Ukraine`s PFTS Index was the world`s second worst-performing stock index this quarter, falling 29.1 percent, as Russia`s invasion of Georgia and the feud between President Viktor Yushchenko and Prime Minister Yulia Tymoshenko shook investor confidence. According to Bloomberg, stock market trading was suspended today because of a 7 percent slump, according to Andriy Kolomiets, the spokesman for the PFTS Stock Exchange.
Credit-default swaps on Ukraine`s government debt rose 26 basis points to 501, according to CMA Datavision prices, after earlier climbing to a record.
Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a country or company`s ability to repay debt. They pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. An increase indicates a deterioration in the perception of credit quality.
