Kyiv-listed stocks were out of investors’ favor last week as the US emphasized a need for diplomacy and de-escalation with Russia while issuing threats to Moscow about the high cost of any new military aggression. It appears that the Kremlin may be using its military presence on the Ukrainian border as a way of pressuring Kyiv into an unfavorable agreement on the resolution of the 7-year-old Donbass conflict in the east of the country.
The UX index dropped by 6.3% to 1742 points. Electricity producer CentrEnergo (CEEN) was the worst performing index component, plunging by 15.7% to UAH 7.00 as a coal shortage threatens the country’s entire energy sector. Raiffeisen Bank (BAVL) shed 2.3% to 42.00 kopecks, while UkrNafta (UNAF) was again highly volatile. The UNAF stock suffered a retreat of 9.7% to UAH 280 after the company announced an agenda for a special shareholders meeting called on Dec 23 to consider the sale of the company’s most profitable assets to the group of minority shareholders affiliated with Privat Group.
On the London Stock Exchange, MHP (MHPC) gained 2.1% to USD 6.84 while Enwell Energy (former Regal) declined by 3.7% to GBp 35.20.
Warsaw-listed Kernel (KER) decreased by 1.5% to PLN 59.10, ignoring encouraging news that the company approved a 44 cents (PLN 1.80) dividend per share. The ex-rights date for the dividend has not been determined yet. Astarta (AST) lost 6.9% to close at PLN 42.00.
The hryvnia strengthened by a solid 1.5% to 26.92 UAH/USD after the National Bank increased its key interest rate by 50 bps to 9.0% and said that the country’s foreign currency reserves reached USD 30.5bn at the start of the month.
POLITICS AND ECONOMICS
- Donbass Autonomy Back in Focus after Biden Talks with Putin, Zelenskiy
- Portnov Hit with US Sanctions for Judicial Corruption
- Ukraine Headline Inflation at 10.3% after November Data
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