News
-
March 01, 2010
Market Comment
The Ukrainian Equity Market is usually slow on Fridays, and February 26 was no exception. Trading volumes were very low, coming in at around UAH 22.9 mln, and the UX index gained a meager 0.77%.
-
March 01, 2010
Macro: Ukraine’s GDP declines 15% in 2009
Ukraine’s real GDP declined 15% in 2009, the State Statistics Committee of Ukraine reported on February 26. The reported figure is totally in line with our estimates and preliminary data published by the National Bank of Ukraine earlier in February.
-
March 01, 2010
Machinery: Kryukiv Railcar Plant increases monthly output 2.5x Y-o-Y
Event: Kryukiv Railcar Plant reported a 2.5x Y-o-Y output increase for January. The company cranked out 593 railcars for the month compared to just 231 railcars for January 2009.
Impact: Positive for KVBZ.
Rationale: We regard the news as positive, as the data confirms our optimistic outlook for the railcar sector in general and KVBZ in particular. Since 4Q2009, Ukrainian railcar producers have enjoyed a steady flow of new orders from their old clients in Russia, Kazakhstan and Belorussia.
-
March 01, 2010
Agriculture: Kernel receives approval to purchase Allseeds
Event: The Antimonopoly Committee of Ukraine (AMCU) granted Kernel the approval to acquire Allseeds on January 25.
Impact: The news is neutral for Kernel.
Rationale: Along with Kernel and the majority of market players, we didn’t expect any hindrance to the deal on the part of the AMCU once the agreement with minority shareholders of Allseeds was reached. This current news meets our expectations and we don’t expect it to influence the stock price.
-
March 01, 2010
Metallurgy: Nyzhnyodniprovsk pipe reports 2009 net loss of $44 mln
Event: Nyzhnyodniprovsk has posted a net loss of $44 mln for 2009, the company announced Feb. 26.
Impact: The news is neutral for NITR.
Rationale: According to Ukrainian reporting standards, the company’s net loss increased twofold compared to 2008. However, if we exclude the non-cash income tax gains that the company posted in 2008, thus reducing net losses, the actual bottom line in 2009 was only 13% less.
-
March 01, 2010
Insurance: Oranta posts UAH 237 mln net loss
Event: Oranta, Ukrainian’s leading insurance company, incurred a UAH 237 mln net loss for 2009, the company announced Feb. 26.
Impact: The news is negative for SORN.
Rationale: Oranta’s poor financial performance was expected given the sharp decline in the local insurance market and hryvnia depreciation. Despite abundant losses, the company managed to withstand the financial turmoil of 2009, and retain its leading 12% market share in the risk-insurance segment.
