UX
index was hit hard last week, falling 3.5% to close at 608 points, which is
effectively an all-time minimum taking into account the hryvnia’s sharp decline
since the previous minimum in 2009. The gauge suffered big losses as a result of
the index committee’s decision to remove 3 stocks from the index basket. The
move, while necessary and expected due to the lack of trading in these names,
still had a negative impact on the market. Yenakievo Steel (ENMZ) and Alchevsk
Steel (ALMK) were both removed from the UX basket, as these companies are
located on pro-Russian separatist territory. The ALMK plunged 18.6% for the week
while ENMZ was down just 3.0%. The third blue chip removed from the index was
Krukiv Wagon (KVBZ), as trading activity for the stock has been essentially
non-existent for many months. KVBZ dropped 20.2% to UAH 7.00 for the week. Among
the remaining active blue chip names, UkrNafta (UNAF) was flat at UAH 143, while
CentrEnergo (CEEN) advanced by a solid 5.7% to UAH 4.75 after news that the
Energy Ministry has transferred the government-owned stake of 78.2% in the
company to the State Property Fund for privatization preparations. Although we
are still skeptical that the government will privatize CentrEnergo this year,
the bold move of transferring the stake to the SPF is an encouraging
development.
full reportEavex Capital welcomes any questions or comments you may have regarding our
research products.
Please contact our office in Kyiv at 380-44-590-5454, or
by email:
Alexander Klymchuk, Head of Sales,
[email protected]
Dmitry
Churin, Head of Research, [email protected]
