Warsaw Market Watch

Greetings from Kiev!  Here is this morning’s Ukrainian stock performance summary, from the Warsaw Stock Exchange, based on Friday’s closing bell.  As a whole, the Warsaw Stock Exchange performed flat on the day with a slight decrease -0.08% for its second slight loss day after two days of moderate gains.  Looking at Ukrainian equities in particular across the Warsaw Stock Exchange, they performed in line with the market and closed down 0.39%, led by losses in value for certain weighted names in the mining, agriculture and food production sectors.

For specific results kindly see the table below, prices denoted in Polish currency (Zlotys).  Cheers – Jon

WSE WIG Index (total return index for Warsaw Stock Exchange listed companies): 43701.32 (-0.08%)

WSE WIG-Ukraine Index (total return index for Ukrainian listed companies):  696.75 (-0.39%) 

Ovostar Union NV (OVO PW):  101.00 (-0.2%)

Kernel Holding SA (KER PW):  62.50 (-0.24%)

Agroton Public Limited (AGT PW):  11.30 (+0.36%)

Astarta Holding NV (AST PW):  65.00 (-1.22%)

Industrial Milk Co (IMC PW):  14.50 (-1.29%)

KSG Agro SA (KSG PW):  12.89 (-5.66%)

Milkiland (MLK PW):  17.35 (+1.98%)

KDM Shipping Plc (KDM PW):  25.70 (-0.39%)

Coal Energy SA (CLE PW): 16.41 (+1.05%)

Sadovaya Group SA (SGR PW):  4.35 (-3.76%)

Westa Intl Scientific Group (WES PW):  0.90 (+18.42%)

Ukraine Business News

Ukraine Poised To Become Leading World Corn Exporter
According to the calculations of the Association Ukrainian Agribusiness Club, based on the Food and Agriculture Organization (United Nations) data since 2000, corn yields in Ukraine increased annually by 2.3 tons per hectare, whereas the current global grain exporting countries (United States, Brazil, Argentina) increased their yields in the range of 0.8-1.4 kg per hectare.  During the past year, Ukrainian corn yields amounted to 64.4 tons per hectare, while in 2000 it stood at yield of 30.1 tons per hectare (e.g., doubling output).  Similarly, Ukrainian soybean productivity growth has increased greatly since 2000, at 0.68 tons per hectare annually, while the U.S. soybean yield growth for the same period is equal to 0.33 kilograms per hectare.  According to Dr. Alex Lissitsa, President of the Association Ukrainian Agribusiness Club, there is continued huge growth potential for Ukraine's agribusiness sector due to technology and farming methodology improvements, at a time when its global competitors have almost already touched their maximum crop production capacities. With continued productivity growth at 5% per year, Ukraine will be able to exceed corn exports by Argentina and Brazil, cementing a firm foothold in the second place after the United States - about 30 million tons annually - and growing.  (for more information see source article at www.korrespondent.net)  

Warsaw Market Watch

Greetings from Kiev!  Here is this morning’s Ukrainian stock performance summary, from the Warsaw Stock Exchange, based on yesterday’s closing bell.  As a whole, the Warsaw Stock Exchange performed slightly down on the day with a slight decrease -0.99% after two days of moderate gains.  Looking at Ukrainian equities in particular across the Warsaw Stock Exchange, they performed down 2.31%, led mostly by slight net decreases in value for certain weighted names in the agriculture and food production sectors.

For specific results kindly see the table below, prices denoted in Polish currency (Zlotys).  Cheers – Jon

WSE WIG Index (total return index for Warsaw Stock Exchange listed companies): 43737.02 (-0.99%)

WSE WIG-Ukraine Index (total return index for Ukrainian listed companies):  699.51 (-2.31%) 

Ovostar Union NV (OVO PW):  101.20 (-3.5%)

Kernel Holding SA (KER PW):  62.65 (-4.7%)

Agroton Public Limited (AGT PW):  11.26 (+1.9%)

Astarta Holding NV (AST PW):  65.80 (-1.1%)

Industrial Milk Co (IMC PW):  14.69 (unch)

KSG Agro SA (KSG PW):  12.20 (-4.2%)

Milkiland (MLK PW):  17.70 (+0.6%)

KDM Shipping Plc (KDM PW):  25.80 (+0.58%)

Coal Energy SA (CLE PW): 16.24 (-1.0%)

Sadovaya Group SA (SGR PW):  4.52 (+4.6%)

Westa Intl Scientific Group (WES PW):  0.76 (+24.6%)

Japan Approves New Renewable Energy Feed-In Tariffs

On June 18, Japan's Ministry of Industry approved the implementation of renewable energy feed-in tariffs.  These tariffs, set to last for at least 20 years, are among the highest in the world (see chart below) and they become effective from July onwards. Bloomberg New Energy Finance estimates that Japan's photovoltaic (PV) market alone could be worth at least 10 billion USD, with Japan poised to overtake Italy as the world's second largest solar energy market.

The new Japanese green tariffs require utility companies to purchase electricity from renewable sources, such as wind, solar, biomass, geothermal and different forms of biomass.  Japan's government views this requirement as a positive step towards reducing its historic reliance on nuclear power and thereby mitigate against a potential future "nature+nuclear" national catastrophe a la Fukushima.

Japan only generates about 1% of its energy from renewable sources at present, but analysts predict that the country should unlock at least 30 billion USD in fresh renewable energy investment by means of these new tariffs. It will be interesting to watch how feed-in tariff policies evolve in the USA and other major economies -- much work still needs to be done in order to reduce our global dependence on greenhouse gas emitting fossil fuels.

Cheers -- Jon