OREANDA-NEWS. June 17, 2010. UFC Capital released daily market view:

SSMSC suggests cutting taxes. In the published draft Strategy for the Stock Market development until 2015, the Securities and Stock Market State Commission (SSMSC) proposes gradually reducing the tax burden on participants in the securities market. Specifically, the SSMSC proposes to tax relief for many transactions with securities, including IPOs or the swapping of fund’s certificates. In addition, it proposes to reduce tax on investment income to 5%, and on dividends to 0%. Exchange gains, share premiums, as well as transactions related with the purchase and sale of foreign currency (within the banking system) may also be exempt from taxes.

AUSD launches netting technology. The All-Ukrainian Securities Depositary (AUSD) has started performing clearing and settlements under securities agreements made on stock exchanges using netting technology via a central counterparty. At present, this technology is used for settlements under deals transacted on the PFTS SE. They are now considering the possibility of using this new technology on the Ukrainska SE (UX) as well. The relevant procedures and regulations for cooperation between AUSD and UX are expected to be approved in the near future. The use of netting will allow for speeding up the processing time for settlements, since more deals sealed on the exchange will be processed at the same time, and this should effectively simplify the settlements related to these agreements. In addition, this should lead to a fewer number of final transactions on the accounts of traded securities owners, and the lowering of costs related to the settlements.

Equity market. On June 16, the Ukrainska SE index fell 0.15% to 2,054.86 points. The dynamics observed during the trading day were divergent. The index visited both the red and green zones. In general, index dynamics of the largest global stock exchanges resembled those of the Ukrainian stock market.

The trading volume on the spot market of this stock exchange amounted to 94.1 mln hryvnia, while turnover on the derivatives market totaled 11.1 mln hryvnia.

On the order-driven market, the growth leader was Luganskteplovoz (LTPL; SELL), closing up 8.7%. Apparently investors decided that the Company’s new owners and stable orders from Russia are more important than the low selling

price the railcar producer paid at the privatization tender. The biggest loser of the day was Mariupol Illich Iron and Steel (MMKI; RECOMMENDATION WITHDRAWN), which fell by 11.1% on news about possible delays in the identification of the Company’s actual owner.