News
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June 29, 2010
Market Comment
Ukrainian equity markets were closed yesterday (June 28) due to an official holiday.
Ukrainian stocks listed on international exchanges showed mixed dynamics. Regal Petroleum was the most notable loser. The stock tumbled 28.8% on news that the company is having issues with licenses. JKX Oil & Gas (JKX LN) gained 1.78%, unlike Cadogan that closed slightly lower (CAD LN -1.31%).
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June 29, 2010
Macro: Ukraine considers strengthening its currency
Event: The National Bank of Ukraine may let the hryvnia exchange rate appreciate if inflation does not exceed the 1% limit in June, the advisor to the head of the NBU Valeriy Lytvytskyi stated. The NBU will prevent the exchange rate from excessive fluctuations. Mr. Lytvytskyi mentioned a notable increase in international reserves in June to $29.4 bln as compared to $26.7 bln for the end of May. Moreover, the interbank exchange rate of hryvnia increased to UAH/$ 7.907 from UAH/$ 7.945 as of June 1.
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June 29, 2010
Fixed Income: Applications for VAT bonds rise
Ukraine’s exporters increased their application for VAT bonds to UAH 14 bln (72%) as of June 23, 2010, the press service of the State Tax Administration Reported on June 25. This amount doesn’t account for VAT OVGZ applied for on June 24 and June 25, which is the deadline for submitting all necessary documents. Hence, we can expect the issue of VAT bonds to exceed UAH 15 bln, taking into account previous official statements that VAT obligations accrued in 2009 will not be reimbursed with cash any time soon.
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June 29, 2010
Oil & Gas: Ukrnafta to sell gas to industrial users
Event: Kyiv's Commercial Court has permitted Ukrnafta to sell 1 bcm of its natural gas to industrial users, Ukrainian News Agency reported June 25.
Impact: The news is positive for Ukrnafta.
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June 29, 2010
Metals and Mining: MMK Illicha signs 25-year contract with Metinvest
Event: Vladimir Boyko, director of MMK Illicha, announced that the company signed a long-term contract for iron ore and coke deliveries with Metinvest. The deal was struck as an attempt to resist a hostile takeover of the owner of MMKI, CJSC “Illich stal”. Boyko stated that the raiders were informed of the contract’s clauses and “They realized what the prices for the supplies might be and what the fines would be for a failure to fulfill the contract.”
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June 29, 2010
Metals and Mining: Khartsyzk Pipe pays out $74 mln in dividends
Event: On June 25, shareholders attending Khartsyzk Pipe’s AGM approved a dividend payout totaling $74 mln, all the net profit for 2009. The dividend yield is 16%.
Impact: The news is neutral for HRTR.
