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Wednesday, September 29, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed in the red Tuesday (Sep. 28). The UX exchange wavered between gains and losses as investors were encouraged by German consumer confidence and U.K. economic growth stats; however, weaker-than-expected reports on US consumer confidence and regional manufacturing weighed the market down. Total trading volume came in at nearly UAH 94 mln. Led by Alchevsk Steel (ALMK -2.87%), metals and mining stocks (AVDK -0.85%, AZST -1.7%, ENMZ -0.29%, YASK -0.11%) were among the biggest laggards. Motor Sich (MSICH -1.73%) and Centerenergo (CEEN -1.63%) reversed to losses. Banks also added to the broad market decline: BAVL -1.01%, USCB -2.67%. Only Ukrnafta (UNAF +1.70%), Ukrtelecom (UTLM +0.72%) and Zakhidenergo (ZAEN +2.34%) finished in positive territory.

Ukrainian stocks listed on international markets showed mixed dynamics. Cadogan Petroleum (CAD LN +1.56%) was the most notable gainer, while its peers JKX Oil & Gas (JKX LN) and Regal Petroleum (RPT LN) lost 0.19% and 1.84% respectively. News concerning the new loan attracted by Ferrexpo (FXPO LN +0.38%) pushed the stock’s price slightly higher. MHP (MHPC LI +0.92%) also advanced. Warsaw-listed Astarta (AST PW -2.62%) and Kernel (KER PW -1.66%) traded in the red.

Trading activity was lower than average on the Ukrainian Eurobond market yesterday. Long-end sovereigns declined slightly. Municipals and most corporate papers remained flat. Good demand was observed for banks such as PRBANK, ALFAUA and FIUKR.

Fixed Income: Ukraine’s PM announces slash in VAT refunds
Metals and Mining: Khartsyzsk Tube to increase output in September-October
Metals and Mining: Ferrexpo raises $350 mln