Kyiv-listed equities finished mostly higher on Tuesday (Dec 16) despite additional concerns regarding the local currency’s stability in the near term. The official hryvnia exchange rate against the dollar of 15.77 is far below the rate of 19.50 per dollar on the black market, with the obvious negative implications for local equities, which are bought and sold in hryvnia. The UX index climbed 0.8% to close at 971 points. Electricity stocks added the most points to the indicator, with DonbasEnergo (DOEN) and CentrEnergo (CEEN) rising by 4.5% and 1.2% respectively, and heavyweight Motor Sich (MSICH) added 2.1% to close at UAH 2230. Meanwhile low-liquidity Yenakievo Steel (ENMZ) and Krukiv Wagon (KVBZ) both lost about 2.5%. Outside the UX basket, beaten-down Donbass metallurgy name Yasynivsky Coke (YASK) declined by 0.7% to 27 kopecks per share. In London, Ukrainian agro names suffered a notable sell-off. MHP (MHPC) fell 3.8% to USD 9.52 and Avangard (AVGR) plunged 30% to USD 2.51. Warsaw-listed names also saw losses, with Kernel (KER) down 6.8% to PLN 26.10 and Astarta (AST) down 3.8% to PLN 16.25.
Fixed Income
The sell-off in Ukrainian sovereigns continued on Tuesday, despite being overshadowed by the collapse of the Russian ruble, with Ukraine-23s down by 2.3p.p. to close at 56.8/59.8 (17.6%/16.6%). Corporate names also finished heavily in the red. UkrlandFarming-18s declined by 6.0p.p. to 40.0/45.0 (49.7%/44.1%) and Ferrexpo-16s fell 2.9p.p., finishing at 75.0/77.0 (32.9%/30.5%).
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FIXED INCOME
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