Ukrainian stocks lose up to 5% of their value on news about negotiations with Russia in Istanbul
The index of Ukrainian stocks on the Warsaw Stock Exchange (WSE) WIG-Ukraine fell by 2.95% on Friday to 599.40 points on news about the results of the first direct negotiations between the Ukrainian and Russian sides since 2022 in Istanbul.
According to WSE data, the share price of the country's largest sugar producer, Astarta, fell by 4.21%, the agroholdings Agroton and IMC with lands near the front - by 2.83% and 1.92%, Milkiland - by 2.17%, KSG-Agro - by 2.73%, Coal Energy with mines stopped due to the war jumped (all shares are included in the index basket) - by 0.33%.
The shares of the largest Ukrainian oil producer - the agroholding Kernel, which are not included in the index due to a small free-float, fell by 1.50%.
The dynamics of Ukrainian shares on the WSE on Friday was much worse than the dynamics of the entire Polish market: the WIG index decreased by only 0.08% during the day, and the WIG40 even grew by 0.11%.
On the London Stock Exchange (LSE), which does not have the same influence of retail investors as on the WSE, the share price of the largest Ukrainian chicken producer, the agricultural holding MHP, fell by 2.96% on the day of the negotiations in Istanbul, and the mining company Ferrexpo - by 4.96%.
As reported, WIG-Ukraine fell from 574.37 points to 361.98 points on the first day of the war on February 24, 2024, and fell below 200 points in May 2024. After Trump's victory last fall, it initially rose from about 240 points to 350, and from mid-February on news of the start of peace talks, it jumped to 640-650 points. But after losing optimism about a quick agreement, it fell to 508.45 points in early April.
By the end of last week, the WIG-Ukraine had risen to 590 points on news of improved relations between Ukraine and the US and Russia’s announcement of a temporary ceasefire. Following the announcement of plans for talks in Istanbul and a possible longer-term ceasefire, the index reached almost 625 points earlier this week and then began to decline as optimism about the outcome of the talks waned.