Daily Market Brief

Market Comment

Ukrainian equity markets closed firmer on Monday (Oct. 25) boosted by positive sentiment from the global markets and generally positive financial results in Ukrainian corporate sector. The UX exchange added 1.20% on a solid trading volume of UAH 91.5 mln. Centrenergo (CEEN +3.09%) and Ukrnafta (UNAF +2.69%) outperformed the market and took their place among the top advancers. Coke producers (AVDK +1.15%, YASK +1.66%) also made noteworthy moves. Steel names (ALMK +0.84%, AZST +0.66%, ENMZ +0.47%) posted slim gains along with Reiffeisen Bank Aval (BAVL +0.68%), Motor Sich (MSICH +0.64%) and Ukrtelecom (UTLM +0.04%). Ukrsotsbank (USCB) and Zakhidenergo (ZAEN) bucked the general trend to lose 0.84% and 0.35% respectively.

Most Ukrainian stocks traded on international markets strengthened. Regal Petroleum (RPT LN) took the limelight jumping 16%. Other oil and gas names showed mixed dynamics: JKX Oil & Gas added 0.77%, Cadogan Petroleum (CAD LN) closed flat. MHP (MHPC LI -0.99%) and Ferrexpo (FXPO LN -0.09%) finished little changed. Food processing stocks listed on the Warsaw Stock Exchange advanced: AST PW +2.49%, KER PW +0.98%.

Monday trading was calm. Good demand was observed for sovereigns. Ukraine’20 added half a point. Corporates remained flat. The newly issued Avangard bond lost 1.5 point in price during the trading session.

Fixed Income: Avangardco raises $200 mln in Eurobond offering
Oil & Gas: Ukrnafta reports stronger financials
Banks: VAB Bank records net loss of UAH 93.7 mln in Q3
Banks: Alfa Bank Ukraine shows marginal net profit in Q3
Agriculture: MHP has acquired 100% shares in Ridny Kray, LLC

Daily Market Brief

Market Comment

Trading was turbulent on Ukrainian stock exchanges Friday (Oct. 15). The UX exchange fell sharply from the opening as investors jockeyed for position ahead of Ben Bernanke’s announcement of possible quantitative easing by the Fed. Stocks shot up following Bernanke’s statement that further action by the Fed is warranted; however, the rally was short-lived as the exchange sunk in the closing hour. As a result, the UX finished down 0.49% on a high total trading volume of UAH 112 mln. Stirol (STIR -3.23%) and Stahanov Car Production Facility (SVGZ -1.39%) led the decline. Metals and mining names faded late (ALMK -0.53%, AZST -1.35%, YASK -1.13%, ENMZ -0.22%), while GenCos closed out mixed (CEEN -0.47%, ZAEN +0.36%). It was a seesaw day for banking stocks. Raiffeisen Bank Aval (BAVL -0.8%) and Ukrsotsbank (USCB -1.07%) slid, and Forum Bank (FORM +0.14%) just managed to keep its head above water.
Ukrainian stocks listed on international exchanges charted a predominantly downward course. Oil and gas names finished mixed. JKX Oil & Gas (JKX LN -1.09%) and Regal Petroleum (RPT LN -3.07%) suffered notable losses, and Cadogan Petroleum (CAD LN +2.25%) posted a solid gain. Food processing names took their lumps. MHP shed 0.46%, Kernel (KER PW) slumped 0.76% and Astarta (AST PW) tumbled 3.27%.
On the heels of Thursday’s correction, prices for Ukrainian Eurobonds rebounded slightly at the beginning of Friday’s trading session. However, sovereigns were unable to sustain momentum and traded down later in the day: Ukraine 20 closed at 103.25 and NAFTO traded down at 109.875. Corporates were largely inactive. Banking names lost slightly in price. Only municipals managed to add; CITKIE 15 reached 95.5 on a low trading volume.


Macro: Ukraine’s industrial output grows 10.8% in September
Fixed Income: Ukreximbank raises $250 mln in additional offering

Daily Market Brief

Market Comment

Ukrainian equity markets closed lower on volatile trading Friday (Oct. 8). The UX exchange (-0.66%) dropped from the opening bell and traded sideways throughout the session. Total trading volume slid back to a moderate level of UAH 70.8 mln. All names in the index basket declined with Raiffeisen Bank Aval (BAVL -0.94%), Forum Bank (FORM -1.8%), Stirol (STIR -1.41%) and Ukrtelecom (UTLM -1.49%) leading the fall. Metals and mining stocks forfeited the previous session’s gains (ALMK -1.1%, AVDK -0.71%, AZST -0.47%, ENMZ -1.05%).

Ukrainian stocks listed on international markets traded in the doldrums. Oil and gas names were among the biggest laggards with JKX Oil & Gas (JKX LN) losing 3.15%, Regal Petroleum (RPT LN) dropping 2.82% and Cadogan Petroleum (CAD LN) sliding 2.27%. Other London-listed stocks posted modest losses: FXPO LN -0.63%, MHPC LI -0.33%. Food-processing stocks listed in Warsaw came under selling pressure: AST PW -1.65%, KER PW -0.84%.

Activity on the Ukrainian Eurobond marked centered on sovereign issues on Friday. All names on the curve were hit several times during the session, resulting in a loss in of at least a quarter point for sovereign issues. As there was no significant news regarding sovereign debt, the selloff was likely the result of end-of-the-week profit taking after a substantial price increase seen earlier. Corporates bucked the sovereign trend by closing slightly higher.


Politics: Ukraine’s Parliament put back in order
Fixed Income: Fitch assigns ‘B’ to Avangard’s Eurobond offering
Metals and Mining: Yasynivka Coke raises $40 mln from Prominvestbank
Agriculture: Landkom’s wheat yield down to 3 tonnes per ha

Daily Market Brief

Market Comment

Ukrainian equity markets got off to a weak start Monday (Oct. 4). Investors sold stocks actively on the UX exchange (-3.61%) pushing the index down. Trading volume came in higher than average at UAH 103 mln. Motor Sich (MSICH) and Ukrsotsbank hit record lows, dropping 6.09% and 5.52% respectively. Metals and Mining stocks also added to losses: ALMK -3.69%, AVDK -3.92%, AZST -3.51%, ENMZ -1.55%, YASK -1.24%. GenCos (CEEN -4.03%, ZAEN -1.11%) followed the broadly weaker trend, as did other top-tier names (BAVL -3.21%, UNAF -3.18%, UTLM -2.57%).

Among Ukrainian stocks listed on international exchanges, oil and gas stocks showed mixed dynamics: CAD LN -2.53%, JKX LN +0.16%, RPT LN unch. Food processing stocks (AST PW -0.13%, KER PW -0.3%, NHPC LI -1.64%) tallied mild losses, while Ferrexpo (FXPO LN +0.93%) inched up.

It was a sluggish day on the Ukrainian Eurobond market. Sovereigns traded slightly lower. Municipals have completely vanished from investors’ radars in recent sessions. Corporates remained flat, and banking issues such as ALFAUA, PRBANK and FIUKR were in very good demand.


Politics: Ukraine’s parliamentary majority reinvented
Metals and Mining: Alchevsk Steel to repay $68 mln to Metinvest

Daily Market Brief

Market Comment

Ukrainian equity markets went against the global trend Friday (Oct 1) to finish in the red. The UX exchange opened strong, but reversed soon after the opening bell to close 0.57% lower. Trading volume was moderate at UAH 66 mln. Metals and mining stocks led the broad market decline: ALMK -1.87%, AVDK -0.51%, AZST -1.85%, ENMZ -1.06%, YASK -0.82%. Banking names kept the pace with Raiffeisen Bank Aval (BAVL) losing 0.41% and Ukrsotsbank (USCB) declining 1.13%. GenCos (CEEN -1.75%, ZAEN +0.47%) showed mixed dynamics, while Motor Sich (MSICH -0.29%) and Ukrnafta (UANF -0.06) lost a fraction.

Among Ukrainian stocks listed on international markets, investors continued to dump Regal Petroleum (RPT LN -9.46%), Cadogan Petroleum (CAD LN -1.25%) came under selling pressure, and JKX Oil & Gas (JKX LN +0.25%) eked out gains. Ferrexpo climbed 1.62%. Food processing stocks also posted gains: MHPC LI +0.66%, KER PW +1.52%.

Emerging market Eurobonds added in price Friday, and Ukrainian issues were no exception. Corporates and banking names were in demand. ALFAUA and FIUKR added one-quarter and one point respectively. Sovereigns remained predominantly flat with long duration issues slightly up.


Fixed Income: Arrears on VAT refunds slashed to UAH 3 bln
Coke: Ukraine’s coke production in September remains unchanged
Metals and Mining: Khartsyzsk Tube increases output in September by 54% M-o-M
Metallurgy: Ukraine’s steel industry increases output by 7% M-o-M

Daily Market Brief

Market Comment

Ukrainian equity markets retreated Wednesday (Aug. 25) as disappointing reports out of the U.S. raised worries of another global economic slowdown. The UX exchange slumped 3.15% on a solid trading volume of UAH 96 mln. Centerenergo (CEEN -4.38%) and Ukrtelecom (UTLM -4.37%) took the hardest hits. Steel names were also slammed: ALMK -4.13%, AZST -3.60%, ENMZ -3.44%. Coke producers (AVDK -1.87%, YASK -1.86%) and banks (BAVL -2.54%, USCB -3.16%) waded into the red followed by Motor Sich (MSICH -2.09%), Ukrnafta (UNAF -1.92%) and Zakhidenergo (ZAEN -3.06%).

Ukrainian stocks listed on international markets traded in the doldrums yesterday. Regal Petroleum (RPT LN) was the only exception, edging up 0.76%. Other oil and gas names posted moderate losses: JKX LN -2.04%, CAD LN -1.49%. Food processing stocks weakened (AST PW -2%, KER PW -1.05%, MHPC LI -1.29%), while Ferrexpo turned in the worst performance, dropping 4.07%.

Sellers dominated on the Ukrainian Eurobond market Wednesday. Sovereigns lost another half a point during the session. Naftogaz was down about 1.25 p.p., but managed to recover some losses by the close. The corporate sector was less active with some trading recorded for ALFAUA and MHP, both closed weaker.

The Russian market underperformed as well, and BELARUS closed about 1 p.p. lower.



Fixed Income: Avangard to tap Eurobond market
Food processing: Avangard boosts net profit 86% Y-o-Y
Agriculture: Astarta releases 1H2010 financials

Daily Market Brief

Market Comment

Ukrainian equity markets were closed yesterday (Aug. 24) as the country celebrated Independence Day.

Ukrainian stocks on international exchanges slumped, as negative sentiment pushed prices down. Ferrexpo (FXPO LN -4.45%) and Astarta (AST PW -4.43%) were the most prominent losers. Among food processing stocks, Kernel (KER PW) dropped 1.66% and MHP (MHPC LI) closed unchanged. Oil and gas names followed the negative trend: Regal (RPT LN) lost 2.96%, JKX Oil& Gas (JKX LN) slid 1.04% and Cadogan (CAD LN) hugged the flat line.
Moderate action was observed on Ukraine’s Eurobond space Tuesday. Following global negative sentiment sovereigns closed about 1 p.p. lower on the long end. Naftogaz continued to be very well bid and closed just a quarter weaker. In the corporate sector, MHP outperformed, while long-end CITKIE were under selling pressure.

Politics: Ukraine’s President is hungry for more power
Politics: Yanukovych calls for extraordinary session of Ukraine’s Parliament
Macro: FX supply outweighs demand in August

New Ukrainian Cabinet of Ministers Appointed -- New Coalition Government Underway

Ukraine's Verkhovna Rada (Parliament) appointed the new Prime Minister of Ukraine, Mykola Azarov, and announced the complete new Cabinet of Ministers as listed below.

240 People's Deputies voted in favor of the new Cabinet, of the 353 registered in the hall.

The full list of Ministers is as follows:

Andrei Klyuyev - First Vice Prime Minister

Boris Kolesnikov - Vice Prime Minister

Vladimir Seminozhenko - Vice Prime Minister

Volodymyr Sivkovych - Vice Prime Minister

Victor Slauta - Vice Prime Minister

Sergei Tigipko - Vice Prime Minister

Viktor Tikhonov - Vice Prime Minister

Victor Boyko - Minister of Environmental Protection

Yuri Boyko - Minister of Fuel and Energy

Constantine Efimenko - Minister of Transport and Communications

Dmitry Kolesnikov - Minister of Industrial Policy

Michael Kulinyak - Minister of Culture and Tourism

Alexander Lavrinovych - Minister of Justice

Zinovy Mitnick - Minister of Health

Anatoly Mogilev - Minister of Interior

Basil Nadraga - Minister of Labor and Social Policy

Alexander Popov - Minister of Housing

Michael Prisazhnyuk - Minister of Agrarian Policy

Ravvil Safiullin - Minister of Family, Youth and Sports

Dmitry Tabachnik - Minister of Education

Anatoliy Tolstoukhov - Minister of the Cabinet of Ministers

Vasyl Tsushko - Economy Minister

Fedor Yaroshenko - Minister of Finance

Vladimir Yatsuba - Minister of Regional Development and Construction

Yuri Yaschenko - Minister of Coal Industry

Nestor Shufrich - Minister of Emergency Situations

Konstantin Gryshchenko - Minister of Foreign Affairs

Michael Yezhel - Minister of Defense

Best Regards
Jon