Kyiv-listed stocks finished mixed over a shortened trading week, with Ukraine’s new national military holiday taking effect on Friday (Oct 14). There was a new wave of speculation about whether the country is fully prepared for the winter season, which traditionally sees a cushion level of natural gas and coal inventories in case of a colder-than-average winter. There have been skeptical opinions in this regard, since the government is starting off the 2016/17 winter heating season with gas reserves of 14.8bn cubic meters (cu-m) instead of the 17-19bn cu-m (mostly Russian imports) of recent years in storage to cover domestic consumption and guarantee stable gas transit to Europe. Ukraine’s last 3 winters have been warmer-than-average. The UX index closed essentially unchanged for the week at 841 points. News that UkrNafta (UNAF) finally clinched a direct relationship with an oil refining plant did not help the oil company’s stock, with UNAF shares slipping 0.2% to UAH 127. Motor Sich (MSICH) was inactive near UAH 1925 per share, while Raiffeisen Bank Aval (BAVL) rose 2.4% to 12.4 kopecks on expectations of a strong earnings report for 3Q16. In London trading, Ferrexpo (FXPO) reached a new two-year maximum of GBp 97.75, which was a consequence of both the pound’s sharp devaluation against the major global currencies, and the company’s confidence that it will post EBITDA of USD 300mn for FY16. In Warsaw, Kernel (KER) was nearly flat at PLN 59.70 while Astarta (AST) added 1.2% to PLN 53.60 on reports that Ukraine’s sugar exports hit a 5-year high in September. On the interbank currency market, the NBU was buying up offered hard currencies at a bid of 25.81 UAH/USD, keeping the hryvnia more or less unchanged for a third straight week at a level near 25.90 UAH/USD.
POLITICS AND ECONOMICS
- Ukraine Getting EUR 150mn Loan for Infrastructure from Germany
STOCKS IN THE NEWS
- UkrNafta Improves Its Downstream Outlook by Signing Direct Refinery Contract
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