Kyiv-listed stocks finished almost unchanged last week which market Ukraine’s 27th anniversary of independence. The UX index ticked up just 0.2% to 1632 points in a four-session trading week. Although a news flow was generally dry, there was a media discussion about possible delay in next year’s presidential election from March to June. One of MP from the People’s Front faction said that President Poroshenko’s constitutional powers would end only on June 7, 2019 which exactly five years after his oath in the Parliament. Therefore Poroshenko’s team could try to put a motion to the Constitutional Court with a view to postpone the presidential election date. In our view, even a three month delay in the election would be negative for Ukraine as a period of political uncertainty usually restrains investors’ activity.
Among locally listed Ukrainian stocks there was a notable 8.3% gain in DonbassEnergo (DOEN) to UAH 26.00 per share. The stock got a boost from publication of the company’s new owner MP Maxim Yefimov interview where he unveiled plans to invest in additional power unit at DonbasEnergo’s Slavyansk thermal plant.
UkrNafta (UNAF) rose by 0.5% to UAH 112 per share after UkrStat hinted that the company’s oil production increased substantially in July. Raiffeisen Bank Aval (BAVL) was unchanged at 31.90 kopecks while TurboAtom (TATM) shed 0.7% to UAH 13.80 per share.
The stock of London-listed poultry producer MHP (MHPC) had muted reaction on the company’s report about net profit drop by 35% to UAH 0.95 per share. The stock was flat at USD 12.50. Ferrexpo (FXPO) was able to break downward move rebounding 2.2% to close at GBp 158.
In Warsaw, Kernel (KER) shed 0.2% to PLN 51.10 while Astarta (AST) declined 0.6% to PLN 32.20.
On the interbank currency market, the hryvnia weakened by 0.4% against the dollar, closing at 27.86 UAH/USD on Thursday (Aug 23).
POLITICS AND ECONOMICS
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- Industrial Production Growth Accelerates to 2.9% YoY in July
STOCKS IN THE NEWS
- MHP Reports Drop in Profit by 35% YoY to USD 100mn for 2Q full report
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