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Thursday, September 30, 2010

Daily Market Brief

Market Comment

Trading on Ukrainian equity markets was volatile Wednesday (Sep. 29). The UX exchange opened strong, but edged lower to lose 0.49% on the day. Total trading volume was moderate at UAH 73.5 mln. Banks were among the worst performers with Raiffeisen Bank Aval (BAVL) losing 1.09% and Ukrsotsbank (USCB) declining 1.72%. Most metals and mining names extended losses (ALMK -0.18%, AVDK -1.17%, AZST -0.26%); Enakievo (ENMZ) managed to inch up 0.11% and Yasynivka (YASK) finished flat. GenCos (CEEN -1.11%, ZAEN -0.72%) stumbled along with Motor Sich (MSICH -1.17%) and Ukrtelecom (UTLM -0.12%). Ukrnafta was the only bright spot among blue chips adding 1.59%.

Ukrainian stocks listed on international markets closed mixed. Investors favored oil and gas companies (CAD LN +3.75%, JKX LN +1.08%) and Ferrexpo (FXPO LN +3.33%). As for food-processing names, Kernel (KER PW +1.15%) advanced, while Astarta (AST PW -0.46%) and MHP (MHPC LI -0.86%) posted moderate losses.

Corporates rallied on the Ukrainian Eurobond market yesterday. The biggest gainers were MHPSA, DTEK, METINV and FIUKR – all names added nearly a point. Sovereigns also rose slightly in price.

Equity: Ukraine’s policymakers reconsider minority squeeze-out law
Macro: Ukraine's public debt repayment to equal UAH 69.4 bln in 2011

Wednesday, September 29, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed in the red Tuesday (Sep. 28). The UX exchange wavered between gains and losses as investors were encouraged by German consumer confidence and U.K. economic growth stats; however, weaker-than-expected reports on US consumer confidence and regional manufacturing weighed the market down. Total trading volume came in at nearly UAH 94 mln. Led by Alchevsk Steel (ALMK -2.87%), metals and mining stocks (AVDK -0.85%, AZST -1.7%, ENMZ -0.29%, YASK -0.11%) were among the biggest laggards. Motor Sich (MSICH -1.73%) and Centerenergo (CEEN -1.63%) reversed to losses. Banks also added to the broad market decline: BAVL -1.01%, USCB -2.67%. Only Ukrnafta (UNAF +1.70%), Ukrtelecom (UTLM +0.72%) and Zakhidenergo (ZAEN +2.34%) finished in positive territory.

Ukrainian stocks listed on international markets showed mixed dynamics. Cadogan Petroleum (CAD LN +1.56%) was the most notable gainer, while its peers JKX Oil & Gas (JKX LN) and Regal Petroleum (RPT LN) lost 0.19% and 1.84% respectively. News concerning the new loan attracted by Ferrexpo (FXPO LN +0.38%) pushed the stock’s price slightly higher. MHP (MHPC LI +0.92%) also advanced. Warsaw-listed Astarta (AST PW -2.62%) and Kernel (KER PW -1.66%) traded in the red.

Trading activity was lower than average on the Ukrainian Eurobond market yesterday. Long-end sovereigns declined slightly. Municipals and most corporate papers remained flat. Good demand was observed for banks such as PRBANK, ALFAUA and FIUKR.

Fixed Income: Ukraine’s PM announces slash in VAT refunds
Metals and Mining: Khartsyzsk Tube to increase output in September-October
Metals and Mining: Ferrexpo raises $350 mln

Tuesday, September 28, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed mixed Monday (Sep 27). The UX exchange opened lower and forged a sideways trend throughout the day to close 0.24% down. Activity remained relatively weak in the absence of driving news - trading volume totaled UAH 50 mln. With the exception of Enakievo (ENMZ +0.43%), all metals and mining stocks (ALMK -0.12%, AVDK -0.52%, AZST -0.18%) lost ground with Yasynivka Coke (YASK -1.75%) setting the pace. Ukrnafta (UNAF -0.02%), Raiffeisen Bank Aval (BAVL -0.09%), GenCos (CEEN +0.15%, ZAEN +0.19%) and Ukrsotsbank (USCB +0.07%) hovered around the baseline.

Ukrainian stocks listed on international markets traded in the red. Cadogan Petroleum (CAD LN) came under selling pressure, losing 4.88% for the session. Regal Petroleum (RPT LN -2.68%) extended losses, while JKX (JKX LN unch) closed unchanged. Other London-listed stocks lost a fraction: FXPO LN -0.17%, MHPC LI -0.33%. Food processing names traded in Warsaw ended lower: AST PW -0.19%, KER PW -1.49%.

It was a quiet day on the Ukrainian Eurobond market. Investors zeroed in on sovereign issues, which closed slightly lower. Corporates remained flat with meager demand observed for MHPSA. In the banking universe, FIUKR and EXIMUK 16 recorded minor action.

Fixed Income: VAB Bank reveals 1H10 IFRS results

Friday, September 24, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets declined Thursday (Sep.23) in line with global markets that were pushed lower by a string of negative news (unexpected jump in jobless claims in the US, disappointing GDP and manufacturing data out of Europe, etc.). The UX exchange closed 0.54% lower on a slim trading volume of UAH 43 mln. Metals and mining stocks led the decline: ALMK -1.18%, AVDK -1.06%, AZST -1.40%, ENMZ -1.67%. Banks also weakened with Raiffeisen Bank Aval (BAVL) losing 0.99% and Ukrsotsbank (USCB) dropping 0.88%. Other blue chips finishing in the red included Centerenergo (CEEN -1.33%), Ukrtelecom (UTLM -0.78%) and Zakhidenergo (ZAEN -0.19%). Only Motor Sich (MSICH +0.18%) and Yasynivka Coke (YASK +0.19%) managed to eked out gains.

Ukrainian stocks traded on international markets showed mixed dynamics. Profit takers were out in force for Regal Petroleum (RPT LN), the stock dropped 4.92% after posting significant gains earlier this week. Regal’s peers were on the rise: Cadogan Petroleum (CAD LN) jumped 3.85% and JKX Oil & Gas (JKX LN) added 0.31%. Among other London-listed stock, Ferrexpo (FXPO LN) lost 0.38% and MHP (MHPC LI) advanced 1.13%. In Warsaw, the bleeding slowed for Astarta (AST PW -1.23%), while Kernel (KER PW) rose 1.28%.

Macro: National Bank of Ukraine’s current account balance slides
Fixed Income: DTEK releases upbeat financials

Wednesday, September 22, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets managed to stay afloat Tuesday (Sep. 21), going against the grain of major European exchanges that dipped just before the closing bell. The UX exchange added 0.44% on a moderate total trading volume of UAH 84 mln. Centerenergo (CEEN +1.19%) and Yasynivka Coke (YASK +1.32%) led the broad market advance. Metals and mining stocks (ALMK +0.3%, AVDK +0.35%, AZST +0.58%, ENMZ +0.61%) and banks (BAVL +0.55%, USCB +0.36%) posted modest gains. Among other top blue chips, Ukrnafta (UNAF) inched up 0.2% and Ukrtelecom (UTLM) climbed 0.65%.

On international markets, Ukrainian stocks closed mixed. Regal Petroleum (RPT) showed the best results, jumping 6.36%. MHP (MHPC LN +1.35), JKX Oil & Gas (JKX LN +0.65%) and Kernel (KER PW +0.08%) pushed higher, while Astarta (AST PW -2.17%), Cadogan (CAD LN -1.22%) and Ferrexpo (FXPO LN -1.35%) slid.

Fixed Income: FUIB and Dongorbank merger in the bag

Tuesday, September 21, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed mixed Monday (Sep. 20). The UX exchange (+0.41%) slid soon after the opening bell, but managed to climb back into positive territory, spurred on by growth on global markets. Trading activity was sluggish with a total volume of UAH 58 mln. Yasynivka (YASK +1.04%) and Zakhidenergo (ZAEN +1.11%) were among the most prominent gainers, while Enakievo (ENMZ -1.15%) showed the weakest result. Raiffeisen Bank Aval (BAVL -0.18%) and Motor Sich (MSICH -0.14%) lost a fraction. Metals and mining stocks stacked on modest gains: ALMK +0.47%, AVDK +0.4%, AZST +0.72%. Other blue chips to have advanced included Centerenergo (CEEN +0.62%), Ukrnafta (UNAF +0.38%), Ukrsotsbank (USCB +0.6%) and Ukrtelecom (UTLM +0.14%).

Ukrainian stocks listed on international markets came under selling pressure Monday. Ferrexpo (FXPO LN) led the way down, losing 3.22%. In the oil and gas sector, Cadogan Petroleum (CAD LN) shed 2.38% and JKX Oil & Gas (JKX LN) dropped 0.31%. Regal Petroleum (RPT +0.92%) was the only Ukrainian name to close in the black. Food processing names in Warsaw reversed to losses: AST PW -1.43%, KER PW -0.45%.

Fixed Income: Interpipe completes Eurobond restructuring

Monday, September 13, 2010

Daily Market Brief

Market Comment

Ukrainian stock exchanges closed lower Friday (Sep. 10), trading in the opposite direction of European markets. The UX exchange (-0.52%) fell sharply from the opening and spent the entire session in the doldrums. Total trading volume came in at a moderate UAH 64 mln. Raiffeisen Bank Aval (BAVL +0.14%) and Zakhidenergo (ZAEN +0.02%) managed to eke out gains, while all other stocks in the index basket slumped. Sumy Frunze (SMASH -1.46%) and Stirol (STIR -2%) led the fall with minor losses observed for steel names (AZST -0.69%, ENMZ -0.71%), miners (AVDK -0.42%, YASK -1%), and utilities (CEEN -0.27%, UTLM -0.78%). Avdiivka Coke (AVDK -0.42%) swapped hands most actively – the stock topped the board with a total trading volume of UAH 12.7 mln.

Ukrainian shares listed on international markets turned in a mixed performance Friday. Cadogan Petroleum (CAD LN) stole the show, surging 7.58%. Regal Petroleum (RPT LN +2.48%) also reported an impressive gain, and JKX Oil & Gas (JKX LN +0.22%) managed to creep into positive territory. Ferrexpo (FXPO LN -0.13%) dipped slightly. Food-processing names closed mixed: MHPC LI -0.07%, KER PW +3.97%, AST PW -0.34%.

The Ukrainian Eurobond market was relatively active Friday. The session’s biggest loser was NAFTO, which fell nearly half a point. The entire sovereign curve traded down, dipping a quarter of a point. Corporates remained flat with banking issues EXIMUK 16 and FIUKR in solid demand.

Fixed Income: Ukrainian government considers new VAT bonds
Metals and Mining: Khartsyzsk Pipe boosts export to Russia
Machinery: Motor Sich to partner up with Russian Ministry of Defense

Wednesday, September 8, 2010

Daily Market Brief

Market Comment

Negative sentiment prevailed on Ukrainian equity markets Tuesday (Sep. 7). The UX exchange dipped 0.93% on a low total trading volume of UAH 55 mln. Led by steel producers (ALMK -1.63%, AZST -2.09%, ENMZ -1.35%) and banks (BAVL -1.53%, USCB -1.47%), most blue chips took on losses. Yasynivka Coke (YASK) was among the biggest laggards, dropping 2.40%. Profit taking was on the menu for other stocks including Centerenergo (CEEN -1.42%), Motor Sich (MSICH -0.93%) and Ukrnafta (UNAF -1.19%). Ukrtelecom (UTLM +0.14%) crept into positive territory along with Avdiivka Coke (AVDK +0.02%) and Zakhidenergo (ZAEN +0.02%).

Ukrainian stocks listed on the Warsaw Stock Exchange traded in the black with Astarta (AST PW) soaring 4.4% and Kernel (KER PW) rising 0.33%. Among London-listed shares only JKX Oil & Gas (JKX LN +0.42%) managed to eke out gains, while Cadogan (CAD LN -1.49%) and MHP (MHPC LI -1.08%) traded in the doldrums. Ferrexpo (FXPO) suffered the steepest drop, finishing 2.37% lower.

Ukrainian Eurobonds put in a weak performance yesterday. Naftogaz traded about a half a point lower, while Long end sovereign issues were down about a quarter of point on the day. In the corporate sector, trading was generally flat, with better bidding for FIUKR, AZOVTL and EXIMUK issues. DTEK closed slightly lower and Metinvest finished flat.

Politics: Ukraine’s Parliament gets back to work
Fixed Income: Kernel to issue Eurobonds

Tuesday, September 7, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets traded marginally higher Monday (Sep. 6), in line with the trend set on European markets. The UX exchange climbed 0.22%, but action was subdued as a result of US markets being closed for Labor Day. Total trading volume on the UX came in at UAH 54 mln. Ukrnafta (UNAF) was among the most notable gainers, spiking 0.93%. Banks (BAVL +0.75%, USCB +0.70%) and coke producers (AVDK +0.74%, YASK +0.81%) also outperformed the market. Steel stocks closed mixed with Alchevsk Steel (ALMK) adding 0.06%, Azovstal (AZST) dropping 0.27% and Enakievo (ENMZ) losing 0.67%. Centerenergo (CEEN -0.79%) and Ukrtelecom (UTLM -0.19%) finished in the red.

Ukrainian stocks traded on international markets recorded mixed dynamics. Ferrexpo (FXPO LN -2.5%) had the weakest showing among London-listed shares. JKX Oil & Gas (JKX LN) dropped 0.83%, while Regal (RPT LN +0.73%), Cadogan (CAD LN +1.52%) and MHP (MHPC LI +0.73%) finished in positive territory. In Warsaw, Astarta (AST PW) surged 2.9% and Kernel (KER PW) slid 2.02%.

Trading on the Ukrainian Eurobond market was negligible Monday due to markets being closed in the US for Labor Day.

Macro: Inflation in Ukraine rises to 1.2% M-o-M
Coke: Avdiivka to increase coke output in September, Yasynivka to stay flat

Monday, September 6, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets rose Friday (Sep. 3) as better than expected job data out of the US fueled investors’ hopes for economic recovery. The UX exchange traded in the red most of the day, but shot up near the end of the session to add 0.85%. Activity was relatively high with a total trading volume of more than UAH 91 mln. Azovstal (AZST) took center stage, surging 2.66%. Other steel names also added to gains: ALMK +1.12%, ENMZ +0.85%. Among coke producers, Yasynivka (YASK) bucked the general trend by losing 1.94%, while Avdiivka climbed 0.93%. GenCos (CEEN +1.40%, ZAEN +0.33%) shares rose along with the broad market. Motor Sich (MSICH +0.94%), Ukrnafta (UNAF +0.71%) and Ukrtelecom (UTLM +0.09%) also advanced, taking back a slice of the previous day’s losses.

Ukrainian shares listed on international markets rallied Friday. Astarta (AST PW) picked up an impressive 5.41% with Ferrexpo (FXPO LN +4.58%) and Regal (RPT LN +4.58%) following close behind. JKX Oil & Gas (JKX LN) edged up 2.48%.

Moderate action characterized the Ukrainian Eurobond market Friday. Nevertheless, corporates were well bid and closed in the neighborhood of 0.25 to 0.5 p.p. stronger. ALFAUA, METINV and MHPSA were among the best performers. Long end sovereigns closed up slightly, as did NAFTO, which ended the session with a gain of 0.5 p.p.

Macro: Ukraine to reduce income tax by 9 p.p. to 16%
Oil & Gas: Ukraine to incentivize domestic oil and gas production
GenCos: DTEK increases its stake in Kievenergo