Trading in Kyiv-listed stocks was inactive last week ahead of the Orthodox Easter holiday, as the local market observed the unfortunate 2-year anniversary of the suspension of trading in former top liquid name Motor Sich. Blue-chip names demonstrated a mixed performance and the PFTS index edged down by 0.3% to 501 points. In economic news, the IMF presented a forecast that Ukraine’s GDP will fall by 7.7% in 2020 and rebound by 3.6% in 2021. A decline in the EU’s GDP is expected at 6.6% this year, after 1.6% growth in 2019. In 2021, the European economy should return to growth and increase by 4.5% of GDP, the IMF’s analysts said.
Ukraine’s flagship oil producer UkrNafta (UNAF) slipped by 4.4% to UAH 129 per share amid a new worsening of the global oil price outlook. Raiffeisen Bank Aval (BAVL) shed 2.9% to 33.00 kopecks and TurboAtom (TATM) lost 12% to UAH 9.00 on fears that the company might postpone its dividend distribution. We previously forecasted that the company’s shareholders will approve a DPS of 37 kopecks at the annual shareholder meeting on Apr 23. On the upside, CentrEnergo (CEEN) gained 3.4% to close at UAH 7.50.
In London trading, MHP (MHPC) declined by 4.7% to USD 6.10 after the company’s announced dividend of 28 cents per share was far below the prior expectation of 75 cents. Ferrexpo (FXPO) fell 5.0% to GBp 136.
Warsaw-listed sugar producer Astarta (AST) gained 6.9% to PLN 12.45 after the company reported mixed financial results for FY19. The company managed to raise its EBITDA by 15% YoY to EUR 78mn, but its net profit was just marginal at EUR 1.7mn for the year. Kernel (KER) shot up by 6.7% to PLN 43.50 amid optimism about an eventual recovery from the COVID economic shutdown.
Ukraine’s currency market saw a relatively quiet week, with the hryvnia remaining essentially unchanged at 27.10 UAH/USD. The National Bank said it was able to purchase hard currencies into its reserves at an equivalent rate of 27.07 UAH/USD.
POLITICS AND ECONOMICS
- Ukraine’s Quarantine Plans Beyond May 12 Remain Unclear
STOCKS IN THE NEWS
- MHP Slashes Dividend After Disappointing USD 60mn 4Q19 Net Loss
- Astarta Posts Marginal Net Profit of EUR 1.7mn for FY19 full report
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