Kyiv-listed stocks were sharply lower last week after the expiration
of UX futures contracts, an event which occurs every 3 months, on Tuesday (Mar
15) acted as a catalyst for turbulence on Ukraine’s low-liquidity market. The
contracts expired at 660 points, after which the UX index went into a slide. The
benchmark lost 6.1% to close at 633 points on Friday (Mar 18), giving back much
of its strong rise from the previous week. UkrNafta (UNAF), which after the
index basket reshuffle has had its profile raised to heavyweight status (17%),
was the hardest-hit blue chip. The stock slumped 9.6% to UAH 128 per share after
news that the company had a 4Q15 net loss of UAH 9.0bn, with the size of the
figure exceeding all expectations. CentrEnergo (CEEN) corrected by 9.0% to UAH
5.65, still leaving plenty of gains on the table after the stock surged 30% in
the preceding week on privatization hopes. DonbasEnergo (DOEN) fell 5.1% after
news that the company had a net loss of UAH 190mn for full-year 2015,
eliminating any slim hopes of a dividend payout. Top steelmaking name Azovstal
(AZST) slumped 9.6% to near 25 kopecks, while Avdyivka Coke (AVDK) climbed 1.3%
to UAH 1.15. In London trading, Ferrexpo (FXPO) edged down 3.6% to GBp 33.25,
while Warsaw-listed Kernel (KER) continued its upward momentum, climbing 3.7% to
PLN 57.48.
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