Financial take-off — what raised Ukrainian stocks after Jeddah
Share
The Ukrainian stock market received a strong boost after talks between the Ukrainian and American delegations in Jeddah. Investors welcomed the news of diplomatic rapprochement, which immediately affected the stock prices of Ukrainian companies.
According to Interfax-Ukraine, on Wednesday, March 12, after a three-day drop of an average of 7%, stock prices on the Warsaw Stock Exchange (WSE) rose sharply. The Eurobond market also reacted with growth.
Agricultural and energy sectors at the peak of growth
According to the data of the WSE, the largest growth was demonstrated by shares in the agricultural and energy sectors.
- Milkiland — +9.52%;
- KSG Agro — +10.07%;
- Agroton — +7.27%;
- IMC — +5.68%;
- Astarta (the largest sugar manufacturer) — +3.89 %.
The rise in the stocks of these companies is attributed to investors’ expectations of stability in the agricultural market and possible financial injections into the sector.
A similar trend was observed in the coal sector. Despite the fact that Coal Energy has virtually ceased operations due to the war, its shares jumped by 8.44%.
Oil market and metallurgy: who won and who lost
Shares of Kernel, Ukraine’s largest oilseed manufacturer, deserve special attention. They rose by 7.47%, although the day before, the company showed the biggest drop among agrarians (-8.06%).
The reaction on the London Stock Exchange was mixed:
- Ferrexpo (mining sector) added 7.09%;
- MHP (agricultural holding, chicken manufacturing) lost 0.97%.
This suggests that investors are more optimistic about the metals sector than the meat processing industry.
Eurobonds and GDP warrants: steady growth
Ukrainian Eurobonds also reacted to the positive news. Quotes increased by 0.6-1.9%, in particular:
- Eurobonds 2029 — 68.13% of the face value;
- Eurobonds 2036 — 55.43% of the face value;
- GDP warrants — +0.78% (up to 77.75% of the notional value).
The main driver of this growth was the improvement in Ukraine’s geopolitical prospects following the Jeddah talks.
What will happen next to the stock market?
Despite the positive dynamics, the market remains sensitive to any news. Analysts predict that further growth will depend on the following factors:
- the reaction of the United States and the EU to Ukrainian initiatives;
- further development of the situation at the frontline;
- decisions of the IMF and other international partners.
Whether this trend will continue in the coming weeks remains an open question. But today’s growth has already sent a strong signal of confidence in the Ukrainian economy.
As reported, the President of the United States, Donald Trump, hopes that Russian dictator Vladimir Putin will agree to a truce. He stated that a meeting between the United States and Russia would take place in the coming days.
As a reminder, in February, news of possible peace talks between the presidents of the United States, Ukraine, and Russia triggered a rise in Ukrainian stocks. Investors were optimistic about the reports of diplomatic efforts.
