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Tuesday, October 19, 2010

Daily Market Brief

Market Comment

Ukrainian equity markets closed in the red Monday (Oct. 18), ignoring firmer cues from global exchanges. The UX exchange closed 1.26% lower on volatile trading. Activity was rather high with total volume reaching UAH 96 mln. Stirol (STIR -4.64%) led the broad market decline, with banks (BAVL -1.71%, USCB -2.67%), Motor Sich (MSICH -2.49%) and Ukrtelecom (UTLM -2.54%) tailing along. Metals and mining stocks posted modest losses: ALMK -1%, AVDK -0.58%, AZST -0.44%, ENMZ -0.99%, YASK -0.91%. GenCos showed mixed dynamics: Centerenergo (CEEN -0.73%) slid, while Zakhidenergo (ZAEN +0.64%) was the only blue chip to close in the black.

Ukrainian stocks listed on international markets extended declines. Only MHP (MHPC LI +0.59%) managed to wrestle back some of the previous day’s losses. Cadogan (CAD LN -4.4%) and Regal Petroleum (RPT LN -4.76%) were the most prominent losers. Ferrexpo (FXPO LN) and Astarta (AST PW) slipped 2.52% and 3.38% respectively. JKX Oil & Gas (JKX LN -0.16%) and Kernel (KER PW) saw a slight dip.

Ukrainian Eurobonds traded actively on volatile pricing yesterday. Investors zeroed in on sovereigns, which slid early in the session only to climb out of the rut later in the day. Ukraine 20 closed out at 103.125 and NAFTO managed to recover to 109.25. Municipal issues moved down slightly on low trading volumes. CITKIE 15 landed at 95. Corporates were largely inactive and banking names remained flat – only FIUKR lost in price, sliding to 98.375.

Macro: Ukraine’s government to repay UAH 53.5 bln in 2011
Oil & Gas: Cadogan reports formal resolution of license issues
Food processing: Ukraine eases duties on meat imports