Equity
Kyiv-listed stocks performed poorly after an announcement about the latest failure of the state to sell the Odessa Port-Side Chemical Plant (OPP), a company that the government hoped would be considered as an example of investment attractiveness in Ukraine. The story reminded local equity traders that until systemic reforms are implemented, no investors will come to the country. The State Property Fund said it stopped accepting bids in the tender to purchase 99.6% of OPP on Dec 6. No potential buyers tendered a bid.
The UX index shed 1.9% for the week to close at 793 points on Friday (Dec 9). The five blue chips ended in the red. DonbasEnergo (DOEN) was hit the most, losing 6.5% to UAH 10.30 per share. CentrEnergo (CEEN) declined by 1.2% to UAH 10.25 mainly due to fears that the company’s expected privatization in 1H17 could follow the same failed path as the privatization of OPP. UkrNafta (UNAF) slipped 1.3% to UAH 108 continue to ignore the spike in oil prices.
London-listed Ukrainian iron ore giant Ferrexpo (FXPO) shot up by 12.7% to GBp 144 following a sharp rise in the iron ore benchmark price to USD 77 per tonne, part of a rally in commodities thanks to expectation of inflationary economic policies from the next US administration. The FXPO stock has been in an almost uninterrupted bull run since June, when the issue was below GBp 40. MHP (MHPC) declined 0.3% to USD 8.96 after the EU placed a temporary ban on poultry imports from Ukraine. MHP said that the EU market accounts for some 20% of the company’s export sales. In Warsaw trading, the main story was in Agroton (AGT), which jumped 30% to PLN 4.05 after the Lugansk-based company declared a strategy to increase its land bank to 200,000 ha by 2019. Kernel (KER) edged up 0.3% to PLN 65.50.
The hryvnia was unchanged for the week, closing at 26.00 UAH/USD on Friday (Dec 9). The NBU said it purchased foreign currencies on the interbank market during the week to prevent the hryvnia from appreciating.
POLITICS AND ECONOMICS
- Trump’s Pick of Putin-Friendly Oil Exec as Top Diplomat Faces Opposition
- NBU Reserves Remain Above USD 15bn after 1.6% MoM Drop
- Consumer Prices Up 1.8% MoM in November; Headline Inflation at 12%
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