There was limited action on the Ukrainian Exchange last week amid the Independence Day holiday period in the country. The UX index slipped by 0.6% to 1860 points in mixed trading in the major Kyiv-listed stocks. Quotes for Raiffeisen Bank Aval (BAVL) once again returned to 45 kopecks, rising by 4.4% over the week as traders are hoping that the BAVL stock will deliver a solid dividend yield of at least 7% in the next 12 months. So far this year the bank’s net profit exceeds our forecast, reaching 3.79 kopecks per share in 1H21. TurboAtom (TATM), also a possible dividend stock, bounced back by 9.5% to UAH 8.10, but we remain skeptical about the company’s return to a large dividend distribution, as it was barely profitable in 1H21. On the red side of the UX index, UkrNafta (UNAF) dropped by 5.3% to UAH 251 without an obvious driver. CentrEnergo (CEEN) decreased by 2.6% to UAH 9.50, remaining under pressure due to the current chaotic situation in the Ukrainian electricity sector. In second tier stocks, Krukiv Wagon (KVBZ) fell 7.3% to UAH 18.55 after the company unveiled a net loss of UAH 164mn for 1H21 compared to its net profit of UAH 51mn a year ago.
In London trading, Ferrexpo (FXPO) gained back 9.3% to GBp 387 after two weeks of double-digit declines. Natural gas producers with assets in Ukraine were on the rise, with Enwell (former Regal) adding 4.4% to GBp 29.40 and JKX Oil&Gas (JKX) advancing by 12.7% to GBp 29.30.
Warsaw-listed Astarta (AST) corrected by 3.5% to PLN 52.50 while Agroton (AGT) picked up 2.5% to close at PLN 8.18.
The hryvnia declined by 0.9% to 26.93 UAH/USD over the week. The National Bank intervened on the interbank market with the sale of the hard currency at 26.94 UAH/USD to prevent a further hryvnia decline heading into September, which historically has been a weak month for Ukraine’s national currency.
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