Leading Ukrainian shares edged up by 0.86 percent this week, and trade volumes more than doubled ahead of the presidential poll thanks to interest in second-tier companies, traders said.
The PFTS benchmark index closed at 28.89 on Oct. 26 compared to 28.64 at the previous trading period.
Weekly trade volumes on the PFTS market, which includes trade in treasury bills and promissory notes as well as shares, totaled Hr 67.012 million compared to Hr 26.306 million during the previous trading period.
'Some serious investors showed interest in chemical and steel companies, as well as in our alumina producer,' said Ihor Mazepa, a dealer at Prospect Investments.
'I feel that some Russian investors are playing the market.'
The Oct. 31 election was another factor behind deals this week, dealers said, though they expected the political impact to be short-lived.
'Nobody doubts the results of the election, because [President Leonid] Kuchma has a good chance to win,' one dealer said.
PFTS representatives say shares in Mykolaiv Alumina Plant, Ukraine's only alumina producer, accounted for almost half of trade volumes. Shares in Mykolayiv jumped to Hr 0.35 compared with Hr 0.17 a week ago.
Dealers said shares in leading Ukrainian chemical firm Stirol were actively traded. Stirol shares dropped to Hr 4.17 from Hr 7.95 a week ago.
However, there was no trading whatsoever in another market favorite – power generator Kyivenergo.
Ahead of the election, practically all dealers said they were hoping for a Kuchma victory. This would put at least a temporary end to market jitters, bringing on a rise in share prices and a growth in trading volumes, traders said.
The market would respond to a win by Communist Petro Symoneneko or Progressive Socialist Natalia Vitrenko by packing its bags and fleeing the country, according to dealers.
However, if centrist Yevhen Marchuk or Socialist Oleksandr Moroz were to be elected, the market would adopt a wait-and-see approach.
'Moroz just had a very bad election campaign, but it does not mean his economic platform is bad,' said PFTS executive Dasha Myshyna.
