The Ukrainian stock market enjoyed a third good week in a row thanks to more optimism regarding the country’s economy among investors. First of all, Ukraine finally passed a long-delayed review of its IMF program on Sept 14, and immediately received a USD 1.0bn loan tranche, which had originally been expected almost a year earlier. Second, the NBU continued to cut its key interest rate to push the banking sector to lend more to the real sector. The rate was reduced by 50 bps to 15.00% by the NBU on Thursday (Sept 15). Expiration of the UX index futures contracts, an event which occurs every three months, did not cause additional volatility, with the September contract expiring at 758 points. The UX index increased by 4.2% over the week to close at 769 points on Friday (Sept 16). Raiffeisen Bank Aval (BAVL) was the best performer among the five local blue chips, advancing by 7.1% to 12 kopecks on the nose. CentrEnergo (CEEN) also remained in a firm growth trend, rising 7.0% to UAH 10.00. Motor Sich (MSICH) did not join the party, declining by 0.9% to UAH 1838. London-listed Ferrexpo (FXPO) was nearly flat for the week, closing at GBp 67.25. Sporadically-traded MHP (MHPC) edged back toward the USD 10 mark, climbing 4.3% to USD 9.70. Warsaw-listed Ukrainian stocks were mixed, with Kernel (KER) correcting by 2.1% to PLN 61.00 while Agroton (AGT) made another jump to PLN 3.50, rising 12% for the week. On the currency front, the hryvnia strengthened by 3.4% against the dollar, closing at 25.80 UAH/USD on Friday thanks to expectations of hard currency inflows into the country after the IMF approved the latest tranche disbursement.
POLITICS AND ECONOMICS
- Slovak PM Openly Challenges EU Sanctions Policy
- IMF Resumption Unlocks Add’l USD 1.7bn in Western Loans
- MinFin Expects 3% GDP Growth in Ukraine in 2017
STOCKS IN THE NEWS
- UkrNafta Says Primary Cost for Its Oil Just USD 9/barrel
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