UFC Capital Released Weekly Market View
OREANDA-NEWS. June 20, 2011. Execution price for June futures contracts is set. The execution price for the June futures contract on the Ukrainian Index has been set to 2399.16 points. This indicator is defined as the average of the UX Index as of the last trading hour on the last trading day of the futures contract, which was June 15, 2010. On June 16,
First reading of pension reform has been completed. Parliament took the first step towards pushing through pension reform in accordance with agreements with the IMF. To become law, it needs to be approved by the parliament during its second reading and then to be signed by president. We believe that the law will undergo many changes before a final version is passed, but will almost certainly retain a key statute which will raise the retirement age for women from 55 to 60.
Equity market. During the trading week from June 14 to June 17, the Ukrainian Exchange Index continued to sink to this year\"s lows. Despite a slight increase at the beginning of the week, the indicator began dropping due to negative external market condition, at fairly low trading activity (on average, daily trading volume declined by 17.9%). Overall, the UX Index finished the week at 2346.34 points, which is a drop of 1.51% from the previous week\"s close. The total trading volume for the week amounted to UAH 866 mln (USD 108.6 mln), including UAH 288.5 mln (USD 36.2 mln) on the futures market.
The top performing stocks last week were those of Slavuta Malt (SSOL; BUY) and Dzerzhinskiy Iron and Steel (DMKD; WITHDRAWN), whose share value increased 33.33% and 8.14% respectively, at relatively small trading volumes. The only stocks in the index which finished above the flatline were those of Ukrtelecom (UTLM; UNDER REVIEW) and Avdiivka Coke (AVDK; BUY), having advanced by 3.06% and 3.01% respectively.
Motor Sich (MSICH; BUY) was the most traded stock over the course of last week at a trading volume of UAH 126.1 mln (USD 15.8 mln) in 1867 transactions. Among the most liquid stocks, those in the banking sector performed the poorest. Ukrsotsbank (USCB; BUY) and Raiffeisen Bank Aval (BAVL; HOLD) saw share value drop 9.04% and 7.00% respectively, primarily due to new regulations which will ban mutual investment funds from owning stock in Ukrainian banks.
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