Daily monitor

Zaporizhstal [ZPST UZ, Strong BUY] conducted an AGM on June 06. Some clarification has been given regarding the modernization program, including the USD 1.7-2.0 bln converter-concaster shop construction project. The company postponed profit distribution decision, and streamlined its management structure.

The third annual press conference of Metinvest Holding took place in Kyiv on June 06. The company officers reported the preliminary 2007 financial results, and confirmed some of its capital expenditure plans.

May is the first month this year in which inflation was below 2% MoM. Official statistical data signals the beginning of the downward trend for the inflation in Ukraine in May. Monthly inflation reached 1.3% in may comparingto 3.1% in April. Since the beginning of the year CPI rose 14.6% and 31.1% since May 2008. We can finally see the picture when prices were stabilizing in almost all product groups, except meet and energy related transport services.

EU Food and Veterinary Office (FVO) experts are set to inspect Ukrainian dairy producers planning to export dairy products to European countries for compliance with EU quality standards.

Ukrtelecom [UTEL UZ, U/R], the largest Ukrainian fixed-line telecommunication operator announced yesterday its development plans in broadband and mobile segments at Investment conference in Kyev. UTEL is planning to get 56% of broadband market till 2013 and increase subscriber pool till 1 mln subscribers already in 2009, then grow till 4 mln users at the end of 2011 then 6 mln.users in 2013.

Nikopol Ferroalloys [NFER UZ, N/R], the largest Ukrainian ferroalloys maker, reduced its output 1.5% YoY to 447.5 thsd metric tons in 5M2008.

The PFTS stock exchange has included Lutsk Automobile Plant [LUAZ, N/R] stock on the first level of listings. LUAZ currently assembles Kia and Hyundai automobiles at its Lutsk site, while VAZ automobiles are assembled at its Cherkasy factory. In 1Q08, 18.93 thsd automobiles were churned out at the company’s Cherkasy and Lutsk locations, up 45% YoY. In 2008, LUAZ plans to produce more than 100 thsd automobiles.

Ukrainian beverage producer Vinifruit [VINIP UZ, N/R] is planning to increase its net income to USD 3.1 mln and net revenues to USD 55.6 mln in 2008. According to an official company statement, made at the investment forum Ukraine 2008: perspectives and reality, the company plans to expand its net income to USD 9.6 mln and net revenues to USD 98.4 mln by 2010.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, BUY], reported the following operational results in 5M08: pig iron, 1.218 mln mt (+26.2% YoY); crude steel, 1.287 mln mt (+13.9%); rolled products delivered, 1.273 mln mt (+10.5%), of which finished long products 170.6 thsd mt (-85.6%).

Donetsk Metal Rolling Plant [DMPZ UZ, BUY] produced 13 thsd mt in May 2008, according to Interfax-Ukraine.