Kyiv-listed stocks rose on Thursday (Nov 19), regaining part of the very heavy losses seen a day earlier. News that Fitch Ratings upgraded Ukraine’s sovereign rating to ‘CCC’ from ‘RD’ had some positive influence on the investor sentiments. The UX index added 2.2% to close at 685 points. However, not all index components were in the black. CentrEnergo (CEEN) rebounded by 3.7% to UAH 4.40 and UkrNafta (UNAF) recovered 4.2% to close at UAH 185 per share, while Azovstal (AZST) fell another 1.6% to 36 kopecks. Motor Sich (MSICH) picked up 1.3% to UAH 1944. On the currency front, the hryvnia strengthened by 0.4% to bid/ask of 23.80/23.90 UAH/USD on the interbank market after the NBU intervened at 23.80 UAH/USD, selling USD 15mn. London-listed MHP (MHPC) advanced by 5.6% to USD 10.40, breaking out of its long sluggish run, as the company’s 3Q15 financial results did not disappoint investors. In contrast, Ferrexpo (FXPO) plummeted 12.4% to a post-2008 low of GBp 28.25 as more unfavorable signals emerged on the iron ore pricing front.
Fixed Income
Newly-issued Ukrainian sovereign bonds suffered their first losing session on Thursday after their opening-week rally, with Ukraine-19s and Ukraine-27s declining by 0.8p.p. and 1.8p.p. to 97.5/98.3 (8.5%/8.3%) and 94.8/95.5 (8.5%/8.4%), respectively. Corporate debt was also generally lower. DTEK-18s fell 1.5p.p. to 51.0/55.0 (46.9%/42.4%) and Metinvest-17s decreased by 0.8p.p. to 61.2/64.0 (40.5%/37.5%).
POLITICS AND ECONOMICS
- Industrial Production Up 7% MoM in October on Seasonal Factors, Still Down 5% YoY
STOCKS IN THE NEWS
- MHP Targets Poultry Export Rise of 32% in 2016; Free Float to Increase by 2.3%
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