The PFTS index decreased by 1.5% to 510 points last week after heavyweight issue UkrNafta (UNAF) lost 3.4% to close at UAH 140 per share. There was selling momentum in UNAF after the company was unable to win a tender to supply fuel to the Defense Ministry. CentrEnergo (CEEN) was again under pressure, sliding 4.3% to UAH 8.90, while Raiffeisen Bank Aval (BAVL) remained unchanged for a third week in a row at 30.80 kopecks.
In major macroeconomic statistics, there was disappointing data that industrial production in Ukraine contracted by 5.0% YoY in October. There are concerns that the Ukrainian steel sector could face additional challenges on the global market, which in turn would be negatively reflected in all other linked sectors.
In London trading, Ferrexpo (FXPO) remained on a local uptrend, advancing by 4.2% to GBp 148 per share, although we see GBp 150 as a likely resistance line for the stock given the weak outlook for iron ore pricing. MHP (MHPC) failed to extend its upward momentum from the previous week, falling back by 3.9% to USD 8.84.
Warsaw-listed Astarta (AST) rebounded by 6.9% to PLN 16.35 after the company secured USD 20mn financing from Deutsche Investitions und Entwicklungsgesellschaft (DEG) despite the company’s high Net Debt-to-EBITDA ratio of 7.7x. Kernel’s share price rose 1.6% to PLN 41.60 after the company posted mixed financial results for the Jul-Sept quarter. Kernel saw a 26% YoY drop in revenue in the reporting period but managed to increase its EBITDA by 6% YoY to USD 107mn. Sporadically-traded Agroton (AGT) lost 7.8% to PLN 3.54.
The hryvnia gained 0.7% over the week, breaking through the resistance level of 24 UAH/USD for the first time in more than three years. The currency pair closed at 23.97 UAH/USD on Friday (Nov 29).
POLITICS AND ECONOMICS
- Zelenskiy Faces Tricky Landscape Ahead of Dec 9 Paris Summit
- Ukraine Industrial Output Shrinks 5% YoY in October Amid Steel Sector Weakness
STOCKS IN THE NEWS
- Kernel Sees 20% YoY Net Profit Drop to USD 59mn in Jul-Sept Quarter
full report
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