EAVEX Weekly

February 13, 2018

Kyiv-listed equities finished lower last week amid the strong correction across all global stock markets. In our view, there were no local Ukrainian events that were related to the sell-off in domestic stocks. The UX index’s drop was 2.7% for the week, which left it at 1450 points on Friday (Feb 9). The gauge still has a gain of 6.4% since the start of the year. UkrNafta (UNAF) was the hardest hit blue chip, sliding 13.7% to UAH 106 per share partly due to a notable decline in the benchmark oil price. Low-liquidity UX index basket member DonbasEnergo (DOEN) fell 10.4% to UAH 16.30 (Eavex Capital has a SELL recommendation for DOEN), while Motor Sich (MSICH) managed a gain of 1.0% to UAH 4360. Raiffeisen Bank Aval (BAVL) added 3.7% to 30.10 kopecks after a preliminary report which indicated that the bank earned 7.27 kopecks per share for FY17. This means that the bank’s potential dividend could be as much as 6.90 kopecks, which would represent a huge dividend yield of 22%.