Tuesday, July 19th, 2011: the Ukrainian equity market continued to trend lower: the UX index dropped 0.4% closing at 2302 points, while the PFTS index shed 0.5% closing at 899 points. The banking sector, namely shares of Ukrsotsbank [USCB –5.0%] and Raiffeisen Bank Aval [BAVL –3.3%] were among the top decliners. Shares of electricity generating companies Zakhidenergo [ZAEN –2.8%] and Donbasenergo [DOEN –0.5%] also posted losses.
The world’s major equity markets will focus on corporate earnings results in the US, with banking sector under close scrutiny.
Trader’s perspective
Yesterday, the UX index recorded a decrease of 0.58% with trading at fairly low volumes, which once again emphasizes the fact that market participants are increasingly growing reluctant to continue selling at these levels. We see a neutral external background on the world’s equity markets, and expect the UX index to post marginal gains in case no extraordinary events take place. We expect shares of Motor Sich and the metallurgy sector to be in the lead. We also note the resumption of buying activity in shares of Ukrnafta, which we will follow closely.
