OREANDA-NEWS. August 2, 2011. Fitch Ratings revised its outlook for Kyiv. International rating agency Fitch Ratings has raised the outlook on Kyiv’s long-term rating from negative to stable and affirmed the long-term ratings of foreign and local currency at the level of ‘B-‘.

GDP growth has slowed. According to the State Statistics Service of Ukraine, real GDP growth in Ukraine slowed to 3.8% YoY in 2Q2011, as we had expected. This was primarily due to a high base of comparison. Nevertheless, the government and international financial institutions expect 2011 GDP growth to reach 4.5%-5.5%.

Equity market. Last week negative news prevailed over positive news. As a result, the Ukrainian Exchange index dropped 1.63% WoW and closed the week at 2315 points on Friday. Average daily trading rose by 30.7% on the exchange, to UAH 210 mln (USD 26.3 mln). This is best explained by the low trading activity during the previous week, rather than an inflow of newly invested money over the last five trading sessions.

Among stocks the index basket, the worst performing belonged to Avdiivka Coke (AVDK; BUY) and Enakievo Steel (ENMZ; BUY), falling by 4% and 3.7% respectively. Motor Sich (MSICH; BUY) stock fell 1.9%, after shares were traded for UAH 130 mln (USD 16.3 mln) in 2229 transactions. Motor Sich stock was the most liquid on the exchange for the first time in a few weeks. Due to low trading activity and good financial results, Zahidenergo (ZAEN; BUY) stock dropped only a third of a percent.

 Stakhanov Railcar (SVGZ; HOLD) and Bogdan Motors (LUAZ) stocks outperformed the market, having gone up in share value by 1.4% and 0.7% respectively. Centrenergo (CEEN; BUY) stock continues to be one of the most liquid on the UX; the company’s share value increased 0.2% last week.