Ukrainian Agro Stocks Surge Amid Investor Optimism
The leaked information is to be believed, a ceasefire in Ukraine should be in place by April 20. It will freeze the war along the frontline in eastern Ukraine. According to the leaked details the first direct talks between Ukraine and russia would take place around March 1.
The Trump administration’s push to start negotiations to end the war comes at a time of dwindling prospects for a military resolution of the conflict.
Ukrainian agricultural stocks had a stellar week, benefiting from their status as one of the few accessible instruments for retail investors betting on Ukraine’s recovery.
Kernel’s (KER) shares on the Warsaw Stock Exchange soared 34% to PLN 23.75, lifting its market capitalization to USD 1.7bn.
Astarta (AST) advanced 9.5% to PLN 54.1 (MCap of USD 330mn), while MHP (MHPC) jumped 15% to USD 6.30 per share (MCap of USD 670mn).
Ukrainian agribusiness stocks remain undervalued, trading at a price-to-earnings (P/E) ratio of 4.2x, suggesting further upside potential based on fundamentals.
NBU Intervenes to Stabilize Hryvnia
The National Bank of Ukraine spent USD 670mn over the week to support the hryvnia in the interbank market. The currency held steady at UAH 41.6 per dollar on the interbank market and UAH 41.8 per dollar in the cash market.
The National Bank of Ukraine has spent USD 4.5bn since the beginning of the year to support the hryvnia.
POLITICS AND ECONOMICS
- Ukraine’s Inflation Accelerates to 12.9% in January
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