Market comment

Обзоры рынка 12.12.2014 Investors extended their selloff of Ukrainian equities traded in London on Thursday, Dec. 11. The most actively traded Ukrainian stock, iron ore miner and pellet maker Ferrexpo (FXPO LN -6.0%), has plunged 13.4% in two sessions to its lowest level since April 2009.Egg producer Avangardco (AVGR LI) collapsed 17.8% to its lowest level since its April 2010 IPO. Regal Petroleum (RPT LN) plummeted 10.5% to its lowest price since its September 2002 IPO. Bank of Georgia (BGEO LN) slid 5.3% to its lowest price since October 2013. The WIG Ukraine Index of Warsaw-traded stocks rose 0.9%, fueled by its biggest component, grain trader and sunflower oil maker Kernel (KER PW +2.0%). Dairy firm Milkiland (MLK PW) fell 4.1% to its lowest price since December 2010. The Ukrainian Exchange (UX) Index of Kyiv-traded stocks increased 1.2%, led by GenCo Donbasenergo (DOEN UK +3.9%). Alchevsk Steel (ALMK UK -1.3%) has plunged 20.5% in eight straight negative sessions to its lowest price since its UX debut in March 2009. On the debt markets, investors made the Ukrainian sovereign yield curve steeper, resulting in a 2%-2.5% decrease in the price of the shortest sovereign bonds and a 3%-4% increase in the prices of the longest bonds. The worst performers were Ukrlandfarming’18 (UKRLAN), which fell 7.9% to its all-time low, and Ukreximbank’15 (EXIUMK) which dropped 9.7% during the day to offer a more than 100% yield to its maturity in late April. On the ForEx market, the hryvnia continued to lose ground against the U.S. dollar, finishing at UAH 15.76/USD. The official exchange rate set by the NBU also decreased slightly to UAH 15.67/USD. The hryvnia reportedly fell to a new low on the unofficial market, where it diverged further from official rates to UAH 17.5-18.5/USD.