Ukrainian stocks rise — reaction to Trump and peace negotiations
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Stocks of Ukrainian companies are showing rapid rise following reports that the President of the United States, Donald Trump, began peace negotiations with the leader of Ukraine, Volodymyr Zelenskyy, and Russian dictator Vladimir Putin.
According to Interfax-Ukraine, on February 13, the biggest jumps were recorded in the value of Ferrexpo and MHP, which gained 18.06% and 13.29% respectively on the London Stock Exchange.
Rise of Ukrainian companies on the Warsaw Stock Exchange
Optimistic sentiment also spread to the Warsaw Stock Exchange, where Ukrainian companies are listed:
- Milkiland — +12.11%;
- Coal Energy — +6.79% (despite the shutdown of mines due to the war);
- Astarta — +5.36% (the largest sugar producer in Ukraine);
- Agroton and IMC — +4.56% and +3.72% respectively (they have land near the frontline).
- KSG-Agro — +4.85%.
In addition, shares of Kernel, one of Ukraine’s largest oil producers, rose by 7.91%. Although they are not included in the Ukrainian index due to the limited number of stocks in free float, their dynamics also reflect the general trend of positive changes in the market.
Investor optimism is the key to recovery
This optimistic trend shows that investors believe in the possibility of a peaceful resolution of the conflict and the restoration of economic stability in Ukraine. The news of the start of negotiations is seen as a positive signal that could help to restore business and attract investment.
Potential risks
Analysts warn that despite the current surge, further dynamics will depend on the actual progress of the negotiations. If the dialogue between the parties is constructive and leads to concrete agreements, Ukrainian stocks may continue to rise.
At the same time, any escalation of the situation could bring the market down again.
As reported, on the evening of February 12, Trump confirmed that he had spoken to Putin. During the conversation, they discussed the war in Ukraine.
The Russian aggressor invited the President of the United States to visit Moscow. The telephone dialogue between them lasted an hour and a half.
