Daily Market Brief

Market Comment

Ukrainian equity markets closed in the black Friday (Aug 13). The UX exchange jumped more than 25 points from the opening, pushed up by positive sentiment emanating from global markets. The exchange lost momentum by mid-session, however, and finished only 0.56% higher. Total trading volume was moderate at UAH 65 mln. Stocks closed broadly higher with Azovstal (AZST +3.07%) leading the way up. Most metals and mining stocks outperformed the market: ALMK +1.72%, AVDK +0.96%, ENMZ +1.02%, YASK +0.39%. Banks (BAVL +1.92%, USCB -0.13%) and GenCos (CEEN +0.44%, ZAEN -0.09%) showed mixed dynamics, while other blue chips including Motor Sich (MSICH +1.58%), Ukrnafta (UNAF +0.36%) and Ukrtelecom (UTLM +0.08%) followed the positive trend.

Among Ukrainian stocks listed on international exchanges, oil and gas names posted solid gains: Cadogan (CAD LN) edged up 1.49%, JKX Oil & Gas (JKX LN) added 1.75% and Regal (RPT LN) grew 3.82%. Ferrexpo (FXPO LN) dropped 0.28%. Warsaw-listed stocks closed mixed with Astarta (AST PW) rising 3.06% and Kernel (KER PW) sliding 2.52%.

Activity on the Ukrainian Eurobond market was expectedly sluggish Friday. However, Sovereigns bucked the trend, falling significantly on a flurry of trading recorded in the first half of the session. Quasi-sovereigns also lost a half a point on the day. UKRSIB was the only bond in the Ukrainian universe to add in price.



Macro: Ukraine’s government releases economic forecasts
Fixed Income: Government to increase capital of Naftogaz Ukrainy
Metals and Mining: ALMK to double production in August

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.



Oil & Gas: Ukrnafta reports revised net profit for 1H2010