WIG Ukraine, Ukrainian companies' stock price index on the Warsaw Stock Exchange (WSE), rose by almost 25% in a few days, reaching pre-war levels, Polish media outlet Puls Biznesu reported.
Financial markets have reacted positively to the U.S. government's promises to present a plan to end the Russian-Ukrainian war soon. Following Donald Trump's win in the elections, Ukraine's sovereign bonds rose in price as investors expect a quicker end to the war.
Trump and his team say they have made progress in efforts to end the Russia-Ukraine war, with Trump recently telling reporters he has been in contact with Russian President Vladimir Putin. Since taking office in January, his administration has pushed for a quick resolution, aiming for a deal within the first 100 days.
Investors expect to see the recovery of Ukraine-controlled territories and negotiations on the country's accession to the EU to follow, creating opportunities for Ukrainian and Polish companies listed on the WSE, Jakub Szkopek, an analyst at investment company Erste Securities told Puls Biznesu.
“This is especially true for construction companies and manufacturers of building materials with experience in the Ukrainian market. Such (Polish) companies include Grupa Kety, whose liquidity makes it easier for foreign investors to buy shares. The situation is similar with Budimex,” said Szkopek.
The analyst added that the Ukrainian equity index's growth positively impacted the stock prices of the largest Polish companies.
The WIG Ukraine index, which tracks the financial returns of WSE-listed Ukrainian companies, includes the largest agricultural holdings, such as Kernel, Astarta, Ovostar, and IMC.
Liliane Bivings
(Updated: )
