PFTS index
Encyclopedia
PFTS index is a benchmark index
of PFTS Ukraine Stock Exchange
, Ukraine's
primary bourse
. It was effectively created on October 1, 1997 as a value-weighted index
to track the percentage change of the basket of stocks from base period – i.e., from October, 1997. As of today it remains the only index of Ukrainian stocks to be recognized and closely tracked by the international financial community.
Many companies included in PFTS Index specialize in raw materials extraction and processing, therefore heavily exposing the Index to the fluctuations of world commodities' prices. The Index is also disproportionately weighted towards industry sector of the economy. As of July 28, 2009, the total weight of industry firms in PFTS Index was 52.75%, with the rest (47.22%) accounted for by the services sector, thereby leaving agricultural sector
unrepresented in the index.
PFTS Listing || Free Float, %
|-
| |1 || ALMK || Alchevsk Metallurgical Combine || Basic Materials || March, 2005 || 3,87
|-
| |2 || AVDK || Avdiivka Cokery Plant || Basic Materials || September, 1997 || 4,00
|-
| |3 || AZST || Azovstal Iron and Steel Works
|| Basic Materials || September, 1997 || 4,10
|-
| |4 || BAVL || Raiffeisen Bank Aval || Financials || December, 2004 || 3,82
|-
| |5 || CEEN || Centrenergo || Utilities || October, 1997 || 21,71
|-
| |6 || DNEN || Dniproenergo
|| Utilities || September, 1997 || 2,45
|-
| |7 || DOEN || Donbasenergo || Utilities || September, 1997 || 14,23
|-
| |8 || ENMZ || Enakievo Metallurgical Plant || Basic Materials || September, 2005 || 9,37
|-
| |9 || KVBZ || Krukivsky Carriage Works || Industrials || November, 2006 || 4,71
|-
| |10 || MSICH || Motor Sich
|| Industrials || September, 1997 || 20,00
|-
| |11 || MZVM || Mariupol Heavy Machinebuilding Plant || Industrials|| April, 2005 || 15,72
|-
| |12 || NITR || INTERPIPE
Nizhnedneprovsky Tube Rolling Plant || Basic Materials || September, 2007 || 2,36
|-
| |13 || PGOK || Poltava Ore Mining and Processing Plant || Basic Materials || November, 2003 || 2,57
|-
| |14 || STIR || Stirol || Basic Materials || September, 1997 || 9,61
|-
| |15 || SVGZ || Stahanov Car Production Facility || Industrials || unknown || 8,00
|-
| |16 || UNAF || Ukrnafta
|| Oil & Gas || September, 1997 || 8,00
|-
| |17 || USCB || Ukrsotsbank || Financials || September, 1997 || 4,48
|-
| |18 || UTLM || Ukrtelecom
|| Telecom || November, 2002 || 7,14
|-
| |19 || YASK || Yasynivka Cokery Plant || Basic Materials || unknown|| 8,99
|-
| |20 || ZAEN || Zakhidenergo || Utilities || September, 1997 || 5,00
|-
|}
Index (economics)
In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from...
of PFTS Ukraine Stock Exchange
PFTS Ukraine Stock Exchange
The PFTS Stock Exchange is the larger of Ukraine's two main stock exchanges .The trading occures on working days between 11:00 and 17:00 Kiev time . The PFTS index is calculated based on the results of the trading. Daily trade volume is about $30–60 million...
, Ukraine's
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
primary bourse
Exchange (organized market)
An exchange is a highly organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.-Description:...
. It was effectively created on October 1, 1997 as a value-weighted index
Market value-weighted index
A capitalization-weighted index is an index whose components are weighted according to the total market value of their outstanding shares. Also called a market-value-weighted index...
to track the percentage change of the basket of stocks from base period – i.e., from October, 1997. As of today it remains the only index of Ukrainian stocks to be recognized and closely tracked by the international financial community.
Many companies included in PFTS Index specialize in raw materials extraction and processing, therefore heavily exposing the Index to the fluctuations of world commodities' prices. The Index is also disproportionately weighted towards industry sector of the economy. As of July 28, 2009, the total weight of industry firms in PFTS Index was 52.75%, with the rest (47.22%) accounted for by the services sector, thereby leaving agricultural sector
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
unrepresented in the index.
PFTS Listing || Free Float, %
|-
| |1 || ALMK || Alchevsk Metallurgical Combine || Basic Materials || March, 2005 || 3,87
|-
| |2 || AVDK || Avdiivka Cokery Plant || Basic Materials || September, 1997 || 4,00
|-
| |3 || AZST || Azovstal Iron and Steel Works
Azovstal Iron and Steel Works
Metallurgical Combine Azovstal is one of the biggest steel rolling companies in Ukraine.-History:...
|| Basic Materials || September, 1997 || 4,10
|-
| |4 || BAVL || Raiffeisen Bank Aval || Financials || December, 2004 || 3,82
|-
| |5 || CEEN || Centrenergo || Utilities || October, 1997 || 21,71
|-
| |6 || DNEN || Dniproenergo
Dniproenergo
Dniproenergo is a major electric and thermal energy producing companies in central Ukraine.It is a subsidiary of the NAK Energy Company of Ukraine . The company has an installed capacity of 8,185 MW that represents around 16% of the country's total installed capacity....
|| Utilities || September, 1997 || 2,45
|-
| |7 || DOEN || Donbasenergo || Utilities || September, 1997 || 14,23
|-
| |8 || ENMZ || Enakievo Metallurgical Plant || Basic Materials || September, 2005 || 9,37
|-
| |9 || KVBZ || Krukivsky Carriage Works || Industrials || November, 2006 || 4,71
|-
| |10 || MSICH || Motor Sich
Motor Sich
Motor Sich is an airline based in Zaporizhia, Ukraine. It operates passenger and cargo services, including charter and scheduled flights. Its main base is Zaporizhia International Airport....
|| Industrials || September, 1997 || 20,00
|-
| |11 || MZVM || Mariupol Heavy Machinebuilding Plant || Industrials|| April, 2005 || 15,72
|-
| |12 || NITR || INTERPIPE
Interpipe Group
Interpipe Group, or simply Interpipe is the influential Ukrainian business group founded and mostly owned by local business oligarch Viktor Pinchuk. The group focuses on steel industry , although indirectly controlling assets in various fields of industry, services and media...
Nizhnedneprovsky Tube Rolling Plant || Basic Materials || September, 2007 || 2,36
|-
| |13 || PGOK || Poltava Ore Mining and Processing Plant || Basic Materials || November, 2003 || 2,57
|-
| |14 || STIR || Stirol || Basic Materials || September, 1997 || 9,61
|-
| |15 || SVGZ || Stahanov Car Production Facility || Industrials || unknown || 8,00
|-
| |16 || UNAF || Ukrnafta
Ukrnafta
Ukrnafta is a Ukrainian oil and natural gas extracting company, the largest producer of oil and gas in the country.The company produces around 3 million tonnes of oil and 4 billion m3 of natural gas per year, having oil proven reserves of nearly 180 million tonnes. Ukrnafta also ownes three natural...
|| Oil & Gas || September, 1997 || 8,00
|-
| |17 || USCB || Ukrsotsbank || Financials || September, 1997 || 4,48
|-
| |18 || UTLM || Ukrtelecom
Ukrtelecom
Ukrtelecom JSC was Ukraine's monopolist government-owned telephone company, also active in Internet service providing and mobile markets. The company was governed by the Ministry of Transportation and Communications of Ukraine with 92.9% shares belong to government.Austrian investment firm EPIC...
|| Telecom || November, 2002 || 7,14
|-
| |19 || YASK || Yasynivka Cokery Plant || Basic Materials || unknown|| 8,99
|-
| |20 || ZAEN || Zakhidenergo || Utilities || September, 1997 || 5,00
|-
|}
History
Major events:In November, 2003, the PFTS Board adopted the amendments to the Rules of Calculation of PFTS Index whereby only the prices of securities in a free-float would be taken into account upon index calculation, excluding stock holdings which are in state ownership. These changes, which, in essence, substantially increased the influence of securities issued by privatized companies' on the index value, took effect in January of next year.
- 2004
During Orange revolution
Orange Revolution
The Orange Revolution was a series of protests and political events that took place in Ukraine from late November 2004 to January 2005, in the immediate aftermath of the run-off vote of the 2004 Ukrainian presidential election which was claimed to be marred by massive corruption, voter...
, the calculation of PFTS Index was suspended for 10 days – the longest pause in its history – due to sharp fall in liquidity induced by political instability.
- 2005
In July a special Committee was created to oversee the calculation of all PFTS Indices in order to ensure their maximum conformity with market conditions. Same month the calculation methodology was enhanced further. Effective since August, the newly introduced changes expanded the list of stocks that are excluded from index calculation. In addition to state-owned stock (excluded in 2003), all the securities held by the issuer
Issuer
Issuer is a legal entity that develops, registers and sells securities for the purpose of financing its operations.Issuers may be domestic or foreign governments, corporations or investment trusts...
of that stock or in possession of strategic investors or company's management and/or employees are not taken into account upon index calculation.
- 2006
The trading of Zaporizhstal
Zaporizhstal
Zaporizhstal, is Ukraine's fourth largest steel maker with an annual capacity of 4.5 mil. tonnes of steel, 3.3 mil. tonnes of pig iron, 4.1 mil. of finished steel products, and ranks 54th in the world. The leader of the national industry is Kryvorizhstal...
shares is suspended in April due to high price volatility generated by the uncertainty over the positions of its minor and major shareholders. The company stock was subsequently removed from the index basket. Next month the basket was broadened to include the shares of Raiffeisen Bank Aval and Luhanskteplovoz
Luhanskteplovoz
Luhanskteplovoz , earlier known as Voroshilovgrad Locomotive works is a large industrial company in Luhansk, Ukraine, manufacturing locomotives, multiple unit trains as well as other heavy equipment....
(the former company, however, was later excluded). It expanded further during the rest of the year, incorporating the shares of Poltava Ore Mining and Processing Plant, Sumy Frunze Machine Building Plant and that of Ukrsotsbank. By November the basket consisted of 14 securities.
- 2007
Azovstal Iron and Steel Works
Azovstal Iron and Steel Works
Metallurgical Combine Azovstal is one of the biggest steel rolling companies in Ukraine.-History:...
, Ilyich Iron and Steel Works and Mariupol Heavy Machinebuilding Plant join PFTS index basket, bringing the total number of tracked securities to 17. Three months later, on June 13, the index tops 1,000-point milestone. In August the basket of stocks grew to 18, with the addition of Motor Sich
Motor Sich
Motor Sich is an airline based in Zaporizhia, Ukraine. It operates passenger and cargo services, including charter and scheduled flights. Its main base is Zaporizhia International Airport....
.
- 2008
The stocks of two more companies – Avdiivka Cokery Plant and Enakievo Metallurgical Plant – are included in the index calculation in February, bringing the total number of tracked securities to 20. In October more changes to the index basket take place as the shares of Donbasenergo and Luhanskteplovoz
Luhanskteplovoz
Luhanskteplovoz , earlier known as Voroshilovgrad Locomotive works is a large industrial company in Luhansk, Ukraine, manufacturing locomotives, multiple unit trains as well as other heavy equipment....
are replaced with that of Alchevsk Metallurgical Plant and Krukivsky Carriage Works.
- 2009
A new trading system called PFTS NEXT is launched in April. Same month PFTS index posts 49.5% growth, the biggest monthly rise ever recorded. Index climbs 80.87% in second quarter of 2009, the best rally among 93 stock benchmark measures tracked by Bloomberg
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
. In July the number of client accounts tops 700 as more private investors enter the market. Two months later the first Repo
Repurchase agreement
A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is the sale of securities together with an agreement for the seller to buy back the securities at a later date. The repurchase price should be greater than the original sale price, the difference effectively...
transaction on government securities takes place on PFTS NEXT. In nine months to the end of September PFTS Index climbs more than 70%, which placed it 2nd among world markets in terms of growth rate.
- 2010
Members of index committee decide that the shares of Sumy Frunze Machine Building Plant do not meet the criteria for index shares and decide to replace them with more liquid
Market liquidity
In business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value...
stock of Stahanov Car Production Facility.
Market statistics
Records| Milestone | Closing Level | Date |
|---|---|---|
| 100 | 101.87 | February 17, 2004 |
| 200 | 202.48 | December 7, 2004 |
| 300 | 303.93 | January 14, 2005 |
| 400 | 407.91 | February 15, 2006 |
| 500 | 507.92 | January 10, 2007 |
| 600 | 604.70 | February 8, 2007 |
| 700 | 702.53 | February 20, 2007 |
| 800 | 809.17 | March 26, 2007 |
| 900 | 908.85 | June 5, 2007 |
| 1,000 | 1,000.00 | June 13, 2007 |
| 1,100 | 1,117.83 | July 25, 2007 |
| 1,200 | 1,208.61 | January 15, 2008 |
| Highest close | 1,208.61 | January 15, 2008 |
Total annual returns
| Year | Annual Return |
UAH Ukrainian hryvnia The hryvnia, sometimes hryvnya or grivna ; sign: ₴, code: , has been the national currency of Ukraine since September 2, 1996. The hryvnia is subdivided into 100 kopiyok. In medieval times, it was a currency of Kievan Rus'.... 1.00 Investment Gives |
5 Year Annualized Return (g/i)=(1+ar)^5 |
|---|---|---|---|
| 2002 | 33.41% | 1.33 | – |
| 2003 | 57.91% | 2.11 | – |
| 2004 | 227.08% | 6.89 | – |
| 2005 | 32.47% | 9.13 | – |
| 2006 | 44.37% | 13.18 | 67.48% |
| 2007 | 135.91% | 31.09 | 87.71% |
| 2008 | −74.02% | 8.08 | 30.84% |
| 2009 | 89.76% | 15.33 | 17.34% |
| 2010 | 65.63% | 25.38 | 22.70% |
| High | 227.08% | 87.71% | |
| Low | -74.02% | 17.34% | |
| Median | 57.91% | 30.84% | |
| CAGR Compound annual growth rate Compound annual growth rate is a business and investing specific term for the smoothed annualized gain of an investment over a given time period... |
38.72% |
See also
- PFTS Ukraine Stock ExchangePFTS Ukraine Stock ExchangeThe PFTS Stock Exchange is the larger of Ukraine's two main stock exchanges .The trading occures on working days between 11:00 and 17:00 Kiev time . The PFTS index is calculated based on the results of the trading. Daily trade volume is about $30–60 million...
Index UAI 50 - Ukrainian Stock Exchange (in cooperation with RTS Stock Exchange)
- List of stock market indices