Weekly report October 30, 2016

30 October 2016

Stocks

Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Price, USD Weekly change, %
MHP USD 9.7 3.7% 9.7 3.7%
Kernel PLN 61.9 3.4% 15.65 4.1%
Ferrexpo GBP 104.0 -4.6% 131.5 -1.3%
Astarta PLN 53.3 0.0% 13.5 0.0%
Ovostar PLN 91.0 -1.5% 23.1 0.1%
IMC PLN 7.14 4.1% 1.81 5.2%

Driven by growth of Kernel stocks by 3.5%, WIG-Ukraine index (index of largest Ukrainian stocks traded on Warsaw Stock Exchange) also finished last week with 1.7% increase. Growth of Kernel stocks followed its financial report for 2016 financial year, but is most likely related to general optimism on WSE its index WIG30 also increased by 3.4% during last weak.

Reported financial figures of Kernel have been in line with our expectations and mainly showed relatively good performance of farming business of the company, while oilseeds crushing business underperformed because of more intensive vs. previous years competition on the market. In any case Kernel remains the largest Ukrainian public company by market capitalization now it makes USD 1.25 bln.

During last week good results were also shown by Industrial Milk Company (its share price grew by 4%), which reported record-high yields of its oilseeds crops in current season. On the other side positive operating results of Ovostar for Q3 2016 have been ignored by Polish investors (share price remained almost unchanged vs. previous week).

Ferrexpo share price on LSE demonstrates huge volatility. During first four days of the week it increased by 16%, extending its rally during second-half of current year. On Friday, following announcement that its second largest shareholder sold almost half of its holding in the company through the placement to institutional investors, share price of Ferrexpo dropped by 18.6% to GBP 104. Also in London by 3.7% increased MHP share price from USD 9.35 in the beginning of last week up to USD 9.7.

Commodities

The iron ore market has seen quite positive week in terms of prices as benchmark index (62% Fe CFR China) exceeded USD 62/ton vs. monthly average for last 30 days of USD 57/ton. After growth by 10-15% during last two weeks, steel prices in China during last week have been relatively stable.

Agri-commodities prices in Ukraine remained rather favorable for farmers. Corn came back to USD 152-153 per 1 ton levels (CPT port, main problem on the market is shortage of railcars, which even has some influence on the world corn price, as it reduces supply of Ukrainian corn to the ports), wheat traded at prices from USD 148/ton (feed wheat) to USD 158/ton (12.5% protein wheat). Soybeans price have been relatively stable at 365-370 per 1 ton (CPT).

Main page

Popular on site:
MHP releases Q3 2016 operating report
Astarta Holding provides update on field works
Agrogeneration releases its financial report for 1H 2016

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