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Monday, October 11, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed lower on volatile trading Friday (Oct. 8). The UX exchange (-0.66%) dropped from the opening bell and traded sideways throughout the session. Total trading volume slid back to a moderate level of UAH 70.8 mln. All names in the index basket declined with Raiffeisen Bank Aval (BAVL -0.94%), Forum Bank (FORM -1.8%), Stirol (STIR -1.41%) and Ukrtelecom (UTLM -1.49%) leading the fall. Metals and mining stocks forfeited the previous session’s gains (ALMK -1.1%, AVDK -0.71%, AZST -0.47%, ENMZ -1.05%).

Ukrainian stocks listed on international markets traded in the doldrums. Oil and gas names were among the biggest laggards with JKX Oil & Gas (JKX LN) losing 3.15%, Regal Petroleum (RPT LN) dropping 2.82% and Cadogan Petroleum (CAD LN) sliding 2.27%. Other London-listed stocks posted modest losses: FXPO LN -0.63%, MHPC LI -0.33%. Food-processing stocks listed in Warsaw came under selling pressure: AST PW -1.65%, KER PW -0.84%.

Activity on the Ukrainian Eurobond marked centered on sovereign issues on Friday. All names on the curve were hit several times during the session, resulting in a loss in of at least a quarter point for sovereign issues. As there was no significant news regarding sovereign debt, the selloff was likely the result of end-of-the-week profit taking after a substantial price increase seen earlier. Corporates bucked the sovereign trend by closing slightly higher.

Politics: Ukraine’s Parliament put back in order
Fixed Income: Fitch assigns ‘B’ to Avangard’s Eurobond offering
Metals and Mining: Yasynivka Coke raises $40 mln from Prominvestbank
Agriculture: Landkom’s wheat yield down to 3 tonnes per ha

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