EAVEX Weekly

December 27, 2016

Ukrainian stocks listed in Kyiv made an impressive recovery from the preceding week’s speculative slump. Besides the technical rebound factor, there was also positive news that the country’s industrial production accelerated in November, giving more grounds to expect a broader economic recovery in 2017. The government is forecasting 3% GDP growth next year. Also, we are pleased to note that the shock nationalization of the country’s largest bank, PrivatBank, has come off quite smoothly, defying the pessimistic scenario of a hard landing for the bank with widespread financial system turmoil. The UX index gained back 3.0% to close at 785 points on Friday (Dec 23). Raiffeisen Aval (BAVL) advanced 5.6% to 12.70 kopecks thanks to expectations that the nationalization of PrivatBank will bring the bank a spillover windfall of retail and corporate clients. UkrNafta (UNAF) gained 0.5% to UAH 103 on encouraging news for the company that Parliament cut the production tax for oil for 2017.