Equity
Ukraine’s local equity market was dominated by speculation ahead of the expiration of the March future contracts. Market players opened short positions in blue chips to squeeze out a wide spread between the UX index and UX futures. As a result, the futures contracts expired at 927 points on Mar 15 in a highly volatile trading session. The next day, coverage of the short positions pushed the UX index back up to 945 points but it was not enough to post a gain for the week.
The UX index fell 0.6% to close at 935 points. UkrNafta (UNAF) again led the decline, dropping by 3.4% to UAH 129 per share. Among bad news for the company it was information that one of its debtors, from which UkrNafta is owed UAH 1.3bn (USD 50mn), has filed for bankruptcy. CentrEnego (CEEN) slipped 1.7% to UAH 10.95 as the company is suffering from the ongoing shortage of anthracite coal with deliveries from the occupied Donbass territories having been blockaded for nearly two months. On the upside, Raiffeisen Bank Aval (BAVL) rose 3.0% to 16.10 kopecks per share.
In London, Ferrexpo (FXPO) jumped 17% to GBp 172, bouncing back after three weeks of losses. MHP (MHPC) added 0.8% to USD 9.32 after the company announced a 75 cents per share dividend for FY16. In Warsaw trading, Ukrainian stocks saw some appreciation, following the general trend on European bourses. Kernel (KER) climbed 1.6% to PLN 74.70 and Astarta (AST) gained 3.0% to PLN 69.00.
The hryvnia was able to defend the support line of 27.00 UAH/USD. The currency ended at 26.90 UAH/USD on Friday (Mar 17), inching down by 10 kopecks (0.3%) over the week.
POLITICS AND ECONOMICS
- IMF Delays Ukraine Disbursement Due to Donbass Blockade Decree
- UkrStat: February CPI Inflation Was Moderate at 1.0% MoM
STOCKS IN THE NEWS
- MHP To Pay 75-Cent Dividend for FY16, Yielding 8%
- MHP Posts FY16 Net Profit of USD 59mn after Net Loss Seen in FY15
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