Stocks listed on the local Ukrainian Exchange were mixed last week, with the UX index slipping by 0.5% to 1768 points due to a decline in heavyweight index basket member UkrNafta (UNAF) by 6.8% to UAH 205 per share. The UNAF stock took a hit after information that the company’s key minority shareholder Igor Kolomoyskiy is being sanctioned by the United States due to his involvement in major corruption. Kolomoyskiy’s reputation deteriorated after his PrivatBank had to be nationalized and bailed out in December 2016 due to the siphoning off of billions of dollars via insider loans. Kolomoyskiy is also accused of laundering hundreds of millions of dollars though US-based shell companies and real estate assets.
In other local blue chips, CentrEnergo (CEEN) gained 3.0% to UAH 8.50 after the State Property Fund once again reshuffled the company’s top management and said that CentrEnergo finished last year with a marginal net profit of UAH 50mn, implying an EPS of 14 kopecks. Raiffeisen Bank Aval (BAVL) rose 3.1% to 49.50 kopecks, bouncing back after its correction seen at the end of February.
In Motor Sich (MSICH) related developments, Ukraine’s ruling Servant of the People Party said it is considering an option to nationalize the aerospace giant. There is no understanding in what form the possible nationalization could occur, however. Currently Motor Sich shares are frozen by a court ruling issued back in 2018. The company came under pressure after Chinese investors bought a majority stake without agreeing this purchase with Ukraine’s Anti-Monopoly Committee.
Ukrainian companies listed in London were mostly lower for the week. Poultry producer MHP (MHPC) shed 2.7% to USD 5.70 as investors have a skeptical view on MHP’s plans to increase its presence on the Ukrainian retail market by opening small franchise meat shops. Ferrexpo (FXPO) edged down by 1.0% to GBp 332.
In Warsaw trading, Astarta (AST) fell 11% to PLN 41.50 amid ongoing profit-taking from the stock’s big recent rise, and Agroton (AGT) dropped by 12% to PLN 6.28. Top liquid issue Kernel (KER) had a somewhat better performance, losing only 0.7% to close at PLN 54.30.
The hryvnia gained 0.8% to 27.77 UAH/USD after the National Bank raised its key interest rate to 6.5% from 6.0% on Mar 4.
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