The Ukrainian Exchange Index saw an unjustified spike of 42% to a mark
of 2138 points last week, following a fat-finger trade of Kernel (KER) shares
at a price of UAH 544 (PLN 64). This accidental trade heavily impacted the
index, as Kernel shares hold a 50% weight in the index basket. The KER stock
continued to trade on the Warsaw Stock Exchange at PLN 18.45 after the
company’s largest shareholder made a buyout offer at PLN 18.50. The decision to
delist Kernel from the exchange may be announced on April 13.
Among other stocks, indicative quotes for CentrEnergo (CEEN) fell 7% to
UAH 4.37, and Turboatom (TATM) declined 5% to UAH 3.00.
The Finance Ministry raised UAH 17.4bn from the placement of domestic
government bonds. The main revenue came from the sale of foreign currency bonds
with a maturity in September at an annual rate of 4.75%. Foreign currency bonds
with a maturity in December were issued at a yield of 4.85%. Therefore, we see
that the Finance Ministry had to increase the yield on foreign currency
domestic bonds from the previous level of 4.25% to attract the necessary
proceeds to the national budget.
Meanwhile, the IMF has finally approved a new four-year program for
Ukraine worth USD 15.6bn. The first tranche, expected this month, will be USD
2.7bn and will go towards directly covering the country’s budget deficit.
On the currency cash market, the dollar
exchange rate decreased by 2.0% over the week to 37.55 UAH/USD. There was also
some improvement on the interbank market, allowing the National Bank to reduce
the sale of the hard currency from reserves to USD 340mn. Since the start of
the year, the regulator has already sold USD 7.2bn from its FX reserves to
balance supply and demand on the currency market.
POLITICS AND ECONOMICS
- Ukraine’s Creditor Countries Delay
Debt Repayment Until 2027, Prompting Investors to Consider Similar Move on
Eurobonds
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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