KYIV, January 16, 2007 – The KP-Dragon stock index, published by the Kyiv-based investment bank Dragon Capital, jumped by 6.6% on January 15, breaking through the 5000 level and closing at 5 323, as the Ukrainian market experienced an unprecedented surge in activity at the start of 2007.

The market rose by 11.8% in the first trading week of 2007, contributing to its 47% jump in 2006. The growth so far this year was led by Azovstal (up 30%), Ukrsotsbank (up 28%), Raiffeisen Bank Aval (up 25%) and Kyivenergo (up 24%). The total market capitalization of 20 stocks comprising the KP-Dragon index rose to $22.3bn on January 15.

Ukrainian stock prices leapt on inflows of new money from both foreign and domestic investors. “The funds that invested in Ukraine in 2006 showed very good performance and have increased exposure to the local market this year,” said Dragon Capital’s senior trader, Denys Matsuyev. «Besides, we see new funds on the market, both foreign and local.”

It should be noted that the Ukrainian market’s YTD trend contrasts with the performance of most other stock markets in the region, thus reflecting growing investor confidence in the country. For example, Russia’s RTS index fell by 3.7% YTD, Hungarian BUX lost 4.5% and Czech PX came down 1.1%.

Dragon Capital launched the KP-Dragon index in cooperation with the Kyiv Post, Ukraine’s leading English-language publication, in August 2000. The index was recalculated back to track the full history of the Ukrainian equity market and its first value was set at 1,000 on May 5, 1997.

ABOUT DRAGON CAPITAL
Dragon Capital is Ukraine's leading securities brokerage, investment banking, private equity and asset management firm offering a comprehensive range of services to institutional, corporate and private clients. The bank is an independent partnership of financial industry professionals with over ten years experience in CEE markets. Financial magazine Euromoney recognized Dragon Capital as the Best Equity House in Ukraine in 2002, 2004, 2005 and 2006, or each of the four times it selected nominees from Ukraine for this accolade.