OREANDA-NEWS. October 24, 2011. Another review. The European Bank for Reconstruction and Development (EBRR) has reviewed Ukraine\"s GDP growth forecast from 5% to 4.5% in 2011 and from 4.5% to 3.5% in 2012. Meanwhile, the inflation forecast was improved from 9% to 8.4%. The worsening of the GDP growth forecast corresponds with global market conditions and might be not the last this year.

Fitch revises Ukrainian sovereign outlook. The international rating agency Fitch downgraded Ukraine's long-term default rating outlook from positive to stable. According to Fitch analysts, Ukraine is facing a sharp cost increase for  external borrowings, which exposes the Ukrainian economy to more risk. After the sovereign outlook was revised, Ukrainian corporate issuers were also downgraded from positive to stable.

IMF once again heading to Ukraine. According to Intefax-Ukraine, citing  Ukraine's International Monetary Fund (IMF) representative Max Alier, an IMF mission is planning to visit Ukraine between October 25 to November 4, in order to discuss a second review of the stand-by program and make recommendations for  2011.

Equity market. A bearish mood prevailed at the beginning of the previous week. However, the trend was reversed at the end of the week and share value jumped sharply. The low level of liquidity was the only constant throughout the five trading sessions. Despite investors’ attempt to take initiative during Friday’s session, the Ukrainian Exchange Index dropped by 0.98% on the week – to 1319 points. This may be considered a small win considering the indicator rebounded from a two-year low in the middle of the week. The trading volume on the stock market remained almost unchanged and totaled UAH 341.9 mln (USD 42.9 mln), while on the futures market trading volume decreased by 4.99% WoW to UAH 291.3 mln (USD 36.5 mln).

Trading of Yasinovka Coke (YASK) and Pokrovskoe Mine (SHCHZ) stocks was allowed on the Ukrainian Exchange on October 17 after a break of almost six months. The stocks lost 48.93% and 26.47% of share value respectively and thereby "caught up" to the rest of the market. A finish of +12.32% for the week made Motor Sich (MSICH; BUY) the top performing stock on the order-driven market, after a particularly strong showing at Friday's trading session. Furthermore, Motor Sich accounted for almost 23.6% of the total trading volume on the stock market.

Ukrsotsbank (USCB; BUY) and Raiffeisen Bank Aval (BAVL; BUY) were among the poorest performers this week, with share value dropping 9.28% and 7.24% respectively.