Ukraine eurobond prices growing despite negative sentiments on global markets - Concorde Capital

Ukrainian eurobond prices were growing last week despite negative sentiments on the global financial markets, Concorde Capital analysts say.

One of the main events contributing to the worsening of expectations on the global markets was the decision of the S&P agency to downgrade Great Britain rating outlooks from stable to negative. Markets were also disappointed with information about the number of appeals for unemployment benefits in the United States, which appeared to be worse than predicted.

Negative sentiments in the global financial markets did not tell on investors' activities in the segment of Ukrainian eurobonds. The price of domestic papers continues growing as a result of investors' increasing trust in the Ukrainian government's solvency.

The hryvnia strengthening also contributed to the price rise.

The highest demand was registered for eurobonds of the Government, Naftogaz of Ukraine, UkrExImBank, Myronivskyi Khliboprodukt and Interpipe, although the growth of their quotations was not as considerable as the week before last.

The Ukrainian CDS fell down by 20 base points in a week, having made 1590 by Friday, when the EMBI+ Ukraine index dropped during the week by 76 base points to 1191, having largely exceeded by decline pace the indexes of other developing countries.

UKRINFORM