KP-Dragon Index Expands Across Borders
Kyiv, June 3, 2011 – Dragon Capital rebalanced the structure of the KP-Dragon index, the only indicator that reflects the price dynamics of the most liquid Ukrainian stocks. With the size of the index basket remaining unchanged (20 stocks), the KP-Dragon’s new foreign-listed constituents now include Astarta Holding, Kernel Holding, Avangard, DUPD, Ferrexpo, JKX Oil & Gas and MHP. The total market capitalization of the index companies amounts to $25.5 billion.
"The new index structure reflects the current distribution of the most liquid Ukrainian stocks across three stock exchanges. Over the past few years, a number of major Ukrainian companies have placed their shares on the London and Warsaw stock exchanges, while the quantity of issuers listed domestically has remained almost unchanged," – explained Andriy Bespyatov, Managing Director, Research, Dragon Capital.
Ukraine-listed stocks still account for two-thirds of the index by number of companies, but their combined weighting shrank to 30% (from 100%), while foreign-listed stocks now account for 70% (LSE-listed for 48% and WSE-listed for 22%).
The new composition of the index more adequately reflects the breakdown of Ukrainian equities by industry. For instance, Food & Agriculture, absent from the old index, now has the largest weighting (44%). “The new constituents of the index account for a much larger share of total turnover, thus better representing overall market liquidity,” – said Mr. Bespyatov.
"We hope that parallel listing of these stocks on the Ukrainian Exchange (UX) will soon enable local investors to trade these securities. Together with the UX and other market participants, Dragon Capital is actively promoting this idea in our discussions with the State Commission for Securities and Stock Market of Ukraine," – added Dmytro Tarabakin, Managing Director, Dragon Capital.
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