market conditions

Yesterday, the Ukrainian market opened with a jump in the UX index by 2%, but soon the “bulls” were pushed out of the market by the “bears”, who positively perceived the next round of escalation of the debt crisis in the eurozone. The list of most problematic countries continues to expand, and Italy may be included, despite the size of its national economy (see page 6). “It is alarming that it was after exceeding the 7 percent level of borrowing rates that Ireland and Greece turned to international credit organizations for help, admitting that they were unable to service the public debt at such rates. Unlike Greece and Ireland, Italy’s public debt far exceeds European Stabilization Fund, and this means an inevitable default of the third largest economy in the eurozone,” said Anton Levinsky, a specialist in the trust management department of Socrates Investment Group.

Negative sentiment was reinforced by Germany's Economic Council, which said a collapse of the eurozone could not be ruled out if countries did not restore their budgets. Given the lack of macroeconomic data that could support the market, American exchanges opened with a significant decline in the afternoon, noted Igor Sabadakha, head of the investment and analytical department of iTrader. During the first minutes, the main indices lost about 2% and after a minor correction continued to decline.

Against this background, the UX index broke through the support level of 1,500 points around noon and rushed down, fixing the daily minimum at 1,432 points. At the end of the day, its value fell by 2.85%, to 1455.48 points, and the PFTS index fell by 1.86%, to 556.28 points. The shares of Avdeevsky Coke Plant fell the most in price (-4.72%) , Ukrsotsbank (-4.33%). Of the 15 "chips" in the "green" zone, trading ended in securities of the Yenakievo Metallurgical Plant (+4.97%) and Ukrnafta (+0.18%). For transactions with shares of the latter company, the lowest trading volume was recorded at UAH 685 thousand. The fewest transactions - 19 - took place with shares of Ukrtelecom (-2.69%). Nikolay Maksimchuk

The market was disrupted at takeoff