-          The PFTS index keeps breaking through the 300 points border

-          The news from international markets and political unstable situation in Ukraine has significant impact on the local market

-          The Poltava GOK re-enters the index

Last week the market followed the sideways trend. The PFTS index shrank by 2.89%, or 8.86 points, to 297.8 points.  The equity trading volumes made UAH 182.74 MM. The month-to-date growth of the PFTS index was 2,82%; the index quarterly and y-o-y reduction - 19,40% and 74,63% respectively.

Insignificant growth on Monday was rather a technical one, than a result of any fundamental factors. In the course of the last week the index was gradually falling. The stocks of oil & gas companies suffered from the negative impact by   constant slowdown of oil prices; and metallurgical enterprises – from the lack of demand for their production.

This sideways trend was caused by instable political environment which significantly deteriorated by 2009 budget-related conflicts, as well as negative news from international financial markets. The market participants are concerned about the forthcoming US economy reports which may demonstrate the worsened recession of the world largest economy. This may result in further aggravation of Ukrainian market and all other world markets.

The week was abound in numerous technical transactions. The mostly traded enterprises which enter the index were the two energy companies – Dniproenergo and Centerenergo, as well Ukrnafta due to its possible dividend distribution for the past 2006-2007.

The TOP gainers were the Poltava GOK with its stock regained after the company re-entered the index, as well as   the Mariupol Heavy Machine Building Plant and Stirol. The rest of blue chips demonstrated mainly reduction.

We anticipate the year will end up with the sideways trend. The New Year will be followed by the market slackness and low activity due the Christmas vacations period.