Daily Market Review (30-Oct-01) by KINTO Investments & Securities

Ukraine
Analyst: Olena Rotay

PFTS trading on October 30 was fairly active (as usual as for the last days of the month). Although total PFTS trading volume did not exceed the volume of the day before ($74.566 mln.), it came to an impressive figure -- $19.376 million. We would like to point that volume plunged only for government bonds ($16.766 mln.; 86.53% of total volume), while stock trading (as we expected) was more than five times the volume of the previous session, or $2.61 million.

KRGM) ($2.38 mln.) was the absolute leader of the day in stock trading. This came as a surprise as shares of this company are not in demand on the market (there were no bids for this company in PFTS). A 1.71% interest in Kryvy Rih Mining Machine Building Plant (1,141,581 shares) was sold in one block at UAH 11.0561 ($2.09) a share, which surged 27% from the last recorded price.

UNAF) ($129,840; 40,200 shares) and Kyivenergo (KIEN) ($55,189; 113,000 shares). Transaction prices for these issues rose in comparison with the previous trading session. As a few Ukrnafta's asks ($3.23 and $3.232) got accepted, its transaction prices went up, followed by an increase of the best (max) bid and min ask. Its Last Price added 4% (weighted average transaction price +4.15%), max bid +6.9%, min ask +3.45%, and quoted price +1.2%. It's hard to explain the rise in transaction prices for Kyivenergo (Last Price +8.4%; weighted average transaction price +20.3%).

FLOT) ($30,088; 18,000 shares), Centrenergo (CEEN) ($9,874; 273,000 shares), Monomakh (MONM) ($713; 320 shares), and Yenakievo Metallurgical Plant (ENMZ) ($307; 1,085 shares). Transaction prices for all above cited companies (except for Centrenergo) grew up in comparison with the previous days.

PFTS for the day, October 30:

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

Energy

Centrenergo
CEEN
0.03
-12.85
9,874
273,000
0.05
0.07
10.88

Kyivenergo
KIEN
0.44
8.37
55,189
113,000
0.28
0.10
47.69

Metallurgy

Yenakievo Metallurgical Plant
ENMZ
0.28*
0.23
307
1,085
0.00
0.01
2.94

Oil & Gas

Ukrnafta
UNAF
3.21
4.04
129,840
40,200
0.67
0.07
174.12

Machinery

Kryvy Rih Mining Machine Building Plant
KRGM
2.09
27.10
2,383,921
1,141,581
12.30
1.71
139.09

Food Industry

Monomakh
MONM
2.23
0.85
713
320
0.00
0.09
0.77

Transport

Ukrrichflot
FLOT
1.69
49.20
30,088
18,000
0.16
0.24
12.68

Government Bonds

maturity 25-Nov-02
1126
189.36
-
16,765,785
88,539
86.53

Total

19,375,718

100.0

* - the price falls out of the PFTS spread or the amount traded is less than UAH 1,000 (which equals $188.88 at the exchange rate of UAH 5.2944/$).

DOEN) (+5.8%), and Centrenergo (+4.4%). Moreover, no issuer posted a fall in its max bids.

DNEN) min ask and a 14.8% jump in Zakhidenergo's (ZAEN) min ask.

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

Centrenergo
0.02
4.35
0.04
0.00
0.05
1.25
5.59%

Dniproenergo
2.02
0.00
8.50
-6.25
10.68
-0.10
13.20%

Donbasenergo
0.48
5.81
1.89
0.00
1.76
-0.12
13.11%

Kyivenergo
0.10
0.00
0.66
0.00
0.47
0.00
16.21%

Zakhidenergo
1.13
0.00
5.86
14.81
3.22
3.26
12.99%

Ukrnafta
2.93
6.90
3.34
3.45
2.28
1.23
38.91%

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

ZACO) min ask, as the new min ask came to the market.

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

Azovstal
AZST
0.01
0.00
0.03
-28.00
0.03
-3.94

Mariupol Iron & Steel Works
MMKI
0.01
0.00
0.03
0.00
0.02
0.85

Nyzhnodniprovsky Pipe-Rolling Plant
NITR
0.06
0.00
0.71
0.00
0.39
-1.11

Zaporizhkoks
ZACO
0.12
0.00
0.15
0.00
0.38
0.00

Zaporizhstal
ZPST
0.02
0.00
0.19
0.00
0.10
0.00

Kyivoblenergo
KOEN
0.01
0.00
0.04
0.00
0.05
0.00

Poltavaoblenergo
POON
0.02
0.00
0.07
0.00
0.08
0.00

Halychyna Oil Refinery
HANZ
0.01
0.00
0.05
0.00
0.03
0.00

Slavutich Brewery
SLAV
4.72
0.00
5.86
0.00
4.68
0.00

Stirol
STIR
0.38
0.00
2.08
0.00
1.10
0.00

Ukrrichflot
FLOT
0.97
0.00
2.08
0.00
1.44
0.00

Stock indexes took a break in their lingering fall (will it be for long?), and this day they both went up hand in hand. The KINDEX LIQUID rose 0.93% to 45.92. Zakhidenergo (+3.26%) was its top gainer in the quoted price, while Donbasenergo (-0.12%) posted the biggest loss.

Company News

(compiled by analyst Olena Kozak)

ZPST) shareholders meeting to approve second share emission

At last, on October 18, the shareholders meeting of metallurgical works Zaporizhstal was finished. It was the successful finish of the July 16 suspended meeting. The vexed point of second additional issue was the reason to take a long recess in the meeting. The meeting approved the UAH 93.742 million (USD 17.7 mln.) second additional share emission and increase in the charter fund to UAH 374.97 million (USD 70.7 mln.).

The story of the second additional share issue started in April 2001, when the company's Supervisory Board made a decision to carry out an additional share issue sized at 1/3 of the charter fund to the total of UAH 93.74 million. Subscription was held on June 11 - July 10, 2001. And July 16 was the date of shareholders meeting. The main topic on the agenda was approving a 33% increase in the charter fund. However, shareholders decided to take a break until August 14, and thus escaped the deliberation of this issue. The SPF and the government did not approve the increase in the charter fund since it would dilute the state stake to 18.75% from 25%. In October the state sold its 25% stake in Zaporizhstal to Zaporizhstal trading firm at a tender. After that the shareholders meeting was able to approve the emission without difficulty.

Reemtsma-Ukraine to sell Cherkasy Tobacco Factory to Britain's Gallaher

According to Ukrainian Investment Newspaper, Reemtsma-Ukraine, a subsidiary of German's Reemtsma, negotiates with Britain's Gallaher to sell the Reemtsma's Cherkasy-based tobacco factory.

Currently, the Cherkasy Tobacco Factory's share of the Ukrainian market amounts to 11-12%. In 1998 Reemtsma built tobacco factory in Kyiv. Apparently, Reemtsma considers the capacity of Kyiv-based factory suffices for its presence in Ukraine now.

As regards Gallaher, it expands production on foreign markets including CIS-countries. The company has bought Liggett-Ducat factory in Moscow and organized cigarette manufacturing in Kazakhstan.

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