by
RUSSIAN EMIRATES
86
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
In2006GDPgrowthof6% in forecasted, inflation- 9%. Rateofhryvnyawill remain
invariable.Andalthough somedropofproduction in the industrial brancheswill be
observed, ingeneral positive trendwill bepreserved.
2. Securitiesmarket
Securitiesmarket in2005 is characterizedby
considerabledevelopment. During the last year,
securities capitalization at PFTShaddoubled
–up to147.3billions of UAH. Trade volumes
alsomore thandoubled (to14.5billions of UAH).
Considerable changes occurred in the trade’s
structure. If at thebeginningof the year attention
of investorswas directed to the state securities
market, thenby theendof the year it shifted
to the stockmarket. In2005 thiswas promoted
by the interest to the assets of foreignportfolio
investors. Successful IPOdoingof threeUkrainian
companies on the London Stock Exchange in
2005 alsoplayed an important role. At theend
of the year internal IPOwas doneby theRetail
Group company thatmanages the chainof the
supermarkets Velika Kishenya. Also IPOwas done
byUkrproduct company (diaryproducts and
driedmilkproducer) andCardinal Resources
company (drilling andoil andgas extraction
inUkraine). During initial publicoffering (IPO),
groupof companiesUkrproduct haddrawn6
mln. pounds (about $11mln.). For this purpose,
about 11.2mln. shareswere issued and sold,
which constituted about 27.8%of the total stock
quantity. As a result, total quantityof Ukrproduct
shares increasedup to41.2mln. pieces.While
sellingpriceof one sharewas 53.5pennies,
nominal costwas 10pennies.
PFTS indexduring2005 increasedby 35.7%
up to352.97points. It is less than in2004
then inDecember, it had increaseddrastically.
Investors return from someenterprises reached
more than100%. As experts forecasted, in
2005 investors’ attention andmaximum return
shifted to the second and the third lines of PFTS
quoted securities (they aremainly enterprises
of coke chemistry,minemetallurgical complex
andoil refining). Inparticular, quotation
of coke chemistry enterprises increased as
much as several times. Quotation supply
dynamics growth leaders in2005became
stock of Nizhnedneprovsky TubeRollingMill,
NorthernGOK andKrivorozhstal. Quotation
demand leaders - Krivoryzhstal, Donbasenergo,
Zapadenergo, NorthernGOK andUkrsotsbank.
In long-termperspective,many analysts
presumeUkrainian stockmarket growth. Its
ratioof capitalization toGDPdoesn’t reach
even10% value, at the same time, when in
Russia andPoland this index ismore than35-
40%. ExpectedUkraine’s entrance toWTO, re-
orientationof product flows to theWest,more
close cooperationwith EuropeanUnion - all
these factorswill influence stockmarket. Gradual
increaseof transparencyof Ukrainian companies
and their desire to correspond international
standardsmake their owners increase
capitalization, net profit andenter organized
market.
It is expected that in2006 stockmarket
growthwill reach60%. Providing stablepolitical
situation, someenterprises canbecomeeven
moreexpensive. At the same time, organized
stockmarketwill remain restricted, as traders
workwith left after privatization securities
andnotwith issuedones aiming to raise
capital. This year canbepossibly expected
some redistributionof investors’ attention
from stock of traditional branches (chemistry,
metallurgy, automotive construction) tomore
recent participants at the stockmarket (food
industry, retail trade, real estate, banking sector
