Update: On February 19, the WIG-Ukraine index on the Warsaw Stock Exchange dropped by 8.07%. Now its value is slightly below the pre-war level, namely 558.3 points. The index is likely to be affected by new statements about the end of the war.
Despite the challenges posed by the war, the WIG-Ukraine index of Ukrainian stocks on the Warsaw Stock Exchange has been showing significant growth. The recent news of potential peace talks had a positive impact on the market, allowing it to exceed pre-war levels.
Index growth: from fall to rise
On the first day of the full-scale war, which began on February 24, 2024, the WIG-Ukraine index fell from 574.37 points to 361.98. Subsequently, in May 2024, it fell even below 200 points. However, the index has recently seen a significant recovery, which on February 18 even exceeded the pre-war level, reaching 592.69 points.
Which companies’ shares gained the most?
The growth of the WIG-Ukraine index was driven by a rise in the price of shares of several companies:
- Milkiland: +13.86%.
- Agroton: +9.14%.
- IMC: +7.30%.
- KSG-Agro: +4.22%.
- Astarta: +0.91%.
- Coal Energy: +25.09%.
- Kernel: +5.15%.
These market changes clearly emphasize the sensitivity of financial markets to global news. The rise in the index occurred amid information about possible negotiations to end the war, which indicates investor optimism. Moreover, the rapid rise in share prices on the Warsaw Stock Exchange can be explained by the presence of a large number of private investors.
The restoration of the WIG-Ukraine index to pre-war levels demonstrates the market’s potential, even in the face of instability. Although many economic and geopolitical challenges remain, market drivers seem to believe in stabilization and positive developments in Ukraine. This shows that despite the difficulties, investors continue to look for growth opportunities in a cautiously optimistic environment.