Kyiv-listed stock again suffered from a lack of investors’ attention last week following news that renewed funding to Ukraine did not make it onto the agenda of the IMF’s August board meeting. The delay is likely a deliberate one to highlight concern among Ukraine’s Western backers over the government’s failure to introduce a new electronic asset & income declaration system aimed at reducing corruption among state officials. The IMF had intended to release USD 1.7bn to Kyiv in the third tranche of funding in July after agreeing with the Groysman government on policies needed to complete the next review under the program. However, the IMF board refused to consider its Ukraine funding last month. The UX index declined 0.6% to close at 695 points on Friday (Aug 26). Celebration of the 25th anniversary of Ukraine’s independence on Aug 24 did not inspire traders to increase their long positions in the five remaining UX index components. Motor Sich (MSICH) was the main drag on the gauge, dropping 2.1% to UAH 1740 per share. The company remains under a risk of a sharp fall in revenues in case of complete closure of the Russian market for helicopter engines. In the electricity sector, CentrEnergo (CEEN0 and DonbasEnergo (DOEN) edged up 1.3% and 0.5% respectively, while UkrNafta (UNAF) shed 0.9% to UAH 94.80. London-listed Ferrexpo (FXPO) gave back a 12% correction from its great rally over the past month. The stock closed at GBp 68.50, which is 17% below its local maximum of GBp 82.75 reached on Aug 9, but still more than double its level from mid-June. MHP (MHPC) rose 1.0% to USD 9.50. In Warsaw trading, Kernel (KER) climbed 1.5% to PLN 58.60 and sugar producer Astarta (AST) advanced 5.6% to PLN 52.30 on news that Fairfax Financial Holdings announced its intention to buy a 10% stake in the company at an undisclosed price.On the official interbank market, hryvnia slipped 0.6% against the dollar to close at 25.45 UAH/USD on Friday (Aug 26), while the currency stabilized on the cash market following the previous week’s 6% slide, finishing at 26.20 UAH/USD.
POLITICS AND ECONOMICS
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