Ukrainian stocks finished generally lower last week amid a broad correction on global equity markets due to concerns about rising trade barriers. Moreover, Kyiv-listed stocks continued to suffer liquidity outflow as a result of the suspension in trading on the Ukrainian Exchange, which is the largest of the three main stock exchanges in the country. In Ukrainian-related internal news, there was a report that the deficit of the national budget amounted to UAH 9.2bn (USD 350mn) in 5M18, compared to a surplus of UAH 26.5bn for the corresponding period a year ago. The deficit in large part was the result of an increase in budget expenditures by 27% YoY to UAH 380bn in 5M18. Revenue rose by 14% YoY to UAH 370bn in the period.
The UX index, which is now being calculated on a once-per-day basis rather than in real time, ended essentially unchanged at 1580 points for the week.
Raiffeisen Bank Aval (BAVL) was the focus of market players after the bank announced that Jul 3 was set as the ex-rights date for a 6.90 kopecks per share dividend payout. The stock added 0.5% to 31.50 kopecks.
CentrEnergo (CEEN) climbed 0.9% to UAH 14.40 while UkrNafta (UNAF) lost 1.0% to UAH 104.0 per share.
London-listed iron ore producer Ferrexpo (FXPO) shed another 6.8% to end the week at GBp 183. The stock edged lower despite iron ore benchmark prices remaining steady over the period. Low-liquidity MHP (MHPC) fell 2.3% to its technical support line of USD 13.00.
In Warsaw trading, Astarta (AST) sank 8.2% to PLN 33.50. The stock came under pressure after two Polish investment funds decreased their holdings in the company. Top liquid issue Kernel (KER) lost 0.5% to close at PLN 47.55, and Agroton (AGT) fell 4.2% to PLN 2.97.
On the currency front, the hryvnia weakened by 0.4% against the dollar to close at 26.34 UAH/USD. We assume that the end-of-quarter VAT refund season for exporters has been increasing demand for hard currencies on the local market.
POLITICS AND ECONOMICS
- Poroshenko at 10-11% Support Amid Weak, Fragmented Candidate Field
STOCKS IN THE NEWS
-Raiffeisen Aval Sets Jul 3 Ex-Rights Date for 6.90-Kopeck Dividend
full report
Eavex Capital welcomes any questions or comments you may have regarding our research products.
Please contact our office in Kyiv at 380-44-590-5454, or by email:
Alexander Klymchuk, Head of Sales, a.klymchuk@eavex.com.ua
Dmitry Churin, Head of Research, d.churin@eavex.com.ua
