Ukrainian securities roller coaster continues: WSE stocks plunge 6-15%, eurobonds drop 4-5%
Ukrainian stock prices on the Warsaw Stock Exchange (WSE) took a sharp downturn on Monday morning, falling by 6-15%, following a heated exchange between the Presidents of Ukraine and the United States on Friday evening. The dispute significantly reduced the likelihood of a near-term resolution to the ongoing conflict.
According to WSE data, shares of dairy company Milkiland plummeted by 14.79%, while agricultural holdings Agrotone and IMC, both with land near the front lines, dropped by 11.01% and 9.09%, respectively. KSG-Agro declined by 8.58%, and Astarta, the country's largest sugar producer, saw its stock fall by 6.42%.
Coal Energy, whose mining operations were halted due to the war and had previously led market gains, recorded the largest single-day drop at 14.99%.
Meanwhile, Kernel, Ukraine's largest oil producer, which is not part of the WSE index due to a low free-float ratio, saw its stock decline by 6.18%, following a steep 26.12% drop the previous day.
On the London Stock Exchange, where retail investors have less influence than on the WSE, shares of MHP, Ukraine's largest poultry producer, slipped by 0.66%, while mining company Ferrexpo's stock declined by 0.54%.
In the eurobond market, the fallout from the confrontation between Ukrainian President Volodymyr Zelenskyy and former U.S. President Donald Trump led to a 4.1-5.4% drop in bond prices. Ukrainian sovereign bonds maturing in 2029 are now trading at 68.6% of face value, while those maturing in 2036 stand at 54.2%. GDP-linked warrants also saw a 4.2% decline, dropping to 77.8% of their reference value.
Corporate eurobonds also took a hit. According to Frankfurt Stock Exchange data, DTEK Energy and DTEK Oil & Gas bonds lost 1.48% and 1.07%, respectively. Naftogaz Ukrainy's bonds fell by 0.83%, Ukrenergo by 0.17%, and Metinvest by 0.1-0.5%. Only Ukrainian Railways (Ukrzaliznytsia) bonds remained unaffected on Monday morning.