Comments and pre-market: Eavex Ukraine Market Monitor: May 14

Ukraine’s main equity index ended sharply lower on Tuesday (May 13), pulled down the passage of the ex-rights date for Raiffeisen Aval’s hefty 3-kopeck dividend payout. The bank’s share price fell 13.1%, or a bit less than the 16% dividend yield implied by the payout, which is roughly equal to the bank’s profit over the last 5 years. We presume that this payout could be related to Raiffeisen International’s desire to squeeze extra funds out of the bank before selling its majority stake. Externally, US markets were flat after big gains on Monday, but the main European indices edged higher again, with the DAX picking up half a percent. The UX index ended with a loss of 3.2% at 1053 points. Although most of the decline was due to Raiffeisen Aval, top liquid names UkrNafta and DonbasEnergo also shed 2.0% each. Outside the UX basket, Krukiv Wagon slid 5.2% to UAH 15.60, while in London, it was a good day for both MHP and JKX Oil&Gas, which appreciated by 3.5% and 5.8% respectively.

full report

Analytics and Market news

Eavex Ukraine Market Monitor: May 14