Quotes for Ukrainian stocks resumed their autumn rally last week after a brief pause in the last week of September. Traders still prefer speculative strategies as no substantial corporate news has appeared recently. Geopolitical headlines, however, have been largely positive, with US Secretary of State John Kerry reiterating in a Brussels speech that the US is firmly committing to backing Ukraine amid signs that the Obama administration will be taking a tougher line against Russia during its final months in power. The improving prospects that Hillary Clinton, and not Russia-friendly Donald Trump, will succeed Obama in the White House in January are also encouraging for the outlook of Ukrainian equities, although the situation in the occupied Donbass and the risk of escalation are still present. The UX index added a solid 3.6% over the week to close at 839 points. The index components showed across-the-board gains, with UkrNafta (UNAF) gaining 4.5% thanks to rising global oil prices. Motor Sich (MSICH) managed to stay above the UAH 1900 level, picking up 1.6% to UAH 1929 per share. Raiffeisen Bank Aval (BAVL) finally passed its resistance barrier of 12 kopecks, advancing by 2.9% for the week. In London trading, Avangard (AVGR) slumped back to USD 0.45, losing 40% of its value after what had been a recent rebound, while iron ore major Ferrexpo (FXPO) rallied by 9.1% to GBp 81.0. In Warsaw, Kernel (KER) and Astarta (AST) both moved up by 1.0% , with the latter closing at PLN 53.00. On the currency front, the hryvnia strengthened by a moderate 0.3% to 25.90 UAH/USD amid news that the country’s foreign currency reserves rose back above USD 15bn.
POLITICS AND ECONOMICS
- Obama Toughens Line on Russia, Accuses Putin Regime of Election Interference
- IMF Expects to Provide Add’l USD 1.3bn to Ukraine by Year-End
- NBU Reserves Jump 10% to USD 15.6bn in September
STOCKS IN THE NEWS
- MPs Claim UkrNafta Asset Stripping; Tax Debt Reaches USD 460mn
- Ferrexpo’s Output Down 8% QoQ in 3Q and 4% YoY in 9M16
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