Warsaw Market & Carbon Watch - Thursday 13 December

Greetings from Kiev!  Here is this morning’s Ukrainian stock performance summary, from the Warsaw Stock Exchange, based on the prior trading day's closing bell.  As a whole, the Warsaw Stock Exchange closed up (+0.43%), in line with green screens across the main European markets (FTSE +0.35%, STOXX +0.24%, CAC +0.01%, DAX +0.33%, IBEX +0.83%) and mixed U.S. markets (DOW -0.02%, S&P +0.04%, NASDAQ -0.28%).  Looking at Ukrainian equities in particular across the Warsaw Stock Exchange, their index underperformed the main Warsaw equities index, closing down (-0.61%) with gains in Ovostar, Milkiland and Agroton unable to carry the day.  From a market depth standpoint, the highest trading volumes occurred in Sadovaya Group (653,935 shares), Westa (75,829 shares) and Kernel (45,978 shares).

For specific results kindly see the table below, prices denoted in Polish currency (Zlotys).  Cheers – Jon

WSE WIG Index (total return index for Warsaw Stock Exchange listed companies): 46717.719 (+0.43%)

WSE WIG-Ukraine Index (total return index for Ukrainian listed companies):  667.42 (-0.61%) 

Ovostar Union NV (OVO PW):  93.00 (+1.64%)

Kernel Holding SA (KER PW):  69.30 (-1.00%)

Agroton Public Limited (AGT PW):  8.50 (+0.24%)

Astarta Holding NV (AST PW):  58.50 (-0.34%)

Industrial Milk Co (IMC PW):  15.53 (-2.88%)

KSG Agro SA (KSG PW):  11.50 (unch)

Milkiland (MLK PW):  14.26 (+0.42%)

KDM Shipping Plc (KDM PW):  26.10 (unch)

Coal Energy SA (CLE PW): 11.40 (unch)

Sadovaya Group SA (SGR PW):  1.97 (-1.01%)

Westa Intl Scientific Group (WES PW):  0.71 (unch)

Carbon Trading

The ICE daily CER continued its downwards march on Wednesday, closing at 0.43 EURO (-6.52%).  Trading desks across the world are adopting 3-step strategies:

• Step 1:  Carbon slides falls towards zero after a toothless Kyoto Protocol Conference of Parties at the end of 2012.
• Step 2:  ????????????
• Step 3:  Profit.

You could see this coming, no surprises here.  Only the nagging question of how to solve step 2.  While there is no way to recover project costs at today's prices, from a trading perspective UN offsets represent cheap paper to squeeze Eurocents on swaps and options while there is still volatility in the market.  So this is what is happening now, not just in the private sector but governments also.