Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for December 29, 2011

/IRBIS, December 29, 2011/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for December 29, 2011. Analysts of BCC Invest JCS note the following events on international markets today: - On Wednesday, December 28, on trading floors in Asia and Oceania there is negative trend. Pessimism of investors was partly due to the publication of the index of housing prices from S & P/CaseShiller, the day before, showing higher rate of decline in housing prices in the U.S. Major stock indices ended the day lowering by 0.2 - 0.9%, with the exception of Shanghai CSI 300 Index, which grew by 0.1%. - Trading on the Kazakhstan Stock Exchange closed with 2.2% increase in the index KASE. Activity of participants of the market was again at a fairly high level, high demand all stock also benefited for JSC "Kazakhtelecom". Turnover on the "blue chips" of the domestic stock market amounted to 68.8 million tenge, the total turnover of shares - 116.0 million tenge. - Trading on the Russian exchanges closed lowering on mixed and multidimensional dynamics. Iran threat to block the supply of oil through the Strait of Hormuz has led to an increase in contract value of "black gold" that a favorable impact on quoted market prices, "oil" of securities in Russia, with the exception of Gazprom shares, which fell on reports that the "South Stream" (project pipeline to Europe under the Black Sea) will be built, assuming a huge capital investment. Shares of financial companies and mining industry decreased, which eventually led to a decrease in the MICEX and RTS by 0.2% and 1.2% (due to exchange rate differences), respectively. - Trading in Europe opened in positive territory, helped by the positive outcome of placing short-term notes in Italy. In particular, 8.5 billion euros with a yield of 3.25% were placed, almost twice lower than the results a month ago, when the yield on government securities similarly formed at the level of 6.50%. Further, the indices have gone into the "red zone" after the publication of the ECB balance sheet data. The increase in loans issued by STB last week (on December 23, 2011) to 214 billion euros to 879 billion was perceived negatively, although the increase in loans was expected after the ECB has provided banks 3- year loan by 489 billion euros to prevent a liquidity shortage in the system. As a result, Europe's main stock index finished the day lower by 1.0 - 2.0%, some stood aloof London FTSE100, degraded by only 0.1% after a long weekend. - Pessimistic investor sentiment that prevailed in the auction in Europe, spread to the U.S. stock markets, which led to negative close of trading on major stock indexes, on average, by 1.3%. - This morning the stock indexes in Asia and Oceania decreased by 0.4-0.9%, futures for U.S. indices are being traded higher by 0.3%. - Today, in the focus will be the publication of data on applications for U.S. unemployment benefits on pending transactions for the sale of residential and business activity index Chicago PMI. 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 210 320 +52.38 Neutral KKGBp 142 157 +10.56 Neutral Halyk Bank HSBK 205.02 Review Bank CenterCredit CCBN 243 Review Tsesnabank TSBN 800 1,030 +37.04 Neutral KazMunaiGaz EP RDGZ 13,980 15,900 +28.75 Buy Kazakhmys PLC GB_KZMS 2,100 2,440 +13.73 Hold ENRC PLC GB_ENRC 1,500 1,900 +26.67 Buy Kazakhtelekom KZTK 21,500 27,500 Review KZTKp 17,014 8,900 Review 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. [2011-12-29]