OREANDA-NEWS. July 08, 2010. UFC Capital released daily market view:

Government reduces state budget deficit. On July 7, Sergei Tihipko, the Deputy Prime Minister of Ukraine, announced that the government will reduce its state budget deficit in 2010 to 54 bln hryvnia (4.99% of GDP). This decision may have been taken during talks with the International Monetary Fund (the IMF). Earlier, the IMF mission recommended that Ukraine reduced its consolidated budget deficit to 5.5% of GDP in 2010 and 3.5% of GDP in 2011 in order to obtain a new loan.

Equity market. On July 7, the Ukrainska SE index shed 0.85% to 2004.89 points. The index’s dynamics resembled those of the European consolidated index. The only difference was that in the second half of the day in Ukraine, the latter index entered the green zone. The local minimum in Europe was reached at the moment when the Economy Ministry of Germany was releasing unexpectedly poor statistics on factory orders in May 2010 (a 0.5% drop MoM, though they expected an increase of 0.3%).

On Wednesday, the trading volume on the spot market of the Ukrainska SE amounted to 72.9 mln hryvnia, while turnover on the derivatives market totaled 22.1 mln hryvnia.

On the order-driven market of the Ukrainska SE, the growth leader was Interpipe Nizhnedniprovsk Tube Rolling (NITR; SELL), which closed up 1.4%. The leader in terms of decline was Ukravto (AVTO; UNDER REVIEW), which closed down 9.6%.

The shares that saw the highest demand that day were those of Ukrnafta (UNAF; SELL) and Centrenergo (CEEN; BUY), with their volume of deals amounting to 19.1 mln hryvnia and 5.9 mln hryvnia, respectively.