Locally-listed Ukrainian equities last week continued their encouraging January pattern of fluctuating in a wide upward corridor. The news flow regarding Ukraine was neutral, as the most buzz was coming from the World Economic Forum in Switzerland, where there is an annual elite mini-conference on Ukrainian affairs. In an interview with Bloomberg Television, President Poroshenko said he expects that Kyiv will receive a new loan disbursement from the IMF, as Ukraine “has met 80%” of its commitments. However, we remain rather skeptical that the IMF will disburse the delayed tranche of USD 1.9bn unless Poroshenko delivers on key anti-corruption measures.
The UX index edged up 0.7% over the week to close at 1437 points. UkrNafta (UNAF) was the most volatile stock over the week, slumping to as low at UAH 101 before recovering back to UAH 118, still a loss of 2.0%. In other Kyiv-listed blue-chips, CentrEnergo (CEEN) rose 3.9% to UAH 15.00 while Raiffeisen Bank Aval (BAVL) shed 0.3% to 29.00 kopecks.
In London trading, the big story was poultry giant MHP (MHPC), which surged 12.1% to USD 14.35 per share in several trading sessions of growth. We assume that the company finally fell onto radar of some large investment fund that started to aggressively accumulate a long position in the stock. Ferrexpo (FXPO) slid 3.1% to GBp 300, a move which we see as related to a valuation adjustment amid the recent sharp rise of the pound against the dollar. Warsaw-listed Kernel (KER) shot up 8.9% to PLN 53.00 after climbing above the technical resistance line of PLN 50.00.
The hryvnia found some strength after the National Bank raised its key policy rate from 14.5% to 16.0% at its board meeting on Jan 25. The hryvnia recovered 0.8% from its recent persistent decline to close at 28.54 UAH/USD.
POLITICS AND ECONOMICS
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STOCKS IN THE NEWS
-MHP’s Poultry Export Volume Rose 16% YoY in FY17
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