Kyiv-listed stocks ended mixed last week after the local market was stunned by a court ruling that suspended trading in Motor Sich, one of the most liquid issues on the Ukrainian Exchange. A Kyiv court temporarily froze circulation of MSICH shares amid a criminal investigation into the non-transparent sale of majority stake in Motor Sich to Chinese individuals affiliated with Beijing Skyrizon Aviation. In other developments around Motor Sich, the Ukrainian Security Service (SBU) searched the headquarters of Motor Sichs in Zaporizhia on Apr 23, stating that Skyrizon Aviation Industry Investments had bought a controlling stake in Motor Sich in 2017 from majority owner Viacheslav Boguslaev without the Anti-Monopoly Committee’s approval. The SBU claimed that this purchase was part of a “sabotage plot” to give foreigners control over one of Ukraine’s strategic factories in order to damage the country’s defense industry. Motor Sich is Ukraine’s monopoly aircraft engine producer.
The UX index lost 1.1% over the week to close at 1799 points on Friday (April 27). Importantly, the gauge performance was calculated without the inclusion of Motor Sich, which has a 27% weight in the index basket. There is no information on when trading in MSICH might resume. The company was unable to hold its annual shareholders meeting on Apr 25 as a result of the stock freeze. Among other blue chip names, Raiffeisen Bank Aval (BAVL) fell 1.4% to end at 36.40 kopecks despite the approval of a dividend payout of 6.90 kopecks per share at the annual shareholder meeting on Apr 27. The ex-rights date for the dividend will be set separately by the bank’s supervisory board. CentrEnergo (CEEN) sank 2.6% to UAH 20.80 after the company reported worse than expected financial results for 1Q18.
Ukraine’s top liquid name Ferrexpo (FXPO) shed 3.0% to GBp 230 per share in London, with the stock unable to escape its downward direction caused by further slippage on the iron ore market. Warsaw-listed Kernel (KER) declined by 1.0% to PLN 48.10.
On the currency market, the hryvnia edged down 0.2% against the dollar to end the week at 26.22 UAH/USD.
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