On Thursday, the PFTS Index continued its decline (-2.8%), returning to levels seen back in March 2007. The Index is expected to drop further still, and the recent selling activity shows that it could soon reach February 2007 lows as there are few factors capable of reversing the domestic market’s fortunes and supporting Index growth in the next two months. A potential reformation of the ruling parliamentary coalition, possible new pre-term elections and the UEFA inspection of Ukraine’s EURO-2012 preparations will prove to be influential market benchmarks this summer.
Late August could see a rebound when Ukrainian corporations begin reporting 1H08 financial and production results.
In the meantime, the large-scale sell-off on the PFTS continued, and the most liquid stocks remained under heavy pressure. Investors actively sold Ukrnafta
(-3.8%), Enakievo Steel (-4.4%), Azovstal (-3.8%), Ukrsotsbank (-3.7%), Motor Sich (-2.1%) and UkrAVTO (-5.1%) stocks.

back