Page 49 - UKRRptSept18

From amongst the listed blue chips: Raiffeisen Bank Aval (BAVL) advanced by 4.7% to 30.00 kopecks in July ahead of the bank’s 2Q18 earnings report. UkrNafta (UNAF) corrected from its recent upward move, declining by 3.5% to UAH110 per share. CentrEnergo (CEEN) barely reacted to the company’s disappointing 2Q18 earnings of UAH0.73 per share. The stock was little-changed at UAH15.00.
DonbasEnergo (DOEN) remained on a growth path climbing 3.4% to UAH24.00. Earlier in the month there was news that the company’s majority stake of 60.8% was acquired by Maxim Yefimov, an MP from the Poroshenko Bloc. The price for the deal has not been disclosed.
In London trading, Ferrexpo (FXPO) was a bright spot for the second week in a row, surging 12% to GBP194 per share after a solid advance of 8.8% over preceding week. Poultry producer MHP (MHPC) slipped 2.7% to $12.50 per share.
In Warsaw, Kernel (KER) failed to stay above PLN 50 level, dipping 1.2% to PLN 49.90. Astarta (AST) shed 2.1% to PLN 32.00 after the company unveiled a mixed operating report for 2Q18.
8.4 International ratings
8.5 Fixed income
Ukraine - Rating agency
as of Jan 2018
Bond rating: Moodys
Caa2 (P)
Bond rating: Fitch
B- (S)
Bond rating: S&P
B- (S)
Russia's Finance Ministry for the first time in four months had to call off the weekly federal OFZ bonds auction on August 22 due to spike in "financial market volatility". In the previous two weeks the ministry could only place RUB5.9bn and RUB13bn out of RUB10bn and RUB25bn OFZ bonds on offer, respectively.
In July the primary OFZ market recovered, with the FinMin placing about RUB35bn-40bn of bonds weekly to high demand. But the prospect of new "crushing" US sanctions introduced to the US Congress and possibly limiting buying Russian state debt with maturity of over 14 days tanked the issuance.
The yield on 10-year OFZ bonds rose to its highest level since December 2016 at last week's closing to 8.7%. The Russian Government Bond Index (RGBI) lost 4% from the beginning of August and 5% year-to-date to 134.16 points.
Raiffeisen Bank commented that rising yields on OFZ, "was in line with the considerable weakening of RUB FX, losing more than 6% of its value vs EUR in the same timeframe."
49 UKRAINE Country Report September 2018 www.intellinews.com