Daily monitor

A large stake (206.0 mln shares, 7.93%) in Khartsyzk Pipes & Tubes [HRTR UZ, N/R] changed hands on December 02 in a single deal on PFTS, the main Ukrainian stock exchange. The price was UAH 2.15 per share (USD 0.291 at USD/UAH 7.38). The deal amounted to UAH 442.8 mln (USD 60.00 mln), bringing the valuation of the entire company to USD 757 mln.

Kredobank [ZUKB UZ, U/R] is going to obtain a USD 90 mln loan from its parent structure PKO Bank Polski SA, according to Kredobank’s press service.

The Multilateral Investment Guarantee Agency (MIGA), which is the political risk insurance arm of the World Bank Group, said it has issued its fourth guarantee in support of the banking sector in Ukraine. The USD 247 mln guarantee is covering a shareholder loan from UniCredit Bank Austria AG to Joint Stock Commercial Bank for Social Development Ukrsotsbank [USCB UZ, U/R] – Ukraine’s fourth largest bank.

According to official data released by the State Statistics Committee of Ukraine, in October 2008 Ukraine’s cheese exports increased by 9.4% MoM to 6.7 thsd mt (USD 33.6 mln). Exports in January-October 2008 increased by 28.6% YoY to 63.95 thsd mt (USD 338.1 mln).

An EGM of Ukrnafta [UNAF UZ, BUY], which was scheduled for today, did not take place because of the absence of the shareholders’ registry. The agenda for the EGM included profits’ distribution for 2006 and 2007, as well as recalling and electing the Supervisory Board, the Revision Board, and the Management Board of the company.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], smelted 134 thsd mt of steel in November, down 26% MoM, according to Interfax-Ukraine. Last month’s output is 42% below the 11M08 average of 230 thsd mt.

Khartsyzk Pipes & Tubes [HRTR UZ, N/R] produced 50.9 thsd mt of pipes in November, bringing the 11M08 total to 335 thsd mt, down 32% YoY. The November production volume is up 7% MoM and 67% higher than the 11M08 monthly average (30.5 thsd mt), and a full 20% below the 2007 monthly average (42.4 thsd mt).

According to Interfax-Ukraine, November production numbers in all sectors related to steel smelting continued to decline. The data is as follows.

Azovstal [AZST UZ, U/R] decreased crude steel output by 49% MoM in November to 209 thsd mt, according to Interfax-Ukraine. This is 50% below the 11M08 average of 481 thsd mt. The overall November crude steel output in Ukraine was 1.6 mln mt, down 14% MoM and 50% below the 11M08 average.

“Drugstores and pharmaceutical wholesalers are asking Viktor Yuschenko to cancel markup ceilings for drugs,” stated Vasily Dudarchuk, Vice-President of Ukrainian Pharmaceutical Association.