Investors are betting that the weekend’s developments could mean an improvement in the situation on the battlefield from the point of view of Ukrainian troops and ultimately lead to a more favorable outcome for the Ukrainian economy than previously thought. However, it must be said that investors around the world generally tend to overreact immediately to unexpectedly favorable news. And overestimate them. Just as they are unnecessarily too pessimistic when unexpectedly negative news appears.
In any case, the Ukrainian agricultural producer Kernel, which specializes in the supply of cereals and sunflower production, today reached twenty percent on the Warsaw Stock Exchange. The Astarta sugar refinery grew nearly fifteen percent on the same stock exchange. The Ferrexpo company, which focuses on iron ore mining, has grown by nearly twenty percent in the London plan.
The withdrawal of the Russian army from the Kharkiv region continues today. Kiev says it will recapture all the territory of northeastern Ukraine that it has lost since the invasion began. It is said that the Russian retreat is so rapid that in panic it is not enough to empty the ammunition depots, which are the most precious loot for the Ukrainians.
Since the start of its offensive earlier this month, Kiev claims it has already gained control of 9,000 square kilometers of land. This is the strongest blow so far that Ukrainian troops have dealt to the Russians since the invasion began at the end of February this year. So far, Ukraine has regained under its control more than a tenth of the territory that Russia has taken from the invasion.
The author is Trinity Bank’s chief economist and a member of the government’s National Economic Council (NERV)
(Edited editorial)
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Lukáš Kovanda
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