EAVEX Weekly

September 23, 2019

Trading on the PFTS exchange was sluggish last week, with little movement in either direction. In major domestic news, local investors continue to focus on the promised farmland reform, with an announcement that the land market will open in October 2020. The absence of a land market has favored big agribusinesses and hurt small-scale farmers who are unable to use the land they own as collateral to borrow money. Ukraine has 43mn hectares of arable land, about 11 million hectares of which are state-owned. The World Bank estimated that the country could see additional GDP growth of 1.5 percentage points yearly if the land sale ban is lifted. The PFTS rose by 1.4% to 522 points after being under pressure for the last three weeks. CentrEnergo (CEEN) recovered 1.9% to close at UAH 10.30 on information that the Honcharuk government has appointed a new head of the State Property Fund (SPF) who is expected to push large scale privatizations in the country, including a sale of the state’s 78% s