News
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July 21, 2010
Market Comment
Negative sentiment continued to rule Ukrainian stock exchanges Tuesday (July 20). The UX exchange closed down 0.37% on very low activity – total trading volume was a meager UAH 38.6 mln. The UX showed positive dynamics after the opening bell, but soon reversed gains as support from buyers fizzled. Among blue chips, only Ukrtelecom (UTLM +1.55%) and Zakhidenergo (ZAEN +0.19%) managed to stay on top.
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July 21, 2010
Macro: Ukraine to receive $3 bln from the IMF in 2010
Event: Ukraine expects to obtain the first tranche of the new $14.9 bln credit line from the IMF in September and the second tranche in December, Prime Minister Mykola Azarov stated on July 20. The total amount of the tranches should reach $3 bln.
Impact: The news is neutral for Ukraine’s economy.
Rationale: The new Stand-By Arrangement with Ukraine should be approved by IMF’s Management and Executive Board by the end of July, following amendments to budget and financial sector legislation.
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July 21, 2010
Fixed Income: Metinvest receives syndicated loan
Event: Metinvest attracted a five-year, $700 mln syndicated loan at LIBOR+3%, Kommersant reported yesterday (July 20). The company managed to increase the loan amount substantially from the initial plan of $300 mln. Taking into account May’s Eurobond placement, Metinvest’s total foreign borrowing in 2010 has reached $1.2 bln.
Impact: The news is neutral for fixed income.
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July 21, 2010
Oil & Gas: Ukrnafta August oil supplies priced at $60/bbl
Event: According to an announcement made by UIC Exchange (UICE) July 20, the weighted average price of imported crude oil to Ukraine (as of July 15) constituted $60/bbl. The price of imported crude, which includes a quality surcharge, was calculated by state authorities based on the latest price of imported crude reported by the State Customs Service of Ukraine. This price must be used by Ukrnafta (UNAF) to set a starting price for its August oil supplies to be auctioned on July 22.
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July 21, 2010
Food processing: Astarta opens a new elevator
Event: Astarta has opened a new elevator with a total capacity of 50,000 tonnes. The cost of the elevator was UAH 45 mln ($5.7 mln). The company previously had 260,000 tonnes of storage capacity.
Impact: The news is neutral for AST.
Rationale: Astarta plans to increase its land bank from 180,000 ha (reported YE2009) to 300,000 ha in 2015. Increasing elevator capacity is advantageous since the ability to store crops internally will allow the company to sell crops later in the season at higher prices.
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July 21, 2010
Agriculture: Landkom reports 1H2010 results
Event: Landkom has reported unaudited financials for 1H2010. According to the release, the company increased its planted land bank to almost 40,000 ha, cut operating expenses by 35% and sold forward 35,000 tonnes of rapeseed at $318 per tonne (a price increase of 17% Y-o-Y). The company had a net loss of $4.4 mln in 1H2010 compared to $16.6 mln in 1H2009.
Impact: The news is neutral for MHPC.
