The most liquid Ukrainian stocks extended their year-end rally last week, rising on expectations of higher corporate profits and possible dividends. The UX index advanced by 3.0% to finish at 1337 points, bringing its rise for 2017 to 68%.
Aviation engine producer Motor Sich (MSICH) was the biggest gainer in the 5-stock blue chip basket, surging 10% to UAH 3630 per share after news that the company has received an order for light helicopters from the Emergency Ministry. Although the announced order will account for just 5% of the company’s expected order book for 2018, this demonstration of Motor Sich’s ability to fully assemble helicopters in-house impressed investors.
The shares of electricity generator CentrEnergo (CEEN) separated themselves from the UAH 12 level, adding 2.0% to UAH 12.26. Meanwhile, UkrNafta (UNAF) disappointed again, falling 2.7% to UAH 135 after unconfirmed media reports that the company paid out dividends to controlling non-government shareholder Privat Group even as dividend payments to all other minority shareholders remained frozen. In second tier names, Krukiv Wagon (KVBZ) added 4.1% to close at UAH 10.40 after the country’s state-owned railway operator UkrZaliznytsa (UZ Rail) unveiled plans to buy up to 10,000 new freight railcars next year. However, it is uncertain whether UZ Rail will choose Krukiv for the contract or turn to other producers.
London-listed Ferrexpo (FXPO) shot up by 7.9% to GBp 287 after price forecasts for iron ore improved for 2018, while low-liquidity MHP (MHPC) edged down 0.3% to USD 11.45 per share.
On the Warsaw Stock Exchange, Agroton (AGT) lost 11.4% to PLN 3.82 while IMC (IMC) gained 0.6% to end the week at PLN 12.48.
On the currency front, the hryvnia continued to suffer from devaluation expectations after the government earlier this month admitted that it sees the currency ending 2018 down nearly 10% from current levels. The hryvnia lost another 1.0% against the dollar to close at 27.94 UAH/USD. The National Bank said it sold about USD 100mn at a special auction on Friday (Dec 22) to help meet dollar demand.
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