OREANDA-NEWS. June 01, 2010. UFC Capital released daily market view:

IMF may refuse to adopt a new cooperation program with Ukraine.

According to information published by some mass media sources on Friday, one of the key reasons for the IMF’s possible refusal is that it anticipates that, in 2010, the actual deficit in Ukraine will be about 14% of its GDP, instead of the expected 5.3%. Other reasons include the financial difficulties experienced by Naftogaz of Ukraine, delays in pension reforms, and the government’s delays in raising gas prices for households. Earlier, Ukraine had planned to receive the first tranche under the new IMF cooperation program in June 2010.

Equity market. On Friday, the Ukrainska SE index found itself in both the green and the red zones. By the end of the trading session, the index had fallen by 1.34% to reach 1,810.23 points. Overall on May 28, 5,744 deals were sealed on the spot market of the Ukrainska SE for a total of 135.9 mln hryvnia. On the last day of the week, new records were achieved, both in terms of the number of the deals and the overall trade volume.

That day on the order-driven market, the prices for shares in Ukravto (AVTO; UNDER REVIEW) saw the greatest decline in value – down 10.9%. Meanwhile, the growth leader was Zakhidenergo (ZAEN; HOLD) – up 3.0%.

The decline seen on the Ukrainian market on Friday is primarily due to two major factors: 1) the release of information about the potential problems that the Ukrainian government may face in obtaining the new tranches from the IMF, and 2) the opening of the US market below zero. In any case, the significant increase in trade volumes seen over the last few days point to the fact that investors are becoming increasingly interested in the Ukrainian stock market. At the same time, the significant growth of the Ukrainska SE index on Wednesday and Thursday, as well as a relatively small decline in this indicator on Friday, provide hope that the bullish trend will persist.