KYIV, January 18, 2007 – Investment bank Dragon Capital became the largest Ukrainian stock broker by trading volume in 2006, beating foreign and local competition by a wide margin, according to results released by the country’s primary securities exchange, PFTS.

Dragon Capital outperformed more than 25 other banks and brokerage houses that regularly traded shares on the PFTS last year, accounting for 32% of the exchange’s total turnover, or double the share of the second-placed broker, Concorde Capital. Following Dragon and Concorde were Sinkom, Millennium Capital and Renaissance Capital Ukraine.

No. 1 Broker on Ukrainian Stock Market in 2006

32% of total stock trading volume in 2006
Source: PFTS

The PFTS stock trading volume surged by 77% year-over-year in 2006, to $1.2bn, while the KP-Dragon index, Dragon Capital’s tool tracking the performance of 20 leading Ukrainian stocks, jumped by 47% over the period, reflecting a sharp increase in foreign investors’ interest towards Ukrainian assets despite domestic political turbulence and slower than expected economic reforms and privatization.

“2007 is set to be another year of strong growth for Ukrainian equities,” said Tomas Fiala, Dragon Capital’s Managing Director. “Strong macro fundamentals, political stabilization and improving investment climate will support investor confidence and provide for further asset price growth.”

In addition to the long-standing blue chips, the market’s advance last year was led by more than a dozen newly listed companies and banks, which made 2006 the year of IPOs in Ukraine. Dragon also dominated on this market, raising close to $450m for 12 companies through public and private placements.

“We will see at least 20 new listings in 2007, as local corporates increasingly realize the long-term financial benefits of transparency and good corporate governance,” Fiala said.

Ukrainian stocks have already risen by more than 12% since the start of 2007, as the market experienced an influx of new foreign and domestic money, thus testifying to investors’ positive outlook on Ukraine.

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. Dragon Capital has been the largest broker on the domestic stock market since start-up in 2000 and, in particular, accounted for 32% of total stock turnover on the PFTS, Ukraine’s leading exchange, in 2006. Dragon’s investment banking division completed 12 IPOs and private placements for Ukrainian companies in 2006, raising close to $450m. In addition, the bank helped local corporates attract $300m of debt last year. 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.