EAVEX Weekly

December 10, 2018

Most Kyiv-listed stocks continued to trade in an inactive mode amid the continued suspension of operations at the Ukrainian Exchange, the country’s largest trading platform, which has now been out of action for nearly 6 months. Small free-floats on the secondary PFTS exchange are not conducive to an active market. The political and economical news flow was neutral over the week, providing no direction for the bets of local traders. The five local blue chips finished mixed last week, with electricity generator CentrEnergo (CEEN) edging up 0.8% to UAH 17.30 ahead of a historic privatization auction scheduled for this Thursday (Dec 13). The starting price for the state stake of 78.2% was set at UAH 6.0bn (USD 215mn), implying a UAH 20.70 per share valuation. Five bidders have expressed interest in the auction but none of them can be viewed as a truly strategic investor for CentrEnergo. We assume that this situation is reflected in the CEEN stock price, which remains 16% below the starting