EAVEX Weekly

June 12, 2017
 

Kyiv-listed stocks continued their growth last week after the World Bank improved its forecast for Ukraine’s medium-term GDP growth to 3.5% (from 3%) in 2019 and to 4% (also from 3%) in 2019, endorsing the Ukrainian government’s stabilization efforts. However, the cargo blockade of the Donbass separatist-occupied territories remains a clear risk to near-term economic growth for the country. The UX index advanced by 1.7% to 1020 points over the week, having seen almost uninterrupted growth since late May. Electricity stocks were the best performers after President Poroshenko signed a new law liberalizing the electricity market. The law is aimed at fulfilling Ukraine’s obligations to the European Energy Community and the Association Agreement between Ukraine and the European Union. CentrEnergo (CEEN) and DonbasEnergo (DOEN) rose by 3.6% and 2.0% respectively, with the former closing at UAH 10.80 per share. Motor Sich (MSICH) added 4.0% to UAH 2430 and Raiffeisen Bank Aval (BAVL) was flat