EAVEX Weekly

June 18, 2018

It was a highly volatile trading week on the Ukrainian Exchange due the UX’s impending shutdown, which is effective as of today (Jun 18). Trading on the exchange, the country’s largest, is being suspended indefinitely due to a ban on the UX’s operating software after Ukraine’s National Security & Defense Council (RNBO) imposed sanctions against software produced in Russia. Elevated trading activity last week was caused by the forced expiration of all outstanding futures and option contracts on Friday (Jun 15). We expect most of the liquidity in Kyiv-listed stocks to migrate from the UX trading platform to the country’s other trusted exchanges, namely the PFTS and Perspectiva, which also have equity sections. Trading will also continue to be conducted on the OTC market. The UX index gained 0.6% for the week to close at 1620 points. The six-month UX futures contracts for the mid-January-mid-June period expired at 1612 points. Raiffeisen Bank Aval (BAVL) performed in a U-turn patter