Locally-listed Ukrainian stocks enjoyed a third straight week of growth, piggybacking on positive global sentiments that occurred in the wake of last month’s Brexit vote; the negative development led investors to believe that central banks will respond with more monetary stimulus, pushing the S&P 500 and DJIA to new all-time highs. The UX index finished with a rise of 2.7% for the week at 718 points on Friday (Jul 15). All five UX blue chips were in the black. DonbasEnergo (DOEN) rose 0.4% to UAH 13.85 per share. However, the company remains a high-risk asset, as its main power plant is located on separatist-occupied territory. Raiffeisen Aval (BAVL) extended its solid performance, adding 3.6% to 10.50 kopecks. Motor Sich (MSICH) increased 3.6% to UAH 2054. In second-tier names, Krukiv Wagon (KVBZ) gained 6.8% to UAH 7.50 on news that the company won a tender to supply subway wagons to the city of Kharkiv in a deal valued at UAH 200mn. Every contract that the company receives is extremely important, as its key business of freight railcar production is in a permanent state of depression after the closure of the Russian market. On the diplomatic front, US Secretary of State John Kerry positively assessed the Donbass peace process following his talks with Russian President Putin in Moscow, although he admitted that there are “unresolved issues” in the context of Ukraine. Meanwhile, NATO chief Jens Stoltenberg said Ukraine was “the first item” on the agenda of the NATO-Russia Council meeting held at the ambassadorial level on Jul 13; no details about those talks were released. London-listed iron ore producer Ferrexpo (FXPO) surged 18.5% to GBp 40 after Deutsche Bank reaffirmed its BUY rating for the stock. Ferrexpo stock has rebounded sharply from its 12-month low of GBp 12.50, but remains well below its 12-month high of GBp 71 from a year ago. The stock has a 50-day moving average of GBp 32 and a 200-day moving average of GBp 29. Ferrexpo’s current MCap is USD 310mn.
The hryvnia ended flat for the week at 24.82 UAH/USD.
POLITICS AND ECONOMICS
- NATO Repeats Previous Declarations on Ukraine at Summit
- UkrStat Registers Consumer Deflation of 0.2% MoM in June
STOCKS IN THE NEWS
- UkrNafta Board Meeting Delayed as Board Member Arrested by NABU
full report
Eavex Capital welcomes any questions or comments you may have
regarding our research products.
Please contact our office in Kyiv at 380-44-590-5454, or by email:
Alexander Klymchuk, Head of Sales, [email protected]
Dmitry Churin, Head of Research, [email protected]
