EAVEX Weekly

March 16, 2017

Kyiv-listed equities ended lower last week as traders took advantage of a holiday-shortened trading week to pause and take some profits after the local market’s strong start to 2017. The Women’s Day observance, which is one of the biggest holidays of the year in Ukraine, fell right in the middle of the week on Wednesday (Mar 8). The UX index has risen by 18% since the start of the year, outperforming the MSCI Emerging Markets index by 11 percentage points. In economic news, UkrStat reported 1.0% MoM inflation for February, which somewhat exceeded our projections. This means the NBU is unlikely to cut its key interest rate until May at the soonest, if and when headline inflation drops below 12%. The UX index lost 1.6%, finishing at 941 points. UkrNafta (UNAF) slid 3.3% to UAH 133 per share amid a rough week for global oil prices, which dropped below the USD 50 support level for the first time in 2017. Meanwhile, the State Fiscal Service remained silent about whether it will allow UkrNa