Equity
Kyiv-listed stocks enjoyed firm growth last week after a new ceasefire agreed by the so-called “Normandy Four” went into effect in Eastern Ukraine aimed at ending a spike in fighting that occurred during the preceding 4 weeks. The Ukrainian side once again emphasized that the withdrawal of heavy arms by Russia is a key element in the Minsk agreement, which was negotiated two years ago but has seen key political and military points remain un-implemented.
The UX index rose 1.3% over the week to close at 932 points. UkrNafta (UNAF) led the growth, advancing 3.2% to UAH 124 per share amid the firm oil price environment. Motor Sich (MSICH) also performed well, adding 1.1% to UAH 2175. CentrEnergo (CEEN) gained 1.9% to UAH 11.34 despite the ongoing anthracite coal supply disruption, and we assume that rumors that the company will report earnings of UAH 3.00 per share for FY16 was the primary driver for the stock.
London-listed Ferrexpo (FXPO) slid 6.2% to GBp 160 on profit-taking, as it appears that the long rally in iron ore prices has finally stalled. MHP (MHPC) picked up 1.7% to USD 9.15 after the company reported that it managed to sell its assets located in Crimea at a fair price to an undisclosed buyer. In Warsaw trading, Kernel (KER) and Astarta (AST) were little changed over the week, with the latter ending at PLN 61.20.
The hryvnia finally strengthened above the 27 UAH/USD line after several weeks of flirtation. Although the NBU continued to intervene to prevent a sharper hryvnia appreciation by purchasing foreign currency on the interbank market, the hryvnia still gained 0.6% to close at 26.95 UAH/USD.
POLITICS AND ECONOMICS
- Firtash Extradition Request to US Granted in Vienna
- UkrStat: Industrial Output Rose 5.6% YoY in January
STOCKS IN THE NEWS
- CentrEnergo Pivoting Away from Anthracite Amid Supply Concerns
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