Kyiv-listed stocks suffered a steep sell-off last week after the Ukrainian Exchange, which is the main trading platform for equity investors, faced a ban on its operating software after Ukraine’s National Security & Defense Council (RNBO) imposed sanctions against software produced in Russia. Currently the UX has no software to replace the existing electronic trading systems provided by the Moscow Stock Exchange, which until 2014 was the UX’s owner. The Ukrainian Exchange said it is working on a solution to this issue and has launched a tender for procurement of a new trading and clearing platform. The UX index slumped by 3.9% to close at 1610 points on Friday as a result of market players’ concern regarding a possible suspension in all trading.
Low-liquidity UX index component TurboAtom (TATM) was the biggest decliner, plummeting 8.0% to UAH 13.50 per share. Raiffeisen Bank Aval (BAVL), which had been immune to the previous week’s downward move in the gauge, dropped by 7.8% to 31.00 kopecks. The bank still has not announced the ex-rights date for its hefty 6.80 kopeck-per-share dividend from FY17 profit. UkrNafta (UNAF) fell 4.5% to trade near the strong technical support level of UAH 100 after the appearance of a rumor that NaftoGaz is considering a forced liquidation of part of UkrNafta’s assets in order to pay off the company’s tax debt. Meanwhile, Motor Sich’s (MSICH) stock remained frozen into a second month with no announcement on when circulation might be resumed.
London-listed Ferrexpo (FXPO) stopped its run of losses, edging up 1.5% to GBp 224, while MHP (MHPC) slipped 1.5% to close at USD 13.30. In Warsaw trading, Kernel (KER) shed 1.9% to PLN 51.50.
The hryvnia had only a muted reaction to the firing of well-respected Finance Minister Oleksandr Danyliuk, inching down 0.1% against the dollar last week to close at 26.15 UAH/USD. The National Bank reported that its foreign currency reserves decreased by 1.6% to USD 18.1bn in May, with the outflow mostly due to a USD 455mn redemption to the IMF. The NBU reported that it purchased a net of USD 181mn on the interbank currency market last month.
POLITICS AND ECONOMICS
- Poroshenko Silent on Trump Call for G7 to Re-Admit Russia
- Finance Minister Danyliuk Forced Out after 2 Years in Office
STOCKS IN THE NEWS
-UkrNafta Raises Oil Output Forecast to 10.6mn Barrels for 2018 Despite Liquidation Rumor
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