Daily Market Review (19-Sep-01) by KINTO Investments & Securities

Ukraine
Analyst: Olena Rotay

KRCZ). 3,076,624 of its shares (8.92% of the charter fund) were sold in one block at UAH 0.02/$0.004 a share (+233.35%). But look at the following peculiar fact! On September 17, there was a transaction of the same number of shares in this issuer (3,076,624 shares) at UAH 0.006/$0.001 a share. Now, what was this all about? Was it a transfer of the same block between two affiliated companies? This is the only conclusion that comes to mind considering the lack of any demand for this issue on the market.

UNAF) ($436; 126 shares), and one in Zaporizhkoks (ZACO) ($511; 4,550 shares). Also this day, 2,000 common registered shares of Сlose Joint Stock Company Svativska Oliya were sold in one block via auction on the PFTS for $281/UAH 1,500 (the block's par value was UAH 500). The auction was managed by well-known company INEKO.

PFTS for the day, September 19:

Company/Sector
Ticker
Last Price, $
Change, %
Daily Volume, $
Tr. Volume, shares
Total Daily Tr. Volume Share, %
Statutory Fund Share, %
MCap, $ m

Metallurgy

Zaporizhkoks
ZACO
0.11*
33.34
511
4,550
4.01
0.00
13.40

Oil & Gas

Ukrnafta
UNAF
3.46*
-8.42
436
126
3.42
0.00
187.80

Food Industry

Kremenets Sugar Refinery
KRCZ
0.004
233.35
11,519
3,076,624
90.36
8.92
0.13

AUCTION

Food Industry

Svativska Oliya
AUSVO
0.14

281
2,000
2.20
n/a
n/a

Total

12,747

100.0

* - the price falls out of the PFTS spread or the amount traded is less than UAH 1,000 (which equals $187.20 at the exchange rate of UAH 5.3419/$1).

ZAEN) min ask, which occurred after the trader with the lowest ask had "left" the market; and another drop in Ukrnafta's (UNAF) max bid (-0.2%). Sure enough, these changes did not do any good to the liquidity of these two companies.

Company
Max Bid Price, $
Change, %
Min Ask Price, $
Change, %
Quoted Price, $
Change, %
KINDEX Share, %

Centrenergo
0.06
0.00
0.07
0.00
0.07
-0.09
6.92%

Dniproenergo
6.55
0.00
12.36
0.00
11.55
0.00
11.32%

Donbasenergo
1.07
0.00
2.40
0.00
1.87
0.00
11.06%

Kyivenergo
0.50
0.00
0.73
0.00
0.58
-0.03
15.57%

Zakhidenergo
1.87
0.00
5.62
15.38
3.53
2.83
11.27%

Ukrnafta
3.66
-0.20
3.93
0.00
3.24
-0.02
43.87%
· - Quoted price is a half-sum of average weighted bids and asks (KINTO calculations).

ZACO) stood out. Its quoted price sank 4.93%.

Company
Ticker PFTS
Max Bid Price, $
Change, %
Min Ask Price, $
Change, %
Quoted Price, $
Change, %

Azovstal
AZST
0.01
0.00
0.03
0.00
0.03
0.00

Mariupol Iron & Steel Works
MMKI
0.01
0.00
0.03
0.00
0.03
0.00

Nyzhnodniprovsky Pipe-Rolling Plant
NITR
0.06
0.00
0.70
0.00
0.39
0.00

Zaporizhkoks
ZACO
0.12
0.00
0.15
0.00
0.41
-4.93

Zaporizhstal
ZPST
0.03
0.00
0.05
0.00
0.10
0.00

Kyivoblenergo
KOEN
0.01
0.00
0.06
0.00
0.05
0.00

Poltavaoblenergo
POON
0.03
0.00
0.09
0.00
0.07
0.00

Halychyna Oil Refinery
HANZ
0.02
0.00
0.04
0.00
0.03
0.00

Slavutich Brewery
SLAV
3.18
0.00
6.55
0.00
4.75
0.00

Stirol
STIR
1.15
0.00
1.87
0.00
1.28
0.00

Turboatom
TATM
0.04
0.00
0.07
0.00
0.06
0.00

Ukrrichflot
FLOT
0.75
0.00
2.81
0.00
1.78
0.00

Company News

(compiled by analyst Olena Kozak)

ZAZA), SPF intends to lower starting price 30%

The deadline for applications for the tender to sell 81.59% in automaker AvtoZAZ ended on September 14. Since nobody has declared of the intention to partake, the tender can be already called cancelled. As a result, the SPF announced that it wants to offer the stake for sale again, yet the price will be slashed 30%. Other tender requirements will not be changed. The starting price was UAH 77.005 million in this past tender declared August 22.

Note:In 2000, the SPF made two unsuccessful attempts to sell its 31.58% interest in AvtoZAZ. The price of that stake offered Fall 2000 was set at UAH 29.8 million.

In 1998, $150 million worth of AvtoZAZ assets were transferred to JV AvtoZAZ-Daewoo, where AvtoZAZ holds 50% of shares. A 36.66% stake in JV AvtoZAZ-Daewoo held by AvtoZAZ is pledged at the Daewoo Corporation against a loan granted to AvtoZAZ to pay off a $45 million debt, and $9.2 million in interest on it (at July 1, 2001).

Donetsk Brewery to purchase Krym Brewery from Sun Interbrew

Sun Interbrew, a subsidiary of Interbrew (Belgium), reached an agreement to sell 83.98% in Krym Brewery to Donetsk Brewery. The details of this transaction were not disclosed.

Note: In March 2001, Sun Interbrew declared a tender to sell its 80% stake in Krym Brewery per demand by the Antimonopoly Committee. CA IB Investmenbank AG was its advisor. This requirement was made after Sun Interbrew had purchased a controlling interest in Rogan Brewery, and thus became in control of over one-third of the Ukrainian beer market.

Donetsk Brewery is part of Donetsk Beer Group. According to the press, the Donetsk beer-maker has already bought over 10% in Krym Brewery on the secondary market.

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