Weekly report November 13, 2016

13 November 2016

While world markets have been nervous following shocking Donald Trump win on U.S. presidential elections, main news for Ukraine and its companies came from China, where iron ore and coking coal prices rallied to the highest levels since Y2014.

Stocks

Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Monthly change, %
MHP USD 9.05 -0.2% -0.5%
Kernel PLN 60.2 0.5% 0.8%
Ferrexpo GBP 139.0 9.9% 37.0%
Astarta PLN 51.4 2.7% -3.1%
Ovostar PLN 90.0 -1.1% -2.1%
IMC PLN 7.2 0.7% 6.2%

Though first reaction of international markets on US presidential elections results was kind of shock, fast recovery followed, so generally indexes finished the week in green zone. Main losers were emerging market currencies, for example, Mexican peso slumped by almost 10%, while Chinese yuan slided to the lowest level during last six years.

Among Ukrainian companies big winner of the week was Ferrexpo which share price increased by 10%, influenced by soaring iron ore price. MHP price in London was stable, the company is to report its Q3 financials on Wednesday.

In Warsaw the best dynamics among Ukrainian companies was shown by Astarta. During last week (the company reported its Q3 financials on Thursday) its share price increased by 2.7%, driving up general Ukrainian companies index WIG-Ukraine (+1% during last week).

Commodities

On the last week iron ore spot benchmark index (62% Fe ore CFR China) increased by 23% finishing the week at USD 79/ton the highest level since last two years (monthly increase made more than 40%). Iron ore followed surging coking coal prices amid efforts of Chinese government to cut output, which led to the shortage in coal supply in the country.

On the back of coking coal price growth, steel prices increased as well (adding about 10% during last week, monthly increase made about 25-30%). We do not expect recent increase of steel&ore prices to be sustainable, as it was also partially driven by speculation and in a view of general Chinese steel market fundamentals.

Agri-commodities world prices have been under pressure due to bearish USDA report, but finished the week largely unchanged. Prices in Ukrainian ports (CPT) slightly decreased with corn at USD 150-151/ton, soybeans USD 365-370/ton, wheat 148-160/ton (depending on quality). Sunflower oil decreased from about USD 755-760/ton on previous week to about USD 745/ton.

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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