Ukraine’s locally-listed stocks started the week in positive territory, rising on Monday (Dec 1) thanks to a report that the NBU has extended its order for obligatory export revenue conversion for another three months, which could help to firm up the domestic currency. The UX index added 1.8% but was still unable to climb above the 1000 mark, closing at 989 points. Steel-related names advanced, mostly on short covering transactions, with Azovstal (AZST) picking up 3.5%. Utility blue chips rose on news that the country’s wholesale electricity operator EnergoRynok received a UAH 2bn loan from state-owned OschadBank to pay its arrears to thermal power generation companies; CentrEnergo (CEEN) and DonbasEnergo (DOEN) gained 1.0% and 3.5% respectively. UkrNafta (UNAF) moved down by another 1.0% amid concerns about the medium-term oil price outlook. In London, it was a very bad day for JKX Oil&Gas, which plunged 17.9% to GBp 23.00, and now sits at a price not seen since just after its IPO a decade ago. Ferrexpo (FXPO) remained under pressure edging down by 0.6% to GBp 68.00. In Warsaw, low-liquidity agro name Milkiland (MLK) was unchanged at PLN 1.96 while Astarta (AST) rose 4.6% to PLN 20.30.Fixed IncomeMonday was another nasty day for the Ukrainian Eurobond universe amid rising default concerns, with sovereign Ukraine-23s sliding a further 2.2p.p. to close at 70.2/72.2 (13.5%/13.0%). In corporate issues, JKX-18s got hammered along with the company’s stock, slumping 6.0p.p. to 65.0/67.1 (28.7%/27.5%), and it was a similar situation for Avangard-15s, which lost 5.8p.p. to 72.5/75.0 (51.6%/46.8%) following disappointing financial results released on Friday.
FIXED INCOME
- MHP to Secure EUR 85mn Loan from European Investment Bank- Metinvest Increases EBITDA by 13% in 9M14, Completes 2015 Bonds Exchange
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