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Wednesday, August 11, 2010

Daily Market Brief

Market Comment

Ukrainian exchanges were sent reeling Tuesday (Aug. 10) by negative performances on global markets. The UX exchange slumped 2.15% on a solid trading volume of UAH 89.5 mln. The broad market traded in the red from the opening bell, with metals and mining names (ALMK -4.66%, AVDK -2.17%, AZST -2.55%, ENMZ -3.27%, YASK -4.18%) leading the way down. Banks (BAVL -2.49%, USCB -3.20%) and GenCos (CEEN -3.51%, ZAEN -1.01%) lost ground. Investors were bearish on other blue chips as well: MSICH -1.29%, UNAF -1.97%, UTLM -1.49%.

Almost all Ukrainian stocks listed on international markets traded in the doldrums – only Cadogan (CAD LN) managed to remain in positive territory, adding 1.49%. JKX Oil & Gas (JKX LN) dropped 0.51%, Regal Petroleum (RPT LN) lost 2.17%. Food processing stocks kept pace with the decline: Astarta (AST PW) fell 1.74%, Kernel (KER PW) closed down 0.95%, and MHP (MHP LI) shed 0.21%. Investors chose to secure profits on Ferrexpo (FXPO LN -2.43%), which had been on a roll in previous sessions.

Trades were far and few between on the Ukrainian Eurobond market Tuesday. Some profit taking was observed for long-end sovereigns and NAFTO, which closed about 0.5 p.p. lower. Municipal issues traded flat, while METINV and DTEK recorded slight losses.

The Russian Eurobond market traded in the red. The sovereign benchmark closed at the 118 level. In the corporate sector, generally negative sentiment drove GAZPRU, VTB and SBER lower.

GenCos: Electricity consumption in Ukraine up 11%