Ukrainian equities were mostly higher over the week after the IMF’s
management approved Ukraine’s request for Program Monitoring with Board
Involvement — the first arrangement of its kind — to maintain economic
stability and catalyze donor financing. For the past 10 months, Ukraine has
withstood the largest full-scale military aggression in Europe since World War
II. Ukrainians have demonstrated fantastic resilience. The impact of the war is
hard even to comprehend. According to preliminary estimates, Ukraine lost at
least one-third of its GDP in 2022. Nevertheless, the country’s economy
adjusted to the war. New sectors of the economy were created that focused on
supporting Ukraine’s armed forces. Moreover, the banking system was strong and
operated with no functional limitations during the whole war.
At the top of the UX index, Raiffeisen Bank (BAVL) surged by 20% to 32
kopecks per share last week. In other blue chips, CentrEnergo (CEEN) advanced
by 3.8% to UAH 3.95 after the company appointed a new CEO Volodymyr Yegorov who
previously worked as a deputy commercial director at DonbassEnergo (DOEN). The
management shakeup at CentrEnergo could smooth the company’s conflict regarding
the natural gas supply from the state-giant NaftoGaz.
On the London Stock Exchange, Ukrainian iron ore miner Ferrexpo (FXPO)
gained by 8.4% to GBp 173 as the company partly resumed its operations despite
the very difficult situation with the electricity supply. MHP (MHPC) rose by
3.2% to USD 3.51 while Enwell Energy (former Regal) declined by 0.9% to GBp
16.2 after its auditor PwC resigned due to inability to service Enwell after
the company’s beneficiary owner Vadym Novinsky was included into the Ukrainian
In Warsaw trading, Kernel (KER) shed by 2.5% to PLN 17.06, and Agroton
(AGT) edged down by 1.2% to PLN 3.40.
The cash hryvnia exchange rate weakened by
1.5% over the week to 40.60 UAH/USD.
POLITICS AND ECONOMICS
- No Change in Biden Admin’s Weapons Policy
after Zelenskiy Visit
- Ukraine Would Need to Import 5 billion cubic
meters of Gas in 2023
Bank of Ukraine has opened a special fundraising account to support the Armed
Forces of Ukraine. Please find more at the National Bank’s official website
under the link below:
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Dmitry Churin, Head of Research,