Expert: No Recovery in Sight for Ukrainian Market

       The Ukrainian stock market will not see rally any time soon, according to Denys Shavruk, an analyst with Alfa Capital Ukraine.

      “Following a short-lived recovery, the PFTS stock index continued its correction Monday, falling 2.2 percent to close at levels seen in early April,” the expert said. Both internal and external factors drove the market downwards. “The stocks which were most heavily affected by the negative news from abroad were last month’s most liquid names: Yenakiyevo Steel (down 1.4 percent), Azovstal (down 2.2 percent) and Alchevsk Steel (down 1.3 percent),” Shavruk said. Ukrnafta dropped 3.1 percent even amid growing oil prices. Raiffeisen Bank Aval slid 2.5 percent as pessimistic reports were anticipated from world’s leading investment banks.

      “Centrenergo fell 2.6 percent Monday on the news that its privatization had been suspended,” Shavruk added. Lutsk Automotive Factory and UkrAVTO continued their slide on fears of eventual negative consequences of Ukraine’s WTO accession. Stakhanov Railcar Plant remained relatively stable losing only 0.6 percent on Monday on expectations of an additional issue. Ukrtelecom maintained its position, dropping only 0.8 percent as traders remained hopeful that the company would privatize this year. According to Shavruk, “overall market activity was rather low yesterday, which only reinforced negative news’ impact.”