EAVEX Weekly

July 29, 2019

Ukraine’s PFTS equity index remained in a sideways local trend last week, edging down by 0.9% to 540 points. The political and geopolitical news flow had a noticeable impact on local traders’ sentiments. The Ukraine-Russia relationship saw an additional line of confrontation after Ukraine’s Security Service (SBU) seized a Russian tanker that Moscow allegedly used to block three Ukrainian naval vessels before detaining them and 24 Ukrainian sailors in November near Crimea. Russia’s Foreign Ministry said it was currently investigating the incident and warned Kyiv of a harsh response. In the individual PFTS index basket names, DonbassEnergo (DOEN) slumped by 6.1% to UAH 23.72 per share after the company decided to sign an exclusive contract to sell electricity to a trading entity controlled by DOEN’s majority shareholder. We assume that this transfer pricing deal could limit DonbassEnergo’s profitability. Minority shareholders that voted against the deal at the extraordinary shareholder m