Weekly report: growth in Warsaw, casino in China

4 December 2016

Last week was rather good for Astarta and Kernel – share price of both companies grew by more than 4%.

Stocks

Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Monthly change, %
MHP USD 8.99 2.2% -0.9%
Kernel PLN 65.3 4.5% 9.0%
Ferrexpo GBP 128.2 2.8% 27.0%
Astarta PLN 53.1 4.1% 6.2%
Ovostar PLN 87.5 -2.8% -3.8%
IMC PLN 7.2 -1.1% 1.4%

Despite rather average financial results demonstrated in the first quarter of new financial year, (reported on Wednesday), share price of Kernel during last week increased by 4.5%, extending its monthly gain up to 9%. Astarta also grew by more than 4%, so that index of Ukrainian companies traded of Warsaw Stock Exchange - WIG-Ukraine – finished the week 3% higher vs. last Friday close (Kernel and Astarta account for about 80% of total index value).

In London both MHP and Ferrexpo weekly growth was in 2-3% range, though their volatility was quite different. If moves of MHP share price have been rather smooth, Ferrexpo has been much more volatile, starting the week at GBP 124.7, reaching GBP 136 on Tuesday and closing at GBP 128 on Friday.

Commodities

Chinese investors must have been feeling themselves like in Makao Casino, providing for huge volatility of iron ore price. Commodity, which was one of the most stable in the world in FYs2000-2008 (traded by annual contracts), now moves 5-7% a day. According to BusinessInsider during last week iron ore index daily changes looked as follows: +1.5%, -4.4%, -6.8%, +8.7%, -0.7%. Friday was first day since November 16, when daily move was less than 1%. Finally index finished the week on the level of USD 77.8 per 1 ton (just slightly lower vs. previous week close).

Agri-commodities futures slumped at Chicago Exchange on Thursday, so that during last week corn declined by 3.4%, wheat – by 2.3%. Corn prices in Ukraine reacted almost immediately – with decrease (on CPT terms) from USD 152-153 per 1 ton in the beginning of the week to USD 148-149/ton on Friday. Wheat prices in Ukraine have always been far less dependent on CBOT price than corn (wheat depends more on prices by which international traders sell their production at destination markets, than on exchange movements, which define just general tendency). So, wheat prices in Ukrainian ports during last week remained relatively stable at close to maximum levels since the beginning of current season (USD 152-163/ton range, depending on quality).

As for oilseeds, soybeans closed the week at about USD 370-375/ton, sunflower oil – USD 760/ton (both on CPT terms).

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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