News

Ukrainian equity markets closed with minimal gains on Thursday, Dec. 1. The UX index inched up 0.6% as the exchange reported $5.9 mln in total equity trading volume. Shares of telecommunications giant Ukrtelecom (UTLM) led Index gains with a 2.1% advance. Power generator Centerenergo (CEEN +1.6%) advanced, adding 4.7% in value in two straight winning sessions. Bank holdings (USCB +1.5%, BAVL +0.1%) also ended on a positive note.

Event: European Parliament voiced support for early initialization of the Association Agreement with Ukraine preferably by the end of this year, according to the resolution adopted on Dec.1. Parliament also expressed that the Agreement be signed by the European Council in 1H12, and ratified by European and national parliaments by the end of 2012.

Ukrainian equity markets kept up the positive trend on Wednesday, Nov. 29. The Ukrainian Exchange (UX) Index surged 2.4% as the exchange reported $4.9 mln in total equity trading volume. Banks stole the spotlight with Raiffeisen Bank Aval (BAVL) jumping an unprecedented 8.2% and Ukrsotsbank (USCB +4.7%) following with a solid advance. Metals and mining names (ALMK +5.1%, AVDK +2.7%, ENMZ +2.4%, AZST +1.8%) were among other top gainers.

Event: Ukraine’s current account deficit widened to $1.5 bln in October compared to $1.0 bln in September, reported the National Bank of Ukraine on Nov.30. Cumulative CA shortage expanded to $7.0 bln in 10M11 or 5x higher Y-o-Y. Expansion in machinery imports was the major driver for widening the CA gap in October.

Ukrainian equity markets took a tumble on Tuesday Nov. 29. The UX Index lost 1.1% as the exchange reported $3.5 mln in total equity trading volume. Whopping losses by Enakievo Steel stock (ENMZ -4.1%) and Stakhanovskiy Railcar Building Plant (SVGZ -2.4%) were primarily responsible for the Index’s fall. Banking shares (USCB -1.4%, BAVL -1.0%) and metals and mining names (ALMK -1.6%, AZST -1.3%, AVDK -0.7%) were among the less dramatic losers.

Event: The Ukrainian government downgraded its GDP growth forecast for 2012 to 4% Y-o-Y from 5.5% Y-o-Y, reported Prime Minister, Mykola Azarov. Deteriorating global financial conditions were the major grounds for revision of the forecast. Impact: The news is negative for Ukraine’s economy.