Ukraine’s equity market enjoyed firm growth last week on the back of better-than-expected data for domestic industrial production and retail sales. UkrStat reported that industrial output rose by 1.2% YoY in May and that retail sales jumped by 10.7% YoY in the same period. In positive political news, President Poroshenko met with US President Trump and Vice President Michael Pence as part of a 36-hour diplomatic blitz in Washington on Jun 20. Later in the day, Trump’s spokesman Sean Spicer said explicitly that the US wants Russia out of Eastern Ukraine. Kyiv has been concerned that Trump’s administration may cut a deal with Moscow to end the Donbass conflict on terms disadvantageous for Ukraine, so Poroshenko’s meeting with Trump looks rather successful in the area of maintaining positive US engagement.
The UX index added 2.9% to close at 1056 points. Gains were across all the sectors. Motor Sich (MSICH) continued to outperform the market, advancing 6.6% to UAH 2595 after news that the company signed a preliminary contract to supply aircraft engines to Austria. CentrEnergo (CEEN) climbed 0.9% to UAH 10.50 while DonbassEnergo (DOEN) unexpectedly picked up 4.3% and closed at UAH 12.85 per share. UkrNafta (UNAF) rose 2.3% to UAH 122 on information that the company has increased its daily average oil output compared to 2016.
In London trading, Ferrexpo (FXPO) slipped 0.5% to GBp 185, while in Warsaw, Kernel (KER) rebounded by 5.9% to PLN 67.75 after falling 8.2% the week before. Small-cap shell egg producer Ovostar (OVO) surprised with a 12.9% advance to PLN 122 per share.
The hryvnia was little-changed near 26.00 UAH/USD over the week. We can cautiously assume that there will be no major movements on the local currency market until September, when seasonal natgas import purchases tend to raise forex demand.
POLITICS AND ECONOMICS
- Poroshenko Calls Trump “Strong Friend of Ukraine” After Meeting
- Kyiv Targeting 17bn cu-m of Gas in Storage Ahead of 2017/18 Winter
- Industrial Index Returns to Positive Territory with 1.2% YoY Rise in May
STOCKS IN THE NEWS
- Motor Sich Signs Deal to Sell 400 Engines to Austria’s Diamond
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