EAVEX Weekly

December 26, 2018

Ukraine’s domestic equity market had no reaction to news last week that the IMF approved a new USD 3.9bn support program for the country. Nevertheless, Kyiv-listed stocks finished the year with solid gains, with the broad 20-stock PFTS index rising by 76% over the year. The 5-stock UX index added 25% to 1,705 points over the year. Surprisingly, one of the best performing local stock was DonbasEnergo (DOEN), which has jumped 70% YtD to UAH 31.00 per share as the company reported outstanding improvements in its financial results. DonbasEnergo’s close peer CentrEnergo (CEEN) added 22% this year to UAH 15.00 but still remains below its fair fundamental value, as the company remains stuck with the government’s ineffective management. The privatization auction for CentrEnergo scheduled for Dec 13 was cancelled, although the IMF continues to insist that the state stake of 78% in CentrEnergo should be sold off. Shares of Ukraine’s flagship oil producer UkrNafta (UNAF) decreased in value by 3.7