Monday, June 27, 2011

Today's M^3 - Ukrainian Equity Market Down 3.8% for the Week

Today's Major Market Move covers the Ukrainian Equities Index which is down 3.8% over the last 7 days and is down over 13% for the year. The Ukraine has been having its own sovereign debt issues over the past few years, with the IMF stepping in on 2 different occasions and pledging over 30 billion in loans. The first loan was established back in 2008 and caused their equity markets to quadruple from 500 to 2000. The 2nd loan in July of 2010 caused another surge to 3000 but by now almost all of that has been given back.

Goldman Sachs, in their ongoing mission to do "God's work", has offered to provide consulting services for free. Will these be the same types of services that Goldman provided Greece when they attempting to gain entry into the Euro?

This article from the Kyiv Post highlights many of the reasons why the Ukraine's markets are perceived negatively by both domestic and international investors. The recent downtrend that started back in April was exacerbated when earlier in June "the state securities commission surprised the market by freezing trades on one of the more liquid equities on the market, shares in Yasynivsky Coke Plant."

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