Ukrainian equities ended mostly lower last week, weighed down by a report that the European Bank for Reconstruction and Development (EBRD) has downgraded its forecast for Ukraine’s 2016 GDP performance. The EBRD cut its growth expectation for the country to 1.5% from 2.0%, although it left its forecast for 2017 growth at 2%. In Donbass-related news, Kyiv requested an unrealistically-high figure of 18,000-20,000 officers for the proposed OSCE armed police mission, whose purpose would be ensure security at elections that are eventually supposed to take place on the occupied territories. As previously, there is no consensus on the details of the armed mission between the Ukrainian and Russian sides, as well as the separatist governments. The OSCE has so far provided only 700-800 monitors, claiming it is difficult to find qualified people to join the mission.The UX index edged down 0.3% to close at 836 points on Friday (Nov 4). Low-liquidity DonbasEnergo (DOEN) took most points off the gauge, tumbling 9.4% to UAH 11.00. On the upside, Raiffeisen Bank Aval (BAVL) gained 4.5% to reach the 13-kopeck level after posting impressive earnings per share of 1.7 kopecks for the third quarter. London-listed Ferrexpo (FXPO) slipped 2.9% to GBp 101 as a moderate rebound of the British pound against the dollar prompted adjustments in many GBP-denominated issues. In Warsaw, Kernel (KER) lost 3.2% to PLN 59.90 and Astarta (AST) fell 6.2% to PLN 50.00 per share amid overall downward momentum on European bourses. The hryvnia weakened by 0.4% to 25.55 UAH/USD over the week on the interbank market, as the NBU continued to purchase foreign currency in order to prevent short-term hryvnia appreciation.
POLITICS AND ECONOMICS
-Tranche from IMF Helps Ukraine Reach BoP Surplus in 3Q
STOCKS IN THE NEWS
- Raiffeisen Aval Reports Impressive UAH 1.1bn Profit for 3Q16
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