EAVEX Weekly

March 21, 2017

Ukraine’s local equity market was dominated by speculation ahead of the expiration of the March future contracts. Market players opened short positions in blue chips to squeeze out a wide spread between the UX index and UX futures. As a result, the futures contracts expired at 927 points on Mar 15 in a highly volatile trading session. The next day, coverage of the short positions pushed the UX index back up to 945 points but it was not enough to post a gain for the week. The UX index fell 0.6% to close at 935 points. UkrNafta (UNAF) again led the decline, dropping by 3.4% to UAH 129 per share. Among bad news for the company it was information that one of its debtors, from which UkrNafta is owed UAH 1.3bn (USD 50mn), has filed for bankruptcy. CentrEnego (CEEN) slipped 1.7% to UAH 10.95 as the company is suffering from the ongoing shortage of anthracite coal with deliveries from the occupied Donbass territories having been blockaded for nearly two months. On the upside, Raiffeisen Ban