Daily Market Brief

Market Comment

Seesaw action was observed on Ukrainian equity markets Thursday (Aug. 12). Weighed down by negative data out of the US, the UX exchange dipped more than 20 points, but pared losses in a late rally to end the session 0.07% higher. Activity was moderate with a total trading volume of UAH 86 mln. MMKI stole the spotlight, jumping 20.12% on low volumes. Alchevsk Steel (ALMK +0.58%) and Yasynivka Coke (YASK +0.27%) gained ground, while other metals and mining stocks floundered in the red (AVDK -0.24%, AZST -0.76%, ENMZ -1.23%). Ukrtelecom (UTLM) was among notable gainers, adding 2.09%. Ukrnafta (UNAF) and Zakhidenergo (ZAEN) inched up 0.06% and 0.26% respectively, while Centerenergo (CEEN) dropped 0.79%.

Most Ukrainian stocks listed on international markets returned to positive territory. All food processing names finished higher: KER PW +2.25%, AST PW +0.16%, MHPC LI +1.81%. Ferrexpo (FXPO LN) advanced 2.73%. The situation in the oil and gas sector was less optimistic. JKX Oil & Gas came under selling pressure to close 1.72% lower, while Cadogan (CAD LN) and Regal (RPT LN) hovered around the flat line.

Moderate action was recorded on the Ukrainian Eurobond market Thursday. Solid demand at the opening pushed long-end sovereigns and NAFTO up about a half a point; however, interest faded quickly causing the papers slip back to previous levels. In the corporate sector, volumes were insignificant with some trading in Metinvest and MHPSA. Slight demand was observed for municipal issues and AZOVTL without any price change on the day.

Trading on the Russian market was similarly moderate with sovereigns closing flat. In the corporate sector, GAZPRU, VTB and VEB were actively traded without any price change recorded.

Daily Market Brief

Market Comment

Ukrainian stock markets sunk deep into the red Wednesday (Aug. 11) as negative data out of China and the US shook investors’ faith in economic recovery. The UX exchange (-3.26%) opened sharply lower, driven down by steel producers (ALMK -5.05%, AZST -5.29%, ENMZ -5.71%). Coke names (AVDK -3.20%, YASK -4.91%) posted steep losses with banks (BAVL -4.03%, USCB -3.21%) and GenCos (CEEN -3.82%, ZAEN -0.72%) following suit. Nearly all blue chips suffered heavy blows including Motor Sich (MSICH -3.35%), Ukrnafta (UNAF -2.70%) and Ukrtelecom (UTLM -1.53%).

Ukrainian stocks listed on international markets also came under selling pressure. Ferrexpo (FXPO LN) was among the worst performers – the stock lost 5.8%. Oil and gas names closed slightly lower (CAD LN -1.47%, RPT LN -2.96%, JKX LN unch.). Food processing stocks were not immune to the general decline: MHPC LI -2.13%, AST PW -0.16%, KER PW -0.64%.

Sellers were out in force on the Ukrainian Eurobond market Wednesday. Sovereigns traded 0.25 to 0.75 p.p. lower. Naftogaz felt the heat, losing a point during the session. Metinvest and MHPSA were also among the worst performers, closing 0.5 to 1 p.p. down.

On the Russian space, sellers dominated with Russia 30 closing half a point lower. In the corporate sector, trading volumes were moderate with weaker pricing throughout the day. The Belorussian sovereign issue closed down on Wednesday, losing half a point.



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Daily Market Brief

Market Comment

Ukrainian exchanges were sent reeling Tuesday (Aug. 10) by negative performances on global markets. The UX exchange slumped 2.15% on a solid trading volume of UAH 89.5 mln. The broad market traded in the red from the opening bell, with metals and mining names (ALMK -4.66%, AVDK -2.17%, AZST -2.55%, ENMZ -3.27%, YASK -4.18%) leading the way down. Banks (BAVL -2.49%, USCB -3.20%) and GenCos (CEEN -3.51%, ZAEN -1.01%) lost ground. Investors were bearish on other blue chips as well: MSICH -1.29%, UNAF -1.97%, UTLM -1.49%.

Almost all Ukrainian stocks listed on international markets traded in the doldrums – only Cadogan (CAD LN) managed to remain in positive territory, adding 1.49%. JKX Oil & Gas (JKX LN) dropped 0.51%, Regal Petroleum (RPT LN) lost 2.17%. Food processing stocks kept pace with the decline: Astarta (AST PW) fell 1.74%, Kernel (KER PW) closed down 0.95%, and MHP (MHP LI) shed 0.21%. Investors chose to secure profits on Ferrexpo (FXPO LN -2.43%), which had been on a roll in previous sessions.

Trades were far and few between on the Ukrainian Eurobond market Tuesday. Some profit taking was observed for long-end sovereigns and NAFTO, which closed about 0.5 p.p. lower. Municipal issues traded flat, while METINV and DTEK recorded slight losses.

The Russian Eurobond market traded in the red. The sovereign benchmark closed at the 118 level. In the corporate sector, generally negative sentiment drove GAZPRU, VTB and SBER lower.



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