News that the IMF
mission reached a staff-level agreement with the Ukrainian government on
policies needed to complete the second review of the bailout program had a
largely neutral effect on the local equity market last week, with the UX index
edging up 0.9% to close at 647 points on Friday (May 20). The latest agreement
raises the chance that the country will finally get the long-delayed third IMF
loan tranche of USD 1.7bn. Actual disbursement of the tranche will probably be
pushed back to July after the IMF Executive Board’s consideration of the review,
despite previous expectations that it could arrive in June.
On the upside,
Raiffeisen Bank Aval (BAVL) rose 3.5% to 7.90 kopecks and CentrEnergo (CEEN)
added 2.1% to UAH 6.91 per share. Motor Sich (MSICH) continued to show little
movement, remaining stuck at the UAH 1985 level. UkrNafta (UNAF) underperformed
the market, slipping 1.3% to near UAH 96.7, as there was more discussion in the
press about the inefficiency of the company’s management.
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