EAVEX Weekly

December 13, 2016
 

Kyiv-listed stocks performed poorly after an announcement about the latest failure of the state to sell the Odessa Port-Side Chemical Plant (OPP), a company that the government hoped would be considered as an example of investment attractiveness in Ukraine. The story reminded local equity traders that until systemic reforms are implemented, no investors will come to the country. The State Property Fund said it stopped accepting bids in the tender to purchase 99.6% of OPP on Dec 6. No potential buyers tendered a bid. The UX index shed 1.9% for the week to close at 793 points on Friday (Dec 9). The five blue chips ended in the red. DonbasEnergo (DOEN) was hit the most, losing 6.5% to UAH 10.30 per share. CentrEnergo (CEEN) declined by 1.2% to UAH 10.25 mainly due to fears that the company’s expected privatization in 1H17 could follow the same failed path as the privatization of OPP. UkrNafta (UNAF) slipped 1.3% to UAH 108 continue to ignore the spike in oil prices.