EAVEX Weekly

September 03, 2018

Kyiv-listed stocks ended lower last week as turbulence on the interbank currency market made hryvnia assets less attractive. The national currency gave up another 1.3% against the dollar, closing at 28.22 UAH/USD and bringing its decline since early August to more than 5%. However, thanks to gains in the spring and early summer, the currency is down by only 0.4% since the start of 2018, indicating that the devaluation remains in a controlled mode. The National Bank has battled to keep the hryvnia firm this year, raising its key policy rate twice this year from 16.00% to 17.50%, and there are expectations that the rate could be increased to 18% at the NBU board meeting on Sept 6. Meanwhile, the Finance Ministry placed USD 725mn in short-term 6-month Eurobonds on Aug 24 to help service the country’s big coupon payments on sovereign Eurobonds this month.