Business news from Ukraine

Ukraine expanded list of unreliable investment projects

The National Securities and Stock Market Commission (NSSMC) has added brokerage platform CapitalProf, cryptocurrency exchanges Crypto Lloyds / Crypto Lloyds LTD, IncCrypto, ABNBITFX, RWB Group and seven more cases to the list of questionable investment projects.
As the Commission clarified in a statement on Wednesday, in particular, the list was supplemented by the trading platform Advanced Mining, trading platforms DotBig, ParadTrade and xChief Ltd, RoboForex, Fondexx, as well as Avalon Technologies, a platform that trades IT assets, positioning itself as “one of the fastest growing investment projects in Runet”.
The total number of positions in the list reached 268 investment projects.
Last week, as part of the work to protect the rights of investors, the SECP held an online meeting with specialists from BaFin (German Federal Financial Supervisory Authority). The Commission again reminded potential investors of the significant risks associated with investing: through persons whose activities on the territory of Ukraine are not regulated in any way, as well as persons indicating false information about licensed and allegedly official activities in countries with developed financial markets.

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Turkish lira falls and stock market rises after Erdogan’s re-election

Turkish lira exchange rate on Monday once again updated its historic low against the U.S. dollar on the results of the presidential election.
The national currency is trading at 20.1004 lira/$1 from 19.9731 lira/$1 at the close of the previous session. Over the past twelve months, the lira has fallen in value by about 23 percent.
Analysts at Morgan Stanley predict that the Turkish currency rate could drop another 29% by the end of this year – to about 28 lira/$1 if the country’s current policies persist. The experts at Wells Fargo & Co. expect a decline to 23 liras/$1 by the end of the current quarter.
Meanwhile, the BIST 100 stock index jumped 4.1 percent in trading Monday to a two-week high. It has nearly doubled over the year (up 88.2%).
Leaders of the rise include companies that earn a significant portion of their revenues from abroad, including glass maker Sise ve Cam Fabrikalari (+6.2%) and Turkish Airlines (+3.3%).
The yield on Turkey’s ten-year government bonds is around 9% annually, the lowest level since January.
Current Turkish President Recep Tayyip Erdogan won the second round of presidential elections. In a speech after the announcement of his victory, he called on his fellow citizens to unite and work together for the good of the country, and promised to address urgent problems, in particular to deal with the effects of inflation.

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Asia-Pacific stock market rises after Wall Street

Asia-Pacific stock indices rose on Tuesday, recovering from declines in previous sessions after Wall Street and European markets.
U.S. main indices were up 0.4-1.2%, while the Stoxx Europe 600 composite added 1% on the news that Swiss bank UBS is buying distressed Credit Suisse for 3bn Swiss francs ($3.25bn).
The key event of the week will be the meeting of the Federal Reserve System. Analysts and market participants generally believe that due to the tense situation in the banking sector, the Federal Reserve may raise the prime rate by only 25 basis points. At the same time many economists admit the probability that the rate will be kept at the same level.
China’s Shanghai Composite stock index rose 0.5%.
Shares of Kunlun Tech (10.7%), Zhonghang Electron (6%), Inspur Electronic (1.3%), Wuxi Apptec (5.4%) and Changchun High New (6.7%) showed the most notable gains.
Hong Kong Hang Seng indicator added 0.9%.
Healthcare and consumer sector stocks were the growth leaders. Wuxi Biologics gained 7.3%, Li Ning gained 5.2%, Chow Tai Fook Jewelry gained 4.4% and AIA Group gained 2.8%.
Shares of Bilibili Inc. jumped more than 9% on news that Chinese regulators had issued licenses to sell 27 foreign video games in the country. Bilibili will be the distributor for some of them.
South Korea’s Kospi index rose 0.4%.
The market value of one of the world’s largest chip makers Samsung Electronics Co. rose 0.3% and automaker Hyundai Motor rose 0.2%.
Australia’s S&P/ASX 200 index rose 0.8 percent.
The minutes of the March meeting of the Australian Central Bank, released on Tuesday, showed that the regulator’s leadership is ready to consider a pause in the cycle of rising rates at the next meeting.
Shares of Australia’s leading banks Macquarie Group, Commonwealth Bank, ANZ Group, Westpac Banking and NAB rose 1.3-2.7%.
Major mining and energy companies, including BHP Group (1.9%), Pilbara Minerals (3.6%), Whitehaven Coal (3.5%) and Woodside Energy (1.8%) also rose.
Japan’s stock exchanges are closed Tuesday in observance of Vernal Equinox Day.

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Stock market in Europe is recovering from fall and is actively rising

The stock market of Western Europe is actively rising on Friday, recovering from falling to the lowest level in more than two years, but still ends the next quarter with a decline.

The composite index of the largest companies in the Stoxx Europe 600 region jumped by 1.19% by 11:26 a.m. to 387.42 points. Growth leaders among industry sub-indexes are retailers, oil and gas companies and banks.

The index is down about 5% since the beginning of the third quarter and could end in the red for the third quarter in a row.

The British stock index FTSE 100 during trading on Friday rose by 0.91%, the German DAX – by 1.22%, the French CAC 40 – by 1.21%. The Italian FTSE MIB and the Spanish IBEX 35 added 1.5% and 1.2% respectively.

Investors evaluate a large array of statistical data from various European countries.

Thus, the UK economy in the second quarter of 2022 grew by 0.2% compared to the previous three months, according to the final data from the National Statistics Office (ONS). A 0.1% decline in GDP was previously reported, and analysts generally did not expect a revision of the data.

Consumer prices in France, harmonized with the standards of the European Union, in September increased by 6.2% in annual terms after rising by 6.6% in August, although experts expected inflation to accelerate to 6.7%.

Meanwhile, consumer spending in France was unchanged in August from the previous month. The average forecast of experts assumed a decline of 0.1%, according to Trading Economics.

In addition, on Friday it became known that the number of unemployed in Germany in September increased by 14 thousand, increasing for the fourth month in a row, but unemployment was expected to remain at 5.5%.

In Italy, unemployment in August unexpectedly fell to 7.8% from 7.9% in July, although analysts did not expect a change in the rate.

Aston Martin stock quotes are up 3.9% during trading on Friday on news that China’s Zhejiang Geely Holding Group Co. bought a 7.6% stake in the British sports car manufacturer.

Sportswear makers Puma and Adidas are down 5.4% and 3.9%, respectively, after U.S. rival Nike Inc. the day before, he reported on the reduction of quarterly profit and noted the impact of negative factors on profitability.

Capitalization of Italian construction company Webuild rose 2.2% on a strong full-year outlook.

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UKRAINIAN CERAMIC GROUP GETS LOSSES IN 2020

PrJSC Ukrainian Ceramic Group (Sloviansk, Donetsk region) in 2020 reduced its net loss by 32.5% compared to 2019, to UAH 3.9 million.
According to the company’s annual report in the information disclosure system of the National Securities and Stock Market Commission, revenue increased by 19%, to UAH 5 million.
Retained earnings for the year decreased by 6.8% and amounted to UAH 53.7 million.
Long-term liabilities decreased by 5.1%, to UAH 11.2 million, current – increased by 47.8%, to UAH 18.7 million.
The company’s assets in 2020 increased by 1.5% and amounted to UAH 101.3 million.
PrJSC Ukrainian Ceramic Group was founded in 1993. It does not produce clay due to the completion of the development of a deposit in Donetsk region in 2009. Currently, it is engaged in leasing and purchase and sale of real estate.
The company also owns 48.9% of the shares of PrJSC Zeus Ceramica (Sloviansk, Donetsk region).
The charter capital of PrJSC Ukrainian Ceramic Group for April 2021 is UAH 1.16 million.

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STATE-RUN UKRENERGO POSTS NET LOSS OF UAH 27.5 BLN IN 2020

PrJSC Ukrenergo in 2020 received UAH 27.498 billion of net loss against UAH 1.857 billion of net profit for 2019.
According to the report published in the information disclosure system of the National Securities and Stock Market Commission, the company’s net income last year increased 2.2 times (by UAH 31.921 billion), to UAH 58.249 billion. The gross loss amounted to UAH 24.950 billion against UAH 6.052 billion in gross profit in 2019.
Earlier, Ukrenergo repeatedly noted that the operator’s main activity in transmission and dispatching in 2020 is profitable, while losses are associated with special obligations imposed on the company for the population and coverage of the feed-in tariff to the state enterprise Guaranteed Buyer, the costs of which are not fully covered by the established tariff.
Ukrenergo operates the trunk and interstate power grids, as well as the centralized dispatching of the country’s integrated power system. It belongs to the state represented by the Ministry of Finance.

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