Daily Market Review (24-Sep-01) by KINTO Investments & Securities

Ukraine
Analyst: Olena Rotay

Monday's trading session gave us a bit more joy than Friday's. PFTS trading volume jumped to $161,038, or almost nine times the volume reached the day before. The number of issues traded increased from four to six.

SLAV) ($38,000; 6,608 shares) and Krasnogvardiysk Butter Factory (KRMZ) ($20,047; 75,649 shares; 3.81% of the charter fund), respectively. Both the former and the latter enjoyed higher prices for their shares than seen in previous days, albeit we did not register any increased demand for these issues.

UNAF) ($7,637; 2,139 shares). There was a bunch of small trades (under 100 shares, purchased from individuals) in the range of UAH 17.14 - UAH 18 ($3.21 - $3.27), and the last, bigger one (1,000 shares) at UAH 20.4 ($3.82) a share, down 2.84% from the day before (when a 1,000-share block was sold also). One transaction was executed in Zaporizhkoks (ZACO) ($1,276; 10,165 shares), and the price was also lower ($0.13, -4.25%). There were a couple of trades in Makiyivka Metallurgical Plant (MKKI) ($421; 187,245 shares) where the prices stayed the same at UAH 0.012 ($0.002) a share.

PFTS for the day, September 24:

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

Metallurgy

Makiyivka Metallurgical Plant
MKKI
0.002
0.01
421
187,245
0.26
0.01
3.18

Zaporizhkoks
ZACO
0.13
-4.25
1,276
10,165
0.79
0.01
14.98

Oil & Gas

Ukrnafta
UNAF
3.82
-2.84
7,637
2,139
4.74
0.00
207.22

Food Industry

Krasnogvardiysk Butter Factory
KRMZ
0.26
16.63
20,047
75,649
12.45
3.81
0.53

Slavutich Brewery
SLAV
5.75
2.30
38,000
6,608
23.60
0.32
11.91

AUCTION

Arkada-Fund Bonds (B)
AUARB
18.81
-0.97
93,657
4,978
58.16

Total

161,038

100.0

* - the price falls out of the PFTS spread or the amount traded is less than UAH 1,000 (which equals $187.32 at the exchange rate of UAH 5.3385/$1).

CEEN) and Ukrnafta (UNAF) as their min asks climbed 2.65% and 1.36%, respectively, while Dniproenergo's (DNEN) and Zakhidenergo's (ZAEN) spreads widened as their max bids slumped 14.27% and 2.40%, respectively. We would like to mention that Ukrnafta is still the most liquid issue on the market (spread -- 11.74%).

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

Centrenergo
0.05
0.01
0.07
2.65
0.08
0.12
6.91%

Dniproenergo
5.62
-14.27
12.36
0.01
11.57
0.11
11.27%

Donbasenergo
1.07
0.01
2.40
0.01
1.87
0.01
11.00%

Kyivenergo
0.50
0.01
0.73
0.01
0.57
-1.03
15.34%

Zakhidenergo
1.52
-2.40
5.62
0.01
3.48
-0.02
11.06%

Ukrnafta
3.65
0.01
4.08
1.36
3.30
-0.21
44.41%
· - Quoted price is a half-sum of average weighted bids and asks (KINTO calculations).

We did not see any noteworthy changes in other attractive companies traded on the PFTS.

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

Azovstal
AZST
0.01
0.01
0.03
0.01
0.03
0.01

Mariupol Iron & Steel Works
MMKI
0.01
0.01
0.03
0.01
0.02
-0.60

Nyzhnodniprovsky Pipe-Rolling Plant
NITR
0.06
0.01
0.70
0.01
0.39
0.01

Zaporizhkoks
ZACO
0.12
0.01
0.15
0.01
0.41
0.01

Zaporizhstal
ZPST
0.03
0.01
0.05
0.01
0.10
0.01

Kyivoblenergo
KOEN
0.01
0.01
0.06
0.01
0.05
0.01

Poltavaoblenergo
POON
0.03
0.01
0.09
0.01
0.07
0.01

Halychyna Oil Refinery
HANZ
0.02
0.01
0.04
0.01
0.03
0.01

Slavutich Brewery
SLAV
3.18
0.01
6.56
0.01
4.75
0.01

Stirol
STIR
1.15
0.01
2.06
0.01
1.35
0.01

Turboatom
TATM
0.04
0.01
0.07
0.01
0.06
0.01

Ukrrichflot
FLOT
0.84
0.01
2.81
0.01
1.80
0.01

KIEN) was its component that posted the highest loss in the quoted price (-1.03%), while Centrenergo was the top advancer (+0.12%).

Company News

(compiled by analyst Olena Kozak)

RAZT) transferred under management of Rivne regional authorities

According to press reports, on September 21, the Cabinet of Ministers passed a resolution "On Transfer Of Management Over the Government Stake in Rivneazot to Rivne Regional Administration". The state interest in this company is 53.86%.

Note: It seems the epic of the unsuccessful tender to sell 53.86% in this chemical company came to an end. The Rivneazot sale was squeaky right from the start. Too many forces tried to affect the privatization process. The very Rivne Regional Administration had been lobbying for getting its hands on Rivneazot shares in sharp confrontation with plant manager Victor Kolesnikov. As a result, the tender was always either postponed or rescheduled. Finally, late April 2000 the SPF named the winner in the tender to sell a 53.86% interest in Rivneazot. Ukragropromholding, the company affiliated with Russia's Gazprom, won the tender, but failed to pay any money for the stake. The company that took second place, Ukrenergosbyt, filed a suit in the Kyiv Economic Court, and the latter nullified the agreement to sell 53.86% in Rivneazot to Ukragropormholding. The Court also voided the bank guarantee provided by Ukragropromholding to verify its ability to pay for the stake. As a result, the court threw out a suit filed by the SPF that wanted to collect $25 million for 53.86% in Rivneazot it had sold, and get $5 million in late fees. In its turn, Ukragropromholding filed a suit to void the tender. In light of these dramatic events, in August, the SPF announced of its intention to cancel the tender to sell 53.86% in Rivneazot altogether.

And at the same time, this August, the Ternopil Regional Arbitration Court found Rivneazot bankrupt. It made such a decision in a suit filed by the Praveks-Energia Concern, the main creditor of the company. However, Rivneazot appealed to the Lviv City Court of Appeals to challenge this decision. Both the SPF and the Office of Prosecutor General filed appeals as well.

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