EAVEX Weekly

October 22, 2018

Kyiv-listed Ukrainian stocks finished higher last week after the adoption of the 2019 national budget in the first (preliminary) reading. The bill proposes a deficit of 2.3% of GDP and is based on consumer inflation forecast of 7.4%. Parliament passed a bill in the first reading that establishes medium-term national budget planning for the country. The document should help to provide more confidence in the government’s debt servicing strategy. The UX index rose 1.8% to 1721 points, extending its winning streak to five consecutive weeks. CentrEnergo (CEEN) remained in the spotlight, adding 2.6% to close at UAH 17.25 per share. The State Property Fund has not announced the date for CentrEnergo’s privatization auction, but the starting price for the state’s 78% stake in the company has been set at UAH 5.98bn, implying a valuation of UAH 20.70 per share.