There was a downturn in the stocks of most Ukrainian agro companies, due
to a reaction from traders on russia’s exit from the grain agreement.
This agreement had allowed for the safe export of grains from Ukrainian ports.
Quotes for poultry producer and exporter MHP (MHPC) dropped by 4.0% to USD 3.60
per share. Sugar maker Astarta (AST) declined by 5.7%, and Agroton (AGT)
suffered losses of 4.5%.
The situation looked even bleaker for Kernel (KER), which plummeted by
6.3% to PLN 12.78. The company reported significant damage to its assets at the
port of Chornomorsk due to a massive missile attack carried out by russia.
Kernel is currently assessing the extent of the damages, but preliminary data
suggest that it will take at least a year to rebuild the destruction. In
addition to the infrastructure damage, the attack in the night of July 19th
resulted in the partial destruction and damage of 60,000 tonnes of grain stored
at the port of Chornomorsk.
Over the past 12 months (from July 2022 to June 2023), Kernel exported
3.8mn tonnes of grain, which is half of what was exported during the period
from July 2021 to June 2022.
In the macroeconomic headlines, the government’s report revealed that
during the first half of this year, a staggering UAH 672bn was allocated for
military needs, while tax revenues to the budget amounted to UAH 600bn.
These figures once again underscore the exorbitant cost Ukraine is compelled to
bear in countering russian aggression. International partners of Ukraine have
already provided direct budgetary support amounting to USD 23.6bn (UAH 863bn)
The hryvnia cash exchange rate remains relatively stable, within the
range of bid/ask of 36.55/37.15 UAH/USD. Over the course of the week, the
National Bank sold USD 590mn from the FX reserves on the interbank market to
balance the demand for foreign currency.
POLITICS AND ECONOMICS
russia Quits Black Sea Grain Initiative to Hurt the World
The National Bank of Ukraine has
opened a special fundraising account to support the Armed Forces of Ukraine.
Please find more at the National Bank’s official website under
the link below:
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