News
-
July 16, 2010
Market Comment
Negative news from global markets continued to drag Ukrainian stocks down. Trading on the UX exchange was volatile throughout the session and closed 0.93% lower on a total market volume of UAH 54 mln. All blue chips posted moderate losses, excluding Raiffeisen Bank Aval (BAVL +0.57%) which survived the broad market decline. Metals and mining stock furthered their fall (ALMK -0.30%, AVDK -1.25%, AZST -0.64%, ENMZ -1.61%, YASK -1.32%).
-
July 16, 2010
Macro: Ukraine’s industrial output expansion slows
Event: Industrial output grew by 8.9% Y-o-Y in June (+12% Y-o-Y in 1H2010), according to the State Statistic Committee’s preliminary data. Industrial sector performance moderated compared to results observed in May (+12.7% Y-o-Y) and April (+17.4% Y-o-Y) due to a decline in monthly production (-0.5% M-o-M in June). (The sector has been in decline for three straight months.) Driven by export supplies to Russia, machinery expanded 35.4% Y-o-Y in June and 30.1% in 1H2010.
-
July 16, 2010
Fixed Income: Ukraine cancels Eurobond issue
Ukraine’s government decided to cancel its Eurobond placement based on the results of the road show, the Ministry of Financed stated yesterday (July 15). According to the statement, the Ministry of Finance revoked the Eurobond offering transaction taking into account “available sources of financing and liquidity position”. It was previously announced that the government planned to raise $2 bln for 10 years.
-
July 16, 2010
Fixed Income: Ukraine to begin VAT bond placement
Ukraine’s government will commence its VAT bond placement August 1, 2010, Prime Minister Mykola Azarov stated yesterday (July 15). The Prime Minister added that the VAT bond offering will reach approximately UAH 17.6 bln. It was previously announced that the amount of VAT refunds (as of May 1) to be reimbursed using VAT government bonds equaled UAH 17.7 bln. Hence, we expect the full amount of the VAT bond offering to be completed in August.
-
July 16, 2010
Food processing: MHP reports preliminary 2Q2010 results
Event: MHP has reported preliminary results for 2Q2010. The volume of poultry sales increased by 30% Y-o-Y to 85,500 tonnes, while the price of poultry remained flat Y-o-Y at UAH 13.82 per kg. The company also increased its sunflower oil sales by 59% Y-o-Y to 47,300 tonnes, while sunflower oil prices increased by 23% Y-o-Y to $809 per tonne. Poultry capacity utilization during the quarter was at 100% and the company sold nearly 100% of the poultry meat and sunflower oil produced.
-
July 16, 2010
Food processing: EBRD provides a $50 mln loan to MHP
Event: MHP announced that it has signed a loan agreement with the EBRD for a $50 mln loan. The loan will be used for two purposes: $35 mln will be used to finance working capital requirements and $15 mln will be used for energy efficiency improvement projects.
