Daily monitor

The National Bank of Ukraine (NBU) announced that the country’s foreign reserves fell 14.9% MoM in October USD 5.6 bln) reaching USD 31.9 bln. The reserves fell 1.7% YTD (USD 539 bln). The balance of the NBU foreign exchange market interventions in October was USD 4.1 bln.

According to the early morning announcement of the State Statistics Committee of Ukraine, inflation in October hit 1.7% MoM (18.0% YTD and 23.2% YoY). This is the lowest September inflation since September 2005, when it was 0.9% MoM. In October 2006 and October 2007, MoM CPI growth was 2.6% and 2.9% respectively.

The JSC Balcem Company, a member of the ‘Eurocement Group Ukraine’ and affiliate of the Eurocement Group Holding , plans to produce more than 3 mln metric tons of cement and about 2.8 mln tons of clinker by the end of 2008.

According to Interfax-Ukraine, which has reported coke production numbers for October, the total 6% water content gross coke output of Ukrainian coke makers amounted to 1.19 mln mt last month. This is 34% down from the 9M08 average of 1.80 mln mt, and 18% down MoM from September’s 1.46 mln mt.

In October, Avdiivka Coke [AVDK UZ, U/R] decreased output of 6% water content gross coke by 9% MoM to 229 thsd mt, according to Interfax-Ukraine. In comparison with the average 9M08 output, at 373 thsd mt, the October volume was down 39%. For comparison, the overall sector output volume dropped 18% MoM in October.

According to various news sources, the Metinvest Group has submitted a note to Bulgaria’s regulators in which Metinvest disclosed its intention to purchase the United Coal Company of the USA.

According to Interfax-Ukraine, Bagliy Coke [BKOK UZ, U/R] dropped output 34% MoM in October to 33 thsd mt. This is 47% lower than the average 9M08 value of 62 thsd mt. For comparison, the overall sector output volume dropped 18% MoM in October.

Yasynivka Coke [YASK UZ, U/R] produced 90 thsd mt of 6% water content gross coke in October, 31% less than in September and 35% lower than the average monthly 9M08 level of 139 thsd mt. For comparison, the overall sector output volume dropped 18% MoM in October.

Yesterday, the National Bank of Ukraine (NBU) announced that a 68% stake in PromInvestBank, one of the largest banks in Ukraine, has been acquired by a strategic investor, whose identity has not yet been disclosed.

Austria`s Raiffeisen Zentralbank Osterreich AG (RZB) has provided yet another loan, valued at USD 150 mln, to its Ukrainian daughter company, Raiffeisen Bank Aval [BAVL UZ, U/R].