EAVEX Weekly

November 09, 2020

Ukrainian equities listed in Kyiv and abroad were on the rise last week as traders were encouraged by Joseph Biden’s victory in the US presidential race. Biden has been to Ukraine numerous times in his previous capacity as vice president, and there are expectations that his policy towards the country will be much more friendly compared to Kyiv-Washington relations under Donald Trump. In fresh macro statistics, the Economics Ministry said that GDP dropped by 3.6% YoY in 3Q20 according to preliminary estimates, bringing the 9M20 drop to 5.5% YoY. The UX index jumped by 5.2% for the week to close at 1379 points on Friday (Nov 6). Although UkrNafta reported huge net losses for 3Q20, the stock surprisingly advanced by 7.0% to UAH 138. We attribute this performance to buying momentum caused by the statement from NaftoGaz CEO Andriy Kobolev that NaftoGaz needs to consolidate its ownership in UkrNafta. Currently, NaftoGaz owns a 50%+1 share in UkrNafta and is holding talks with major private s