Rollercoaster ride continues on Ukrainian stock market: WSE shares fall by 6-15%, Eurobonds fall by 4-5%

Ukrainian stocks on the Warsaw Stock Exchange (WSE) fell sharply on Monday morning, falling 6-15% after a heated exchange between the Ukrainian and US presidents on Friday evening. The dispute significantly reduced the chances of a quick resolution to the long-running conflict.

According to the WSE, shares of dairy company Milkiland fell by 14.79%, while agroholdings Agrotone and IMC, which have lands near the front line, lost 11.01% and 9.09% respectively. KSG-Agro fell by 8.58%, and shares of Astarta, the country's largest sugar producer, fell by 6.42%.

Coal Energy, whose production was suspended due to the war and which had previously shown the fastest growth in the market, recorded the biggest single-day drop – by 14.99%.

At the same time, shares of Kernel, the largest producer of sunflower oil in Ukraine, which are not included in the WSE index due to a low free float ratio, fell by 6.18% after a sharp drop of 26.12% the previous day.

On the London Stock Exchange, where retail investors have less influence than on the WSE, shares in MHP, Ukraine's largest poultry producer, fell 0.66%, while shares in mining company Ferrexpo fell 0.54%.

In the Eurobond market, the fallout from the conflict between Ukrainian President Volodymyr Zelensky and former US President Donald Trump has led to a 4.1-5.4% decline in bond prices. Ukrainian sovereign bonds maturing in 2029 are currently trading at 68.6% of their face value, while bonds maturing in 2036 are trading at 54.2%. GDP-linked warrants also fell by 4.2%, falling to 77.8% of their base value.

Corporate Eurobonds also suffered losses. According to the Frankfurt Stock Exchange, DTEK Energy and DTEK Oil & Gas bonds lost 1.48% and 1.07%, respectively. Naftogaz of Ukraine bonds fell by 0.83%, Ukrenergo by 0.17%, and Metinvest by 0.1-0.5%. Only Ukrainian Railways (Ukrzaliznytsia) bonds remained unchanged on Monday morning.