Ukrainian Stocks Remain Mixed
Global equity markets saw
heightened volatility, with gains early last week giving way to a sharp selloff
on Friday. The S&P 500 ended the week down 1.5%, bringing its year-to-date
decline to 5.1%.
Ukrainian stocks listed on foreign exchanges posted mixed performance. Shares of Ferrexpo (FXPO)
slumped 7.9% to GBp 58.40 (MCap of USD 451mn) after the company disclosed
a halt in VAT refunds in a London Stock Exchange filing.
MHP (MHPC) shares remained flat at
USD 6.10 (MCap of USD 653mn).
Kernel (KER) outperformed, climbing
2.5% to PLN 20.80 (MCap USD 1.6bn). The stock has surged 60% year-to-date
from PLN 13.00 on optimism over a potential end to the war in Ukraine.
Hryvnia Stands Virtually Unchanged
The cash exchange rate inched down by 0.1% to 41.65 UAH/USD.
On the interbank market, the
National Bank sold additional USD 845mn to balance the demand for
the hard currency from importers. The IMF in its latest macroeconomic review
pointed that Ukraine’s current account deficit would
amount to USD 32.8bn this year (-15.9% of GDP). The National Bank has spent USD
9.0bn since the start of the year to prop up the hryvnia. However, the FX
intervention should aim to limit excessive exchange rate volatility without
compromising the shock-absorbing role of the exchange
rate. To curb unproductive FX outflows, the regulator will continue to closely
monitor outflows and limit FX securities trading.
POLITICS AND ECONOMICS
- IMF Approves USD 400mn Tranche to Ukraine
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