Equity
Kyiv-listed equities enjoyed a sharp rally last week as expectations of strong corporate reports for 4Q16 triggered buying activity. The first blue chip company that unveiled preliminary financial results was Raiffeisen Bank Aval (BAVL). The bank earned net profit of 2.11 kopecks per share in the fourth quarter, bringing its net profit to 6.21 kopecks per share for FY16. The stock surged 9.1% to 15.30 kopecks, its highest level since July 2014. In economic news, the government estimated the country’s 4Q GDP growth at a very impressive 4.6% YoY. The figure considerably exceeds our own projection and was a positive surprise for the market, although we suppose it is due to an upward revision in the national harvest figure and is unlikely to be repeated in 1Q17.
The UX index jumped 4.3% to 902 points; it has been in a general upward corridor since March 2016, when the gauge bottomed at 530 points. Motor Sich (MSICH) finally climbed above the UAH 2000 resistance line, gaining 3.1% to UAH 2056 per share. UkrNafta (UNAF) rose 5.5% to UAH 119 ahead of its 4Q16 profit announcement.
In London trading, Ferrexpo (FXPO) added 7.0% to close at GBp 164. JKX Oil & Gas (JKX) reacted moderately to a court ruling that the company is owed USD 12mn by Ukraine’s government for excessive production taxes. The stock was little changed at GBp 30. Warsaw-listed Agroton (AGT) resumed its wild rally, shooting up 28% to PLN 7.15 after corrected by 12% over the preceding week.
The hryvnia finished essentially unchanged for the week, with interventions from the NBU dampening some appreciation pressure. The national currency ended at 27.25 UAH/USD on Friday (Feb 10) despite an intra-day attempt to strengthen to 27.00 UAH/USD.
POLITICS AND ECONOMICS
- Lavrov Complains Ukraine Not Meeting Decentralization Promise
- Headline Inflation Inches Up to 12.6% after January Data
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