The UX index ended 1.1% higher last week to close at 665 points on Friday (Jun 17), after the UX component basket was reduced from 7 stocks to 5 stocks with the removal of long-time blue chips Avdyivka Coke and Azovstal. The stocks were formally taken out of the basket after the expiration of the Jun 15 futures contracts at 667.5 points. In major economic news, market research agency GfK said that Ukraine’s consumer confidence improved in May, with households’ expectations regarding hryvnia stability in the coming three months helping to spur retail sales. Meanwhile, the IMF and the World Bank once again said they are ready to allocate additional funding to the country in the near future. Last week, Finance Minister Oleksandr Danyliuk met with representatives of the IMF to discuss issues that need to be addressed before the disbursement of a new loan tranche. In individual blue chips, Motor Sich (MSICH) added 0.6% to climb back above the UAH 2000 watermark. Raiffeisen Aval (BAVL), which has 20% weight in the index, advanced 7.3% to 8.58 kopecks as declining interest rates for retail deposits in the country should boost financial institutions’ profitability. CentrEnergo (CEEN) was flat at UAH 7.20 despite alarming information that the government might split up the company ahead of its privatization. In second tier stocks, freight railcar producer Krukiv Wagon (KVBZ) jumped 4.5% to UAH 7.00. In London, MHP (MHPC) shed 0.4% to USD 9.26 and Ferrexpo (FXPO) slid 6.8% to GBp 30.75. Warsaw-listed Astarta (AST) declined by 1.1% after the company’s management said that EBITDA in FY16 would be similar to the level of FY15. On the currency front, the hryvnia edged up 0.3% against the US dollar to close at 24.92 UAH/USD.
POLITICS AND ECONOMICS
- PGO, Anti-Corruption Bureau Moves Against Naftogaz
- MinAgro: 2015/16 Grain Exports at Record 37.3mn Tonnes
STOCKS IN THE NEWS
- SPF Floats Idea of Selling CentrEnergo TPPs Separately
- Astarta CEO Expects Flat EBITDA Near EUR 130mn for FY16
- CEO: KSG Agro Expects Profit for FY16 If Hryvnia Stable
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