Kyiv-listed
stocks finished broadly lower on Friday (Dec 18) after the IMF warned of a risk
of failure of Ukraine’s Extended Fund program if Parliament does not approve the
2016 national budget. One of the key parameters for the budget is a deficit of
no more than 3.7% of GDP. The UX index slid 1.9% to close at 670 points. All 10
index components ended in the red. National flagship oil company UkrNafta (UNAF)
crashed through its UAH 170 support floor, slumping 7.3% to UAH 161 per share,
and CentrEnergo (CEEN) lost 2.0% to UAH 4.52 despite reporting an encouraging
level of coal stocks amid this year’s warmer-than-average December. Motor Sich
(MSICH) demonstrated some resistance to the selling pressure, edging down by
just 0.5% to UAH 1940. On the interbank currency market, the hryvnia weakened by
0.9% to bid/ask of 23.50/23.60 UAH/USD after the negative budget news. In
London, beaten-down Ferrexpo (FXPO) regained 14% to near GBp 16 while
low-liquidity Avangard (AVGR) fell 16.7% to USD 1.25. Warsaw-listed Ukrainian
stocks were mixed, with Astarta (AST) gaining 2.0% to PLN 33.00 while Ovostar
(OVO) declined by the same increment to PLN 87.20.
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