There are two indices that determine stock market development in Ukraine. The first was calculated beginning in 1995 and is called PFTS, and the second is Ukrainian equity index (UX,) which began in April this year. Now the main volume of operations at Ukrainian stock market is concentrated in UX, which is a real step forward in developing a market in Ukraine. During October 2009, the average of the PFTS values was equal to 614.43 points. The highest value was indicated on 14 October and was equal to 661.1 points. The first week did not have high values; the dynamic was around 575 points and during that week the lowest value for the month was indicated 570.34 points. At the beginning of November, the PFTS slowly went up, and on the 11th of November the index still did not reach the highest value of the previous month, but had potential to do so as the value was equal to 647.77 points. The average of the UX for October was at the level 1488.465 points; the highest month level for UX was indicated at the same date as for PFTS, on the 14th of October, when this value was equal to 1616.34 points. The minimum for the stock market was at the level of 1358.43 (on the 2nd of October.) In November, the UX started to grow from position 1416.01 points. The last indicated value was equal to 1583.61 points. Konstantin Lesnichii, the Manager of International Sales and New Markets from the Investment Group Sokrat, said that dynamics in the world market at the beginning of October were influenced by the expectations on the reports on financial results for the third quarter of the current year of American companies. Investors were very active at the market as they were ready to here very good news. But the news on the biggest corporations was very different and markets, also Ukrainian, started to correct. Moreover, fresh statistical data in the labor market development was not very good. In general, for the second part of October, national stock indices in Ukraine lost more than 10% of their capitalization. This was the main reason for a new wave of activity in November. The positive influence in the market also showed a devaluation in the Ukrainian, with the increase of prices on oil and other resources. After the decision of the G20 on further stimulation of national economies, investors got a positive signal. Actually, at the same time, there was the increase of stock indices that was more than the growth of production and consumption, so high risks of correction exist. The Investment Group Sokrat predicts that markets will be still volatile, but with a tendency to go up.

By Iryna Demko in Kiev