Market comment

Обзоры рынка 22.07.2013 Ukrainian equities concluded the week having lost the momentum of prior sessions in trading on Friday, July 19. The WIG Ukraine Index of Warsaw-traded stocks slid 0.2%, pulled down by Coal Energy (CLE PW -3.0%), which has plummeted 32.5% this month. Grain trader Kernel (KER PW) declined 2.9% after releasing its 4QFY13 operating numbers. Its shares have otherwise gained 11.3% this month. Traders regained some trust in farmer Agroton (AGT PW +16.4%) after it announced measures to deal with its bond default. Its shares have otherwise fallen 31.8% this month. Milkiland (MLK PW +4.5%) has gained 10.0% in two sessions. Ukrainian stocks moved little in London, with the most activity targeting egg producer Avangard (AVGR LI -2.8%). The Ukrainian Exchange (UX) Index of Kyiv-traded stocks fell 0.3%, led by Donbasenergo (DOEN UK -2.9%), which has dropped 4.3% in three sessions. Its price has fallen 8.3% after reaching its one-year high on July 12. Ukrainian banks reduced their correspondent accounts with the NBU to UAH 25 bln last week, compared to UAH 28-30 bln highs observed a week earlier. The liquidity decline naturally affected interbank money rates, which jumped 0.5-1.0pp in the two last working days. Weekly funding was available at 3%-4%, while monthly rates were 5%-6%. Yields for local government bonds were flat over the week, and trading activity was very low. At its primary auction, the Finance Ministry set a new benchmark for 3-month bonds: 7.75%. One-year bonds yielded 12%/11%. The local currency strengthened slightly on the interbank exchange to UAH 8.146/USD.