Market View
May 22, 2012
Equities: We saw a bit of a rebound yesterday in both local and foreign-listed stocks as the general market backdrop marginally improved. Russia’s cabinet nomination as well as more tamed comments from the EU and G8 contributed to the mood improvement. All stocks managed to close in the black with the exception of KER (-1.1%), which is still reeling from disappointing results, and AVGR (-3.9%), lacking support. FXPO barged ahead (+3.4%) on the back of yet another takeover rumor (third one this year). It looks like the positive mood is carrying some momentum and should push the market higher today.
Fixed income: A firmer tone on the market yesterday produced mostly buy inquiries but the overall mood remained very cautious. The long end of the sovereign curve closed around 0.5pt higher with benchmark Ukraine 20s and 21s trading up to 87.75/88.75 (9.94%/9.75%) and 88.0/89.0 (10.04%/9.85%) as cheap offers got lifted from the screens. Meanwhile Naftogaz got hit in the afternoon at 96.25 (11.35%). Corporate names closed fairly unchanged on the day waiting for the sovereigns to make a move. Mriya stood at 88.0/90.5 (15.17%/14.23%) and MHP closed at 93.5/95.5 (12.98%/12.11%).
Daily
Coal Energy is due to report its results for 3Q12FY and 9M12FY (July 2011-March 2012) on May 23. In our view, the publication could trigger additional short-term pressure on the stock as we estimate its 3Q12FY EBITDA will decline more sharply (i.e. by $6. ... Raiffeisen Bank Aval, Ukraine’s fourth largest bank, reported 2011 IFRS net profit of UAH 596m ($75m and 8.0% ROE ), a significant improvement on the 2010 IFRS profit of UAH 84m ($11m; 1.2% ROE) and 2011 UAS net income of $4m. Net interest income increase ... Ukraine has reached agreement with Russian VTB concerning a $2bn loan, PM Mykola Azarov said on Friday, providing no other details. The loan, being the government’s largest external debt redemption this year, is maturing in early June. Pursuant to the ori ...Reports
The past week brought no surprises for markets, deepening their correction. With a 5.1% w-o-w drop on the MSCI World Index, global markets erased their YTD gains. The re-surfacing threats to Greece, where new parliamentary elections were scheduled for Jun ...| Ukrainian Bonds: Global Sentiment Widens Spreads | May 21, 2012 |