Weekly report January 29, 2017

29 January 2017

For the first time during last several years Ukrainian company issued Eurobonds, Kernel order book has been oversubscribed by more than four times.

Stocks

Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Monthly change, % Capitalization, USD M
MHP USD 8.9 -1.1% 1.3% 940
Kernel PLN 80.0 8.8% 25.3% 1 575
Ferrexpo GBP 143.2 10.9% 6.5% 1 058
Astarta PLN 62.9 -0.9% 16.4% 389
Ovostar PLN 89.0 2.5% 2.9% 132
IMC PLN 9.3 -1.4% 15.4% 72

Main newsmaker of last week Kernel Holding, which became the first Ukrainian company for several latest years to issue Eurobonds. Total amount of issue made USD 500M, maturity - Y2022, coupon rate 8.75%. Stock market reacted to this news with further increase of Kernel share price during last week it grew by 8.8%, monthly growth made more than 25%, now the company trades at 5-year highest level (its market capitalization stands at USD 1 575M).

Driven by dynamics of the largest Ukrainian sunflower oil producer WIG-Ukraine (index of Ukrainian companies traded on Warsaw Stock Exchange) increased during last week by another 3% (growth in January made more than 20%, current index value is the largest since H1 2013).

Another Ukrainian company which share price has been rather volatile during the last week is Ferrexpo. And main reason of volatility (against a background of quite stable iron ore price) second-largest Ferrexpo shareholder Wigmore Street Investments sold its stake in the company to institutional investors. Deal price made GBP 129 per share, which was at approximately previous weeks close level, but lower than was the price as of the date of deal announcement (GBP 140 per share).

Right after announcement Ferrexpo share price declined by 8%, but quick recovery followed, so that share price of the company exceeded GBP 140 on Friday (weekly growth made almost 11%, the company now trades at close to 3-year highs again, by its market capitalization (USD 1 058M at the moment) Ferrexpo is second largest Ukrainian public company).

Other Ukrainian public companies share prices have been much more stable during last week.

Commodities

As business activity in China significantly slowed down in anticipation of Chinese New Year (celebrated on January 28), volatility of local markets decreased. Important for Ukrainian companies is the fact that both iron ore and steel prices during last week have been stable and close to local highs (iron ore at about USD 83/ton level).

Agri-commodities, after reaching 6-month highs on previous week in Chicago, during last week slightly (by 1-2%) declined, though influence on prices in Ukrainian ports have been minimal, prices on CPT terms have been quite stable: corn traded on at USD 153-155/t, wheat USD 154-166/t (depending on quality), soybeans close to USD 375/t, sunflower oil USD 745-750/t.

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Company Price, USD Market Cap Change,%
MHP
Kernel
Ferrexpo
Astarta
Ovostar

Type Price Weekly change,% Annual change,%
Corn CBOT
Wheat CBOT
Iron Ore
Crude Oil

Currency Rate Weekly change,% Annual change,%
USD/UAH
EUR/USD
USD/RUR