Kyiv-listed Ukrainian stocks saw only moderate effects from last week’s global financial market turmoil caused by the surprising decision by British voters to support an exit of their country from the European Union. The UX index ended the week 1.0% lower to close at 658 points on Friday (Jun 24). The local market was quite inactive ahead of a long four-day weekend related to the country’s Constitution Day holiday. Among major domestic economic news, the NBU continued to cut its key refinancing rate which was slashed by a further 150 bps to 16.50% on Jun 23. Slowing inflation and a rise in UAH liquidity were the primary reasons behind the NBU’s rate decision. On the statistics front, UkrStat’s industrial output figures for May were not impressive, as the IP index inched up just 0.2% YoY in the period. However, the data was considerably distorted by the Easter holiday falling in May this year (June also contains an extra holiday), implying that July could see better growth. The UX index components finished mixed. UkrNafta (UNAF) was the loss leader, sliding 7.1% to UAH 90.10 per share after news that the company’s supervisory board failed to approve a tax restructuring plan needed to ease the ongoing gridlock with the government. Motor Sich (MSICH) was unable to defend the UAH 2000 level, dropping 1.1% to UAH 1987. On the upside, CentrEnergo (CEEN) added 2.1% to UAH 7.35 after head of the State Property Fund assured investors that the company’s privatization will finally occur in 1Q17. In second-tier stocks, Krukiv Wagon (KVBZ) rose 6.4% to UAH 7.45. London-listed MHP (MHPC) gained 4.5% to USD 9.68 but remained inside its long-term narrow price corridor, while Ferrexpo (FXPO) dropped 4.1% to GBp 29.50. Warsaw-listed Ukrainian stocks were notably lower, following the Brexit-related trend on the major European bourses. Astarta (AST) shed 3.3% to PLN 44.50. On the interbank currency market, the hryvnia was flat against the US dollar at 24.90 UAH/USD.
POLITICS AND ECONOMICS
- Merkel Backs Ukraine on Delay of Donbass Elections
- NBU Lowers Refi Rate by 150 bps to 16.50%
- Industrial Output Rises 0.2% YoY in May
STOCKS IN THE NEWS
- UkrNafta’s Board Fails to Approve Tax Restruc Plan
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