News
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July 07, 2010
Market Comment
Buyers flocked to Ukraine’s equity markets Tuesday (July 6) inspired by positive developments locally and on global markets. The UX index surged 4.65% with all blue chips posting solid gains. Total trading volume remained moderate at UAH 86 mln. Banking names made significant strides: BAVL +7.36%, USCB +6.16%. Metals and mining stocks kept pace with the broad market rally (ALMK +5.79%, AVDK +3.55%, AZST +4.56%, ENVZ +4.80%, YASK +5.27%).
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July 07, 2010
Politics: Changes to the National Bank of Ukraine in the works
Event: A draft law intended to increase the independence of the National Bank of Ukraine has been submitted by President Viktor Yanukovych to Parliament, Bloomberg reported yesterday (July 6).
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July 07, 2010
Macro: Prices in Ukraine down in May
Event: The State Statistic Committee recorded deflation in June of 0.4% M-o-M in addition to deflation in April and May of 0.3% M-o-M and 0.4% M-o-M respectively. Deflation in food items of 0.9% M-o-M determined the price dynamics in April-June. As a result, the annual measure of inflation declined to 7.1% Y-o-Y in June. Additionally, PPI declined by 0.5% M-o-M in June (-25.6% Y-o-Y).
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July 07, 2010
Fixed Income: Fitch upgrades Ukraine’s credit rating
Event: Fitch rating agency announced on July 6 that it upgraded Ukraine’s long-term credit rating from “B-“ to “B” with a stable outlook, Interfax reported on July 6. The move was triggered by the new agreement with the IMF on a 2.5-year, $14.9 bln loan. The new deal with the IMF limits the budget deficit at 5.5% of GDP in 2010 and 3.5% in 2011. In addition to the sovereign rating upgrade, Fitch assigned higher ratings to two local banks with outstanding Eurobond issues: Ukrsbibank and Ukreximbank.
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July 07, 2010
Metals and Mining: MMK Ilyicha to increase output 25% in July
Event: According to the Metal Courier Agency, MMK Ilyicha is planning to increase volumes of steel rolled products in July by 25%-28% M-o-M (to 410-420 kt). The bulk of the increase will come from hot rolled coil and plate production, which will increase 50%-58% M-o-M (to 195-205 kt). Hot rolled coil and plate is steel work’s high value added product, constituting 55.7% of sales in terms of volume in 2009. Anticipating future growth in production, the company plans to increase steel scrap purchases in July
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July 07, 2010
Food processing: MHP to construct a new chicken breeding facility
Event: MHP announced plans to start a two-stage poultry plant construction project in Donetsk region. The new plant will be focused on producing young chicks to be used at MHP’s meat growing facilities. The new plant will have a capacity of 325 mln eggs per year, which will be sufficient to produce 420,000 tonnes of poultry. The total cost of construction is estimated at over UAH 800 mln ($100 mln). Construction of the first stage will be completed by 2013 and the second stage by 2015.
