News
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July 23, 2010
Market Comment
Positive news from European markets fueled gains for Ukrainian stocks yesterday (July 22). Encouraging developments locally also bolstered the rise, as S&P added Ukraine to the CreditWatch list for a possible upgrade in the country’s long-term credit rating. The UX exchange edged up 1.93% on a total volume of UAH 63 mln. The market closed broadly higher led by banks (BAVL +3.94%, USCB +2.26%) and steel producers (AZST +3.83%, ALMK +1.71%, ENMZ +1.78%).
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July 23, 2010
Fixed Income: S&P puts Ukraine’s credit rating on revision
Event: S&P placed Ukraine’s long-term B rating into the CreditWatch list for a possible upgrade to B+ yesterday (July 22). Fiscal consolidation and the implementation of IMF requirements along with ongoing economic recovery were stated as the main reasons for the sovereign rating revision.
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July 23, 2010
Fixed Income: Ferrexpo cancels Eurobond issue
Event: Ferrexpo plc, an iron ore pellet producer operating in Ukraine, decided to abandon its Eurobond placement based on the result of a completed road show, the company’s press service reported on July 22. The company stated that it could rely on other sources of financing and has a stable liquidity position. Ferrexpo may consider placing Eurobonds in the midterm should financial market conditions improve.
Impact: The news is neutral for fixed income.
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July 23, 2010
Oil & Gas: Regal Petroleum reports decline in production
Event: Regal Petroleum, a London listed oil and gas exploration and development company operating in Ukraine, released an operational update on July 22. Most notably, the company reported that its overall production in Ukraine stood at 1,930 boepd as of July 20, a 35% decline over 2,952 boepd as of June 5. According to the company, the SV-66 well, formerly a stellar performer, has undergone a marked decline from the initial high rates.
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July 23, 2010
Banks: BAVL posts net profit for second consecutive quarter
Event: Raiffeisen Bank Aval has reported UAH 13.9 mln in net profit for 2Q2010. The gross loan portfolio declined 5% Y-o-Y with retail loans (-6.2% Y-o-Y) contracting at a higher pace compared to corporate credits (-3.8% Y-o-Y). The bank managed to strengthen its capital base by raising UAH 932.5 mln in share capital in 1H2010, while experiencing UAH 732 mln in deposit outflows (-2.7% Y-o-Y) for the same period.
