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«AgroInvest» — News — Globalization: Indices of Ukrainian Companies are correlated with global market indices

Globalization: Indices of Ukrainian Companies are correlated with global market indices

2011-09-02 12:57:03

The end of the marketing year for the majority of Ukrainian Agroholdings was good news for international investors as the majority of the companies have outperformed their forecasts (KSG Agro, for once increasing net income by 14 times). Current situation with export tariffs is a slightly negative factor, however not significant enough to cause the decline in the prices of the companies’ shares.

Nevertheless, decrease of main companies shows that events on the international scene do have a great effect on the overall performance. Stocks fell Thursday, ending a four-day rally, after regulators took action against a former Goldman Sachs subsidiary over its mortgage and foreclosure practices. Traders were also nervous that a jobs report due out Friday could revive worries of another recession in the U.S.

Goldman Sachs fell 3.5 percent after the Federal Reserve ordered the bank to review foreclosure practices at Litton Loan Servicing, saying there was a "pattern of misconduct and negligence" at the unit. Bank stocks fell more than the rest of the market as investors worried about regulatory moves against other banks. Financial stocks in the S&P 500 dropped 2.4 percent, the most of the 10 company groups that make up the index.

UAIndex