EAVEX Weekly

February 26, 2018

Ukrainian stocks listed in Kyiv had another week of mixed results, although the UX index maintained its broad upward trend, climbing above the strong technical resistance level of 1500 points. Last week Ukraine passed the 4-year mark after the EuroMaidan revolution. While President Poroshenko and his government has implemented serious reforms since then, they have failed to deliver on measures such as land privatization and full liberalization of energy prices, and the IMF’s program has disbursed no money for 10 months. The IMF has recently focused in particular on establishing a special court to try corruption cases. The UX index gained 2.3% over the week to close at 1495 points, but the performance was distorted by an 16% jump in low-liquidity DonbassEnergo (DOEN). We assume this growth was driven by some market player’s attempt to pump up the UX index futures. Raiffeisen Bank Aval (BAVL) remained the primary focus of investors, with the stock advancing by 2.5% to 32.80 kopecks as i