Daily Market Brief

Market Comment

Volatile trading was observed on Ukrainian equity markets Wednesday (Nov. 17). The UX exchange opened lower, but recovered early losses in a second half rally to close 1.25% higher. Trading volume was above average at UAH 140 mln. Alchevsk Steel (ALMK +3.36%), Motor Sich (MSICH +3.33%) and Ukrnafta (UNAF +3.95%) contributed most to the index’s growth. Coke producers (AVDK +0.33%, YASK +0.75%) reversed to gains, while banks (BAVL -0.58%, USCB -1.02%) and steel makers (AZST -0.19%, ENMZ -0.52%) extended losses. GenCos showed mixed dynamics: Centerenergo (CEEN) inched up 0.12%; Zakhidenergo (ZAEN) slid 1.87%.

Among Ukrainian stocks listed on international markets, oil and gas names closed flat (JKX LN +0.17%, CAD LN unch, RPT LN unch). Other London-listed stocks posted solid gains: FXPO LN +3.49%, MHPC LI +1.23%. In Warsaw, agriculture and food processing stocks sank with Kernel (KER PW -4.92%) suffering the most significant blow, and Agroton (AGT PW -2.62%) and Astarta (AST PW -1.6%) also taking a dive.


Fixed Income: FUIB’s merger with Dongorbank scheduled for 2H11
Oil & Gas: Regal Petroleum suspends production in Ukraine

Daily Market Brief

Market Comment

Ukrainian equity markets declined Tuesday (Nov. 16), dragged lower by negative sentiment from global markets. The UX exchange lost 1.71% as investors’ concerns over European sovereign debt took its toll. Activity was high – trading volume came in at UAH 187 mln. Blue chips closed broadly lower led by Motor Sich (MSICH -3.34%). Banks followed suit with Raiffeisen Bank Aval (BAVL) shedding 2.04% and Ukrsotsbank (USCB) declining 2.17%. Metals and mining stocks posted moderate losses: AVDK -1.66%, AZST -1.92%, ENMZ -1.45%, YASK -0.77%. Most other top names mirrored the broad market trend: CEEN -1.29%, UNAF -0.98%, UTLM -1.63%.

Ukrainian stocks listed on international markets showed mixed dynamics. Regal Petroleum (RPT LN) jumped 5.36%, while Cadogan (CAD LN -3.9%) and JKX Oil & Gas (JKX LN -2.15%) closed significantly lower. Investors fixed profits on Ferrexpo (FXPO LN -8.1%), pushing the price lower. Among agriculture and food processing stocks, only Kernel (KER PW +0.39%) managed to stay on the positive side, while Agroton (AGT PW -1.39%), Astarta (AST PW -2.25%) and MHP (MHPC LI -1.21%) lost in price.


Macro: Ukraine’s industrial output grows 10.2% Y-o-Y in October
Macro: IMF mission approves second tranche to Ukraine
Fixed Income: Ukraine’s President appoints new Head of Kiev City State Administration
Fixed Income: MHP reports 4.3 times increase in net profit

Daily Market Brief

Market Comment

Ukrainian equity markets began the week on the rise yesterday (Nov.15), boosted by positive news from international markets. The UX exchange (+2.03%) traded sideways in the first half of the session, but moved higher after the opening of US markets. Stocks changed hands actively bringing total trading volume to UAH 125 mln. Motor Sich (MSICH) took the spotlight for a second straight day – the stock soared 6.57%. Investors made moves for Ukrnafta (UNAF +2.21%), Ukrsotsbank (USCB +3.22%) and Yasynivka (YASK +3.99%), pushing prices higher. GenCos (CEEN +1.84%, ZAEN +0.21%) and most metal and mining stocks (ALMK +1.22%, AVDK +0.65%, AZST +0.61%) mirrored the general positive trend. Only a few stocks closed in the red, led by Raiffeisen Bank Aval (BAVL -1.32%) and trailed by Ukrtelecom (UTLM -0.22%) and Enakievo Metallurgical Plant (ENMZ -0.09%).

Ukrainian stocks listed on international markets closed mixed. Cadogan Petroleum (CAD LN) plunged 6.1%, while Regal (RPT LN) and JKX Oil & Gas (JKX LN) closed flat. Other London-listed shares finished in positive territory: Ferrexpo (FXPO LN) jumped 3.59% and MHP (MHPC LI) inched up 0.61%. In Warsaw, Astarta (AST PW) and Kernel (KER PW) posted strong gains of 2.5% and 1.17% respectively, while Agroton (AGT PW) slid 0.83%.

On fixed income -- the IMF mission to Ukraine recently announced that the country would receive the second $1.6 billion tranche of funding from its large loan agreement by month's end. This should have a positive impact on Ukrainian Eurobond prices, especially on the back of recent yield increases on the back of Ireland's developments.

Macro: Ukraine’s GDP grows 3.5% Y-o-Y
Fixed Income: Moody’s upgrades credit rating outlook for DTEK
Oil & Gas: JKX reports decline in production