EAVEX Weekly

July 25, 2017

Kyiv-listed Ukrainian stocks enjoyed a convincing advance last week ahead of the publication of companies’ 2Q17 financial results. The earnings season is expected to be good for most domestic blue chips. In particular, the Ukrainian banking association said that Raiffeisen Bank Aval (BAVL) posted EPS of 3.66 kopecks in 5M17, which suggests that the 2Q17 EPS could reach 2 kopecks after the 1Q EPS of 2.36 kopecks. The BAVL stock jumped 12% to 25.30 kopecks after the news. There are also expectations that Motor Sich (MSICH) will report a strong profit of UAH 700mn for 2Q, and the MSICH stock rose 3.1% to UAH 2450 per share after a contraction over preceding week. In IMF program related news, Fund spokesman William Murray said that pension reform, privatization and the fight against corruption remain key requirements for the disbursement of the fifth tranche of USD 1.9bn to Ukraine. On the macroeconomic front, UkrStart released a surprisingly high figure for retail sales growth in 1H17 (