Kyiv-listed stocks were back under pressure on Wednesday (Sept 17) after a 1-session respite. The overall perception of Kyiv’s offer of “decentralization” to the Donbass separatists is that it is only a temporary solution, and uncertainty over how the vaguely-worded deal will actually play out is spoiling investors’ risk appetite. The UX index lost 2.7% to close at 1057 points. All 10 index basket components ended in the red. Volume leaders Motor Sich (MSICH) and UkrNafta (UNAF) were somewhat better then the broad market, edging down by 0.6% and 0.9% respectively on combined turnover of UAH 9.4mn. For the second time in three days, the steel sector got pounded, with Alchevsk Steek (ALMK) plunging by 7.6% to a stunning new all-time low of 2.42 kopecks, and Azovstal (AZST UK) falling by 3.1%. Second-tier name Khartsysk Pipe (HRTR), a Metinvest conflict zone stock, dropped by 5.9% to near 48 kopecks. In London, MHP (MHPC) continued to edge higher, climbing 0.9% to USD 12.80, while Avangard (AVGR) was unchanged at USD 8.00. Warsaw-listed Astarta (AST) and Agroton (AGT) moved down by 1.0% and 1.9% respectively.
Fixed Income
Ukrainian sovereigns decreased on Wednesday with Ukraine-23s dropping by 0.9p.p. to finish at 83.0/84.0 (10.6%/10.4%). The corporate universe was mixed. Metinvest-15s declined by 1.0p.p. to 77.0/80.0 (56.3%/52.6%) while Avangardco-15s improved by 2.0p.p. closing at 87.0/90.0 (36.0%/29.2%).
Politics and economics
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