Ukraine’s stock market enjoyed firm growth last week, as global investors shrugged off the threat of “Brexit”, and also thanks to falling interest rates inside the country. The UX index advanced by 4.6% to close at 688 points on Friday (Jul 1). Raiffeisen Aval (BAVL) added the most points to the gauge, surging 7,9% to 9.40 kopecks. The bank is expected to report quite strong 2Q financial results, as its conservative lending policy has finally led to a competitive advantage on the market. CentrEnergo (CEEN) added 4.8% to UAH 7.70 as the upcoming general shareholders meeting on Jul 22 should provide some answers about the company’s short-term strategy. Motor Sich (MSICH) posted a smaller gain near 1.5% but more importantly, was able to stay above the UAH 2000 line, boosted by the overall upward momentum. Ukraine has won some time to reignite its reform agenda and the government of Volodymir Groysman is trying to use it wisely, asserting that the economy on a steady course of recovery. The government’s latest forecasts foresee 3% YoY GDP growth and 8% consumer inflation in 2017 after around 1.5% growth and 12% inflation this year. London-listed MHP (MHPC) lost 5% to USD 9.20 without a visible reason; we assume this was a function of the low liquidity in the stock. Meanwhile, Ferrexpo (FXPO) gained 10.2% to GBp 32.50. Warsaw-listed Ukrainian stocks recovered most of their losses caused by the previous week’s Brexit panic. Astarta (AST) rose 3.7% to PLN 46.15 and Kernel (KER) added 2.9% to PLN 53.00. The hryvnia continued to strengthen, reacting to data about the country’s trade surplus of USD 46mn in May compared to a deficit of USD 145mn for the corresponding month a year ago. The hryvnia gained 0.3% against the dollar to 24.82 UAH/USD.
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