Ukrainian stocks were moderately higher last week amid renewed attention to the situation on the front line with the Donbass occupied territories. Russian President Putin surprised many observers by calling for a United Nations peacekeeping mission in the conflict zone. Previously, Moscow had always been firmly against any UN involvement. Putin’s proposal was for a UN presence along the contact line between the separatist forces and Ukraine. The offer, however, was immediately panned by Kyiv for ignoring the key issue of Ukraine’s continuing lack of control over the pre-2014 Ukraine-Russia border, which is far inside the separatist lines.
The UX index inched up 0.1% to close at 1136 points in light activity. Raiffeisen Bank Aval (BAVL) added 0.7% to 27.90 kopecks while CentrEnergo (CEEN) retreated by 0.4% to UAH 11.15. Motor Sich (MSICH) gained 0.8% to UAH 2550 but failed to show a more substantial increase, with UAH 2570 appearing to be a firm sell level for an active trader of the stock.
In London trading, red-hot Ferrexpo (FXPO) finally saw a minor correction, dropping 3.8% to GBp 303 per share after news that Ukrainian Railways is raising cargo tariffs by 22% starting from October. Ferrexpo uses the state railways for delivery of its iron ore pellets to Black Sea ports. MHP (MHPC) remained above the USD 11 level, trading near USD 11.50 per share. In Warsaw-listed Ukrainian stocks, sugar producer Astarta (AST) suffered a 2.8% drop after the Prosecutor General’s office raided the company’s head office over alleged tax evasion. Astarta said that for several hours, the operations of the company and its subsidiaries were off line due to the raid. In addition, some of its bank accounts have been blocked.
On the currency market, the hryvnia weakened by 1.1% against the dollar to close at 26.07 UAH/USD amid a manifestation of the currency’s historical weakness at the start of autumn.
POLITICS AND ECONOMICS
- Saakashvili Defies Poroshenko, Re-Enters Ukraine from Poland
- Kyiv Expected to Refinance 2019 Eurobonds With New Issue
- NBU Reserves Rise to USD 18bn Ahead of USD 500mn Coupon Payment
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