Kyiv-listed stocks finished essentially unchanged on Friday (Jul 3), with news that the IMF has reached a staff-level agreement with Ukraine on the policies needed for disbursement of the next USD 1.7bn loan tranche not sufficient to spur purchases. The UX index inched up by a mere tenth of a percent to close at 1015 points. Heavyweights Motor Sich (MSICH) and CentrEnergo (CEEN) were the only actively traded names, and ticked up by 0.2% each, with the former ending at UAH 2738 per share. Raiffeisen Aval (BAVL) showed little reaction to a bill passed by Parliament that allows households to convert their foreign-denominated loans into hryvnia at a privileged exchange rate; the stock edged down by 0.3%. However, there are strong expectations that President Poroshenko will refuse to sign the bill. In London trading, Ferrexpo (FXPO) fell 1.6% to GBp 65.00 following another downward move in iron ore prices. Warsaw-listed Kernel (KER) retreated by 0.8% to close at PLN 37.90.
Fixed Income
Ukrainian sovereigns were higher across the board on Friday on optimism regarding restructuring talks, with Ukraine-23s improving by 1.6p.p. to 53.8/55.0 (19.2%/18.7%). Corporate names were sluggish. MHP-20s finished unchanged at 80.2/82.1 (14.1%/13.5%) and Metinvest-18s edged up by 0.3p.p. to 57.0/60.0 (35.3%/32.7%).
POLITICS AND ECONOMICS
- Poroshenko Likely to Veto Populist Banking Law
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