EAVEX Weekly

February 27, 2017

Kyiv-listed stocks enjoyed firm growth last week after a new ceasefire agreed by the so-called “Normandy Four” went into effect in Eastern Ukraine aimed at ending a spike in fighting that occurred during the preceding 4 weeks. The Ukrainian side once again emphasized that the withdrawal of heavy arms by Russia is a key element in the Minsk agreement, which was negotiated two years ago but has seen key political and military points remain un-implemented. The UX index rose 1.3% over the week to close at 932 points. UkrNafta (UNAF) led the growth, advancing 3.2% to UAH 124 per share amid the firm oil price environment. Motor Sich (MSICH) also performed well, adding 1.1% to UAH 2175. CentrEnergo (CEEN) gained 1.9% to UAH 11.34 despite the ongoing anthracite coal supply disruption, and we assume that rumors that the company will report earnings of UAH 3.00 per share for FY16 was the primary driver for the stock.