Kyiv-listed stocks were on the rise
last week as the previous week’s political protests mostly dissipated and the
National Bank upgraded its forecast for the country’s economic recovery. The
NBU said it now expects GDP growth for 2017 to come in at 2.2% YoY, a notable increase from the previous 1.6% projection. The NBU left
its forecast for 2018 GDP growth at 3.2%. The Ukrainian economy grew by
2.3% in 2016 and nominal GDP was UAH 2.38tn (USD 93bn).
The UX index added 1.7% to close at
1255 points. Motor Sich (MSICH) gained 3.6%, climbing
above the UAH 3000 level and finishing at UAH 3036 after the company
reported third-quarter earnings which fell in line with expectations.
CentrEnergo (CEEN) picked up 0.4% to UAH 11.20, also after 3Q17 results which
confirmed the company’s solid fundamentals. UkrNafta (UNAF) was
little-changed at UAH 143 per share ahead of the 3Q earnings report due
out this week. Raiffeisen Bank Aval (BAVL), which is also due to release its
results, advanced by 2.3% to 29.10 kopecks.
iron ore exporter Ferrexpo (FXPO) continued its recent local down-trend,
dropping 6.0% to GBp 256 per share, while poultry giant MHP (MHPC) rose 3.1% to
USD 11.65 after the company announced a plan to acquire a third production
facility in Europe.
On the Warsaw Stock Exchange, top
liquid name Kernel (KER) finally reversed its five-month losing streak,
rebounding by 6.5% to PLN 51.47 after reports that the company’s
management has pounced on the low stock price to buy up shares. Low-liquidity troubled issue Milkiland (MLK) was unchanged at PLN 1.50 after the company
managed to restructure its debt to one of its Ukrainian lenders. Once a
promising agro issue, Milkiland has lost 90% of its value from 5 years ago.
The hryvnia came back under devaluation
pressure amid the understanding that Ukraine’s IMF program is on hold
indefinitely due to the government’s policy of freezing energy tariffs. The
currency lost 1.2% against the dollar to close at 26.87 UAH/USD. The NBU said
it was selling hard currencies from its reserves.
POLITICS AND ECONOMICS
Industrial Output Slips
0.3% YoY in September Amid Electricity Contraction
STOCKS IN THE NEWS
- Kernel Targets to Achieve EBITDA of USD 500mn by
Posts Modest 3Q Profit of 20 Kopecks per Share
Sich’s 3Q Profit Down 52% YoY But Still Up 37% for 9M17 full report
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