Market comment

Обзоры рынка 19.11.2012 Ukrainian stocks brought more gains for investors on the Kyiv exchange last week than in Warsaw or London. The Ukrainian Exchange (UX) Index gained 1.2% in the Friday, Nov. 16 session, boosting the Index’s weekly gain to 3.4%. Leading the surge were shares of Avdiivka Coke (AVDK UK +5.1% in the session), which rose 12.6% last week; Alchevsk Steel (ALMK UK +5.0%), which surged 15.8% last week; and Donbasenergo (DOEN UK +4.25%), which improved 6.1% last week. In Warsaw, the WIG-Ukraine Index slid 1.5% in the Friday session and 3.5% for the week. Traders sent shares of mining firm Sadovaya Group (SGR PW) careening 22.3% to their one-year low, finishing last week at a 19.4% loss. Traders also sent the illiquid shares of KSG Agro (KSG PW -9.1%) plunging deeper into their one-year low, losing 11.8% for the week. Another selling victim was shares of egg producer Ovostar (OVO PW -10.9%), whose value declined for four straight sessions at a cumulative loss of 18.8%. In London, traders battered shares of mining firm Ferrexpo (FXPO -3.3%), which lost 5.8% of their value last week. Cadogan Petroleum stock (CAD LN) dropped 3.1% in the Nov. 16 session. We expect Cadogan shares to decline even further based on the disappointing news released this morning.