The law “On the transfer, compulsory alienation or seizure of property under the legal regime of martial law or state of emergency” and the order of the Supreme Commander-in-Chief of the Armed Forces of Ukraine dated 6 November “On the decision of the Supreme Commander-in-Chief’s headquarters dated 5.11.2022” have become the grounds for the National Commission for Securities and Stock Market Resolution that concerns the order of such alienation of the shares of five enterprises.
According to a copy of the NCSSM decision dated November 6, which is available to the Interfax-Ukraine news agency, there were also five corresponding orders issued by the commander of the AFU Logistics Force for the compulsory alienation of property – shares in Ukrnafta, Ukrtatnafta, Zaporizhtransformator, Motor Sich and AvtoKrAZ.
According to the decision of the Commission, the securities account, on which the shares are alienated (except for the shares owned by Naftogaz), will be managed by the Ministry of Defense.
The Commission also pointed out that the operation on alienation of shares should be carried out despite the existence of other burdens on circulation of shares.
The said law implies that in case of impossibility of preliminary full compensation, such property shall be forcibly alienated under martial law with subsequent full compensation of its value within the next five budget periods after the cancellation of martial law at the expense of the state budget.
Assessment of property subject to compulsory alienation shall be carried out in the manner prescribed by law on the assessment of property, property rights and professional valuation activities, says the law.
As reported, the National Commission on Securities and Stock Market (NSCSM) decision of November 6 settled the issue of depositary records of depositary operations for forced alienation of shares into state ownership, the issuers of which are PJSC “Ukrnafta”, PJSC “Ukrtatnafta”, “Motor Sich” JSC, PJSC “AvtoKrAZ” and PJSC “Zaporozhtransformator.
In addition, on the same day the National Commission for Securities and Stock Market allowed meetings of joint stock companies during martial law, if the number of shareholders does not exceed five and if they own 100% of the shares, while until recently it only allowed remote meetings.
In Ukrnafta, the controlling stake belongs to Naftogaz Ukrainy, while the minority stake of about 42% belongs to Igor Kolomoysky and Gennady Bogolyubov’s so-called Privat Group, while in Ukrtatnafta (Kremenchug refinery) the situation is the opposite.
The circulation of all shares of Motor Sich, the largest owner of which was the recently arrested president of the company Vyacheslav Boguslayev, has been blocked since April 2018 after the sale a year earlier of a controlling stake in the Chinese Skyrizon and related parties.
“AvtoKrAZ and Zaporizhtransformator, controlled respectively by Konstantin Zhevago and Konstantin Grigorishin, have been in bankruptcy proceedings for the past few years.
AVTOKRAZ, FOREIGN TRADE, MOTOR SICH, nationalize, UKRNAFTA, ЗТР, УКРТАТНАФТА
Ukrainian banks’ profits in January-September 2022 amounted to 7.4 billion UAH, which is 6.9 times less than in the same period last year (51.4 billion UAH), the press service of the National Bank of Ukraine (NBU) said on Monday.
According to the report, losses of Ukrainian banks in September amounted to 1 billion UAH, while August’s profit amounted to 5.05 billion UAH.
The regulator noted that banks’ revenues in September increased by 13.3%, while expenses increased by 13.1%.
According to the regulator, banks’ income for nine months of this year increased by 30.8% against the same period last year – up to 255.08 billion UAH. At the same time, the fee and commission income decreased by 16% – to UAH 59.8 billion (whereas over the same period last year it increased by 28%).
At that the result from revaluation and purchase and sale operations was positive and made UAH 37.1 billion, while over the same period of previous year it was negative and made UAH 2.4 billion.
At the same time expenses of banking system in January-September 2022 increased by 72.5% compared with this index in 2021 – up to 247.7 billion UAH, including deductions to reserves – 12.9 times, up to 99 billion UAH. At the same time, the commission expenses increased by 2% up to UAH 25 billion,
As reported, the Ukrainian banks in 2021 doubled the net profit – up to 77.5 billion UAH, compared with 41.3 billion UAH in 2020.
Ukraine from the beginning of 2022/2023 marketing year (July-June) until November 7, exported 14.27 million tons of cereals, including 7.66 million tons of corn (53.8% of total supplies), 5.39 million tons of wheat (37.8%) and 1.17 million tons of barley (8.1%).
As reported on the website of the Ministry of Agrarian Policy and Food on Monday, the rate of grain exports from the beginning of this year is by 30.7% lower than during the same period last year (from July 1 to November 7, 2021 20.61 million tons were delivered abroad).
According to the Ministry, Ukraine exported 5.39 million tons of wheat (2.39 times less than the same period last year), 1.17 million tons of barley (3.85 times less), 6.3 thousand tons of rye (11 times less) and 38.4 thousand tons of flour (12.1% less) from the beginning of 2022/2023 MY until November 7, 2022. At the same time, exports of corn exceeded last year’s volume – 7.66 million tons were exported, which is 2.61 times more than it was in 2021/2022 MY on the same date.
It is specified that since the beginning of November, Ukraine exported 1.07 million tons of grain crops, including 388 thousand tons of wheat, 606 tons of corn, 67 thousand tons of barley and 2.9 tons of flour.
As it follows from the Ministry data, during the period of November 2-7, an average of 178 thousand tons of cereals per day were supplied to the foreign markets, whereas during the preceding period of October 26 – November 2 – 170 thousand tons per day, October 21-26 – 132 thousand tons per day, October 1-21 – 141.5 thousand tons per day, and during September 26-30 – a record 267.5 thousand tons per day since the war. Thus, the average daily rate of exports during the reporting period of 2-7 November increased by 4.7% compared to the preceding period of October 26-November 2.
As reported, Ukraine exported 48.51 million tons of grain and leguminous crops in 2021/2022 MY, which is 8.4% more than in the previous MY, despite the full-scale invasion of Russia and the difficulties with the export of agricultural products due to the blockade of Ukrainian sea ports. 18.74 million tons of wheat (12.6% more than in 2020/2021MY), 23.54 million tons of corn (+1.9%), 5.75 million tons of barley (+35.9%), 70.9 thousand tons of flour (-44.1%) were supplied to foreign markets.
In 2020/2021 MY, the country exported 44.72 million tons of cereals and legumes: 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley, 126.9 thousand tons of flour and 18.4 thousand tons of rye.
In 2019/2020, Ukraine exported 56.72 million tons of grain and leguminous crops.
Asia-Pacific stock indices are rising in trading on Monday.
Investors continue to monitor the quarterly earnings season and evaluate fresh statistics from China.
China’s Shanghai Composite index was up 0.4 percent by 8:20 a.m. Hong Kong Hang Seng added 3.6%.
Traders remained optimistic amid unconfirmed reports last week that Chinese authorities may start loosening covid restrictions and abandon its zero-tolerance COVID-19 policy in March. However, Beijing made clear over the weekend that it is still committed to a tough fight against the coronavirus, Trading Economics wrote.
Meanwhile, Goldman Sachs experts think that the optimism of market participants may persist for 2 to 3 months and the market itself may grow by 20% due to this.
Shares of semiconductor maker Hua Hong Semiconductor Ltd. jumped 16%. The company plans to list on the Shanghai Stock Exchange and may raise up to $2.5 billion.
On the Hong Kong Stock Exchange, shares of developer Country Garden Holdings Co. Ltd. (+13.4%), optical device maker Sunny Optical Technology Group Co. Ltd. (+8.4%) and biopharmaceutical Wuxi Biologics (Cayman) Inc. (+7.7%).
China’s exports in October fell 0.3% year on year to $298.37 billion, according to the General Administration of Customs of the People’s Republic of China. Analysts polled by The Wall Street Journal had forecast a 4% increase. It added 5.7% in September.
Imports fell 0.7% year on year to $213.17 billion in October after rebounding 0.3% in September. Economists had expected the figure to be unchanged last month. China’s foreign trade surplus reached $85.2 billion in October, compared with $84.7 billion a month earlier and $84.8 billion a year earlier. Experts estimated the October surplus at $95.8 billion.
Japan’s Nikkei 225 was up 1.2% by 8:35 a.m.
Shares of toy maker Sanrio Co. that owns the Hello Kitty brand are up 13%. The company increased its net profit 1.5 times in the first fiscal year and improved its full-year outlook.
Also among the leaders in the Japanese indicator are securities of JFE Holdings Inc.(+7.5%) investing in the steel business, transport and logistics company Kawasaki Kisen Kaisha Ltd. (+6.6%) and printer maker Konica Minolta Inc. (+5.8%).
Sharp Corp., the Japanese unit of electronics maker Foxconn Technology Group, was down 2.7 percent. The company reported a net loss last quarter and cut its outlook for the year.
South Korea’s Kospi index was up 0.9 percent by 8:45 a.m.
The stock price of Samsung Electronics Co., one of the largest chip and electronics makers in the world, rose 1.2%, the value of Hyundai Motor jumped 4%.
Australia’s S&P/ASX 200 index rose 0.6% on Monday.
Share prices of the world’s largest mining companies BHP and Rio Tinto added 5% and 3.8% respectively.
Meanwhile, Coronado Global Resources Inc. shares are down 7% on news that the company terminated merger talks with U.S.-based Peabody Energy Corp.
Oil prices are declining on Monday morning after a strong growth following last week’s results, driven by hopes for a softening of the approach of the Chinese authorities to combat the coronavirus.
The price of January futures for Brent at London’s ICE Futures Exchange stood at $97.59 per barrel by 7:06 a.m., down $0.98 (0.99%) from the close of the previous session. At the close of trading last Friday those contracts grew by $3.9 (4.1%) to $98.57 per barrel.
The price of WTI futures for December at the electronic trading on the New York Mercantile Exchange (NYMEX) is $91.44 per barrel by that time, down $1.17 (1.26%) from the previous session. The contract rose by $4.44 (5%) to $92.61 per barrel at the end of last session.
Brent gained 5.1% last week to finish at its highest level since late August, while WTI gained 5.4%.
The Wall Street Journal wrote last Friday, citing several sources, that Zeng Guang, a former top epidemiologist at China’s Center for Disease Control and Prevention (CDCP), said during a conference that a significant change in the country’s authorities’ approach to the coronavirus pandemic was expected in 2023.
Over the weekend, however, Beijing reiterated its intention to adhere “rigorously” to a “zero tolerance” policy for COVID-19.
“Traders believe China will be a driver of fuel demand growth at some point next year on the back of the country’s accelerating economic growth,” said SPI Asset Management managing partner Stephen Innes.
The dollar showed moderate gains against major world currencies Monday morning.
The ICE-calculated index, which shows the U.S. dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), is up about 0.1%. The broader WSJ Dollar Index is up 0.2%.
The euro/dollar pair is trading at $0.9950 by 7:45 a.m. Q, versus $0.9960 at the close of last Friday’s session, the euro is losing about 0.1%.
The dollar/yen is up 0.3% at 147.08 yen from 146.62 yen at the end of last week.
The pound is trading at $1.1333, up from $1.1377 at the close of the previous session.
Currency traders continue to try to predict the future trajectory of Federal Reserve interest rates. Currently, the market generally expects the Fed to slow the rate hike in December and raise it by 50 basis points after raising it by 75 bps at four previous meetings, Trading Economics writes.
In addition, market participants are waiting for data on October inflation in the U.S., which may affect the Fed’s decision. The report will be released Thursday, and analysts polled by Trading Economics on average expect it to point to a slowdown in inflation in October to 8% from September’s 8.2%.
Meanwhile, the mainland yuan is down 0.4% to 7.2119 per $1, and the offshore yuan, which is traded in Hong Kong, is down 0.54% to 7.2154 per $1.
The Wall Street Journal wrote last Friday, citing several sources, that Zeng Guang, a former top epidemiologist at China’s Center for Disease Control and Prevention, said during a conference that a major change in the country’s approach to the coronavirus pandemic was expected in 2023.
Over the weekend, however, Beijing reiterated its intention to adhere “rigorously” to a “zero tolerance” policy for COVID-19.
“Previous practices have shown that our prevention and control plans, as well as a series of strategic measures, have been absolutely correct,” Bloomberg quoted CDCP official Hu Xiang as saying.
