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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