EAVEX Weekly

March 11, 2019

Ukrainian stocks showed another week of mixed performance, with both Kyiv-listed and foreign-listed major names remaining in their local trading corridors. One positive factor for the market so far in 2019 has been the strong hryvnia, which has appreciated by 4.8% since the beginning of the year. We think the National Bank’s hawkish monetary policy and a stable inflow of hard currencies in the form of remittances are the main reasons behind the hryvnia’s appreciation. Official data suggests that remittances brought in USD 11.3bn to Ukraine last year, helping a lot to improve the country’s overall balance of payments. In January alone, the remittances amounted to USD 985mn, leading to a current account surplus of USD 446mn for the month. The hryvnia gained 1.7% last week to close at 26.39 UAH/USD after a report that the country’s foreign currency reserves remain above USD 20bn. The National Bank’s next monetary policy meeting is scheduled on Mar 14, with some signals indicating that the