Ukrainian equities were inactive for a second straight week as the local market continued to search for direction. The UX index stayed within a 1% corridor of 1260-1275 points for the most of the week. We believe that a report from UkrStat that the country’s GDP rose by 2.1% YoY in 3Q17 was a generally encouraging sign about the state of the national economy.
The UX index grew by 1.1% to close at 1283 points. Raiffeisen Bank Aval (BAVL) was the best performing blue chip, adding 2.3% to 28.80 kopecks after its minor correction seen over preceding week. Initial worries that Raiffeisen Aval could start a squeeze-out procedure to buy up the small outstanding free float of 1.72% have faded away for now. Electricity sector blue chip CentrEnergo (CEEN) edged up by 1.2% to UAH 11.38 after the government said that coal inventories have increased ahead of the winter season, while UkrNafta (UNAF) was flat at UAH 143 per share.
In London trading, poultry giant MHP (MHPC) did not react to the company’s quite strong 3Q financial results. With the new data, MHP’s earnings per share this year (through September) have reached USD 2.43, but the stock sat unchanged at USD 11.15. Ferrexpo (FXPO) remained in its local downward trend that started in early October, losing 4.1% to close at GBp 247. Meanwhile, the company reported that it has secured a new loan facility for near USD 200mn to increase its working capital.
On the Warsaw Stock Exchange, long-suffering Kernel (KER) demonstrated a U-turn, advancing 7.7% to PLN 49.00 after information that one of the company’s large shareholders has started bidding for shares on the market. The volatile, sporadically traded stock of crop grower Agroton (AGT) jumped 23% to PLN 5.05. The company does not report its financials on a quarterly basis, so it is hard to pinpoint the reason behind the stock’s sharp increase.
The hryvnia had a very quiet week, finishing little-changed at 26.50 UAH/USD heading into the end of the year. December is historically a month in which the Ukrainian currency sees some appreciation against the dollar amid holiday spending.
POLITICS AND ECONOMICS
- People’s Front Remaining Separate from Poroshenko Bloc for Now
- Ukraine’s GDP Growth Down Slightly to 2.1% in 3Q17
STOCKS IN THE NEWS
- Kernel Stock Upgraded to BUY from HOLD after 8-Month Decline
- MHP Reports 3Q Profit of 44 Cents/Share
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