The Ukrainian Stock Exchange saw another week of mixed trading results. Raiffeisen Bank (BAVL) declined by 0.3% to 43 kopecks as rising inflation pressure might hurt the bank’s core lending business. The NBU is set to consider a revision of the key interest rate on Thursday (Dec 9), and we project a rate increase of 50 bps from 8.50% to 9.0%, as consumer inflation topped 11% YoY in October.
Hotly-traded UkrNafta (UNAF) got some relief after its shareholders failed to come to an agreement regarding the company’s asset split. UkrNafta’s special shareholders meeting called on Nov 30 did not take place as only 1.37% of shares were registered for the meeting. Neither government-controlled NaftoGaz nor large minority shareholder Privat Group showed up amid an ongoing lack of a deal on the details regarding the asset split. The UNAF stock rose 10.7% to UAH 310 per share as market players are hoping to get a better valuation of UkrNafta assets before its main shareholders ultimately split the company.
In other UX index stocks, CentrEnergo (CEEN) was unchanged at UAH 8.30 while low-liquidity DonbasEnergo (DOEN) surged by 9.9% to UAH 24.17 without any visible reason.
In London, iron ore giant Ferrexpo (FXPO) recovered by 5.0% to GBp 286, but MHP (MHPC) slumped by 8.2% to USD 6.70. The MHPC stock had no reaction to information that the stock will be included in the UX index.
In Warsaw trading, Ukrainian agro stocks rebounded strongly after the steep drop seen over the preceding week. Kernel (KER) jumped by 9.7% to PLN 60 and Astarta (AST) picked up 8.3% to close at PLN 45.10.
On the currency front, the hryvnia declined by 0.7% to 27.34 UAH/USD amid ongoing stability concerns posed by Russia. The National Bank defended the domestic currency, selling USD 150mn from its reserves during the week to prevent a steeper drop.
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STOCKS IN THE NEWS
- UkrNafta’s Asset Split Put On Hold as Shareholders Remain In Talks
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