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Thursday, October 7, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets were buoyed by improved sentiment Wednesday (Oct. 6). The UX exchange climbed 1.02% on a high total trading volume of UAH 135 mln. Alchevsk Steel (ALMK +1.26%), GenCos (CEEN +1.39%, ZAEN +1.08%), Motor Sich (MSICH +1.07%) and Ukrtelecom (UTLM +1.76%) outperformed the market. Steel producers (AZST +0.43%, ENMZ+0.93%) and Ukrnafta (UNAF +0.99%) also contributed to the broad market advance, while banks (BAVL +0.26%, USCB -0.15%) and coke producers (AVDK +0.27%, YASK -0.28%) waivered around the flat line.

On international markets, Ukrainian shares pared the previous day’s losses. JKX Oil & Gas (JKX LN -1.05%) was the only stock to finish in negative territory. Ferrexpo (FXPO LN) was the stock of the day surging 5.31%.

Cadogan (CAD LN +1.3%) and Regal Petroleum (RPT LN +2.70%) closed significantly higher, while food processing stocks (MHPC LI +0.34%, KER PW +0.38%, AST PW +0.68%) eked out small gains.

Ukrainian Eurobonds rallied yesterday. Long-end sovereigns added almost a point, as did NAFTO. Corporates were in very good demand, closing up a quarter to a half point. Banking names also caught investors’ attention: ALFAUA traded at 103 and FUIKR at par.

Macro: FX interbank market shows net demand in September
Fixed Income: FUIB requests bondholders amend Eurobond conditions