Ukrainian Agro Stocks Diverge as
Astarta Swings, Kernel Puts M&A on Ice
Shares of Ukrainian agricultural
companies showed a wide range of performance last week, with Astarta emerging
as the most volatile. The stock rallied to a local high of PLN 66.00 before
retreating to PLN 61.50, implying a market capitalization
of USD 393mn.
A key corporate development came
from Kernel, which had considered acquiring a controlling stake in fellow
Ukrainian-listed peer IMC. Although the company secured antitrust clearance for
the transaction, both sides said talks have been put on hold. IMC shares
have surged 90% year-to-date on the Warsaw Stock Exchange and last traded at
PLN 30.60, valuing the company at USD 284mn.
IMC reported a net profit of USD
54.5mn for 2024, driven by a 52% jump in revenue to USD 211mn. The company operates a land bank of 120,000 hectares across Chernihiv, Sumy,
and Poltava regions, growing corn, wheat, and sunflower.
Kernel’s shares edged up 1.5% over
the week to PLN 19.70, translating to a USD 1.51bn market cap. Meanwhile, MHP
(MHPC) declined 3.3% to USD 5.24 per share, with a
capitalization of USD 561mn.
Iron ore miner Ferrexpo (FXPO)
advanced by 5.0% last week to close at GBp 65.20 (Mcap of USD 519mn). The
benchmark iron ore price has decreased by 3.4% since the start of the year to
USD 100 per tonne. The FXPO stock dropped by 42%
YTD as the company suffered from controversial legal disputes with tax
authorities. The global iron ore market remains under pressure amid weakening
demand from China, which accounts for over 70% of seaborne imports. Sluggish property sector activity and a slower-than-expected rebound
in infrastructure spending have dampened steel production, weighing on ore
prices.
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