Market comment

Обзоры рынка 17.06.2013 Traders of Ukrainian equities concluded last week by taking advantage of the depressed prices for mining stocks at the Friday, June 17 session. The WIG Ukraine Index of Warsaw-traded stocks slid 0.1%, weighed down by grain trader Kernel (KER PW -2.8%), which has tumbled 9.4% in June. On the upswing, however, were shares of Coal Energy (CLE PW +6.5%) and mining firm Sadovaya (SGR PW +4.9%), which has pulled to breakeven for the month. In London, shares of miner Ferrexpo (FXPO LN) jumped 4.6% but for the month are down 9.9%. JKX Oil & Gas (JKX LN -3.3%), which is engulfed in a shareholder battle, has plummeted 15.6% this month to its lowest price in more than nine years. In Kyiv, the Ukrainian Exchange (UX) Index rose 1.6%, led by GenCo Centrenergo (CEEN UK +2.9%). Ukrainian banks’ correspondent accounts with the NBU decreased last week to UAH 24-26 bln from UAH 26-28 bln a week before. Interbank rates stayed at their lows (0.5% overnight, 1.5%-2.5% weekly rate and 3.5%-4.5% for monthly loans) in the first half of the week, while increasing 0.5pp-1.0pp over the whole curve closer to the weekend. And this was despite market liquidity remaining solid. Local government bond yields were stable throughout the week at 8.50%/7.75% for six-month paper and 11.40%/10.50% for one-year notes. Trading activity on the secondary bond market remained as low as all the other periods after the long May holidays. On the ForEx market, a minor 0.11% devaluation of local currency to UAH 8.152/USD was observed.