XXI Century Share Discussion Threads

[durby] 10/3/2010 23:58

More progress.

Three factions in Ukraine's parliament decide to create new ruling coalition

KIEV, March 10 (Xinhua) -- Three factions in Ukraine's Parliament, the Regions Party, the Communist Party and the Lytvyn' s blok, decided to create a new ruling coalition along with some individual lawmakers, said a leader of the Regions Party on Wednesday.

"The Regions Party, the Communist Party and the Lytvyn's blok have made the decision to form a new ruling coalition together with some individual deputies," first vice-speaker Oleksandr Lavrinovych said in an interview with a local television channel.

He said that a list of Ukrainian MPs joining in the new coalition and a coalition agreement will be published in the coming days.

"We have not received a decision on joining the coalition from the fourth faction, the Our Ukraine - People's Self-Defense," he said.

Ukrainian President Victor Yanukovych signed a law that allows individual deputies to join a parliamentary ruling coalition on Wednesday.

Yanukovych signed the law after meeting with the leaders of parliamentary factions, the president's press service said.

"We need to create a majority in Ukrainian parliament. The Ukrainian community and our partners around the world expect political stability in our country," Yanukovych said while addressing the leaders of factions.

Yanukovych stressed the importance of forming a parliamentary majority and an effective government as soon as possible.

Ukraine's parliament passed the amendment to rules on forming a ruling coalition on Tuesday with 235 supporting votes in the 450- seat assembly.

Under previous rules, deputies could only join a coalition if a majority of their party voted to join as a whole faction.

The change should allow Yanukovych's party to secure the parliamentary majority it needs to form a new government, allowing it to move more swiftly to tackle Ukraine's deep economic problems.

Last week, Ukraine's parliament passed a non-confidence vote against the government led by Prime Minister Yulia Tymoshenko.

According to the constitution, Ukraine's political leaders have 30 days to form a new coalition. If they fail, Yanukovych can exercise his right to dissolve the parliament and call early legislative elections.

[durby] 10/3/2010 15:28

Investor confidence growing in Ukraine.

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Ukraine Stocks Rally for 7th Day to Highest Since June 2008
March 10, 2010, 6:41 AM EST
By Daryna Krasnolutska

March 10 (Bloomberg) -- Ukrainian shares rallied for a seventh day, pushing the benchmark PFTS Index to its highest level since June 2008, as Viktor Yanukovych moves toward forming a government after winning last month's election.

The PFTS index added 3.1 percent, extending its longest winning streak since November.

Shares are rising as Yanukovych builds a parliamentary coalition after his party ousted Prime Minister Yulia Tymoshenko last week. Yanukovych offered Serhiy Tigipko, who came third in the January presidential election, the post of deputy prime minister, according to a statement today on the president's Web site. The International Monetary Fund has frozen its $16.4 billion loan program since November, waiting on the government to pass a budget for 2010 and reduce spending.

"Now there's a chance for the country to have a president, prime minister and parliament that speak a common language," said Dmytro Tarabakin, managing director of Dragon Capital, the largest investment bank in Kiev. "The government will be able to function, which is what Ukraine has been lacking for a long time."

--Editor: Gavin Serkin

[envirovision] 10/3/2010 11:21

Fingers crossed here as long term this will turn the share from something thats simply going to return to fairer value to NAV (as its currently doing) to a share which could appreciate indeed above NAV one day, moreover the nav could appreciate significantly in the coming years, given the eye watering fall of property prices there. The company have restructured in a way which means its really down to the recovery now and its simply a waiting game for us.

[durby] 10/3/2010 10:59

Positive Ukraine Rating Action Likely If '10 Budget Passes

LONDON (Dow Jones)--Fitch Ratings sees positive momentum for Ukraine's sovereign credit rating outlook if the new government can obtain a majority in parliament and pass the 2010 budget.

Under this scenario, the government can get the International Monetary Fund's program "back on track" and there is a strong prospect of positive ratings action, said Edward Parker, a senior Fitch analyst.

Ukraine is rated B- by Fitch. The outlook is negative.

[durby] 09/3/2010 18:34

Changes in the coalition rules was approved by the Ukranian parliament today. It is now a matter of time before a new government is formed.

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Coalition rules eased in Ukraine

Ukraine's parliament has approved a measure to ease coalition building, as President Viktor Yanukovych tries to form a governing alliance.

Coalitions will now be able to recruit individual deputies, where before they could only recruit parliamentary blocs.

The move could enable Mr Yanukovych's party to align with defectors from his rivals, including PM Yulia Tymoshenko.

Mr Yanukovych has been attempting to pull together a coalition since winning presidential elections last month.

Meanwhile, Mrs Tymoshenko, whose governing coalition collapsed last week, called on supporters to unite against Mr Yanukovych.

"I ask you, from now on, to give a commitment to one another to strongly oppose everything anti-Ukrainian," she told a rally in Kiev.

Mrs Tymoshenko is a former leader of the pro-Western Orange Revolution, while Mr Yanukovych is seen as closer to Russia.

Mrs Tymoshenko has repeatedly accused the new president of anti-Ukrainian policies.

Ukraine's parliament passed a motion of no-confidence in Mrs Tymoshenko's government last week, after the prime minister had resisted pressure to quit.

The vote means her government must resign.

If Mr Yanukovych fails to form a coalition, the country will face snap parliamentary elections.

A three-way rivalry between Mrs Tymoshenko, Mr Yanukovych and former President Viktor Yushchenko has left Ukraine in political deadlock for several years, undermining its ability to deal with a severe economic crisis.

[envirovision] 09/3/2010 15:00

Yea right come on lets not be silly now. Or should i start posting trash about Marks Spencer on the HMV board and claim its relevent cause both are in located in UK.

[envirovision] 09/3/2010 14:35

hi guys your on the wrong board, this is the XXIC board for the stock XXI Century Investments Public Limited which is a Ukraine based property investment company and has no connections at all with what you are posting.

[gdasinv2] 09/3/2010 14:27

As I indicated here also where else I am also buying (Always looking like stocks like XXIC with High Growth and cheap stocks) Look at EEE too, 25% up in 24hrs and news at

[envirovision] 09/3/2010 13:09

A75 the last updated posistion is

NAV £1.90 per share

After recent sale cash free as far as I can work out would be around $3.2 million.

[barnetpeter] 06/3/2010 10:44

The sale price achieved compares favourably to
the discount to NAV reflected in the Company's current market capitalisation.

Not suprising - the mkt cap is just half a crown. Steady rise to £1 plus here,

[envirovision] 05/3/2010 21:29

sorry wrong thread. keep it coming durby thanks.

[durby] 03/3/2010 08:17

KDDG's asset valuation RNS released today reads good and looks promising for XXIC.

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KDD Group, the holding company of one of Ukraine's leading real estate investment and development groups, is pleased to announce the results of the valuation of its projects, prepared as at 31 December 2009 (the "Valuation"). The Valuation has been performed by Colliers International ("Colliers"), a leading international property consultant, in accordance with the directives and regulations of the International Financial Reporting Standards (IFRS 2008), Royal Institution of Chartered Surveyors Valuation Standards (RICS) and International Valuation Standards (IVS).

This is the fourth independent valuation of the Group's investment properties by Colliers, with the NAVs within those valuations being as follows:

· 30 September 2007: US$ 908.2 million;

· 30 June 2008: US$ 1,074.0 million;

· 31 December 2008: US$ 261.5 million; and

· 31 December 2009: US$ 461.4 million.

KDD Group is pleased to announce the 76.5 per cent. increase in the fair value of the Group's projects over the last year and believes that the Ukrainian property market will continue to improve during 2010, particularly for actively and professionally managed portfolios. There are three main factors which underpin the increase in the Valuation:

· significant progress in the construction of Sky Towers project (increasing the valuation from US$ 89.0 million at 31 December 2008 to US$ 166.2 million at 31 December 2009);

· inclusion in the valuation of the Metro City and Kureni projects, with a total combined value of US$ 118.7 million (these projects were not valued at the end of 2008 as the respective land plots were not registered at that time). The Kureni land plot is now wholly owned on a freehold basis by the Group and the great majority of the Metro City is held on a long leasehold; and

· improved expectations of the Ukrainian real estate market's development.

Alexander Levin, Chairman of KDD Group, said: "Following the significant reduction in Ukrainian real estate valuations across the board in 2008, this marks an important step in re-building the value of our existing portfolio of assets, which, we believe, represents a significant value opportunity for the Group's shareholders. I would also like to take this opportunity to thank all of our staff, contractors and advisers for their support throughout a difficult period for the Company and the Ukrainian property market as a whole."

[envirovision] 24/2/2010 10:54

oh dear kbc have cracked under a number of sells

[durby] 24/2/2010 06:58

Lucas Romriell of BG Capital
February 24, 2010

To read dispatches from the foreign press about Ukraine, you might come away with the impression that Ukraine is on the verge of splitting in two and descending into chaos before the week is out. While hysteria seems to dominate the airwaves and media reports surrounding Ukraine's latest elections, investors seem to have taken a more sanguine view.

During the first two months of 2009, they snapped up nearly UAH1.08bn ($13m) in domestic bonds, almost as much as they held prior to the crisis in August 2008, according to the daily Kommersant. Even an off-the-cuff comment by president-elect Viktor Yanukovych that he may restructure Ukraine's sovereign debt barely put a dent in investor interest, with the five-year credit default swap rate (CDS) widening a modest 965 basis points from 950 following the statement. And while Ukraine's sovereign Eurobonds were under some selling pressure in mid-February, the prices of bonds have yet to pass any sort of a major retreat.

What has intrigued investors are yields of nearly 20-24% for domestic treasuries and as high as 10.94% for sovereign Eurobonds. If there is some risk of default, speculators are still willing to take a punt. Even as markets softened for European sovereign Eurobonds as investors fled the Eurozone on the back of growing default risk for Greece and the so-called PIGS (Portugal, Ireland, Greece, Spain), demand for Ukrainian names has remained mostly firm. Some investors are even bidding for distressed names like Nadra and news that the City of Lviv may face restructuring left City of Kiev bonds unchanged.

Underpinning this interest are Ukraine's solid fundamentals that make the chance of a default unlikely. Foreign debt payments by the government are a marginal $2bn this year, or a little under 2% of projected 2010 GDP. The current account deficit is also narrowing and should continue to improve as long as steel markets don't deteriorate significantly. The only thing standing between Ukraine and its next tranche of money from the International Monetary Fund (IMF) is for the government to present a united face and return to the negotiating table. Necessity will make this a reality, regardless of what the next government's attitude is to the IMF. In fact, if investor bullishness persists, the government will likely push ahead with plans for a new bond issue by the end of year. Unless the problems surfacing in the Eurozone become catastrophic, Ukraine should be able to find buyers of a new issue by the end of the year, or early 2011.

Compressed yields for other sovereign debt markets were the primary driver behind investor demand for Ukrainian names – until the Greek problems hit the newswires. With Russia yielding 6-5%, investors were willing to turn to Ukraine for greater income on their investments. Now, the biggest risk to Ukraine demand is probably a Greek default or weakening yields for bonds from Eurozone countries.

No gain without pain

But let's not forget that investors are making a short-term wager. The risk of Ukrainian default may be not be imminent, but that is not to say that it does not exist, nor is it to say that there is no need for substantial economic reform.

Two issues loom large on the horizon for Ukraine over the next six to 12 months: hryvna devaluation and gas market reform. With the strong possibility of parliamentary elections in May, any thought of major reforms is wishful thinking. In the long run, gas payments could sink Ukraine's economic ship. Going back to the table with the IMF will be a walk in the park compared to convincing Ukraine's average citizens of the need to pay market rates for natural gas (they currently pay half). Industrial consumers are likely bear the brunt of the $330 per 1,000 cubic metre price projected for this year, but this can only go on for so long. The next president will struggle to deal with this politically thorny issue, which could, or perhaps more accurately should, include the necessity of dismantling the national gas monopoly Naftogaz. Handing over the country's gas pipelines to Gazprom is also not a solution, as this is a patch that would only postpone the reforms needed to make Ukraine's economy more energy efficient.

Investors may also be overlooking the threat a greater hryvna devaluation would pose for the balance sheets of local banks. A hryvna/dollar exchange rate of UAH9 to the dollar would push non-performing loans (NPLs) in the bank sector up to 30%, even by National Bank of Ukraine's estimates (which persistently underestimates the problem). Our in-house estimates show that banks should be able to weather current NPLs on their operating income alone, but a major shift in the exchange rate could jeopardize these assumptions.

Demand for Ukraine's bonds will persist in the near term, but building Ukraine into an investment-grade country and lowering the cost of borrowing will require deep reform from the new administration.

Lucas Romriell is head of research at BG Capital, Kyiv

[envirovision] 23/2/2010 21:15

Bid up again, after hours late trades tells the full story: 16:33:54 37.00 68,000 25,160.00 OK ?
16:31:13 40.00 125,000 £50,000.00 OK BUY

Clearly still a massive buyer out there. Also interesting to note now currently 3 market makers on the bid and 4 on the offer. I suspect the buyer has far from finished accumulating.

[envirovision] 23/2/2010 13:06

KDD having lots of good news this week, all more proof of drastic turn around in Ukraine. Firstly new terms with Ukrsotsbank. This would have been impossible six months ago.

Secondaly FRS Hotel Group International taking management of the hotel complex of skytowers. Six months ago, no western company would have wanted to know about this and wouldn't have touched this with a bargepole. Now we see western investors creeping back.

[traderinthemaking] 20/2/2010 12:37

Telbap - Once they sorted their finance, I did put them back onto my watchlist but I was waiting the result of the election before jumping back in. I decided to jump back in last week looking at the level 2 movements. Looks like I timed it ok for once :)

TITM

[envirovision] 19/2/2010 19:26

Whats driving it? well buyers are really, todays rise because of a 100K delayed buy well above the market price at 39 pence at the time. Why are people buying? Well i dont know, smart money has been buying in the last week for sure. However given the companies NAV is £1.95 and they have finances sorted till 2014 and the ukraine economy is showing proof of improving, as is the real estate, this might be a few reasons. £1.95 per share for 39 pence and a NAV which is improving as each week and month passes...somebody picked up a outright bargain thats for sure today imo. Infact a total steal! Someone mentioned 3 times the current shareprice, but in reality that would still represent a fantastic discount to nav.

Hope that goes some way to helping answer your question.

[telbap] 19/2/2010 17:38

I looked in on this share on the last rally to 30p, very nearly bought in.

saw it take a dip to 22.5p again and walked away. What is driving this, because all I can see is a company battening down the hatches.

Any info welcome as their seems to be some informed posters here.

[barnetpeter] 19/2/2010 09:01

No resistance now until 500p. Bring it on.