A-C-R Paragraph by Yuliya Kabanenko

Yuliya Kabanenko

Group #13

A-C-R Paragraph

The stock market of Ukraine will grow drastically in 2008.
One reason is that the foreign investors’ demand for the securities of Ukrainian stock market is growing. In 2007 80% of the new participants of Ukrainian stock market were foreign companies. This tendency is continuing this year. It should be admitted that there are some views that the stock market can not grow significantly due to the low liquidity of Ukrainian securities; there are some large Ukrainian companies whose securities are attractive, but there are only few of them. However, according to the analysts one of the main market coefficients P/E (which indicates the incomes of 40 largest national companies) is high in Ukraine. In 2007 it was 16,5% and it is expected that in 2008 this coefficient will increase up to 22%. This means that profits of Ukrainian companies will rise and the liquidity of their securities will rise accordingly. So, Ukrainian stock market is at the stage of its impetuous development and it will show significant growth in 2008.