Daily monitor

Total assets of Ukrainian banks increased by 1.3% in October to UAH 1077.6 bln. At the same time, banking system liabilities rose 1.4% to UAH 795.4 bln.

According to the Ministry of Fuel and Energy of Ukraine, the electricity production is up 9.8% YoY in 10M2010. The monthly increase in production was 21% in October.

Kernel [KER PW, U/R] has sold its entire portfolio of VAT bonds to a third party for USD 118.65 mln, which represents a 12% discount of its face value of USD 134.91 mln.

Kryukivka Carriage [KVBZ] has announced plans to construct a welding and assembly sector for a workshop specializing in passenger carriages and subway trains next year. The workshop area will be 20 thsd square meters, with an overall investment of USD 22.7 mln and a production capacity of 200 units a year. This year, the plant produced about 60 carriages of this type; the company plans for the next year include production of about 100 of these carriages.

Inflation in Ukraine slowed during October to 0.5%, compared to 2.9% in September and 1.2% in August, which makes the yoy rate 10.1% for 10M10.

During January-October 2010, Bogdan Corporation, proprietor of Bogdan Motors [LUAZ UK], increased output of buses and trolleybuses by 70.2% YoY, or 754 units, says the company press release. The growth has mostly been determined by the active export strategy of the company.

The head of the IMF mission to the Ukraine noted the revival of trade, the positive expectations of investors, and the successful placement of government bonds. He considers the 2.9% rise in inflation in September as a timely factor.

Agricultural companies in Ukraine harvested 40.7 mln tonnes of grain and leguminous crops as of November 5, with an average yield of 2.82 tonne per ha. Agricultural companies processed only 14.4 mln ha of sowing area this season. Agrarians have sown about 9.1 mln ha with winter crops.

In Ocober 2010 Bogdan Motors [LUAZ UK] has increased car output by 27% MoM to 2 265 units. YoY production increase amounted 434%. Total YoY car output increase in 10M2010 accounted 17.5%.

Foreign reserves of the National Bank of Ukraine (NBU) decreased by 1.2% in October to USD 34.3 bln, amounting to a 10M10 growth of 29.2%.