Daily Market Brief

Market Comment

Ukrainian equity markets spent the trading session in the red on Friday (Jan. 28). The PFTS managed to eke out a gain, while the UX exchange lost 0.77% on a meager total trading volume of UAH 135 mln. Banking names led the slide on the UX with Raiffeisen Bank Aval (BAVL –2.47%) and Ukrsotsbank (USCB -2.46%) tumbling along matching dynamics. Metals and mining names (ALMK -3%, YASK -1.73%, ENMZ -1.57%, AZST -1.52%, AVDK -0.51%) took on a hefty portion of the day’s losses. Among blue chips, Zakhidenergo (ZAEN +1.1%) and Ukrnafta
(UNAF +0.9%) managed to close in positive territory.

In London, JKX Oil & Gas (JKX LN +0.04%) barely crossed the flat line and Cadogan Petroleum (CAD LN) closed flat. Ferrexpo (FXPO LN +2.94%) swelled, while MHP (MHPC LI -0.26%) shed. In Warsaw, agricultural and food processing stocks fell, with Agroton (AGT PW -2.21%) taking the biggest blow, and Kernel (KER PW -1.04%) and Astarta (AST PW -0.4%) posting more moderate losses.


Macro: Current account deficit widens to 1.9% of GDP in 2010
Fixed Income: PrivatBank reports 30.4% Y-o-Y increase in bottom line

Daily Market Brief

Market Comment

Ukrainian equity markets traded in negative territory for most of the session Monday (Jan. 24). However, the UX exchange (+0.02%) managed to creep above zero just before the close. Total trading volume reached UAH 150 mln. Blue chips closing in the black were far and few between: Stahanov Car Production Facility (SVGZ +11.56%) singlehandedly pulled the index into positive territory and received only minor support from Alchevsk Steel (ALMK +1.76%), Ukrnafta (UNAF +0.25%) and Ukrsotsbank (USCB +0.02%). Losses for other liquid stock came in at under one percent with the exception of Zakhidenergo (ZAEN -1.5%).

In London, oil and gas names closed in the red: CAD LN -1.18%, JKX LN -0.48%. MHP (MHPC LI -1.05%) lost just over a point, while Ferrexpo (FXPO LN +1.24%) ended the day on a rise. In Warsaw, investors fixed profits on Kernel (KER PW -3.25%), Astarta (AST PW -0.46%) shed, and Agroton (AGT PW +1.97%) made a significant advance.


Fixed Income: Ukraine to add $100 mln to one-year notes
Metals and Mining: Alchevsk Steel to raise total monthly output in January

Daily Market Brief

Market Comment

Ukrainian equity markets set a solid upward pace on Friday (Jan. 21). The UX exchange closed up 1.4% on the back of a moderate total trading volume of UAH 163 mln. The main drivers of index growth were impressive gains by steel makers (ALMK +3.78%, ENMZ +2.57%, AZST+2.75%) and Ukrtelecom (UTLM +1.62%). Significant advances were also recorded by the banking sector (USCB +3.03%, BAVL +1.49%) and Centerenergo (CEEN +1.39%). The only blue chip that didn't make it over the flat line was Ukrnafta (UNAF -0.09%). Other liquid stocks closed in the black with gains of under one percent.

In London, Cadogan Petroleum (CAD LN +1.19%) and JKX Oil & Gas (JKX LN +0.28%) showed moderately positive dynamics. MHP (MHPC LI +1.33%) continued to swell, while Ferrexpo (FXPO LN -0.02%) ended the day with a meager loss. In Warsaw, Kernel's (KER PW +5.26%) hike was in stark contrast to downturns by Astarta (AST PW -1.05%) and Agroton (AGT PW -1.14%).


Metals and Mining: Russia to prolong existing duties on Ukrainian pipe

Daily Market Brief

Market Comment

Ukrainian equity markets closed the week with a significant downturn. The UX exchange lost 1.22% Friday (Jan. 14), on a total trading volume of UAH 175 mln. Metals and mining stocks extended losses: ALMK -3.52%, AZST -2.48%, YASK -2.48%, ENMZ -2.28%, AVDK -0.97%. Prices were also notably lower for Ukrsotsbank (USCB -1.72%), GenCos (CEEN-1.61%, ZAEN -1.58%), and Ukrtelecom (UTLM -1.33%). Other liquid stock posted minor losses under one percent.

On international markets, Regal Petroleum (RPT LN +6.54%) soared, while Cadogan Petroleum (CAD LN -1.16%) and JKX Oil & Gas (JKX LN -0.62%) slid. Both Ferrexpo (FXPO LN -0.61%) and MHP (MHPC LI -0.9%) shed some points by the end of the session. In Warsaw, Astarta (AST PW +4.12%) starred, Kernel (KER PW -1.25%) crumbled and Agroton (AGT PW -0.26%) took a shallow dip.


Fixed Income: Kiev eyes UAH 2.4 bln in foreign borrowings in 2011

Daily Market Brief

Market Comment

Ukrainian equity markets closed in the red yesterday (Jan. 13) on the back of negative job data released out of the U.S. in the second half of the trading session. The UX exchange lost 1.24%. Total trading volume set a historic record at UAH 320 mln. Ukrnafta (UNAF -0.18%) and Motor Sich (MSICH +0.69%) set the pace among volume leaders. The banking sector was one of the day’s bright spots, with Raiffeisen Bank Aval (BAVL +2.21%) and Ukrsotsbank (USCB +1.36%) turning in a solid performance. Ukrtelecom (UTLM) added a humble 0.58%. Investors fixed profits on the previous session’s top gainers: CEEN -4.12%, ALMK -4.38%, AZST -4.12%, ENMZ -3.89%. Prices also significantly dropped for coke producers: YASK -2.92%, AVDK -1.78%.

On international markets, Cadogan Petroleum (CAD LN +1.18%) and Regal Petroleum (RPT LN +2.89%) took a step up, while JKX Oil & Gas (JKX LN -0.03%) posted a small loss. Ferrexpo (FXPO LN +3.5%) prices climbed further and MHP (MHPC LI +1.1%) rebounded. In Warsaw, Astarta (AST PW +2.3%) solidified its advance, with both Kernel (KER PW +0.63%) and Agroton (AGT PW +0.8%) following suit.


Fixed Income: Kyiv targets balanced budget
Oil & Gas: Ukrnafta planning an IPO in London

Daily Market Brief

Market Comment

Yesterday’s (Jan. 12) optimism on Ukrainian equity markets drove the UX exchange (+1.48%) to a new historic high. Trading volume reached UAH 206 mln. Prices shot up for Centerenergo (CEEN +4.10%) and steel makers: AZST+5.26%, ENMZ +3.95%, ALMK +2.68%. Significant advances were made by banking sector stocks: BAVL +2.32%, USCB +1.09%. After a two-day correction, coke producers (YASK +0.15%, AVDK +0.03%) managed to close in the black; trading also came in above the flat line for Ukrtelecom (UTLM +0.62%) and Ukrnafta (UNAF +0.02%). Motor Sich (MSICH -0.28%) and Zakhidenergo (ZAEN -1.37%) traded against the market.

On international markets, Regal Petroleum (RPT LN +4.04%) soared, while JKX Oil & Gas (JKX LN -0.34%) posted a moderate loss and Cadogan Petroleum (CAD LN) closed flat. Ferrexpo (FXPO LN) kept up positive dynamics with an impressive gain of 3.1%, but MHP (MHPC LI -0.28%) continued its losing streak. In Warsaw, Astarta (AST PW +1.87%) and Kernel (KER PW +0.44%) turned in a solid performance, while Agroton (AGT PW -2.69%) dropped significantly.


Equity: Ukrainian President vetoes squeeze-out law
Metallurgy: Ukrainian steel output to decrease 7% M-o-M in February
Metallurgy: Ukraine’s steelmakers improve aggregate pretax losses by $75 mln
Agriculture: Ukraine eyes 45 mln tonnes of grain harvest in 2011

Daily Market Brief

Market Comment

Ukrainian equity markets posted meager gains yesterday (Jan. 10). The UX exchange traded in the red during the first half of the session, but recovered in the afternoon to add 0.26%. Total trading volume came in at a moderate UAH 180 mln. Investors were all about coke producers: Yasynivka Coke (YASK) soared 10.79% and Avdiivka Coke (AVDK) jumped 5.94%. Among other blue chips, only two companies managed to close in the black: Centerenergo (CEEN +2.92%) made a solid advance and prices for Ukrnafta (UNAF +0.26%) moved slightly upward. Investors fixed profits on other liquid stock; loss leaders included Alchevsk Steel (ALMK -2.88%), Enakievo Steel (ENMZ -2.42%) and Zakhidenergo (ZAEN -2.05%).

On international markets, Ukrainian oil and gas companies recorded significant growth with Regal Petroleum (RPT LN +4.26%) and Cadogan Petroleum (CAD LN +2.38%) among the session’s top stocks, while JKX Oil & Gas (JKX LN +0.45%) grew at a more moderate pace. Losses came in for Ferrexpo (FXPO LN -1.67%) and MHP (MHPC LI -0.89%). In Warsaw, Аgroton (AGT PW +3.29%) and Astarta (AST PW +3.13%) climbed steeply, while Kernel (KER PW -1.13%) corrected.


Food processing: Kernel increases share capital by 0.66% -- Deutsche Bank issues "buy" recommendation with 98 PLN target price.

Daily Market Brief

Market Comment

Ukrainian equity markets kept up the positive trend on Thursday (Jan. 6). The UX exchange gained 2.43% as total trading volume for the half-day session came in at UAH 144 mln. The rally around metals and mining stocks continued: Azovstal (AZST +8.55%) skyrocketed, impressive gains were made by Avdiivka Coke (AVDK +7.67%), Enakievo Steel (ENMZ +7.56%) and Yasynivka Coke (YASK +7.34%), and Alchevsk Steel (ALMK +1.57%) ascended at a more moderate pace. Solid advances were made by GenCos (CEEN +2.58%, ZAEN +2.32%) and the banking sector (BAVL +2.01%, USCB +1.49%). Motor Sich (MSICH) added 1.24%, Ukrtelecom (UTLM +0.63%) advanced slightly, but Ukrnafta (UNAF -0.08%) just couldn’t manage to close in the black.

In London on Friday (Jan. 7), JKX Oil& Gas (JKX LN -10.55%) plummeted, Regal Petroleum (RPT LN -6%) tumbled and Cadogan Petroleum (CAD LN -1.18%) suffered notable losses. Ferrexpo (FXPO LN -0.31%) took a slight dip, while MHP (MHPC LI +0.28%) closed just over the flat line. In Warsaw, Kernel (KER PW +5.2%) made an impressive advance and Agroton (AGT PW +2.27% %) gained significantly, while Astarta (AST PW -0.86%) closed in the red.


Macro: Ukraine’s headline inflation at 9.1% Y-o-Y in 2010
Metals and Mining: Yasynivka Coke to reduce output in January by 4%
Agriculture: MHP announces partial execution of the “greenshoe” option