Ukraine’s domestic stock market got a boost last week after several encouraging corporate announcements. First of all, the country’s largest oil company UkrNafta finally received an extension of 9 of its core production licenses. Also there was news about increased activity on Ukraine’s M&A market involving foreign investors, and we believe that investors are starting to see more reasons for optimism about economic growth. The latest UkrStat statistics back such assumptions, with output in the manufacturing sector surging by 5.6% YoY in August.
On the political front, however, Ukraine once again made negative global headlines after a huge arms depot storing missiles caught fire in Vinnytsia province, forcing large evacuations of the local population in what looked like a clear case of sabotage.
The UX index added 4.8% to close at 1185 points. UkrNafta (UNAF) was in the spotlight, jumping 13.8% to UAH 142 per share thanks to the production license restoration, and Motor Sich (MSICH) shot up by 12.7% to UAH 2900 after an appearance at the company’s headquarters by prominent MP Oleg Lyashko. On the downside, CentrEnergo (CEEN) suffered a 6.1% drop after the company announced its intention to de-list its shares from public trading. The issue will be voted on at a shareholder meeting scheduled for Oct 11.
In London trading, Ferrexpo (FXPO) was rather inactive, ending the week essentially unchanged at GBp 290. Warsaw-listed Kernel (KER) declined by 1.3% to PLN 55.60 and low-liquidity Agroton (AGT) fell 8.5% to PLN 4.22.
The hryvnia remained in its local downward trend, giving up another 1.2% against the dollar to close at 26.58 UAH/USD.
POLITICS AND ECONOMICS
- Weapons Depot Fire Shuts Down Major Transport Corridor
- Industrial Output Up 1.2% YoY in August Amid Strong M’facturing
STOCKS IN THE NEWS
- Gov’t Extends UkrNafta Production Licenses for 20 Years
full report
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