Daily monitor

Druzhkivskiy Machinery Plant [DRMZ UZ, HOLD], Ukrainian mining equipment producer, posted a UAH 78 mln (USD 10 mln) net loss in 2009 vs net income of a positive UAH 0.5 mln result in 2008.

According to Interfax, Russia's Severstal, S. Korean POSCO and Arcelor Mittal are potential buyers of the fourth biggest Ukraine’s steelmaker Zaporizhstal [ZPST UK]. They are currently performing their due diligence investigation of the Company.

Kryukiv Railcar [KVBZ UZ, BUY], the leading Ukrainian freight railcar producer, the monopolist in terms of passenger and subway cars production, plans to create a JV with Gomelskiy Railcar Plant (Belarus). The JV would produce passenger and freight railcars. This decision was adopted at the intergovernmental level of the two states.

NYSE Euronext is looking for partners in Ukraine for opening full-fledged grain futures exchange in Ukraine. The negotiations with potential partners will occur on April 22 in Paris. The exchange is planned to be opened at the end 2010. The clearing bank for the exchange is likely to be a Ukrainian subsidiary of a French bank.

The government initiated additional UAH 20 bln (USD 2.5 bln) capital injection into the recapitalised banks and UAH 20 bln (USD 2.5 bln) on VAT reimbursement, said vice-prime minister Sergiy Tigipko. To finance planned liquidity injection, the government may receive UAH 15-20 bln from privatisation and USD 3 bln from foreign borrowings.

Ukraine’s industrial output surged in March 2010 by 16.2% MoM and by 13.8% compared to March 2009. In 3M10 industrial output grew by 10.8% YoY: the steepest growth was in chemical industries (+29.8% YoY) and machinery (+25.7% YoY).