Weekly report December 11, 2016

11 December 2016

Week in a glance: new highs of iron ore, agri-commodities prices recovery, rally of Ferrexpo and Industrial Milk Company.


Largest Ukrainian companies share prices weekly dynamics
Company Currency Price Weekly change, % Monthly change, %
MHP USD 8.96 -0.3% -1.0%
Kernel PLN 65.5 0.3% 8.8%
Ferrexpo GBP 144.5 12.7% 30.2%
Astarta PLN 53.21 0.2% 3.6%
Ovostar PLN 87.0 -0.6% -3.3%
IMC PLN 7.7 6.9% 7.7%

With growth of investors confidence in ability of Ferrexpo to meet its obligations in following two years (as 62% Fe iron ore index stays in the range USD 70-80 per 1 ton level for more than one month), share price of Ukrainian pellets producer keeps growing. After previous weeks close of GBP 128.25, on Friday morning shares of the company already traded at GBP 153 before declining to GBP 144.5 at the end of the session (decline on Friday most likely means profits fixation by some investors, as during last months share prices of Ferrexpo grew by 30%, since July 1st by more than 4.5 times).

During last week total market capitalization of Ferrexpo exceeded USD 1.0 bln, now its clearly the second largest Ukrainian public company by market capitalization (after Kernel Holding which capitalization stands at USD 1 239.3 mln). Starting from December 19 Ferrexpo is to be re-included into broad index of London Stock Exchange FTSE 250.

In addition to good results of Ferrexpo, we can note growth of Industrial Milk Company share price (by 7% up to PLN 7.7). Capitalization of the company increased up to USD 57.2M, though market capitalization is still below book value of IMC Equity (MV/BV ratio is at about 0.8x), which, at least partially, reflects the fact of rather aggressive accounting policies of the company.

Prices of main part of other Ukrainian public companies have been relatively stable.


Spot iron ore price in China reached the highest level for the last two years on Wednesday (USD 82.25 per 1 ton vs. previous week close at USD 77.8/ton), finishing the week at close to USD 80/ton level. Steel products prices on the last week increased by about 5-6% (gain during last month made close to 10%), current steel prices in China are also quite close to two years highs.

In the beginning of the week agri-commodities quotes on Chicago Exchange increased and pared previous weeks losses, corn price grew by 4.1%, wheat by 2.6%. Prices in Ukrainian ports, despite slight decline (mainly refers to corn) on Monday, demonstrated fast recovery and finished the week on the following levels: corn at USD 152-153 per 1 ton (on CPT basis), wheat USD 152-163 per 1 ton, soybeans USD 375/ton, sunflower oil USD 770/ton.

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Company Price, USD Market Cap Change,%

Type Price Weekly change,% Annual change,%
Wheat CBOT
Iron Ore
Crude Oil

Currency Rate Weekly change,% Annual change,%