The Ukrainian Exchange index rose by 1.4% to 1756 points during the
week, driven by a sharp increase in quotes of CentrEnergo (CEEN) by 24% to UAH
6.18 per share. Thus, the indicative quotes of CentrEnergo have increased by
50% since the beginning of the year, from the level of UAH 4.00 to the level of
UAH 6.00. Among the positive news for the country’s energy market, it is worth
noting that approximately 700mn cubic meters of gas were injected into
underground gas storage facilities in May. According to the gas pipeline
operator UkrTransgaz, as of June 9th, gas reserves in Ukrainian underground
storage facilities amount to 9.7bn cubic meters. Ukraine intends to inject
14.5bn cubic meters of gas into storage facilities before the start of the next
heating season. Domestic gas production volumes could provide approximately
3.5bn cubic meters by early October. This means that the need for gas imports
amounts to a reasonably acceptable 1.3bn cubic meters for the next four months.
The current price of natural gas on European exchanges is about USD 370 per
thousand cubic meters.
On the London Stock Exchange, Ferrexpo continued to lose its market
capitalization. The price of Ferrexpo shares dropped by 2.8% to GBp 97 during
the week. Since the beginning of the year, the decline amounts to 38%. Shares
of MHP (MHPC) saw a slight rise of 0.3% to USD 3.75.
In Warsaw trading, Ukrainian sugar producer Astarta (AST) slipped by
1.2% to PLN 32.15 while low-liquidity Agroton (AGT) advanced by 5.2% to PLN
The hryvnia gained by 0.4% on the cash market to trade at 37.05 UAH/USD.
The situation on the interbank currency market was more balanced last week,
allowing the National Bank to limit interventions to USD 292mn, compared to USD
442mn over the preceding week. Overall, since the beginning of the year, the
National Bank has sold USD 11bn from the country’s FX reserves.
POLITICS AND ECONOMICS
Ukraine’s GDP Down 10.5% YoY in 1Q While on Quarterly Basis Growth Stands at
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,