Kyiv-listed equities remained in a sideways trend last week. The UX index edged down by 0.2% to 1846 points. UkrNafta (UNAF) added 1.6% to UAH 255 while Raiffeisen Bank Aval (BAVL) fell 2.9% to 43.70 kopecks. CentrEnergo (CEEN) remained unchanged at UAH 9.50 per share. Although quotes for heavy machinery producer TurboAtom (TATM) were flat at UAH 8.10, there is a great concern that the company intends to dilute minority shareholder stakes by issuing additional shares which will be used to acquire another state-owned machinery producer, ElectroTyazhMash. Currently there is no detail regarding the planned additional share issue of TurboAtom. The special shareholders meeting on this issue is set for Sept 28.
On the London Stock Exchange, natural gas producers with major assets in Ukraine were on the rise, with Enwell Energy (former Regal) climbing 0.9% to GBp 29.60 and JKX Oil&Gas (JKX) advancing by 5.8% to GBp 31.00. Iron ore miner Ferrexpo (FXPO) was essentially unchanged over the week at GBp 390. Meanwhile, agro giant MHP (MHPC) gained 6.8%, returning to the USD 6 level.
Warsaw-listed Kernel (KER) edged down by 0.7% to PLN 57.00 and Agroton (AGT) dropped by 2.7% to PLN 7.96.
On the currency front, the hryvnia was volatile, touching 27.05 UAH/USD over the week before closing at 26.90 UAH/USD on Friday (Sept 3). Taking into account that Ukraine has to import a large volume of natural gas ahead of the winter season, we think that the hryvnia will be under seasonal pressure in the coming weeks. We also believe that the dollar is set to strengthen against other major world currencies. The USDX index, which measures the dollar against the basket of other currencies, bottomed at 92 points on Friday, opening the way to a rebound by at least 1.5% in the short term.
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