12 February 2017
Despite all bearish projections iron ore prices continued to grow during the last week, agri-commodities futures increased as well
Stocks
Largest Ukrainian companies share prices weekly dynamics
Company
Currency
Price
Weekly change, %
Monthly change, %
MHP
USD
8.9
-1.1%
-0.1%
Kernel
PLN
78.95
2.8%
6.9%
Ferrexpo
GBx
163.0
4.7%
24.3%
Astarta
PLN
61.63
0.4%
2.7%
Ovostar
PLN
91.5
1.1%
7.6%
IMC
PLN
8.95
0.2%
6.5%
Ferrexpo demonstrated the best dynamics among the largest Ukrainian public companies during last week, its share price increased by 4.7% and finished the week at GBX 163. As despite all bearish projections iron ore spot price index fluctuates around USD 80/t for more than two months (having reached the highest value for the latest 2.5 years on Friday), pellets premiums remain at rather good level, it is estimated that Ferrexpo monthly EBITDA now makes about USD 50M.
Taking into account reported cash position of the company in the end of Y2016 at USD 145M, medium-term liquidity position of the company improves (in Y2017 the company is to repay slightly more than USD 200M of debt, in Y2018 – USD 320M). During last week S&P increased its credit rating of Ferrexpo up to B-.
Recently principal shareholder of Ferrexpo Mr. Konstantin Zhevago in its interview to Ukrainian magazine Novoye Vremya stated that the company has no plans for Eurobonds issuance for the nearest future (some time ago management of the company considered such possibility to refinance maturing debt).
As for the largest Ukrainian public companies traded on Warsaw Stock Exchange, Kernel grew by 2.8%, volatility of the other companies share prices has been low.
Commodities
After decrease to close to USD 80/t in the beginning of the week, starting from Tuesday iron ore continued its rally, reaching on Friday USD 86.6/ton – the highest level for the last 2.5 years, steel prices in China remain close to local highs as well.
Despite relatively neutral USDA report issued on the last week (Ukrainian grains export estimates were increased by 1.5M tons up to 40.4M tons), corn and wheat prices slightly grew on CME, corn dynamics during last year is represented on the chart below:
In Ukrainian ports corn prices have been relatively stable at USD 152-154/t, wheat slightly grew – up to USD 157-168/t, soybeans closed the week at USD 375-380/t, sunflower oil – USD 740/t.
Spot sugar prices remain relatively stable at USD 540/t (London market)
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