EAVEX Weekly

April 26, 2017

Locally-listed Ukrainian equities ended lower last week, ignoring a full-point reduction in the country’s benchmark interest rate. After the NBU cut its key refinancing rate from 14% to 13%, the market adjusted the yield on domestic (non-Eurobond) Treasury debt by 30 bps to 15.20% on the long end of the curve. The latest macroeconomic data was encouraging, with UkrStat reporting that retail sales rose by 3.1% YoY in 1Q17. The UX index declined by 1.2% to 1026 points. UkrNafta (UNAF) was once again the worst-performing blue chip, slumping 7.8% to close at UAH 103 per share amid rumors that the company is considering an asset sale in order to pay off part of its UAH 13.2bn production tax debt. Additional disappointing news for UkrNafta was that its oil extraction fell 3.6% YoY to 359,300 tonnes (2.6mn barrels) in 1Q17. In other UX index components, Motor Sich (MSICH) slipped 0.5% to UAH 2187, and CentrEnergo (CEEN) edged down by a moderate 0.8% to UAH 10.65 despite negative news that the