Market comment

Обзоры рынка 29.07.2013 Ukrainian equities continued to offer investors some big gainers and decliners in trading on July 26, 2013. The WIG Ukraine Index of Warsaw-traded stocks slid 1.3%, pulled down by typically volatile Coal Energy (CLE PW -4.7%), KSG Agro (KSG PW -3.0%) and grain trader Kernel (KER PW -2.3%), which has declined 4.1% in two sessions. The Index’s top gainer was egg producer Ovostar (OVO PW +3.9%), which has advanced 14.8% in three straight positive sessions. Farmer Agroton (AGT PW +1.1%) has gained 18.8% in four straight winning sessions. In London, JKX Oil & Gas (JKX LN +6.8%) has risen 17.9% in five straight positive sessions. Poultry producer MHP (MHPC LI) jumped 5.2% while iron ore miner Ferrexpo (FXPO LN) increased 2.1%, improving its monthly gain to 26.6%. In Kyiv, the Ukrainian Exchange Index of Kyiv-traded stocks rose 0.8%, led by power generator Centrenergo (CEEN UK +2.5%), which has advanced 9.0% in three straight winning sessions, and Raiffeisen Bank Aval (BAVL UK +2.5%), which has risen 4.8% in three straight positive sessions. A decline in Ukrainian banks’ correspondent accounts with the NBU to UAH 24-25 bln last week, compared to UAH 26-28 bln observed a week before, didn’t have any effect on the rates on the interbank market. The banking system’s liquidity is at a comfortable level, while interbank rates on the credit market are at their minimums: 0.5-1.0pp for overnight, 3.0pp for weekly rates, while monthly rates were at 4.0pp-5.0pp. As earlier, yields for local bonds were stable and trading activity was low amidst the summer season. The three-month note yielded in the range of 7.80%/7.60%, six-month notes at 11.75%/11.0% and the nine-month note at 12.25%/11.25%. Ukraine’s local currency, the hryvnia, strengthened 0.22% on the interbank exchange to UAH 8.128/USD.