Weekly report October 22, 2016

22 October 2016

Stocks

Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Price, USD Weekly change, %
MHP USD 9.35 0.5% 9.35 0.5%
Kernel PLN 59.84 0.2% 15.03 -1.2%
Ferrexpo GBP 109.0 11.5% 133.2 12.8%
Astarta PLN 53.26 -0.6% 13.48 -2.0%
Ovostar PLN 91.5 1.7% 22.86 -0.1%
IMC PLN 6.86 2.2% 1.72 0.6%

With low volatility on the world stocks markets in general, share prices of Ukrainian companies traded on Warsaw Stock Exchange almost have not changed for the second week in a row, so Ferrexpo remained main newsmaker among Ukrainian public companies. Shares of the miner during last week grew by another 12%, extending its surge from GBP 31.5 per share as of July 1 up to current GBP 109. Despite quite recently S&P and Moodys voiced their concerns regarding ability of the company to keep to its debt repayment schedules in Y2017, investors seemed to share our more positive opinion and drove Ferrexpo share price up. Price reached GBP 117.5 on Thursday before landing at GBP 109, as some buyers decided to fix their profits.

Share prices of the largest Ukrainian companies on WSE Astarta and Kernel during last week have been stable, leading to stability of WIG-Ukraine index at about 513. Kernel is to report its financial results for FY2016 (finished in June) on the next week, and unless the company will show larger vs. previous year gain from biological assets revaluation, its EBITDA for financial year will be about USD 350M (USD 397M a year ago), which means EBITDA for Q4 at only about USD 50M.

Commodities

Despite world agri-commodities indexes during last weak have been stable, in Ukraine farmers had good opportunities to sell their crops under higher vs. previous week prices. Corn price in Ukrainian ports (CPT basis) increased from USD 143-145/t to almost USD 152-153/t in the middle of the week, before declining to USD 148-150/t on Friday, wheat prices also showed rather good dynamics. Soybeans prices have been stable at USD 365-370/t.

Iron ore benchmark index (62% Fe CFR China) remained in USD 55-58 per 1 ton range, 65% Fe pellets premiums slightly softened, but still remain at about USD 30/t level, which is quite acceptable for Ferrexpo. Steel prices in China grew by 10% during two weeks, which is also positive news for Ukrainian steel-makers, notably Metinvest.

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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