OREANDA-NEWS. November 14, 2011. Equity market. Due to the growth in share value for some stocks, the Ukrainian Exchange Index managed to return to the levels from two months ago. A positive sign for the market is that investors are paying more attention to the domestic news and market conditions. During the week of November 7, the Ukrainian Exchange Index grew by 10.69%, to 1604 points. The derivatives market saw the biggest increase in liquidity last week, where the trading volume rose by 24.4% WoW, to UAH 850.9 mln (USD 106.6 mln). At the same time, the stock market as a whole saw a drop of 16.1% WoW, to UAH 541.7 mln (USD 67.9 mln).

Investors’ pent-up demand manifested itself in a two-day rally on the Ukrainian Exchange. All shares in the index basket finished the week with gains, but Enakievo Steel (ENMZ; BUY) stock was particularly successful. The steel producer’s share value increased by a record-high 63% over the course of the week. This jump in value stems from information released by the head of the Securities and Stock Market State Commission of Ukraine, which involves another try to initiate a vote which would force minority shareholders to sell shares to the majority shareholders, whose stake in the company is more than 95%. Yasinovka Coke (YASK) was another company to which the news was relevant, and its stock increased in value by 49% as a result. Another piece of news which drove stocks prices upward was an agreement with Russia to reduce gas prices for Ukraine. Stirol (STIR; BUY) especially benefited from this news, as gas is crucial for its operations. In connection with this, its stock jumped almost 40% in share value.

Another indicator of investors’ willingness to take on more risk is the more even distribution of liquidity among stocks in the Ukrainian Exchange. Alchevsk Iron and Steel (ALMK; BUY HIGH RISK) and Motor Sich (MSICH; BUY) were the most liquid stocks on the market, which were traded for a total of UAH 103.2 mln (USD 12.9 mln) and UAH 86.0 mln (USD 10.8 mln) respectively. Zakhidenergo (ZAEN; BUY) and Ukravto (AVTO; BUY) were among the poorest performing stocks, on low trading volumes, with share value dropping by 2% and about a per cent respectively.