Locally-listed Ukrainian blue chips were higher on Wednesday (Feb 5),
as a sharp slide in the country’s currency to below UAH 9 against the dollar in
interbank trading encouraged inflation in hryvnia-denominated assets. The
currency market appears to believe that the National Bank has given up trying to
defend the hryvnia-dollar peg and that further devaluation will follow. A number
of analysts have stated that the hryvnia is overvalued and that the slide may
actually benefit the Ukrainian economy. The UX index added 1.1%, closing at 893
points. DonbasEnergo was the biggest winner, jumping 3.6% to UAH 32.50, and
volume leader Motor Sich picked up 2.2% on turnover of UAH 3.0mn. CentrEnergo
and Avdyivka Coke moved up in line with the benchmark, and UkrNafta appreciated
by 1.7% to UAH 131. In London, beaten-down Ferrexpo rebounded by 2.9%, while MHP
was unchanged despite news that Russia’s regulatory authority has banned its
poultry exports. In Warsaw, egg producer Ovostar lost 2.1% to end at PLN 80.
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