EAVEX Weekly

April 03, 2018

The Ukrainian domestic equity market’s six blue chips ended mixed last week amid a rather quiet political environment. Motor Sich (MSICH) was the hottest local story for the second week in a row. The government’s Deposit Guarantee Fund (DGF) auctioned another block of MSICH stock which it had previously confiscated from insolvent banks. The second block of a 0.24% stake in Motor Sich was sold to a single buyer at UAH 6500 per share on Mar 27 after the first block was sold at UAH 5267 per share on Mar 21. The price of UAH 6500 represented a 30% premium to the previous day’s closing price. However, on the UX, quotes for MSICH failed to approach the auction price, rising by 6.0% to UAH 5140 per share. A second piece of news regarding Motor Sich was an announcement that the company earned UAH 3.1bn in full-year 2017, implying earnings per share of UAH 1492. The company will hold its annual shareholders meeting on Apr 25, with the dividend amount remaining uncertain; management stated that