Daily Market Brief

Market Comment

Ukrainian equity markets started the week off in a positive mood. The UX exchange jumped 0.95% Monday (Aug. 9) on a moderate trading volume of UAH 65.5 mln. Metals and mining names (AVDK +1.52%, AZST +1.25%, ENMZ +2.24%, YASK +2.73%) led a broad-based advance, which saw Poltava GOK skyrocket 20.57%. Alchevsk steel (ALMK -0.62%) was among the few names to pick up losses on the day. Banks followed the positive trend with Raiffeisen Bank Aval (BAVL) up 0.69%, and Ukrsotsbank (USCB) adding 1.22%. Uknafta (UNAF +1.35%) and Motor Sich (MSICH +1.35%) also reversed to gains, while GenCos (CEEN +1.94%, ZAEN -1.62%) closed mixed.

Ukrainian stocks traded on international markets showed mixed dynamics. Regal (RPT LN) pared the day’s previous losses to close 3.76% higher. JKX Oil & Gas climbed 0.76%, while Cadogan slipped 1.47%. Among food processing stocks, Astarta (AST PW +1.94%) and MHP (MHPC LI +0.215) inched up, unlike Kernel that dropped 0.7%. Ferrexpo (FXPO LN) remained on a roll, extending gains by 0.75%.

Demand was steady for Ukrainian risk on Monday. Sovereigns traded stronger by a half a point on the long end, while short-end issues edged up one eighth of a point. Municipal issues were also well bid; however, trading volumes remained insignificant. In the corporate sector, METINV, DTEK and MHPSA outperformed the universe to close 0.5 to 1 p.p. higher. Banking names generally closed unchanged with buyers recorded only for ALFAUA.

The rally continued on the Russian market. Russia 30 managed to add another half a point. Corporates also traded higher on solid demand.



Macro: The National Bank of Ukraine slashes discount rate
Metallurgy: Ukrainian steel plants decrease losses in June

Daily Market Brief

Ukrainian markets slid for a third straight session Friday (Aug. 6), in line with the downward trend seen on global markets. The UX exchange lost 0.88% on a moderate volume of UAH 74 mln. Stocks declined across the board with banks (USCB -1.38%, BAVL -1.26%, FORM – 0.96%) and utilities (ZAEN -1.25%, UTLM -1.22%) setting the pace. With the exception of Yasynivsky Coke (YASK +0.06%), metals and mining stocks listed in the index basket retreated (ALMK -1.23%, AVDK -0.88%, AZST -0.91, ENMZ -2.59%). Stirol (STIR +4.17%) and Ukrnafta (UNAF -0.92) led all stocks in trading volume at UAH 10.6 mln and UAH 9.7 mln respectively.

Ukrainian stocks listed on international markets closed mixed Friday. Regal (RPT LN) was among the worst performers, losing 2.21%. JKX Oil & Gas also declined (JKX LN -0.55%), while Cadogan (CAD LN) finished unchanged. Among food processing stocks, Kernel (KER PW) edged up 2.33%, Astarta (AST PW) dropped 0.48% and MHP (MHPC LI) closed flat. Ferrexpo (FXPO LN) advanced 2.33% on the back of impressive financials posted for 1H2010.

Trading activity was slow on the Ukrainian Eurobond market Friday, with just slight demand recorded at the end of the session. Sovereigns closed half a point stronger on the long end on low volumes. In the corporate
sector, Metinvest and DTEK finished marginally up, while MHPSA slid.

The Russian sovereign benchmark skyrocketed at the end of the trading day to close 1 p.p. higher. In the banking sector, VEB, SBER and VTB all finished stronger. Among other corporate names, Lukoil, VIP and RAIL added in price on solid demand.

Daily Market Brief

Market Comment

Negative sentiment continued to rule Ukrainian stock exchanges Tuesday (July 20). The UX exchange closed down 0.37% on very low activity – total trading volume was a meager UAH 38.6 mln. The UX showed positive dynamics after the opening bell, but soon reversed gains as support from buyers fizzled. Among blue chips, only Ukrtelecom (UTLM +1.55%) and Zakhidenergo (ZAEN +0.19%) managed to stay on top. Metals and mining stocks underperformed the market: ALMK -0.8%, AVDK -1.35%, AZST -1.58%, ENMZ -1.54%, YASK -1.26%. Banks slipped (BAVL -0.11%, USCB -1%) followed by Motor Sich (MSICH -0.58%) and Ukrnafta (UNAF -0.49%).

Ukrainian stocks on international markets closed mostly higher. Regal Petroleum (+10.23%) posted a double-digit gain paring the previous days’ losses. Other names listed on the London Stock Exchange also traded in positive territory: JKX Oil & Gas (JKX LN) inched up 0.07%, Ferrexpo (FXPO LN) advanced 2.11%, MHP (MHPC LI) added 0.07%. Large trading volumes were observed for Kernel (KER PW), but the stock came under selling pressure and lost 2.87%.

Trading activity for Ukrainian Eurobonds was higher than average yesterday. Investors had their sights set on sovereign issues, which traded down during the first half of the session but reversed later on to close flat. First tier corporates MHP, DTEK and METINV traded up, adding at least a quarter point on the day.



Macro: Ukraine to receive $3 bln from the IMF in 2010
Fixed Income: Metinvest receives syndicated loan
Oil & Gas: Ukrnafta August oil supplies priced at $60/bbl
Food processing: Astarta opens a new elevator
Agriculture: Landkom reports 1H2010 results