Ukraine-Linked Assets Rally Amid Peace Talks Speculation
Assets tied to Ukraine and traded on foreign exchanges climbed as discussions about potential peace negotiations gained momentum. While no concrete dates for talks have been set, expectations are rising after U.S. President Donald Trump signaled his intent to engage with Russia in an effort to end the war in Ukraine.
Stock Market Surge
Ukrainian agribusiness stocks saw a sharp rally. Astarta (AST) shares on the Warsaw Stock Exchange soared 18.6% to PLN 49.40, lifting its market capitalization to USD 297mn. MHP (MHPC) shares posted a more moderate 1.5% gain to USD 5.46, valuing the company at USD 584mn. Quotes for IMC shot up by 21% to PLN 21.60 (MCap of USD 189mn).
In contrast, Ferrexpo (FXPO) shares tumbled 14% to GBp 95,2, wiping out gains as its Ukrainian unit, Ferrexpo Poltava Mining, became the target of a USD 3.76bn lawsuit. The company stated that the lawsuit alleges illegal extraction of minerals and the sale of production waste. The company is of the view that these accusations and claim are without merit and intends to vigorously defend its position in the Ukrainian courts.
Currency Market Stability
The hryvnia stabilized at 41.55 per dollar in the interbank market. The National Bank of Ukraine’s interventions totaled USD 455mn for the week — well below the January weekly average of USD 850mn.
The central bank reported foreign reserves of USD 43bn as of early February, a level it considers sufficient to maintain exchange rate stability.
POLITICS AND ECONOMICS
- Waltz Distances US from Ukraine Security Guarantees Ahead of Munich Meetings
- Ukraine’s Public Debt Increases by 14% YoY to USD 166bn in 2024
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