EAVEX Weekly

February 14, 2017

Kyiv-listed equities enjoyed a sharp rally last week as expectations of strong corporate reports for 4Q16 triggered buying activity. The first blue chip company that unveiled preliminary financial results was Raiffeisen Bank Aval (BAVL). The bank earned net profit of 2.11 kopecks per share in the fourth quarter, bringing its net profit to 6.21 kopecks per share for FY16. The stock surged 9.1% to 15.30 kopecks, its highest level since July 2014. In economic news, the government estimated the country’s 4Q GDP growth at a very impressive 4.6% YoY. The figure considerably exceeds our own projection and was a positive surprise for the market, although we suppose it is due to an upward revision in the national harvest figure and is unlikely to be repeated in 1Q17. The UX index jumped 4.3% to 902 points; it has been in a general upward corridor since March 2016, when the gauge bottomed at 530 points. Motor Sich (MSICH) finally climbed above the UAH 2000 resistance line, gaining 3.1% to UAH 2