Kyiv-listed equities finished lower last week following a broad correction on the major global stock exchanges. The S&P500 index fell 2.5% and MSCI emerging market index was down by 6.4% over the week. The Ukrainian Exchange index (UX) corrected by 4.6%, ending at 1776 points.
The domestic news flow was dry and had no influence on local traders’ sentiments. Raiffeisen Bank Aval (BAVL) lost 5.9% to 48.00 kopecks as the bank’s valuation has reached a rather high level, with the P/B (Price to Book) ratio at 2.3x and P/E (Price to Earnings) hovering at 7.5x. Thermal generation company CentrEnergo (CEEN) dropped by 5.2% to UAH 8.25 per share as the country’s electricity sector is suffering under systemic problems in the complex process of electricity pricing. The current crisis in the electricity market is a consequence of fundamental economic mistakes linked to arbitrary administrative interference in pricing. The industry has already accumulated a financial deficit of more than UAH 50bn (USD 1.8bn) since the launch of the new competitive market model in 2019 instead of the model based on a single wholesale operator. UkrNafta (UNAF) was also sharply lower, tumbling 9.1% to UAH 220.
In London trading, Ferrexpo (FXPO) dropped by 4.3% to GBp 335 and MHP (MHPC) edged down by 0.7% to USD 5.86.
Warsaw-listed Kernel (KER) slipped 0.5% to PLN 54.70, ignoring the company’s strong earnings release for the Oct-Dec quarter, when the company saw its net profit jump by 3.2x to USD 128mn.
On the currency market, the hryvnia gave up 0.4% against the dollar over the week, closing at 27.98 UAH/USD.
POLITICS AND ECONOMICS
- Ukraine’s January Industrial Output Down 4% YoY Amid Quarantine
STOCKS IN THE NEWS
- Kernel Boosts EBITDA 2.5x YoY to USD 269mn in Oct-Dec Quarter
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