Ukraine’s main
equity index was sharply lower on Tuesday (Sept 9), dragged down by huge losses
in Donbass-based blue chips on concerns that these companies could end up
outside of Ukrainian-controlled territory in a so-called “frozen conflict”
scenario, thereby bringing their business models under threat. The UX index
slumped 4.7% to end at 1093 points, its lowest close since the initial phase of
the war back in mid-May. Yenakievo Steel plunged by 13.9%, while Mariupol-based
Azovstal, which could be hit by a permanent shortage of coke supplies even if
Mariupol itself remains under Ukrainian control, slid 11.5% to 66.30 kopecks.
DonbasEnergo and Avdyivka Coke lost 8.0% and 4.8% respectively, and Alchevsk
Steel closed below 3 kopecks for the first time ever on a 3.9% loss. Non-Donbass
blue chips UkrNafta, Raiffeisen Aval and Motor Sich were relatively unscathed,
declining by a bit more than 1% each, while Poltava oblast-based Krukiv Wagon
ended firmly in the black, picking up 3.2% to UAH 16 on the nose. London-listed
Ukrainian names were also mostly lower, with MHP falling 1.7% and JKX
Oil&Gas down 2.7%. In Warsaw, Astarta (AST PW) sold off by 6.5% to PLN 36.60
and Kernel finished nearly unchanged.
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