On March 16, the National Bank decided to keep the key policy rate at
25%. According to the regulator, this step will prop up the attractiveness of
hryvnia savings and will contribute to maintaining the stability of the foreign
exchange market. At the same time, the National Bank lowered the overnight
deposit certificate rate for banks to 20% in order to encourage banks to
increase the share of time deposits, as the ability of banks to invest in the
National Bank’s three-month deposit certificates at 25% will depend on the
volumes of hryvnia household deposit portfolios formed by banks. The next meeting
of the Board of the National Bank on monetary policy will be held on April 27.
Consumer inflation in Ukraine is slowing down for the second month in a
row and at the end of February amounted to 24.9% in annual terms. The decline
in inflation began earlier than the National Bank predicted. Directly in
monthly terms, consumer prices increased by 0.7% in February, which gives hope
for more restrained inflation at the end of this year.
Among the main Ukrainian listed companies, we note a further sharp increase
in quotes for CentrEnergo (CEEN) by 31% to UAH 4.70. But this increase in
quotes again occurs without significant transaction volumes. Raiffeisen Bank
(BAVL) declined by 1.6% over the week to 30.5 kopecks.
On the London Stock Exchange, iron ore company
Ferrexpo lost 10% to trade at GBp 121 per share, ignoring the release of the
company’s better-than-expected 2022 financial results. Perhaps some of the
negativity of investors towards the company relates to the fact that Ferrexpo’s
main beneficiary has reduced its stake in the company from 50.3% to 49.5%. It
is possible that this action was for a purpose that the main beneficiary does
not own a controlling stake for legal reasons (the main beneficiary of Ferrexpo
is currently under investigation).
STOCKS IN THE NEWS
- Ferrexpo’s Net Profit Plunges Four
Times to USD 220mn in 2022
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:
Eavex Capital welcomes any questions
or comments you may have regarding our research products.
Please contact us by email:
Dmitry Churin, Head of Research,