Subdued activity by international players yesterday allowed local brokers to support the market and push the PFTS Index up by 1.3% to join European markets on the positive side.
Expectations that high steel prices will continue rising supported the growth of metallurgical stocks, including Azovstal (+2.3%) and Enakievo Steel (+3.8%). Engineering stocks also advanced as machine building remains the fastest growing sector of the Ukrainian economy. Motor Sich (+2.6%) and UkrAVTO (+1.3%) were the sector’s most popular names yesterday. Stakhaniv Railcar Plant (-6.5%) continued to shed its value in large blocs as few companies can afford to withdraw liquidity to participate in the plant’s upcoming additional share issue. Finally, banks started to advance on the back of more active fundraising on international markets, with Bank Aval (+2.7%) and Ukrsotsbank (+3.3%) leading the trend.
However, the market stabilization promises to be short-lived and last week’s correction is expected to continue as soon as big sell orders from international funds reappear.
