The major market indexes shot higher last week with the S&P500
advancing by 2,7% while the MSCI Emerging Market index surged by 4,3%. A
positive sentiment appeared after the Labor Department said that the CPI in the
US was up 6.5% YoY in December, as prices rose at their slowest pace in six
months. In the wake of the inflation update, market expectations for the
Federal Reserve to deliver a 25 basis point (0.25%) interest rate hike at its
February meeting jumped to 95% from yesterday’s 77%. This would mark the lowest
increase in the Fed’s benchmark rate since March 2022. (The US central bank
issued four consecutive 0.75% rate hikes, followed by a 0.5% increase at its
last meeting in December.)
Meanwhile, in Ukraine consumer inflation came at 26.6% YoY in December
as the hryvnia devaluated significantly amid the war and petroleum prices
jumped by 69% YoY for Ukrainians in 2022. The National Bank is keeping its key
interest rate at 25% and there is a high probability that the rate will remain
at this high level unless the inflation pace slows below 18% YoY.
On the Ukrainian Exchange, quotes for Raiffeisen Bank (BAVL) and
CentrEnergo (CEEN) were flat last week at 31 kopecks and UAH 4.00 respectively.
London-listed Ferrexpo (FXPO) surged by 11% to GBp 173 spurred by an
overall positive momentum on the global stock markets. In Warsaw trading,
Astarta (AST) advanced by 2.3% to PLN 22.70, and Kernel (KER) edged up by 0.5%
to PLN 18.58.
The hryvnia cash exchange rate remained at 40 UAH/USD. The country’s
foreign exchange reserves stood at USD 28.5bn at the beginning of the year
covering 3.6 months of future imports, which is considered an appropriate
relative measure of the FX reserves.
POLITICS AND ECONOMICS
- Ukraine Braces for Russian
Spring Offensive as West Promises Tanks
STOCKS IN THE NEWS
- Enwell
Energy (former Regal) May Lose Licenses in Ukraine due to Sanctions Against
Majority Owner
The National 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:
www.bank.gov.ua
full report
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