Kyiv-listed
stocks showed their first signs of life in many months last week, with the UX
index jumping 10.9% to close at 674 points amid indications that the political
deadlock in the country is closer to being resolved without a risky snap
parliamentary election. The benchmark was driven up by heavyweight blue chip
CentrEnergo (CEEN), which surged 30.8% to a 6-month high of UAH 6.21. We assume
that investors have finally started to have some confidence in the government’s
intent to privatize the huge electricity generator later this year, after
control of the state-owned stake of 78% in the company was transferred from the
Energy Ministry to the State Property Fund.
A separate boost
for the market came from the local currency’s appreciation so far this month.
The hryvnia gained another 3.0% to close at 25.55 UAH/USD in interbank trading
last week; the currency had been weak throughout the month of February amid
heavy political uncertainty.
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