Daily Market Brief

Market Comment

Ukrainian equity markets took a pounding yesterday (Mar. 15), as investors continued to turn their backs on stocks following the devastation in Japan. The UX exchange (-3.19%) fell more than 80 points on a hefty equity trading volume of UAH 245 mln. Motor Sich (MSICH -6.08%) led the plunge for yet another session; the stock has dropped more than 13% over the past week. Metals and mining companies (ALMK -5.01%, AZST -4.14%, YASK -5.78%, ENMZ -6.8%), GenCos (CEEN -5.55%, DOEN -6.73%, ZAEN -3.55%) and Stirol (STIR -6.65%) took it on the chin. Banks (BAVL -3.15%, USCB -2.91%) and Ukrtelecom (UTLM -3.04%) did not fare much better. Ukrnafta (UNAF +0.79%) managed to avoid the fall, braced by news that shareholders would consider a 25% share capital increase at next week’s EGM.

On international markets, Ukrainian stocks were engulfed in the widespread selloff. Cadogan Petroleum (CAD LN -5.7%) suffered the most severely impact, while oil and gas peers Regal Petroleum (RPT LN -1.88%) and JKX Oil & Gas (JKX LN -2%) closed well into the red. Ferrexpo (FXPO LN -2.18%) reversed to losses, and MHP (MHPC LI -3.49%) continued its decline. In Warsaw, Agroton (AGT PW -3.23%) recorded a dramatic drop and Astarta (AST PW -0.95%) faded. Kernel (KER PW) managed to find support, and posted a noteworthy gain of 1.69%.


Fixed Income: Placement of Ukrainian Treasuries tops UAH 3.3 bln

Daily Market Brief

Market Comment

Volatile trading characterized Ukrainian stock markets yesterday (Mar. 14), as investors across Europe continued to size up the economic ramifications of the earthquake and tsunamis in Japan. The UX exchange (-1.29%) extended what has become a weeklong slide. Total equity trading volume came in at a moderate UAH 183 mln. Late session surges by Ukrnafta (UNAF +0.12%) and Ukrtelecom (UTLM +0.86%) were not enough to hoist the exchange into positive territory, as volume leader Motor Sich (MSICH -2.23%) weighed heavily on the market. Stirol (STIR -2.41%), GenCos (ZAEN -1.62%, CEEN -2.26%, DOEN -2.77%) and metals and mining names (ENMZ -3.1%, AZST -1.64%, YASK -0.95%%, AVDK -2.62%) dragged the exchange even deeper into the red.

In London, Ukrainian oil and gas producers reported mixed results, with Regal Petroleum (RPT LN +1.25%) and JKX Oil & Gas (JKX LN +2.54%) winning back the previous session’s losses, and Cadogan Petroleum (CAD LN -0.3%) shedding. Ferrexpo (FXPO LN +2.04%) continued its rise, while MHP (MHPC LI -2.36%) sunk deeper. In Warsaw, Astarta (AST PW -0.31%) and Kernel (KER PW -0.37%) slid, and Agroton (AGT PW +0.51%) made a slight turnaround.


Oil & Gas: Ukrnafta to consider share capital increase

Daily Market Brief

Market Comment

Ukrainian stock markets were open for trading Saturday (Mar. 12) to make up for the day off taken earlier in the week in connection with a local holiday. The UX exchange opened higher, but slid throughout the session to close with a 1.76% decline. Total equity trading volume was expectedly weak at UAH 137 mln. Ukrnafta (UNAF -6.94%) dropped sharply for a second straight session. Metals and mining stocks closed mixed: ALMK -0.5%, AVDK +0.9%, YASK +1.09%, ENMZ -1.02%. Banks (USCB -0.24%, BAVL -0.5%) posted meager losses. Volume leader Motor Sich (MSICH +0.62%) found support, Ukrtelecom (UTLM -1.09%) dimmed, and GenCos (ZAEN -0.43%, DOEN +0.29%, CEEN +0.29%) traded in opposite directions.

Local stock markets took on notable losses Friday (Mar. 11), as negative sentiment resulting from the devastating earthquake and tsunamis in Japan spread around the globe. The UX exchange tumbled more than 80 points in the early hours of trading, but settled in the afternoon to close lower by 1.85%. Total equity trading volume was high at UAH 260 mln. Ukrnafta’s (UNAF -4.13%) sharp fall weighed heavily on the index. Most metals and mining names (ALMK -0.74%, AVDK -1.37%, AZST -0.63%, ENMZ -0.63%) continued their losing streaks, while Yasynivka Coke (YASK +1.62%) made a strong late-session surge into the black. Banking stocks (BAVL -2.13%, USCB -0.75%), GenCos (CEEN -1.47%, DOEN -2.8%, ZAEN -1.57%), Motor Sich (MSICH -1.23%) and Stirol (STIR -1.83%) were not immune to the selloff. Ukrtelecom (UTLM +1.02%) bucked the market’s downward trend on the back of news that Epic Financial Consulting Gesellschaft had completed a deal with Ukrainian authorities to purchase a near 93% stake in the company.

In London on Friday, only Cadogan Petroleum (CAD LN +1.6%) and Ferrexpo (FXPO LN +1.4%) emerged in positive territory. Regal Petroleum (RPT LN -1.25%), JKX Oil & Gas (JKX LN -2.32%) and MHP (MHPC LI -1.04%) continued to fall. In Warsaw, Astarta (AST PW-0.63%) slowed its tumble, while the negative pace of Kernel (KER PW -1.35%) and Agroton (AGT PW -3.14%) continued to accelerate.


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