Ukrainian securities fall on Tues after 2nd round of Istanbul talks
MOSCOW. June 5 (Interfax) - The WIG-Ukraine Ukrainian stock index fell by 1.35% to 582.36 points at the Warsaw Stock Exchange (WSE), following a 1.01% growth on Monday in the initial reaction to the second round of Russian-Ukrainian negotiations in Istanbul. Ukrainian Eurobonds also fell in price, and the price of GDP warrants plummeted by 4.63% to 68.14% of the nominal value, Ukrainian media reported, citing WSE data.
Quotations for the country's largest sugar producer, Astarta, fell by 1.52% on Tuesday, versus a 0.68% and 1.55% decline in quotations for IMK and Agroton agricultural holdings, respectively, a 2.44% decline for Milkiland, and a 3.47% decline for KSG-Agro. Meanwhile, quotations for Coal Energy with its shutdown mines went up 2.54% (all shares are included in the index basket).
Shares of the largest Ukrainian vegetable oil producer, the Kernel agricultural holding, which are not included in the index due to their low free float, decreased in price by 0.11%.
Quotations for the largest Ukrainian producer of chicken, the MHP agricultural holding, were unchanged on Tuesday at the London Stock Exchange (LSE), where there is no such influence of retail investors as on the WSE, while quotations for the mining company Ferrexpo fell by 1%.
Eurobonds fell by another 0.2-1.5% at the Frankfurt Stock Exchange on Tuesday: bonds-2029 were quoted at about 59.83% of the par value, bonds-2036 - 45.20%, while the rate of GDP warrants fell.
As reported, WIG-Ukraine fell from 574.37 points to 361.98 points on February 4, 2024, and went below 200 points in May 2024. After Donald Trump's presidential victory last fall, it first rose from about 240 points to 350 and jumped to 640-650 points in mid-February on news of the start of peace talks. As optimism about a quick settlement was lost, it fell to 508.45 points in early April.
After plans for talks in Istanbul and a possible longer-term ceasefire were announced, the index reached almost 625 points early last week and then began to fall along with melting optimism about the prospects for a quick end to the crisis.
