Kyiv-listed stocks ended mostly higher on Thursday (Sept 25), even as the main European and US indices saw their biggest 1-day selloff in more than two months. Local investor attention was generally focused on the currency market, were the NBU sold USD 135mn at 12.95 UAH/USD through a special auction aimed to support the hryvnia. The UX index edged up by 0.4% to close at 1089 points. Beaten-down Alchevsk Steel (ALMK) was the best performer among blue chips, advancing 5.1% to 2.47 kopecks per share; however, the issue’s light weight in the index basket meant that it contributed little to the benchmark’s growth. Donetsk oblast-based Avdyivka Coke (AVDK) and DonbasEnergo (DOEN) both gained 2.9%. Raiffeisen Aval (BAVL) underperformed, losing 1.2% amid reports from its parent Raiffeisen International that the group could end 2014 with a net loss of up to EUR 500mn after writing off most of its loan book in Eastern Ukraine due to the separatist conflict there. In London, Ferrexpo (FXPO) had a rough day in line with global stocks, sliding 5.2% to a new post-2009 low near GBp 121 on an increasingly poor outlook for iron ore prices. Warsaw-listed Astarta (AST) added 2.3% while Kernel (KER) retreated by 1.2% to PLN 25.20.
Fixed Income
Ukrainian sovereigns were down on Thursday with Ukraine-23s moving down by 1.5p.p. to 82.4/83.7 (10.7%/10.4%). Corporate names finished also mostly in the red. DTEK-18s dropped by 2.0p.p. to 61.0/63.0 (25.3%/24.1%) and Metinvest-18s declined by 1.2p.p. closing at 68.8/70.0 (24.5%/23.7%).
Politics and economics
Poroshenko Presses Reform Agenda, Says Worst of Donbass War is Over
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