Market comment

Обзоры рынка 27.01.2015 Investors kicked off the week dumping their Ukrainian stocks on Monday, Jan. 26 after massive Russian-sponsored terrorist attacks threatened to bring more instability. The WIG Ukraine Index of Warsaw-traded stocks declined 3.0%, weighed down by its biggest component, grain trader and sunflower oil producer Kernel (KER PW). It fell 3.9%, extending its loss streak to three straight negative sessions at a 6.6% drop. The Index’s second-biggest component, sugar maker Astarta (AST PW), dropped 4.4%. Outside the Index, natural gas explorer and trader Serinus Energy (SEN PW) plunged 7.1%, or 14.0% in three straight negative sessions, to its lowest price since June 2013. In London, iron ore miner Ferrexpo (FXPO LN) dropped 3.0%, or 8.4% in two sessions. Natural gas explorer and trader Regal Petroleum (RPT LN) plunged 8.6%. The Ukrainian Exchange (UX) Index of Kyiv-traded stocks slid 1.2%, or 3.3% in four straight negative sessions. GenCo Donbasenergo (DOEN UK) decreased 2.7%, while traders snapped the six-session loss streak of Avdiyivka Coke (AVDK UK), which improved 1.3%. Sellers also dominated the fixed income market, with the most radical movements observed on the corporate side. The 2015 bond of Avangardco (AVINPU) now officially trades at a YTM of above 100% (113% as of yesterday), and the 2015 bond of Metinvest (METINV) has become the fifth paper with triple-digit YTM as its yield increased 11pp to 104% on Monday. On the sovereign side (UKRAIN), significant movement occurred in the bond that matures in June 2016: its YTM rose 12.7pp to an all-time high of 72.9%.