Kyiv-listed stocks saw mixed trading last week as the National Bank increased its key policy rate from 8.0% to 8.5%. Overall, the economic and political news flow was generally dry. The UX index declined by 0.8% to 1832 points after TurboAtom (TATM) plummeted by 17% to UAH 6.50, reacting to the risk of minority shareholder dilution as a result of TurboAtom’s merger with ElectroTyazhMash. UkrNafta (UNAF) and CentrEnergo (CEEN) were flat at UAH 255 and UAH 9.50 per share respectively. On the upside, DonbasEnergo (DOEN) recovered by 3.4% to UAH 15.00 and Raiffeisen Bank Aval (BAVL) bounced back by 3.0% to 45.00 kopecks. In the second tier stocks, Krukiv Wagon (KVBZ) added 2.4% to UAH 19.00 despite the company’s poor financial performance so far this year.
London-listed Ukrainian stocks were mostly higher for the week, with the largest gain in JKX Oil&Gas (JKX), which surged by 16.8% to GBp 36.20 per share. The stock is responding to the rally in natural gas prices in Europe which recently topped a historical high of USD 700 per 1,000 cubic meters. Enwell Energy (former Regal) rose by 6.4% to GBp 31.50. Poultry giant MHP (MHPC) gained 10% to USD 6.60 while iron ore miner Ferrexpo (FXPO) edged down by 1.9% to GBP 3.82.
In Warsaw trading, Ukrainian agro companies were broadly higher with Kernel (KER) adding 1.9% to PLN 58.10 and Agroton (AGT) jumping by 7.0% to PLN 8.52.
The hryvnia had a positive reaction to the NBU’s rate increase, gaining 0.8% against the dollar last week to 26.68 UAH/USD. Nevertheless, we reiterate our forecast that the hryvnia will begin its seasonal devaluation pattern later this month.
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