EAVEX Weekly

December 02, 2019

The PFTS index decreased by 1.5% to 510 points last week after heavyweight issue UkrNafta (UNAF) lost 3.4% to close at UAH 140 per share. There was selling momentum in UNAF after the company was unable to win a tender to supply fuel to the Defense Ministry. CentrEnergo (CEEN) was again under pressure, sliding 4.3% to UAH 8.90, while Raiffeisen Bank Aval (BAVL) remained unchanged for a third week in a row at 30.80 kopecks. In major macroeconomic statistics, there was disappointing data that industrial production in Ukraine contracted by 5.0% YoY in October. There are concerns that the Ukrainian steel sector could face additional challenges on the global market, which in turn would be negatively reflected in all other linked sectors. In London trading, Ferrexpo (FXPO) remained on a local uptrend, advancing by 4.2% to GBp 148 per share, although we see GBp 150 as a likely resistance line for the stock given the weak outlook for iron ore pricing. MHP (MHPC) failed to extend its upwa