OREANDA-NEWS. November 17, 2010. UFC Capital released daily market view:

Parliament deliberates over the tax code. At the session held on Tuesday, the Verkhovna Rada concluded voting on a part of the 4879 amendments at the second reading of the new tax code.  The amendments are contained in 340 articles of the document, of which the parliament has gone through 211. Among the most significant changes approved by the parliament was the decision to reduce the profit tax from 25% to 16%; this reduction is expected to be phased-in over the course of several years, but the specifics will be determined by the parliament later this week. It is expected that phasing will take on the form of a 2-3% reduction per year over the course of a few years. Another change introduced by the parliament is a progressive tax rate on personal income. Incomes up to ten times the minimum wage will continue to be taxed at the current rate of 15%, while the tax rate for incomes over that amount will be raised a modest 2% – to 17%. Miners and workers involved in the mining industry will continue to receive a preferential tax rate of only 10%. Other important developments include the government’s decision to reduce the dividend tax rate from 15% to 5%, as well as delaying the introduction of a tax on interest income until 2015.

Equity market. The UX Index showed a bearish trend throughout the trading session on Tuesday. Ultimately, the indicator was unable to keep above the 2000 point mark, finishing the day at 1991.64 points, a decrease of 1.71%. The total trading volume for the day was 231.1 mln hryvnia, with 43.9 mln hryvnia of the volume coming from the futures market.

The most traded stocks of the day on the Ukrainian Exchange were Ukrnafta (UNAF; BUY) and Motor Sich (MSICH; BUY). The trading volume for these shares totaled 46.8 mln hryvnia and 45.1 mln hryvnia respectively.

In addition, investors actively sold shares of Luganskteplovoz (LTPL; UNDER REVIEW), Ukrsotsbank (USCB; SELL), and Stirol (STIR; BUY); the share values for these stocks dropped by 5.70%, 2.17% and 2.66% respectively. We should also note that one notable exception to today’s stock market drop was Ukravto (AVTO; BUY). Five deals were concluded for the company’s shares, totaling 38.7 thnd hryvnia, which led the company’s shares to increase by 0.78% in value.

Fixed income.  The international rating agency Moody's Investors Service upgraded the rating outlook for DTEK and its USD 500 mln Eurobond issue from ‘negative’ to ‘stable’.

The agency states that the reasoning behind this decision was DTEK’s excellent financial results and an improvement in the company’s debt structure.