Kyiv-listed equities were little changed amid a roller-coaster week for global stocks. Investors had concerns that the skyrocketing price for natural gas will hurt profit margins for most manufacturing companies. The UX index inched up by 0.2% to 1843 points in muted trading activity. Electricity producer CentrEnergo (CEEN) declined by 1.1% to UAH 9.20 as the rising price for coal is putting the company in a bad position. Currently we expect nothing good from the company’s 3Q21 financial report due at the end of the month. DonbasEnergo (DOEN) fell 6.7% to UAH 14.00. On the upside, Raiffeisen Bank (BAVL) gained 4.7% to close at 45.00 kopecks amid positive speculation about the bank’s net profit for the Jul-Sept quarter. UkrNafta (UNAF) added 0.8% to UAH 265 per share; the company’s implied market cap of USD 540mn is hardly reflective of the scale of UkrNafta’s business, which features both upstream and downstream oil&gas segments.
On the London Stock Exchange, JKX (Oil&Gas) decreased by 1.0% to GBp 48.50 after the company unveiled its intention to divest its Russian gas production subsidiary to focus on operations in Ukraine. Meanwhile, Enwell Energy (former Regal) advanced by 3.2% to GBp 40 on the nose. In other sectors, iron ore miner Ferrexpo (FXPO) was flat at GBp 310 and poultry maker MHP (MHPC) added 5.0% to USD 7.58 per share.
In Warsaw trading, Kernel (KER) picked up 6.3% to finish at PLN 63.80 after the company reported an outstanding net profit for its FY21 ending in June. However, the largest part of the profit came from successful soft-commodity trading operations, making investors skeptical whether Kernel can easily repeat that success.
On the currency front, the hryvnia strengthened by 0.9% to 26.38 UAH/USD. The National Bank had to intervene on the interbank market with foreign currency purchases to prevent the hryvnia from further speculative appreciation. There was a rumor that a large state-owned company has been selling foreign currency that it borrowed on the international market.
POLITICS AND ECONOMICS
- UkrEximBank CEO Suspended Amid Controversy over USD 60mn Loan
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