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Economy 2019-05-15T04:32:00+03:00
Ukrainian news
ICU: Ukrainian Stock Market Showing Signs Of Recovery

ICU: Ukrainian Stock Market Showing Signs Of Recovery

Positive changes have been taking place in the Ukrainian stock market since last year, but it is necessary to continue developing its infrastructure and improving the regulatory framework for it in order to realize its potential.

Kostiantyn Stetsenko, a managing partner at the ICU investment group, announced this at the Ukrainian Financial Forum 2018 in Odessa, the Ukrainian News Agency reports.

"The Ukrainian market continues to not only survive but to also develop despite the cycle of NBU rate increases, which has been going on for almost a year. The list of issuers has increased. We have seen bond issues by the corporate sector and banks, which have been joined by local authorities (Lviv and Ivano-Frankivsk)," Stetsenko said.

According to Stetsenko, an important factor in the development of the domestic stock market is the adoption of a law on nominal holders, which will enter into force in two months and significantly simplify investors’ operations with Ukrainian securities by reducing costs and risks and increasing the effectiveness of investment.

Another important innovation that is expected is the granting of foreign investors access to domestic government loan bonds (OVDPs) through the Clearstream international clearing depository.

According to Stetsenko, the activities of foreign investors have increased substantially.

Non-residents’ OVDP portfolio increased from UAH 2.2 billion to UAH 7.4 billion in a year, peaking at UAH 14.5 billion. However, this volume is still small and there is significant growth potential.

Noting the revival of the OVDP market, Stetsenko drew attention to the continued increase of investments in OVDPs by individuals.

The OVDP portfolios of individuals have increased from UAH 740 million to UAH 4.6 billion in one year.

According to him, the launch of the second level of the pension system, which is stipulated in the 2019 pension reform that was adopted last year, should provide serious support for the stock market.

As Ukrainian News Agency earlier reported, the ICU group has called for parity of contributions to the accumulative pension system between employees, employers, and the state to stimulate participation of the population in pension reform.

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