Locally-listed Ukrainian equities were in a sideways trend during the 3-day trading week shortened by the May 1-2 Labor Day double-holiday. A dry news flow and low liquidity on the market led to light activity but with a soft attempt to swing the market up and down. Among positive developments, Ukraine received a beneficial European Parliament decision to increase import quotas for agricultural products. This will allow the country to expand agro exports to Europe by about USD 200mn this year. Assistance to Ukraine’s economy was also approved last week by the US Congress. The Senate and House of Representatives passed an appropriations bill under which Ukraine should get not less than USD 560mn in grants and aid this year. The bill still needs to be signed by the US president.
The UX index ended 0.2% lower at 1020 points. CentrEnergo (CEEN) the took most points from the gauge, dropping 1.5% to UAH 10.50 per share. Aircraft engine maker Motor Sich (MSICH) edged down 0.8% to UAH 2130, while Raiffeisen Bank Aval (BAVL) edged up 0.4% after an announcement that the bank earned UAH 1.44bn in net profit in 1Q17.
In London, Ferrexpo (FXPO) slid 4.9% to GBp 150 per share. The company does not report quarterly results, making it harder for investors to evaluate the impact of global iron ore price turbulence on Ferrexpo’s bottom line. MHP (MHPC) was little-changed, slipping half a percent to USD 10.20. In Warsaw, Kernel (KER) lost 0.5% to close at PLN 68.70 as some traders bet that falling crude oil prices could negatively affect soft commodities. Lugansk-based crop grower Agroton (AGT) finished unchanged at PLN 7.30.
The hryvnia remained firm against the dollar last week, rising by 0.2% to close at 26.50 UAH/USD. The NBU said it was purchasing foreign currency on the interbank market to prevent stronger short-term hryvnia appreciation.
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