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Tuesday, November 13, 2012

Warsaw Market & Carbon Watch - Tuesday 13 November

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 on the day (+0.37%), compared to flat/bearish results in the European markets (FTSE -0.04%, STOXX -0.25%, CAC -0.35%, DAX +0.07%, IBEX -0.90%) and U.S. markets (DOW +0.00%, S&P +0.01%, NASDAQ -0.02%).  Looking at Ukrainian equities in particular across the Warsaw Stock Exchange, they performed below the main Warsaw equities index, closing down (-1.02%) for the day with gains in IMC, Sadovaya, Coal Energy and Ovostar unable to offset white and red screens among other names.  From a market depth standpoint, the highest trading volumes occurred in Westa International Scientific Group (182,537 shares), Sadovaya Group (73,448 shares) and Kernel (50,418 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): 43368.99 (+0.37%)
WSE WIG-Ukraine Index (total return index for Ukrainian listed companies):  661.18 (-1.02%) 

Ovostar Union NV (OVO PW):  95.75 (+0.31%)
Kernel Holding SA (KER PW):  63.25 (-1.79%)
Agroton Public Limited (AGT PW):  11.03 (-0.99%)
Astarta Holding NV (AST PW):  60.00 (-2.60%)
Industrial Milk Co (IMC PW):  15.35 (+5.79%)
KSG Agro SA (KSG PW):  11.50 (-1.03%)
Milkiland (MLK PW):  15.55 (unch)
KDM Shipping Plc (KDM PW):  26.90 (-0.37%)
Coal Energy SA (CLE PW): 12.44 (+0.32%)
Sadovaya Group SA (SGR PW):  2.56 (+3.64%)
Westa Intl Scientific Group (WES PW):  1.05 (-0.94%)

Carbon Trading

ICE daily CER price improved to 1.10 EURO (+10.00%).  The market remains significantly long and participants seem to be pinning their hopes on supply constraint decisions which could take a long time to materialize.  The European Commission has proposed back-loading 900 million EUAs from 2013, and carbon got a jolt from this news.  However back-loading is not the same as removal, so trading volume remains driven by swaps and hedging; real new demand does not exist to meet continuous rolling supply growth through year end.  The only thing one can say about carbon right now is it's quite cheap.  But today's cheap price can become tomorrow's expensive price, as we've seen since August 2011. The market badly needs regulatory support.