Kyiv-listed stocks advanced last week, spurred by earnings results announcements and expectations of more Western financial support after Parliament passed a preliminary version of the law on creation of a High Anti-Corruption Court. Market players also paid attention to the Ukrainian Exchange’s decision to expand the UX index basket to 6 stocks with the inclusion of power plant equipment maker Turboatom (TATM), which will have a 9% weight in the gauge starting from Mar 16.
The UX index surged by 6.7% to end at 1595 points. CentrEnergo (CEEN) was the primary growth driver, jumping 20% to UAH 18.50 after the company reported a UAH 5.12 net profit per share for full-year 2017. As a state-owned entity, CentrEnergo is obligated to pay out 75% of its profit to shareholders, implying a UAH 3.84 dividend per share. In other blue chip names, UkrNafta (UNAF) gained 5.1% to UAH 112 and Motor Sich (MSICH) added 1.8% to close at UAH 4470. Meanwhile, Raiffeisen Bank Aval (BAVL) edged down by 0.6% to 32.60 kopecks.
London-listed MHP (MHPC) shed 3.7% to USD 13.00 per share while Ferrexpo (FXPO) was little-changed near the GBp 300 level. In Warsaw trading, Agroton (AGT) corrected by 10% after a jump of 25% over the preceding week. The stock ended at PLN 5.40. Kernel (KER) picked up 2.1% to PLN 48.80 despite the company’s report of unimpressive financial results for the Oct-Dec quarter.
The hryvnia strengthened notably by 1.3% to 26.60 UAH/USD after the National Bank stunned the market by raising its key refinancing rate a full point from 16.00% to 17.00%. The NBU’s decision came as a surprise for us, as we had expected the rate to be cut by 0.5p.p. to 15.50% in light of improving inflation numbers.
STOCKS IN THE NEWS
-CentrEnergo’s FY17 Profit Jumps 5x YoY to UAH 5.12 per Share
-Kernel’s Oct-Dec EBITDA Down 40% YoY on 19% Drop in Revenue
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