In the global financial markets, a period of noticeable optimism among investors persists, primarily driven by expectations of interest rate cuts in 2024. Confirmation of this scenario is evident in the actual decline in the yield of U.S. 10-year bonds from 5% in October to the current level of 3.9%. Meanwhile, the key interest rate of the U.S. Federal Reserve remains in the range of 5.25% to 5.50%. Currently, the market, with a 90% probability, is pricing in the forecast that the Fed will commence a rate-cutting cycle in March.
The S&P 500 index added 0.7% last week and has increased by 24% since the beginning of the year.
An additional boost to stock prices comes from the increased activity in M&A. In the pharmaceutical sector, biopharmaceutical company Bristol Myers Squibb announced the acquisition of Karuna Therapeutics for USD 14bn. Karuna’s key asset is KarXT, an experimental drug with a promising innovative action. The drug is currently in the final stages of testing, with plans for its use in the treatment of neurological disorders, including Alzheimer’s disease.
For Ukrainian public companies, 2023 has been predominantly negative. The most notable and dramatic story for investors has been the stock price dynamics of agro company Kernel (KER). Since the beginning of the year, the company’s stock value has halved from PLN 18.00 to PLN 9.65, as the company’s main owner initiated the delisting process from the Warsaw Stock Exchange. Among other major Ukrainian agro companies, there has been mixed performance in stock prices. MHP’s (MHPC) securities lost 16% since the beginning of the year, while Astarta’s (AST) shares increased by 38%.
POLITICS AND ECONOMICS
- The IMF Predicts Ukraine’s GDP Growth at 4.0% YoY in 2024 with Inflation of 9.5% YoY
The National Bank of Ukraine has opened a special fundraising account to support the Armed Forces of Ukraine. Please find more at the National Bank’s official website under the link below:
www.bank.gov.ua
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