OREANDA-NEWS. October 31, 2011. Ukraine’s GDP growth estimate. According to data released by Ukraine’s Ministry of Economic Development and Trade (MEDT), the Ukrainian GDP grew by 5.3% YoY in January-September 2011, which is 0.1 p. p. less than that announced by the National Bank of Ukraine (NBU). The government and the MEDT are expecting GDP growth of 4.7% YoY in 2011, and inflation of 8.9%. The NBU is more optimistic, estimating GDP growth at 4.8%-5.0% YoY in 2011 and inflation at 8.5%.

Equity market. The compromise by European leaders regarding a recovery plan – which provides 50% debt forgiveness to Greece’s creditors, €130 bln in additional aid to Athens, and increasing the size of a European Financial Stability Fund (EFSF) to € 1 trln – led to optimism on stock exchanges all around the world. As a result, the Ukrainian Exchange Index jumped 14.7% over the course of the week of October 24, reaching 1514 points. This was achieved despite investors’ desire fix profits during Friday’s session. The trading volume on the market also increased significantly, with trading on the stock market advancing by 58.5%, to UAH 541.9 mln (USD 67.9 mln), and by 89.6% on the derivatives market, to UAH 552.4 mln (USD 69.2 mln).

Positive quarterly results from Centrenergo (CEEN; BUY), aided by optimism on the market, resulted in the company’s stock gaining almost 23% in share value. Stocks of Enakievo Steel (ENMZ; BUY) and Alchevsk Iron and Steel (ALMK; BUY HIGH RISK) were the top performers on the order-driven market with share value increasing 31.0% and 28.4% respectively. Motor Sich (MSICH; BUY) stock continued to be the most liquid on the exchange over the course of last week, with 4852 transactions conducted for UAH 118.3 mln (USD 14.8 mln).

Zakhidenergo (ZAEN; BUY) and Dniproenergo (DNEN; BUY) stock concluded the week with a drop in share value of 5.22% and 5.04% at small trading volumes, making them the poorest performers on the order-driven market.