Kyiv-listed stocks ended mixed last week in low trading activity amid a generally dry news flow. In the latest statements from the IMF regarding Ukraine, the Washington-based institution said that direct losses from corruption are costing the country several billion dollars, or about 2% of GDP, every year. The IMF also said it is still evaluating recent Ukrainian pension legislation to see if the bill meets the targets of the USD 17.5bn loan program. Sustainable pension reform, privatization, and a domestic heating tariff hike are the goals Ukraine must meet to qualify for the substantially-delayed next disbursement from the program, which also went off track during most of 2016.
The UX index rose by 1.2% to close at 1269 points. Aviation engine producer Motor Sich (MSICH) was the top gainer, advancing by 6.0% to a fresh 3-year (UAH-denominated) maximum of UAH 3250 per share. Meanwhile, Raiffeisen Bank Aval (BAVL) fell 2.9% to 28.10 kopecks after news that the bank might try to use Ukraine’s squeeze-out legislation to buy up its small 1.72% free-float. However, it is not clear to us that Raiffeisen Aval is eligible to use the squeeze-out option, as 30% stake in the bank belongs to the European Bank for Reconstruction and Development (EBRD). Electricity sector stock CentrEnergo (CEEN) finished 0.8% higher at UAH 11.25, while UkrNafta (UNAF) was inactive at UAH 143 per share.
In London trading, Ferrexpo (FXPO) inched down by 0.3% to close at GBp 258, and MHP (MHPC) corrected by 3.4% to USD 11.35 after briefly touching the USD 12 level.
On the Warsaw Stock Exchange, Kernel (KER) remained under pressure, dropping 6.4% to PLN 45.50. The company announced that it had received a notification from the large Polish fund TFI PZU regarding the sale of some of its shares in Kernel. The fund reduced its stake in Kernel from 10.27% to 9.23%.
On the interbank currency market, the hryvnia strengthened notably by 1.6% to 26.51 UAH/USD after the NBU reported that the country’s foreign currency reserves increased by 0.5% to USD 18.7bn in October.
POLITICS AND ECONOMICS
- Ukraine Ignored in US-Russia Statement After Trump-Putin Meeting; Trump Walks Back Comments Dismissing US Intel Findings
- Ukraine Headline Inflation Slows to 14.6% in October
STOCKS IN THE NEWS
- Astarta’s Net Profit Slips 6% YoY to EUR 74mn in 9M17
full report
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