PFTS index is a benchmark

index Index (or its plural form indices) may refer to: Arts, entertainment, and media Fictional entities * Index (''A Certain Magical Index''), a character in the light novel series ''A Certain Magical Index'' * The Index, an item on a Halo megastru ...

PFTS Ukraine Stock Exchange The PFTS Stock Exchange is a leading stock exchange in Ukraine that for a long time (until 2006) legally was considered as a trading system, hence its name the First Stock Trading System (PFTS). The trading occurs on working days between 10:00 an ...

, Ukraine's leading bourse. Beside PFTS Index, there are also the UX Index of the

Ukrainian Exchange The Ukrainian Exchange (; ) was founded in 15th of May, 2008 and its operation premises are situated at 7g, Tropinina Street, Kyiv. The Exchange is one of the largest stock exchanges in Ukraine. The exchange is located in Kyiv, Ukraine's capi ...

and the Ukrainian Average Index 50 (UAI-50) being composed by analysts of internet-publishe
fundmarket.ua
PFTS Index was effectively created on October 1, 1997 as a capitalization-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 A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. As feedst ...

extraction and processing, therefore heavily exposing the Index to the fluctuations of world

commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a comm ...

' 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 The primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, fishing, forestry and mining. The primary sector tends to make up a larger portion of the economy in de ...

unrepresented in the index.

History

Major events: *2003 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, 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 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 shares is suspended in April due to high price volatility generated by the uncertainty over the positions of its minor and major

shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...

s. The company stock was subsequently removed from the index basket. Next month the basket was broadened to include the shares of

Raiffeisen Bank Aval Raiffeisen Bank (formerly Raiffeisen Bank Aval) is a commercial bank in Ukraine. It was registered on March 27, 1992, and since 2006 is a subsidiary of Austrian Raiffeisen Bank International.Luhanskteplovoz (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,

Ilyich Iron and Steel Works Illich Iron & Steel Works (Ukrainian: Маріу́польський металургі́йний комбіна́т і́мені Ілліча́ – literally "Mariupol Metallurgical Plant named after Illich") is the second largest metallurgica ...

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. *2008 The stocks of two more companies – Avdiivka Cokery Plant and

Enakievo Metallurgical Plant Yenakiieve ( uk, Єна́кієве, ''Yenákiieve'', ; russian: Ена́киево, ''Yenákiyevo'') is a city in the Donetsk Oblast ( province) of eastern Ukraine. It is incorporated as a city of oblast significance (a special status within ...

– 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 Donbasenergo ( uk, Донбасенерго) is a regional power generation company operating in the eastern part of Ukraine. The company was established in 1995 as a result of restructuring of the Ukrainian power sector. It owns and operates ...

and Luhanskteplovoz are replaced with that of

Alchevsk Metallurgical Plant Alchevsk ( uk, Алчéвськ, translit. ''Alchevs'k''; russian: Алчéвск) is a city of significance in the Luhansk Oblast of Ukraine. It is located approximately from the oblast capital, Luhansk. Alchevsk is one of the largest ind ...

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. In July the number of client accounts tops 700 as more private investors enter the market. Two months later the first Repo 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 A liquid is a nearly incompressible fluid that conforms to the shape of its container but retains a (nearly) constant volume independent of pressure. As such, it is one of the four fundamental states of matter (the others being solid, gas, a ...

stock of Stahanov Car Production Facility.

Market statistics

Records Total annual returns

Notes

a. When calculating the shares, the following sector breakdown was assumed: 1. Industry sector – Basic Materials, Industrials and Oil & Gas; 2. Services sector – Financials, Utilities and Telecom. b. The dates provided show when the company became listed on the broader stock exchange and not when it became part of the narrower PFTS Index basket. c. By that time included Ukrainian corporate bonds market indices, created in October, 2004 in cooperation with Cbonds, a

fixed income Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the prin ...

market news agency. d. These are the closing milestones of PFTS Index in 100-point increments, along with the all-time highs.

References

External links

PFTS Stock ExchangeCbonds.Info

Bloomberg page for PFTS:IND
{{Ukraine topics Finance in Ukraine Ukrainian brands European stock market indices

History

Market statistics

Notes

See also

References

External links