Daily Market Brief

Market Comment

Ukrainian equity markets closed lower on volatile trading Friday (Oct. 8). The UX exchange (-0.66%) dropped from the opening bell and traded sideways throughout the session. Total trading volume slid back to a moderate level of UAH 70.8 mln. All names in the index basket declined with Raiffeisen Bank Aval (BAVL -0.94%), Forum Bank (FORM -1.8%), Stirol (STIR -1.41%) and Ukrtelecom (UTLM -1.49%) leading the fall. Metals and mining stocks forfeited the previous session’s gains (ALMK -1.1%, AVDK -0.71%, AZST -0.47%, ENMZ -1.05%).

Ukrainian stocks listed on international markets traded in the doldrums. Oil and gas names were among the biggest laggards with JKX Oil & Gas (JKX LN) losing 3.15%, Regal Petroleum (RPT LN) dropping 2.82% and Cadogan Petroleum (CAD LN) sliding 2.27%. Other London-listed stocks posted modest losses: FXPO LN -0.63%, MHPC LI -0.33%. Food-processing stocks listed in Warsaw came under selling pressure: AST PW -1.65%, KER PW -0.84%.

Activity on the Ukrainian Eurobond marked centered on sovereign issues on Friday. All names on the curve were hit several times during the session, resulting in a loss in of at least a quarter point for sovereign issues. As there was no significant news regarding sovereign debt, the selloff was likely the result of end-of-the-week profit taking after a substantial price increase seen earlier. Corporates bucked the sovereign trend by closing slightly higher.


Politics: Ukraine’s Parliament put back in order
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Daily Market Brief

Market Comment

Ukrainian equity markets were buoyed by improved sentiment Wednesday (Oct. 6). The UX exchange climbed 1.02% on a high total trading volume of UAH 135 mln. Alchevsk Steel (ALMK +1.26%), GenCos (CEEN +1.39%, ZAEN +1.08%), Motor Sich (MSICH +1.07%) and Ukrtelecom (UTLM +1.76%) outperformed the market. Steel producers (AZST +0.43%, ENMZ+0.93%) and Ukrnafta (UNAF +0.99%) also contributed to the broad market advance, while banks (BAVL +0.26%, USCB -0.15%) and coke producers (AVDK +0.27%, YASK -0.28%) waivered around the flat line.

On international markets, Ukrainian shares pared the previous day’s losses. JKX Oil & Gas (JKX LN -1.05%) was the only stock to finish in negative territory. Ferrexpo (FXPO LN) was the stock of the day surging 5.31%.

Cadogan (CAD LN +1.3%) and Regal Petroleum (RPT LN +2.70%) closed significantly higher, while food processing stocks (MHPC LI +0.34%, KER PW +0.38%, AST PW +0.68%) eked out small gains.

Ukrainian Eurobonds rallied yesterday. Long-end sovereigns added almost a point, as did NAFTO. Corporates were in very good demand, closing up a quarter to a half point. Banking names also caught investors’ attention: ALFAUA traded at 103 and FUIKR at par.


Macro: FX interbank market shows net demand in September
Fixed Income: FUIB requests bondholders amend Eurobond conditions

Daily Market Brief

Market Comment

Ukrainian equity markets continued their losing streak Tuesday (Oct. 5). The UX exchange opened with yet another dramatic slide, but recovered in the afternoon to close only 0.69% lower. Trading volume was extremely high, reaching nearly UAH 191 mln. Most blue chips came under pressure, with Avdiivka (AVDK +1.90%), UkrSibbank (USCB +0.95%) and Zakhidenergo (ZAEN +0.02%) managing to buck the broad market trend. Investors hammered metals and mining stocks: ALMK -0.59%, AZST -0.86%, ENMZ -1.75%, YASK -2.09%. Raiffeisen Bank Aval (BAVL -0.47%), Centerenergo (CEEN -0.21%), Ukrnafta (UNAF -0.15%) and Ukrtelecom (UTLM -0.98%) surged late but could not manage to find positive territory.

Ukrainian stocks listed on international markets traded predominantly in the red. Regal Petroleum was the notable exception; the stock recovered 10.45% from last week’s sell-off. Other oil and gas names closed significantly lower with Cadogan (CAD LN) losing 1.3%, JKX Oil & Gas (JKX LN) declining 2.54%. Food processing stocks posted moderate losses: AST PW -0.4%, KER PW -0.37%, MHPC LI -0.67%.

Trading was moderate on the Ukrainian Eurobond market yesterday. Corporates remained flat and banking names traded slightly up. Sovereigns were in good demand due to generally positive sentiment on the bond market. As a result, long-end issues closed a quarter of a point higher.


Macro: Ukraine’s budget revenues at only 65% for 2010
Fixed Income: Fitch assigns a “B” rating to Kernel