OREANDA-NEWS. November 02, 2009. UFC Capital released daily market view:

Global largest markets closed below zero. Last Friday the investors’ sentiments were predominantly negative and as a result, the European and US largest indices closed in red zone. This Monday we expect the data from the USA on the situation in its real estate market.

EC is going to help Ukraine. The European Commission (EC) proposed to the European Union Council to provide macro-financial assistance to Ukraine in form of a loan in amount of €500 mn. The relevant decision was made by the EC on October 29, in Brussels. The financial assistance is expected to be provided by two tranches and allocation of each one will depend on the Ukrainian government compliance with the conditions laid down by the International Monetary Fund.

Fitch revised its outlook for Ukraine. Fitch international rating agency predicts that Ukraine’s GDP will decline by 16%, while in 2010 it will grow by 3%. According to the agency, the average annual inflation in Ukraine in 2009 will decelerate to 16% and in 2010 – to 15%. Fitch expects that the average UAH exchange rate in 2009 will be at the level of 8.6 UAH/USD  and in 2010 – 9.75 UAH/USD . The agency also forecasts that Ukraine’s currency reserves in 2009 will be at USD 25.5 bn level and at the end of 2010 – USD 25.2 bn.

S&P updated the ratings of Ukraine. Standard&Poor's international rating agency downgraded its ratings outlook for Ukraine from positive to stable. Meanwhile S&P confirmed the long- and short-term credit ratings of Ukraine: for obligations in foreign currency at the level of CCC+/С, and in the national currency – at В-/С. Also the agency confirmed the rating by the national scale at the level of uaBBB. The outlook revision reflects the uncertainty about allocation by the IMF of its next tranche to Ukraine before the upcoming presidential elections in this country.

Rating activity may become subject to licensing. October 30, the text of the draft law On changes in some laws (about credit ratings) was published on the website of the Ukrainian Parliament. The draft law suggests to treat the rating activity as a kind of separate activity in the stock market and accordingly to oblige the State Committee for Securities and Stock Market to license the rating agencies. Besides, it is proposed to withdraw from the laws On insurance and On private pension funds the requirement to insurance companies and private pension funds to keep their reserves and assets exclusively on deposit accounts with the banks and in securities of the companies that have investment credit rating by the national scale.

Ukrainian largest stock exchanges closed in different directions. October 30, on Ukrainska SE 1,492 deals were made with shares of Ukrainian companies for the total of UAH 30.9 mn. The shares of Enakievo Steel (ENMZ) ) resulted to be the most liquid ones – 235 deals. That day on PFTS SE 140 deals were sealed for the total of UAH 10.2 mn. On this floor the shares of Enakievo Steel also became trade leaders – 31 deals.