Ukrainian
equities rose on Wednesday (Feb 4) as local prices moved to keep pace with yet
another wave of hryvnia devaluation. The National Bank announced an introduction
of what it called a “single currency exchange rate” starting from today (Feb 5).
The official UAH/USD rate was at UAH 16.73/USD yesterday, while the actual
trading rate soared to UAH 23/USD. It is unpredictable where the UAH/USD rate
will stabilize over the next couple of weeks, but we believe that the
elimination of the two-month-old gap between the NBU rate and the market rate
should have a positive effect on the economy. The UX index added 1.3% to close
at 993 points. Alchevsk Steel was the biggest blue chip gainer, adding 6.6% to
1.29 kopecks, while top liquid issues UkrNafta (UNAF) and Motor Sich (MSICH)
rose by 2.2% and 1.7% respectively on combined turnover of UAH 1.1mn.
CentrEnergo (CEEN) picked up 0.8%, ending the day at UAH 6.88. In London
trading, JKX Oil&Gas (JKX) leapt by 30% to close at GBp 18.50, which
probably indicates the appearance of an aggressive buyer in the stock. MHP
(MHPC) advanced by 3.8% to return to the USD 9.50 level, and Warsaw-listed
Astarta (AST) edged up by 1.1% to PLN 24.25.
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