Market reviews and recommendations of BCC Invest JSC (Kazakhstan) analysts for January 10, 2012

/IRBIS, January 10, 2012/ - BCC Invest JSC has provided IRBIS with a survey of main events, market reviews and investment ideas for January 10, 2012. Analysts of BCC Invest JCS note the following events on international markets today: - Monday, 09 January, trading on stock exchanges in Asia and Oceania day after day, opened with decrease of the main index. However, in the afternoon, most stock indexes of Asia-Pacific region played a part of the morning losses, and the composite index of stock exchanges in Mainland China and Hong Kong CSI300 Hang Seng index confidently out into positive territory. The reason for optimism was the performance of the bidders, Prime Minister of China's two-day economic conference, which announced measures to increase trust and confidence of the stock market, and also about changing the rules to allow private investment in the capital of banks and insurance companies. Positive expectations of investors were also associated with a meeting in Berlin, Chancellor Angela Merkel and French President Nicolas Sarkozy, who were to discuss the modalities of a new mechanism for fiscal discipline in the euro area. As a result, stock indexes Australia and Korea have lost less than 1%, while the indices CSI300 and Hang Seng rose 3.40% and 1.47%, respectively. - Trading on the Kazakhstan Stock Exchange opened on neutral note, later in the day the sale of shares in the names of the individual led to the final reduction of the KASE index by 0.85% to 1,144.69 points. The total volume of transactions in shares on KASE is 60.5 million tenge, and the shares of index KASE - 35.2 mln. The largest volume of transactions, as in previous days, fell on common shares of Kazakhtelecom - 17.9 mln. - In Russia, trading on the MICEX and RTS opened in negative territory. Further, during the day, relatively high oil prices have promoted the rise of the Russian stock indexes, which eventually closed the day with moderate rise of 0.54% (MICEX), and 0.45% (RTS). The leaders of growth were the shares of oil and steel sectors. - Trading in Europe opened near the neutral mark, the dynamics of trades constantly changed direction. Later evidence of a decline in industrial production in Germany in November, worse than expected spoiled the mood of investors. Bidders are also expected to nervousness outcome of the meeting, Angela Merkel and Nicolas Sarkozy, which in principle has not yielded tangible results before the end of the trading day in Europe. As a result, Europe's main stock indexes closed the day with decrease in the range of 1%. - Trading in the U.S., in the absence of publication of important macroeconomic statistics in anticipation of the start of the season took place in accordance with the reporting of the previous days range. Some strengthening of the single European currency against the U.S. dollar against the passing of the meeting, Angela Merkel and Nicolas Sarkozy gave a positive impetus to the dynamics of trading in the afternoon. As a result, U.S. stock indices closed on a moderate rise of 0.9% - 0.27%. - After the close of trading aluminum giant Alcoa Inc, the first company from the list index of U.S. blue-chip Dow Jones Industrial Average 30 reported for the 4th quarter of 2011. The company has received quarterly loss of $ 0.03 per 1 share, in line with analysts' expectations. - This morning the stock indexes in Asia and Oceania, and futures for U.S. indices are traded in the green zone. - Today, the focus of attention will be the publication of data on industrial production in France in November last year and the index of business sentiment from the Bank of France in December, and auctions on placement of short-term government obligations in Greece. The U.S. also will hold auction on placement of 4-week and 52- week short-term government obligations, as well as 3- year notes. Analysts of BCC Invest JCS also note the following events on Kazakhstani market: - Company KazMunayGas Exploration Production announces operating results in 2011 and some data on the budget for 2012. According to the JSC "BCC Invest", published information is neutral for the stock quotes and depositary receipts of JSC "Exploration Production "KazMunayGas", because the message of the fall of production in 2011 is below the projected level of market participants offset by optimistic expectations of the company's management on the production growth in 2012 year, while increasing the size of capital investments in 2012, according to the JSC "BCC Invest", is fully justified and expected. Increase in the share of supply of domestic market, should be compensated by increase in domestic selling prices by 25%. JSC "BCC Invest" confirms recommendation to "buy" the shares and depositary receipts of JSC "Exploration Production "KazMunayGas" with target price of 15,900 tenge per share and $ 18.30 per GDR. 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 231 320 +38.53 Neutral KKGBp 142 157 +10.56 Neutral Halyk Bank HSBK 203 Review Bank CenterCredit CCBN 242.10 333 +37.55 Buy Tsesnabank TSBN 800 1,030 +28.75 Neutral KazMunaiGaz EP RDGZ 13,500 15,900 +17.78 Buy Kazakhmys PLC GB_KZMS 2,250 2,440 +8.44 Hold ENRC PLC GB_ENRC 1,610 1,900 +18.01 Buy Kazakhtelekom KZTK 22,000 27,500 Review KZTKp 17,500 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. [2012-01-10]