The Ukrainian hryvnia strengthened by 20 kopecks to 36.39 UAH/USD on the interbank market last week. Despite traders continuing to buy more currency than they sell, the National Bank, through its interventions, is keeping the hryvnia from weakening. We believe this could be part of the regulator’s strategy to facilitate a smooth transition to a more market-oriented exchange rate formation. During the week, the National Bank expended USD 575mn from its reserves for interbank sales, and so far this year, the National Bank has sold USD 21bn.
In the domestic stock market, there is a sense of calm. Thermal power generator CentrEnergo (CEEN) is trading in the range of UAH 8.60/10.60 (bid/ask), and Raiffeisen Bank (BAVL) shares are priced at UAH 0.26/0.28.
Among Ukrainian stocks traded on foreign exchanges, Milkiland (MLK) saw a 5.1% decline to PLN 0.74 (a 16% decrease since the beginning of the year). The current market capitalization of Milkiland is approximately USD 5 mn. On the upside, Astarta (AST) shares rose by 4.5% to PLN 31.65 (+55% YTD), with a current market capitalization standing at USD 179mn.
In the war developments, Ukraine hit russian navy ships with sea drones, as Kyiv continued a series of strikes against moscow’s Black Sea Fleet. The attacks on the Black Sea Fleet, which is based in occupied Crimea, have demonstrated Ukraine’s ability to operate in kremlin-controlled waters but do not appear to have seriously reduced moscow’s capabilities. Earlier, the russia military launched waves of deadly missile attacks on Ukrainian cities and civilian infrastructure from its sea-based missile carriers. Meanwhile, a group of over 50 countries that support Ukraine, announced further aid to Ukraine, including F-16 jets and training, as well as air defences, ammunition, and demining equipment.
POLITICS AND ECONOMICS
- Consumer Inflation in Ukraine Stands at 7.1% YoY in September Slowing from 8.6% YoY in August
The National Bank of Ukraine has opened a special fundraising account to support the Armed Forces of Ukraine. Please find more at the National Bank’s official website under the link below:
www.bank.gov.ua
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