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Wednesday, July 21, 2010

Daily Market Brief

Market Comment

Negative sentiment continued to rule Ukrainian stock exchanges Tuesday (July 20). The UX exchange closed down 0.37% on very low activity – total trading volume was a meager UAH 38.6 mln. The UX showed positive dynamics after the opening bell, but soon reversed gains as support from buyers fizzled. Among blue chips, only Ukrtelecom (UTLM +1.55%) and Zakhidenergo (ZAEN +0.19%) managed to stay on top. Metals and mining stocks underperformed the market: ALMK -0.8%, AVDK -1.35%, AZST -1.58%, ENMZ -1.54%, YASK -1.26%. Banks slipped (BAVL -0.11%, USCB -1%) followed by Motor Sich (MSICH -0.58%) and Ukrnafta (UNAF -0.49%).

Ukrainian stocks on international markets closed mostly higher. Regal Petroleum (+10.23%) posted a double-digit gain paring the previous days’ losses. Other names listed on the London Stock Exchange also traded in positive territory: JKX Oil & Gas (JKX LN) inched up 0.07%, Ferrexpo (FXPO LN) advanced 2.11%, MHP (MHPC LI) added 0.07%. Large trading volumes were observed for Kernel (KER PW), but the stock came under selling pressure and lost 2.87%.

Trading activity for Ukrainian Eurobonds was higher than average yesterday. Investors had their sights set on sovereign issues, which traded down during the first half of the session but reversed later on to close flat. First tier corporates MHP, DTEK and METINV traded up, adding at least a quarter point on the day.

Macro: Ukraine to receive $3 bln from the IMF in 2010
Fixed Income: Metinvest receives syndicated loan
Oil & Gas: Ukrnafta August oil supplies priced at $60/bbl
Food processing: Astarta opens a new elevator
Agriculture: Landkom reports 1H2010 results