On Tuesday, the Ukrainian stock market initially quickly lost growth momentum at the beginning of the trading session, but, approaching to the close of trading, the UX Index managed to gain 0.5%, though only thanks to an 8.4% spike for shares in Ukrsotsbank (USCB: U/R). In other words, the Ukrainian stock market once again slept through the global rally; however, in its defence we can say that the intensification of buying on U.S. markets occurred after the UX had closed.
In turn, this morning, the UX Index has the chance to rise by the end of the trading session by no less than seen yesterday – but this time, it is due to a growth in risk appetite. U.S. indices have gained 1.6% to 1.8%, as Ben Bernanke’s comments did not disappoint investors, and the results of stress tests of major U.S. banks were not worse than expected. The only thing that spoils the situation is the possible development of an overbought condition.
Before opening short-term long positions, investors should consider that, after the growth posted the day before, players on global markets may take a break; already attesting to this is a modest increase in the Russell 2000 broad market index during yesterday's trading session. Thus, Ukrainian traders should be cautious about buying during intraday corrections, as they may end up being deeper than anticipated.
