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Tuesday, October 5, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets got off to a weak start Monday (Oct. 4). Investors sold stocks actively on the UX exchange (-3.61%) pushing the index down. Trading volume came in higher than average at UAH 103 mln. Motor Sich (MSICH) and Ukrsotsbank hit record lows, dropping 6.09% and 5.52% respectively. Metals and Mining stocks also added to losses: ALMK -3.69%, AVDK -3.92%, AZST -3.51%, ENMZ -1.55%, YASK -1.24%. GenCos (CEEN -4.03%, ZAEN -1.11%) followed the broadly weaker trend, as did other top-tier names (BAVL -3.21%, UNAF -3.18%, UTLM -2.57%).

Among Ukrainian stocks listed on international exchanges, oil and gas stocks showed mixed dynamics: CAD LN -2.53%, JKX LN +0.16%, RPT LN unch. Food processing stocks (AST PW -0.13%, KER PW -0.3%, NHPC LI -1.64%) tallied mild losses, while Ferrexpo (FXPO LN +0.93%) inched up.

It was a sluggish day on the Ukrainian Eurobond market. Sovereigns traded slightly lower. Municipals have completely vanished from investors’ radars in recent sessions. Corporates remained flat, and banking issues such as ALFAUA, PRBANK and FIUKR were in very good demand.

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