Daily Market Review (26-Sep-01) by KINTO Investments & Securities

Analyst: Olena Rotay

UNAF), was finally the leader by volume among other stocks traded this day ($138,526; 35,000 shares). There were several transactions in this issue at prices ranging from UAH 20.5 ($3.84) to UAH 21.362 ($4.00). The last transaction price climbed 3.97% to UAH 21.2 ($3.97), while the weighted average price jumped 10.86% to UAH 21.12 ($3.96). Ukrnafta's liquidity continued to improve, as its spread contracted another 2.64% to 7%. This was again caused by oppositely moving max bid (+1.54%) and min ask (-0.91%).

ZACO) ($2,129; 17,219 shares), and one in Zaporizhstal (ZPST) shares ($27; 903 shares).

PFTS for the day, September 26:

Sector

Zaporizhkoks
ZACO

Zaporizhstal
ZPST

Ukrnafta
UNAF

Government Bonds (maturity 25-Aug-02)
1123
187.58
-
3,748,381
19,983
25.00

Government Bonds (maturity 25-Oct-02)
1125
187.57
-0.98
11,103,111
59,193
74.06

* - the price falls out of the PFTS spread or the amount traded is less than UAH 1,000 (which equals $187.41 at the exchange rate of UAH 5.3359/$1).

CEEN) (-15.27%). In addition, we have to mention a slump in min asks for Donbasenergo (DOEN) (-21.86%) and Dniproenergo (DNEN) (-1.49%).

Centrenergo

Dniproenergo

Donbasenergo

Kyivenergo

Zakhidenergo

Ukrnafta

· - Quoted price is a half-sum of average weighted bids and asks (KINTO calculations).

KOEN) (-32.24%), Poltavaoblenergo (POON) (-25.98%), and Mariupol Iron & Steel Works (MMKI) (-12.48%).

SLAV) plunged 64.7% following a decline in the number of traders interested in this issue.

KIEN) (-6.27%) were its components that plunged in the quoted price the most (-15.27% and -6.27%, respectively), while Ukrnafta was the only issue to post a gain (+0.23%). The PFTS index shed 1.95% to 48.18.

Company News

(compiled by analyst Olena Kozak)

ONPZ)

The State Property Fund and Lukoil signed an agreement to increase investment in Odessa Oil Refinery in exchange for reduction in volume of oil supplied by the Russian oil company. Under this agreement, Lukoil can reduce annual oil deliveries to Odessa Oil Refinery in April 14, 2000 - April 14, 2002 from the pledged 2.4 million tons to the actual 1.8 million tons. In exchange, the company has to up investments in the Refinery in the same period to $10 million from $1.2 million, or $5 mln. each year. Starting with April 14, 2002 and until its investment obligations expire on April 14, 2004, Lukoil will have to deliver 2.4 million tons of oil annually, and invest $1.2 million a year.

Early August, the SPF was going to void the agreement to sell the Refinery to this Russian company (or rather its subsidiary), because Lukoil had failed to fulfill its obligations to deliver a certain quantity of oil to Odessa Oil Refinery. However, the Cabinet of Ministers did not support that idea.

Notes: Luk-Sintez Oil Ltd, a subsidiary of Russian oil company Lukoil, purchased a 51.9% interest in Odessa Oil Refinery via tender in 1999. According to press reports, currently Lukoil holds 94% in the Refinery through its affiliated companies.

ORGZ) shares of second issue approved

A meeting of Ordzhonikidze Ore Mining and Enrichment Works shareholders was held on September 22. The meeting approved the results of subscription for shares of the second issue (worth UAH 122.59 million). As a result of the additional share issue, the plant's charter fund increased some 199.6% to UAH 184 million.

Notes: Earlier, the additional issue was blocked by State-run Joint-Stock Company Ukrainski Polimetaly, which had the government stake in the Works in its own charter fund. Yet on March 11, 2001 the company sold these shares through the PFTS.

Incidentally, an extraordinary shareholders' meeting has been scheduled for November 10, 2001 upon request of a shareholder owning over 10% of the charter fund. The agenda items will be the Audit Committee's report on reviewed activity of the executive body of the Works in 2001, and introduction of changes to the charter.

www.kinto.com