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Monday, August 9, 2010

Daily Market Brief

Ukrainian markets slid for a third straight session Friday (Aug. 6), in line with the downward trend seen on global markets. The UX exchange lost 0.88% on a moderate volume of UAH 74 mln. Stocks declined across the board with banks (USCB -1.38%, BAVL -1.26%, FORM – 0.96%) and utilities (ZAEN -1.25%, UTLM -1.22%) setting the pace. With the exception of Yasynivsky Coke (YASK +0.06%), metals and mining stocks listed in the index basket retreated (ALMK -1.23%, AVDK -0.88%, AZST -0.91, ENMZ -2.59%). Stirol (STIR +4.17%) and Ukrnafta (UNAF -0.92) led all stocks in trading volume at UAH 10.6 mln and UAH 9.7 mln respectively.

Ukrainian stocks listed on international markets closed mixed Friday. Regal (RPT LN) was among the worst performers, losing 2.21%. JKX Oil & Gas also declined (JKX LN -0.55%), while Cadogan (CAD LN) finished unchanged. Among food processing stocks, Kernel (KER PW) edged up 2.33%, Astarta (AST PW) dropped 0.48% and MHP (MHPC LI) closed flat. Ferrexpo (FXPO LN) advanced 2.33% on the back of impressive financials posted for 1H2010.

Trading activity was slow on the Ukrainian Eurobond market Friday, with just slight demand recorded at the end of the session. Sovereigns closed half a point stronger on the long end on low volumes. In the corporate
sector, Metinvest and DTEK finished marginally up, while MHPSA slid.

The Russian sovereign benchmark skyrocketed at the end of the trading day to close 1 p.p. higher. In the banking sector, VEB, SBER and VTB all finished stronger. Among other corporate names, Lukoil, VIP and RAIL added in price on solid demand.