Kyiv-listed stocks were mostly higher again last week, as the current price levels give no initiative for short players. Despite a 1-month rise of 5% in the UX benchmark, the overall situation with Ukrainian equities remains tough, as investors are in no hurry to re-enter the market. The UX index climbed 1.5% for the week to close at 699 points on Friday (Jul 8). Raiffeisen Aval (BAVL) was once again the blue chip growth leader, advancing 7.9% to 10.10 kopecks. UkrNafta (UNAF) briefly reached USD 100 per share before retreating back to UAH 95, representing a 1.5% weekly gain. The company’s press office said that the cancelled general shareholders meeting scheduled for Jul 7 could be called again in August. As we reported earlier, the main issue for UkrNafta’s AGM agenda is the approval of management’s tax debt restructuring plan. In the electricity sector, CentrEnergo (CEEN) edged down 0.7% to UAH 7.65 and DonbasEnergo (DOEN) shed 0.3% to UAH 13.80. In economic developments, the start of 3Q16 brings the seasonal revision of the import price for Russian natural gas. NaftoGaz said that the quarterly “supplementary agreement” to its long-term 2009 contract with Gazprom has not been signed yet. According to Gazprom, the price for Ukraine for 3Q16 was set at USD 167 per 1,000 cubic meters (cu-m). Meanwhile, NaftoGaz expects that capacity of pipeline from Europe would be enough for the moment to pump a planned 5bn cu-m of gas into underground storage facilities ahead of a heating season. In London trading, poultry producer MHP (MHPC) declined 2.2% to USD 9.00 per share, with trading volumes below the stock’s average in recent months. Ferrexpo (FXPO) continued to rise, picking up 3.8% to GBp 33.75, which is the issue’s local maximum since early May. We assume that the stock reacted positively to the company’s production report showing an increase in top-value-added 65% percent Fe pellet output. Warsaw-listed Astarta (AST) slipped 2.5% to PLN 45.00 while Kernel (KER) added 0.3% to PLN 53.15. The hryvnia was unchanged for the week at 24.82 UAH/USD, with the NBU’s report of an increase in foreign reserves helping to maintain the current firm environment for the currency.
POLITICS AND ECONOMICS
- NATO Repeats Previous Declarations on Ukraine at Summit
- NBU Reserves Hit 2-Year High of USD 14.0bn in June
STOCKS IN THE NEWS
- Ferrexpo Decreases Pellet Production By 1.6% YoY in 1H16
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