EAVEX Weekly

February 24, 2020

Kyiv-listed stocks finished notably higher last week amid generally positive sentiments regarding the performance of Ukrainian economy. Although the country’s GDP growth slowed down to 1.5% YoY in 4Q19, there are expectations of faster growth this year due to a stimulative monetary policy and an improving business climate. Quotes for oil&gas extractor UkrNafta (UNAF) rose 2.7% to UAH 162 per share after the company’s state-owned parent group NaftoGaz provided UAH 2.5bn to help UkrNafta to pay taxes on some 2bn cubic meters of natural gas which it regained possession of after a decade-long court fight with the Ukrainian government. The payment from Naftogaz de-facto increases the probability that UkrNafta will effectively receive an above-market price on the sale of this gas, which should translate into high profits in 1Q20.