Kyiv-listed Ukrainian stocks continued to decline on Wednesday (Oct
8) as uncertainty over natural gas supplies from Russia for the upcoming heating
season is creating additional risks for the country’s economy and sovereign
financial situation. Gazprom claimed that Ukraine might not be able to pump the
needed volume of gas into underground storage to ensure reliable gas transit to
Europe during periods of peak consumption. The UX index retreated by 0.7% to
1055 points. A notable drop of 3.1% for UkrNafta (UNAF) was related to media
reports that the company has not paid oil production taxes in the amount of UAH
1.5bn (USD 115mn) over the past two months. Among other blue chips, Motor Sich
(MSICH) added 1.2%, while low-liquidity issues Alchevsk Steel (ALMK) and Krukiv
Wagon (KVBZ) plunged by 5.7% and 6.7% respectively, with the latter closing at a
5-year low of UAH 13.90 per share. London-listed MHP (MHPC) added 3.5% to USD
11.90 while Ferrexpo (FXPO) slid below the GBp 100 level for the first time
since mid-2009, falling 7.7% to near GBp 95. Warsaw-listed Ukrainian names were
mixed, with Kernel (KER) declining by 2.8% while Astarta (AST) and Ovostar (OVO)
rose by 3.9% and 2.2% respectively.
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