Ukrainian equities ended lower last week following a correction on global stock markets. Internal developments also played a role as news that the IMF has delayed the next loan installment to Ukraine weighed on investors’ mood. Kyiv has been unable to deliver on its commitment to liberalize land sales. On the other hand, a pension overhaul, which was developed in close cooperation with the IMF and World Bank, could be approved later this month. The pension reform foresees a more transparent and fairer pension calculation formula that more closely ties pension benefits to pension contributions. The reform also establishes a flexible retirement age, linked to the length of the formal career of an individual.
The UX index lost 0.9% to close at 1038 points. Motor Sich (MSICH) took most points from the gauge, slipping 4.0% to UAH 2500 as there was no official confirmation about whether the company managed to increase its order book for helicopter engines after the International Paris Air Show at Le Bourget. CentrEnergo (CEEN) picked up 0.4% to close at UAH 10.60 while Raiffeisen Bank Aval (BAVL) shed 0.5%, finishing at 22.50 kopecks per share.
In London trading, Ferrexpo (FXPO) retreated 0.9% to GBp 205 after the company reported that its output decreased by a significant 9.8% YoY to 5.2mn tonnes of pellets in 1H17. Warsaw-listed Kernel (KER) firstly did not react to the company’s announcement about acquisition of 27,500 hectares of new land-leasing rights. However, the stock later advanced by 3.6% to PLN 67.20. Agroton (AGT) ticked up 0.4% to PLN 6.10 while Astarta (AST) was little-changed near PLN 65.50.
On the currency front, the hryvnia inched up 0.2% to 26.05 UAH/USD after the National Bank left its key policy rate unchanged at 12.5% at the meeting on Jul 6. The NBU did not change its inflation projections for 2017-2018, forecasting inflation of 9.1% for 2017 and 6.0% for 2018.
POLITICS AND ECONOMICS
- Tillerson: No Change in Russia Sanctions Policy After Summit
- IMF Program Slips off Track Again as USD 1.9bn Tranche Delayed
- Ukraine Reserves Reach Highest Level Since 2013 at USD 18bn
STOCKS IN THE NEWS
- Kernel Acquires Agro Company With 27,500 ha of Farmland
full report
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