EAVEX Weekly

July 22, 2019

Kyiv-listed stocks edged higher ahead of the national parliamentary election held on Sunday (Jul 21), with the PFTS index climbing by 1.1% over the week to close at 545 points. Polls predicted (accurately) that President Zelenskiy’s People’s Servant (SN) party would secure around 43% of the national party list votes, implying that the president could enjoy levels of political dominance rarely seen before in Ukraine. We assume that SN will be able to form a government without the help of any junior coalition partners by securing loyalty from the independent MPs elected from geographic districts. Since becoming president, Zelenskiy has been warmly greeted by Ukraine’s western backers, after his reassurances that Kyiv would maintain EU integration plans. Among individual stocks, Raiffeisen Bank Aval (BAVL) gained 1.3% to 30.40 kopecks and CentrEnergo (CEEN) rose 1.8% to UAH 11.20. UkrNafta (UNAF) declined by 2.9% to UAH 170 after the company sold an unimpressive volume of oil at its regul