Kyiv-listed stocks finished mixed last week, mostly ignoring the volatility on global financial markets after the U.S. election. Four years of President Donald Trump in the White House, a once-unimaginable scenario, could launch a period of deep uncertainty about the policies of his administration regarding Russian military aggression against Ukraine. President Poroshenko has announced a possible visit to Washington in February to reach out to his new counterpart. However, the general consensus is that Ukraine will have less support from the US under a Trump presidency than under current President Obama.
The UX index edged up 0.2% to close at 837 points on Friday (Nov 11). UkrNafta (UNAF) was the biggest loser among the five remaining stocks in the index basket. UNAF shares fell 4.1% to UAH 116 amid a negative move in oil price benchmarks. Motor Sich (MSICH) was unchanged at UAH 1909, while Raiffeisen Bank Aval (BAVL) remained in an upward trend, adding 2.0% to 13.4 kopecks.
London-listed Ferrexpo (FXPO) rebounded by 10% to GBp 111 after two weeks of decline. We see mostly technical reasons for the rebound, as GBp 100 line has become a strong support level for the stock from the chart point of view. MHP (MHPC) once again failed to reach the USD 10 mark, slipping back 3.5% to USD 9.05. Warsaw-listed Astarta (AST) gained 2.5% to close at PLN 51.35 after the company reported solid financial results for 9M16.
The hryvnia slipped 0.4% against the dollar, closing at 25.65 UAH/USD, although the cash market rate for the dollar, which usually front-runs the interbank market, slumped 4.5% to 26.50 UAH/USD on concerns about the unexpected US election result. News that the NBU’s forex reserves were flat at USD 15.5bn in October had a limited impact on the interbank market.
POLITICS AND ECONOMICS
- Saakashvili Boosted by Trump Win, Demands Early Nat’l Election
- Trump Appoints Priebus as Chief of Staff After Upset Win over Clinton
- Headline Inflation Rises to 12% in October on Utility Tariff Hike
STOCKS IN THE NEWS
- Astarta’s EBITDA Up 19% YoY to EUR 129mn in 9M16
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