Daily Market Brief

Market Comment

Ukrainian equity markets rose along with major European indexes Friday (Mar. 18). The UX exchange climbed steadily throughout the day to add 2.55%. Total equity trading volume came in at a moderate UAH 191 mln – typical for the last session of the week. Motor Sich (MSICH) stole the show once again, rising 5.29% on a hefty volume. Metals and mining stocks (ALMK +5.59%, AZST +4.37%, AVDK +3.84%, ENMZ +4.68%, YASK +1.85%) surged for a second straight session. Ukrainian electricity generators made impressive ascents, with Centerenergo (CEEN +2.35%) and Donbasenergo (DOEN +2.35%) tacking on to gains, and Zakhidenergo (ZAEN +1.57%) making a noteworthy turnaround. Banks (BAVL +1.92%, USCB +3.39%) ratcheted up, and Ukrnafta (UNAF +0.63%) made a late session push into the black. Support for Ukrtelecom (UTLM) waned, with the stock shedding 0.77%.

In London, Ukrainian oil and gas names closed mixed: JKX Oil & Gas (JKX LN +0.87%) posted a meager gain, Regal Petroleum (RPT LN -1.56%) stepped down a notch, and shares of Cadogan Petroleum (CAD LN -5.73%) plummeted. Ferrexpo (FXPO LN +2.54%) continued to catch investors’ attention, while MHP (MHPC LI -0.06%) closed just shy of the flat line. In Warsaw, Astarta (AST PW -0.06%) and Kernel (KER PW -0.37%) finished the session slightly lower and Agroton (AGT PW) closed flat.


Fixed Income: Ukraine contemplates ruble bond issue
Metals and Mining: Yasynivka Coke’s net profit increases in 4Q10

Daily Market Brief

Market Comment

Ukrainian equity markets continued their push back into positive territory yesterday (Mar. 17). The UX exchange added 1.8% on a moderate equity trading volume of UAH 182 mln. Motor Sich (MSICH +1.25%) took a bite out of losses posted earlier in the week. Metals and mining stocks (ALMK +3.12%, AZST +3.43%, AVDK +1.15%, ENMZ +2.68%, YASK +1.47%) added to the index’s positive momentum. Trading for Ukrnafta (UNAF +0.88%) remained steady ahead of next week’s crucial EGM. GenCos closed mixed: Centerenergo (CEEN +3.06%) and Donbasenergo (DOEN +1.64%) surged, while Zakhidenergo (ZAEN -1.52%) posted a notable decline. Banks (BAVL +1.67%, USCB +2.75%) and Ukrtelecom (UTLM +1.54%) fell in line with the advance. Stirol (STIR +4.61%) skyrocket on the back of news that the company had recommenced production of ammonium nitrate at a facility closed back in 2009.

On international markets, Ukrainian names followed the general upward climb. Ferrexpo (FXPO LN) had a monster session, posting a 4.57% rise. Oil and gas companies (CAD LN +1.95%, RPT LN +0.63%, JKX LN +2.55%) closed with moderate gains, and MHP (MHPC LI +0.63%) made a slight turnaround. In Warsaw, agricultural and food processing stocks (AGT PW +1.51%, AST PW +1.94%, KER PW +1%) gained ground.

GenCos: Ukraine raises residential electricity tariffs
Machinery: Ukraine and Russia tie another knot on aviation deal

Daily Market Brief

Market Comment

The rebound was on for Ukrainian equity markets yesterday (Mar. 16). Following a weeklong skid the UX exchange returned to positive territory with a 1.6% advance. Equity trading volume was moderate at UAH 200 mln. The resurgence was led by volume leaders Motor Sich (MSICH +1.87%) and Ukrnafta (UNAF +2.99%). GenCos (CEEN +1.48%, DOEN +1.64%, ZAEN +3.53%) were among the session’s top gainers. With the exception of Yasynivka Coke (YASK -0.41%), metals and mining stocks (ALMK +0.8%, AZST +1.23%, ENMZ +1.39%) gained ground. Banks (BAVL +1.07%, USCB +1.81%), Ukrtelecom (UTLM +0.93%) and Stirol (STIR +2.38%) fell in line with the general advance.

In London, Ukrainian oil and gas stocks reported mixed results: Cadogan Petroleum (CAD LN +3.36%) and Regal Petroleum (RPT LN +1.27%) won back most of the previous session’s losses, while JKX Oil & Gas (JKX LN -2.01%) continued to fade. Ferrexpo (FXPO LN +0.96%) inched into the black, and MHP (MHPC LI -2.78%) suffered a notable decline. In Warsaw, Agroton (AGT PW +0.82%) and Astarta (AST PW +1.9%) ended on a positive note, while Kernel (KER PW -1.78%) slid


Macro: Ukraine’s GDP growth up to 7% in February
Metallurgy: Ukrainian steel production to intensify in April

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.


Politics: Ukrainian Supreme Court Chairman survives sack attempt
Fixed Income: Naftogaz reports UAH 21.4 bln net loss in 2010
Metals and Mining: Avdiivka Coke posts $2.8 mln in net losses for 2010

Daily Market Brief

Market Comment

Ukrainian equity markets ended in a real slump on Thursday (Mar. 10). The UX exchange lost 2.27%, with total equity trading volume coming in at UAH 180 mln. Steel makers were knocked over for a second straight session: ALMK -4.56%, ENMZ -3.68%, AZST -2.85%. Whopping drops were also recorded for banks (BAVL -3.41%, USCB -2.93%) and Motor Sich (MSICH -3.37%). Ukrtelecom (UTLM -2.44%), GenCos (ZAEN -2.9%, CEEN -2.14%) and coke producers (YASK -2.03%, AVDK -1.95%) traded up a notch in comparison, but still closed deep in the red. Ukrnafta (UNAF -0.94%) suffered the least damage on the day.

The downturn continued for Ukrainian companies listed on international markets. In London, Cadogan Petroleum (CAD LN -5.46%) and JKX Oil & Gas (JKX LN -1.57%) suffered further price slashes, while Regal Petroleum (RPT LN) closed flat. Ferrexpo (FXPO LN -2.77%) took another blow, and MHP (MHPC LI -0.46%) dipped below the flat line. In Warsaw, Astarta (AST PW -10.41%) plummeted on news that Chairman Valery Korotkov’s holding had sold 1.5 mln shares, lowering its stake to 26%. Agroton (AGT PW -1.84%) and Kernel (KER PW -0.49%) ended trading slightly tarnished.


Fixed Income: Ukraine’s Financing of Infrastructural Projects preparing new Eurobond sale

Daily Market Brief

Market Comment

Ukrainian equity markets experienced significant downturns on Wednesday (Mar. 9). The UX exchange lost 1.29%, with total equity trading volume dropping to UAH 164 mln. Steelmakers took on the roles of loss leaders: Azovstal (AZST -3.78%), Enakievo Steel (ENMZ -3.76%) and Alchevsk Steel (ALMK -2.16%) all experienced severe falls. Additional drag was dumped on by coke producers (AVDK -1.43%, YASK -1.11%), Ukrtelecom (UTLM -1.94%), Motor Sich (MSICH -1.9%) and Centerenergo (CEEN -1.87%). Zakhidenergo (ZAEN -0.24%) and Raiffeisen Bank Aval (BAVL -0.68%) made shallow swoops into the red. Meanwhile, Ukrnafta (UNAF) closed flat and Ukrsotsbank (USCB +0.38%) managed to end the session in positive territory.

Ukrainian companies lost across the board on international markets. In London, Cadogan Petroleum (CAD LN -8.01%) cut back sharply, Regal Petroleum (RPT LN) dropped 1.23% and JKX Oil & Gas (JKX LN -0.81%) closed with a small tumble. Ferrexpo (FXPO LN -3.72%) took another blow, while MHP (MHPC LI -0.05%) ended a pinch below the flat line. In Warsaw, Astarta (AST PW -6.39%) gave back the bulk of previous sessions’ growth, Kernel (KER PW -1.33%) sunk, and Agroton (AGT PW -0.24%) dimmed slightly.

Macro: Headline inflation for Ukraine down to 7.2% Y-o-Y in February

Daily Market Brief

Market Comment

Ukrainian equity markets experienced volatile trading on Friday (Mar. 4). While the PFTS managed to close in the black, the UX exchange slipped by 0.02%. Total equity trading volume on the UX amounted to UAH 196 mln. The impressive gain by Ukrtelecom (UTLM +3.82%) was not enough to keep the index afloat, as significant losses by metals and mining names (ENMZ -2.32%, AZST -2.03%, ALMK -1.67%, YASK -1.38%, AVDK -1.28%) took their toll. Meager losses came in for Ukrnafta (UNAF -0.17%) and Motor Sich (MSICH -0.4%). Banks ended the day with mixed results: Raiffeisen Bank Aval (BAVL +0.31%) made a slight advance, while Ukrsotsbank (USCB -0.73%) inched down. Among electricity generating companies, Zakhidenergo (ZAEN +0.59%) ended trading in positive territory, while Centerenergo (CEEN -0.01%) closed out flat.

In London yesterday (Mar. 8), JKX Oil & Gas (JKX LN +0.72%) managed to eke out a gain, while both Cadogan Petroleum (CAD LN) and Regal Petroleum (RPT LN) closed flat. Ferrexpo (FXPO LN -2.16%) experienced a notable drawback, while MHP (MHPC LI +1.84%) took a step up. In Warsaw, Agroton (AGT PW +1.01%) stood out among its Ukrainian peers, Kernel (KER PW +0.06%) could not make significant progress and Astarta (AST PW -0.57%) took a small tumble.


Fixed Income/Agriculture: Avangard reports upbeat financials for FY10
Metals and Mining: Azovstal deepens quarterly losses to $33 mln

Daily Market Brief

Market Comment

Ukrainian equity markets landed in positive territory on Thursday (Mar. 3). The UX exchange gained 0.66% on a marginally lower equity trading volume of UAH 188 mln. GenCos (CEEN +2%, ZAEN +1.63%) took the lead step forward. Motor Sich (MSICH +1.49%) rose significantly as well. Metals and mining stocks (YASK +1.47%, ENMZ +1.41%, AZST +1.18%, ALMK +0.91%, AVDK +0.3%) charged forward to partially recover previous losses. Banking names lunged back into the black (USCB +1.14%, BAVL +0.5%). Ukrtelecom (UTLM +0.09%) posted a humble gain, while investors pulled back the reins slightly on Ukrnafta (UNAF -0.46%).

Oil and gas names shone brightly in London, with Cadogan Petroleum (CAD LN +2.99%) and Regal Petroleum (RPT LN +2.63%) setting the pace. JKX Oil & Gas (JKX LN +1.72%) was not far behind. MHP (MHPC LI +2.43%) put in an impressive performance, while Ferrexpo (FXPO LN +0.5%) hovered just over the flat line. In Warsaw, Astarta (AST PW +1.01%) made a positive move once again, but Kernel (KER PW -0.12%) and Agroton (AGT PW -0.11%) just could not manage to break even.


Metals and Mining: Enakievo Steel to restore output in March
Metals and Mining: Yasynivka Coke to commission battery No. 4 this spring

Daily Market Brief

Market Comment

Ukrainian equity markets waded into the red on Wednesday (Mar. 2). The UX exchange lost 1.54% as equity trading volume lowered to UAH 192 mln. Metals and mining stocks were the session’s biggest losers, with most declines coming in at over two percent: ALMK -3.05%, AZST -2.86%, ENMZ -2.08%, YASK -2.05%, AVDK -1.55%. Motor Sich (MSICH -1.91%), Ukrnafta (UNAF -1.47%) and banks (USCB -1.43%, BAVL -0.54%) posted significant drops. Ukrtelecom (UTLM -0.15%) took a timid step down. Among electricity generators, Centerenergo (CEEN -1.4%) fell in parity with most liquid names, while Zakhidenergo (ZAEN +1.23%) stood out with a notable hike.

In London, Cadogan Petroleum (CAD LN +1.83%) powered up, while Regal Petroleum (RPT LN -1.3%) and JKX Oil & Gas (JKX LN -0.19%) decelerated. Ferrexpo (FXPO LN -1.18%) and MHP (MHPC LI -0.53%) dipped. In Warsaw, only Astarta (AST PW +0.43%) managed to close in the black, while Kernel (KER PW -0.12%) and Agroton (AGT PW -2.04%) slipped.


Metals and Mining: Ferrexpo's production declines 3% in February

Daily Market Brief

Market Comment

Ukrainian equity markets closed mixed on Tuesday (Mar. 1). The PFTS recorded a modest rise, while the UX exchange lost 1.05% on the back of a solid equity trading volume of UAH 230 mln. Stocks listed on the UX lost between one and three percentage points across the board. GenCos (ZAEN -2.90%, CEEN -1.34%), metals and mining names (AVDK -2.62%, AZST -2.51%, ENMZ -1.91%, ALMK -1.57%, YASK -0.14%) and banks (BAVL -2.17%, USCB -1.57%) all declined steadily. Even Ukrnafta (UNAF -1.45%) fell off its high horse. In contrast, Ukrtelecom (UTLM -0.27%) and Motor Sich (MSICH -0.08%) dipped just below the flat line.

It was an impressive day for oil and gas names in London: Cadogan Petroleum (CAD LN) soared 5.13%, while JKX Oil & Gas (JKX LN +1.71%) and Regal Petroleum (RPT LN +1.32%) posted notable gains. Ferrexpo (FXPO LN +0.81%) recorded a moderate growth pace, and MHP (MHPC LI +1.33%) accelerated. In Warsaw, Kernel (KER PW -0.12%) shed, while Astarta (AST PW +0.75%) and Agroton (AGT PW +0.27%) closed in the black.


Fixed Income: Oschadbank places benchmark Eurobonds
Metals and Mining: Ukrainian steelmakers: Some hot, some not
Metals and Mining: Daily coke output in Ukraine remains unchanged in February
Metals and Mining: SGOK increases daily pellet output by 6% in February

Daily Market Brief

Market Comment

Ukrainian equity markets kept up the positive pace on Monday (Feb. 28). The UX exchange gained 2.31% on a solid equity trading volume of UAH 241 mln. Bulls flocked around Ukrnafta (UNAF) once again, bringing the stock up 4.99%. Impressive performances were put in by metals and mining names (AZST +3.64%, ALMK +2.73%, AVDK +2.43%, YASK +2.24%, ENMZ +1.66%). GenCos made significant advances, with Centerenergo (CEEN +3.74%) clearly in the lead and Zakhidenergo (ZAEN +1.1%) trailing by a length. Banking names (USCB +1.66%, BAVL +1.12%) recorded moderate growth, Motor Sich (MSICH) climbed 1.24%, and Ukrtelecom (UTLM +0.51%) slowed its winning pace.

In London, oil and gas names corrected slightly: Cadogan Petroleum (CAD LN -0.95%) and Regal Petroleum (RPT LN -0.33%) inched down, while JKX Oil & Gas (JKX LN -0.07%) dipped its toe just below the surface. Ferrexpo (FXPO LN +2.47%) made another leap, while MHP (MHPC LI +0.92%) advanced moderately. In Warsaw, Kernel (KER PW +4.61%) stole the show this time around, while Agroton (AGT PW +0.54%) and Astarta (AST PW +0.16%) closed just in the black.

Macro: Ukraine’s budget deficit at UAH 942 mln in January
Fixed Income: Forum Bank eyes Eurobond issue