTKp 13,161 8,900 -32.38 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. [2011-12-06]