Kyiv-listed equities finished mixed last week ahead of the Easter holiday weekend. In major economic news, the NBU unexpectedly decided to cut its key refinancing interest rate from 14% to 13%, ignoring the latest data that consumer inflation accelerated to 15% YoY. In making the rate cut, he NBU restated its forecast that inflation will slow to 9.1% YoY by the year-end. The central bank’s policy decisions may see some changes in the short term, as current governor Valeria Gontareva announced her resignation last week after almost three years in the post.
The UX index lost 3.2% to close at 1038 points, correcting after three weeks of strong growth. UkrNafta (UNAF) was the main culprit, slumping 17% to UAH 112 per share after the company unveiled an enormous 4Q16 net loss of UAH 161 per share caused by the sudden write-off of unpaid receivables related to suspicious oil sale transactions. On the upside, CentrEnergo (CEEN) climbed 0.4% to UAH 10.73, supported by news that Parliament adopted a new law on electricity regulation that is aimed at eliminating the non-transparent state intermediary EnergoRynok. Raiffeisen Bank Aval (BAVL) remained in its upward trend, adding 0.4% to 25.30 kopecks.
In London, iron ore producer Ferrexpo (FXPO) slid 7.3% to GBp 155 per share following a notable correction in iron ore benchmark prices, which now stand at USD 75 per tonne, down from a peak of USD 95 in late February. Low-liquidity issue MHP (MHPC) was flat near USD 10, and Warsaw-listed Astarta (AST) was also little-changed at PLN 67.50 after reporting a rather weak profit for 4Q16. Highly volatile Agroton (AGT) recovered part of its recent losses, adding 5.0% to close at PLN 6.84 per share. The stock’s local maximum was PLN 7.15 per share in mid-February.
The hryvnia strengthened by 0.5% to 26.82 UAH/USD, supported by the arrival of IMF and EU aid.
POLITICS AND ECONOMICS
- Tillerson Pays Lip Service to Minsk Deal in First Moscow Visit
- Headline Inflation Accelerates to 15% in March
STOCKS IN THE NEWS
- UkrNafta Reports Stunning USD 350mn 4Q16 Loss
- Astarta Announces FY16 Profit of PLN 14.35 Per Share
full report
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