Ukrainian agro stocks displayed mixed performance over the week. Kernel’s (KER) market cap rose by 0.8% to USD 919mn, while MHP (MHPC) remained steady at USD 431mn. MHP’s CEO recently projected that the company’s valuation could reach USD 10bn over the next decade, as it plans to enhance profitability by focusing on processing poultry into ready-made semi-finished products.
On the downside, sugar maker Astarta (AST) slipped by 1.3% to PLN 30.10 per share (MCap of USD 182mn) as the sugar benchmark prices were in the downward move since late September. Industry group UNICA reported that sugar production in Brazil’s key center-south region reached 2.44mn tonnes in the first half of October, an 8% YoY increase and sugarcane crushing rose 2.8% YoY to 33.83mn tonnes, both surpassing expectations.
Ferrexpo (FXPO), a major iron ore producer, saw its shares climb 13% to GBp 65.60, raising its market cap to USD 506mn. However, the stock remains 27% below its value at the beginning of the year.
Global markets experienced a correction in key indices, with the S&P 500 down by 1.4%. This week, in addition to the U.S. presidential election, investors are closely watching the Federal Reserve’s rate decision, where a 25-basis-point cut is anticipated, bringing the rate down from 5.0% to 4.75%. The presidential contest might still be unresolved when the Fed ends its two-day meeting Thursday afternoon, yet that uncertainty would have no effect on its decision to further reduce its benchmark rate. Economists expect another quarter-point rate cut in December and possibly additional such moves next year. Over time, rate cuts tend to lower the costs of borrowing for consumers and businesses.
POLITICS AND ECONOMICS
- National Bank Holds Key Rate at 13.0%, Signals Rate Stability Through 1H2025
full reportThe 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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